When Tilray Brands (NASDAQ:TLRY) reports first quarter earnings on Thursday before the market opens, Wall Street expects the firm to post EPS of -$0.03, while revenue is expected to increase nearly 3% to $205.75 million during the quarter.
The Canadian cannabis company provided fiscal 2026 guidance for adjusted EBITDA between $62 million and $72 million, expecting continued growth from international cannabis and margin expansion.
During its Q4 earnings call, CEO Irwin David Simon noted plans to strengthen the balance sheet through additional debt restructuring in fiscal 2026.
Tilray Brands jumped over 24% so far this year, outperforming the broader S&P Index, which gained over 14% during the same period.
However, Seeking Alpha analyst Bill Muarer stated that the rally has come amidst the latest round of hopes that the US could reclassify marijuana as a less dangerous drug.
“We’ve heard this story before, and it has failed to actually happen, but Tilray also doesn’t have a presence in the US. As a result, this rally may end just as fast as it started,” highlighted Muarer.
As per the Seeking Alpha’s Quant Ratings, TLRY has a Strong Buy rating with a score of 4.80 out of 5. The company received an A+ for momentum, B+ for valuation and B for revisions, but it got a C for profitability and C- for growth.
However, Seeking Alpha analysts and Wall Street analysts are cautious and rated TLRY as Hold.
Seeking Alpha analyst Alan Brochstein downgraded TLRY from Sell to Strong Sell due to overvaluation after a sharp rally and increased share count.
“Despite an improved balance sheet, TLRY faces weak growth prospects, declining analyst estimates, and potential downside to $0.88 per share, or lower,” added Brochstein.
Over the last two years, TLRY has beaten EPS estimates 88% of the time and has beaten revenue estimates 38% of the time.