Tilray Brands reported record net revenue of $218 million for its second‑quarter fiscal 2026, a 3 % year‑over‑year increase that marked the company’s highest quarterly top line to date. The growth was driven primarily by a 36 % jump in international cannabis sales and a modest 6 % rise in Canadian adult‑use cannabis, while beverage revenue slipped as the company continued to trim its portfolio under Project 420.
The company posted a diluted earnings‑per‑share loss of $0.41, missing the consensus estimate of $0.14. The miss reflects higher operating costs and a contraction in beverage gross margin, which offset the gains in cannabis and distribution. Operating cash outflows narrowed sharply to $8.5 million from $40.7 million a year earlier, underscoring the impact of the company’s cost‑saving program.
Segment‑level data show cannabis net revenue at $67.5 million, beverage at $50.1 million, and distribution at $85.3 million. Gross margin fell to 26 % from 29 % in the prior year; cannabis margin rose to 39 % while beverage margin contracted, dragging down the overall figure. The mix shift toward higher‑margin cannabis and distribution helped offset the weaker beverage performance.
Project 420, Tilray’s $33 million annualized savings initiative, is credited with the sharp reduction in operating cash outflows and supports the company’s goal of improving profitability. Management reaffirmed its full‑year adjusted EBITDA guidance of $62 million to $72 million, signaling confidence in sustaining the current trajectory.
CEO Irwin D. Simon highlighted the quarter as a “record” achievement, emphasizing disciplined execution across its diversified portfolio and expressing optimism about the potential impact of U.S. federal cannabis rescheduling. He noted that the company’s strategic focus on high‑margin cannabis and distribution, coupled with ongoing cost discipline, positions it well for future growth.
Investors reacted positively to the results, with the revenue beat and reaffirmed guidance driving enthusiasm, although the EPS miss tempered the overall sentiment.
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