Tilray’s Q2 Report: Record Revenue Overshadowed by Widening Loss

Tilray Brands, Inc. has released financial results for its second fiscal quarter of 2026, presenting a complex picture for investors. The company posted record quarterly sales but simultaneously reported a GAAP net loss that was significantly wider than market expectations. This mixed performance has led to volatile pre-market trading activity, following a slight decline in the share price to $8.94 at the previous close.

For the quarter ended November 30, 2025, Tilray achieved net revenue of $217.5 million. This figure not only surpassed analyst consensus estimates of approximately $211 million but also set a new record for a second fiscal quarter in the company’s history.

However, the bottom-line results told a different story. The company reported a GAAP loss per share of -$0.41, which was notably worse than the anticipated loss of around -$0.20 per share. This substantial discrepancy between the GAAP result and the adjusted earnings per share, which showed a loss of -$0.02, points to significant non-cash charges or one-time expenses impacting the reported figures. On an adjusted basis, EBITDA stood at $8.4 million.

A major contributor to the top-line strength was the international cannabis segment. Sales in this division surged 36% year-over-year. The sequential growth was even more pronounced, showing a 51% increase from the first fiscal quarter. Expansion in Europe, particularly within Germany's growing medical cannabis market, is providing solid support for the company's global strategy.

Strategic Positioning and Market Reaction

The initial market response to the earnings report was muted. Rather than rallying on the revenue beat, shares edged lower, closing at $8.94. This suggests investors are carefully weighing the record sales against the expanded GAAP loss.

From a balance sheet perspective, Tilray remains in a solid liquidity position. The quarter concluded with $291.6 million in cash, cash equivalents, and marketable securities. Net cash was approximately $27.4 million, providing the company with what management views as sufficient resources to fund ongoing operations and strategic initiatives without immediate dilution risk.

Should investors sell immediately? Or is it worth buying Tilray?

Management's strategic commentary heavily emphasized the U.S. market. During the earnings call, CEO Irwin Simon highlighted recent political signals regarding the potential reclassification of cannabis at the federal level. In preparation, Tilray announced the formation of "Tilray Medical USA" in December 2025. This entity is designed to capitalize on a possible move of cannabis to Schedule III, which would improve conditions for the medical market and offer more favorable tax treatment.

Broader Sector Context and Cost Challenges

Tilray's report arrives during a period of renewed investor interest in the cannabis sector. The AdvisorShares Pure US Cannabis ETF (MSOS) has seen revitalized trading activity in early 2026, fueled by optimism surrounding potential federal regulatory reforms. Within this environment, Tilray's diversified model—spanning cannabis, distribution, and alcoholic beverages—offers a measure of revenue stream diversification.

The distribution business, which includes Tilray Pharma, underscored this role by posting a record quarterly revenue of $85.3 million. These non-cannabis revenues contribute a stabilizing cash flow, helping to offset volatility in the core cannabis markets.

Nevertheless, the path to sustained profitability remains costly. While efficiency initiatives under "Project 420" aim to deliver $33 million in savings, the expenses associated with maintaining a global footprint and preparing for a potential U.S. market entry continue to pressure short-term earnings.

Forward Guidance and Technical Perspective

For the full 2026 fiscal year, Tilray reaffirmed its adjusted EBITDA guidance range of $62 million to $72 million. The company's global medical cannabis division is projected to grow toward an annual revenue run rate of approximately $150 million, aided by its new U.S. initiatives.

From a technical analysis standpoint, the stock is currently trading around a key support level near $9.00. A sustained break below this zone could signal further consolidation. Conversely, a decisive move above the $10.00 resistance level would likely require clearer positive signals on U.S. regulatory progress or tangible advancements toward GAAP profitability. Trading volume in the coming sessions will indicate how the market is ultimately weighting this quarter's blend of robust growth dynamics and bottom-line weakness.