Wall Street will be keenly watching the performance of cannabis stocks on Thursday after Tilray Brands (NASDAQ:TLRY) posted its first revenue beat in four quarters and lifted its full-year outlook, boosting the shares of the Canadian marijuana player in the premarket.
While TLRY added ~14% in response to the earnings, its domestic competitors, Canopy Growth (CGC), Aurora Cannabis (ACB), and SNDL Inc. (SNDL), also traded higher.
Other cannabis stocks to watch: Cronos (CRON), OrganiGram (OGI), Curaleaf Holdings (OTCPK:CURLF), Acreage Holdings (ACRHF), Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Trulieve Cannabis (OTCQX:TCNNF), Ayr Wellness (OTCQX:AYRWF), TerrAscend (OTCQX:TSNDF), and Verano Holdings (OTCQX:VRNOF).
Cannabis-focused ETFs: AdvisorShares Pure Cannabis ETF (YOLO), Global X Cannabis ETF (POTX), ETFMG Alternative Harvest ETF (MJ), Amplify Seymour Cannabis ETF (CNBS), AdvisorShares Pure US Cannabis ETF (MSOS)
With its Q1 FY26 results earlier in the day, Tilray (NASDAQ:TLRY) reported $209.5M in revenue with ~5% YoY growth, beating Street forecasts by roughly $3.8M as its distribution business added $74.0M to the topline with ~9% YoY growth.
However, net revenue from TLRY’s beverage business remained flat at $55.7M from the prior year period, and its cannabis business added $64.5M to the topline with ~5% YoY growth.
Thanks mainly to a ~51% decline in amortization and a drop in other non-cash expenses, the company’s operating costs fell ~43% YoY to $55.4M, and TLRY swung to $1.5M of net income compared to $34.7M of net loss in the prior year quarter.
However, the company’s gross margin slipped to 27% from 30% in Q1 FY25 and its adjusted net income improved to $3.9M from a $6.1M loss, while adj. EBITDA rose ~9% YoY to $10.2M.
Looking ahead, Tilray (NASDAQ:TLRY) boosted its guidance for adj. EBITDA to $62M – $72M compared to $61.1M projected by analysts, according to Bloomberg data.