Tilray Brands (TLRY) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 net revenue of $206.7 million, up 11% year-over-year, driven by cannabis, distribution, and wellness growth, with BrewDog acquisition and Carlsberg partnership positioning annualized revenue at $1.2 billion.

• Operating expenses decreased significantly due to the absence of prior year non-cash impairment charges and lower amortization, selling, litigation, and restructuring costs.

• Adjusted EBITDA rose 19% to $10.7 million, reflecting improved operating performance and cost discipline.

• Maintained strong liquidity with $265 million in cash and marketable securities and a net cash position of $3.5 million.

• Diversified global platform includes leading positions in cannabis (Canada), craft brewing (U.S. and U.K.), medical cannabis, and wellness.

Financial highlights

• Net revenue reached $206.7 million, up 11% year-over-year; gross profit was $55 million, up 6%; gross margin was 27%.

• Cannabis net revenue grew 19% to $64.8 million; international cannabis sales up 73% year-over-year; gross margin at 40%.

• Distribution net revenue increased 35% to $83 million; wellness net revenue up 16% to $16.4 million; beverage net revenue was $42.6 million, down 24% year-over-year.

• Net loss was $25.2 million, a significant improvement from $793.5 million prior year, mainly due to non-cash impairments.

• Adjusted net income was $2.4 million, up from an adjusted net loss of $2.9 million; adjusted cash operating income improved to $4.1 million.

Outlook and guidance

• Fiscal 2026 adjusted EBITDA guidance reaffirmed at $62 million–$72 million, representing 13% to 31% growth over fiscal 2025.

• Management focused on revenue growth, margin improvement, and positive cash flow, with continued investment in core brands and international expansion.

• Guidance excludes stock-based compensation, impairments, litigation, restructuring, and other non-recurring items.

• Expect continued momentum in international cannabis and beverage segments, with further operational efficiencies and cost savings from ongoing integration and scale.

• Management monitoring Middle East hostilities for potential impacts on expenses and supply chain.