When Tilray Brands (NASDAQ:TLRY) reports fourth quarter earnings on Monday, Wall Street expects the firm to post EPS of -$0.03, while revenue is expected to increase 1.5% to $233.29 million during the quarter.
The Canadian cannabis company fell short of Street forecasts for its revenue in the past three consecutive quarters. It also revised its full-year outlook to indicate $850M-$900M in revenue for fiscal 2025, down from previous guidance of $950M-$1B.
Seeking Alpha analyst Alan Brochstein downgraded TLRY to Neutral from Strong Buy, arguing that revenue outlook has weakened, with FY26 and FY27 estimates declining, despite a modest improvement in adjusted EBITDA projections.
Tilray Brands slipped over 47% so far this year, underperforming the broader S&P Index, which gained over 8% during the same period.
As per the Seeking Alpha’s Quant Ratings, TLRY has a Hold rating with a score of 2.61 out of 5. The company received an A for growth and a B grade for profitability, but a C- grade in momentum as well as revisions dragged down the rating.
Earlier this month, the U.S. Drug Enforcement Agency (DEA) informed an in-house judge this week that a regulatory process to reschedule marijuana initiated under the Biden Administration remains on hold at the agency.
“Tilray Brands is a high-risk, high-reward opportunity after a 99%+ decline over seven years,” noted Seeking Alpha analyst Paul Franke, adding that, “Potential U.S. regulatory changes under President Trump could dramatically boost industry sentiment and Tilray’s prospects.”
Over the last two years, TLRY has beaten EPS estimates 88% of the time and has beaten revenue estimates 38% of the time.
Over the last three months, EPS estimates have seen no upward revisions versus one downward move, while revenue estimates have seen no upward revisions against four downward revisions.