Tilray Fiscal Q1 Revenue Rises 23% to Record $257 Million

Tilray Brands, Inc. (TLRY ) reported first-quarter fiscal 2027 results on October 8, 2026, posting net revenue of $257.1 million for the three months ended August 31, 2026, up 23% from $209.5 million in the prior-year period. The company characterized the revenue figure and its gross profit of $77.5 million as first-quarter records, and it reaffirmed its fiscal 2027 adjusted EBITDA guidance of $68 million to $75 million.

Gross profit increased 35% from $57.5 million a year earlier, and gross margin expanded to 30% from 27%. Net loss was $40.0 million, or $0.32 per share, compared with net income of $1.5 million in the prior-year quarter; Tilray said the loss was driven predominantly by non-cash charges. Adjusted net loss was $3.0 million, or $0.02 per share, versus adjusted net income of $3.4 million, or $0.03 per share, a year earlier. Adjusted EBITDA was $9.2 million, down from $10.2 million, a result the company said was burdened by approximately $1.7 million of global fuel surcharges during the quarter.

Total operating expenses rose to $101.6 million from $55.4 million, and the company reported an operating loss of $24.1 million compared with operating income of $2.1 million in the prior-year quarter. General and administrative expense increased to $57.6 million from $41.1 million, marketing and promotion expense rose to $15.7 million from $10.2 million, and transaction costs, net, were $4.8 million versus $0.4 million.

Segment Results

Beverage was the largest segment in the quarter at 39% of total net revenue, up from 27% a year earlier. Beverage net revenue rose 82% to $101.5 million from $55.7 million, an increase Tilray attributed to its acquisition of BrewDog. Segment gross profit increased to $42.0 million from $21.3 million, gross margin expanded to 41% from 38%, and the company said BrewDog achieved profitability in the quarter.

Cannabis net revenue was $56.1 million, down from $64.5 million, while cannabis gross margin expanded to 39% from 36% on gross profit of $22.0 million versus $23.3 million. By market channel, Canadian adult-use revenue was $53.6 million versus $64.1 million, Canadian medical cannabis revenue was $4.7 million versus $6.1 million, and wholesale revenue fell to $0.7 million from $4.2 million. International cannabis revenue rose to $16.2 million from $13.4 million, and excise taxes were $19.1 million versus $23.2 million.

Distribution net revenue increased 14% to $84.3 million from $74.0 million, with gross profit of $9.1 million versus $8.0 million and gross margin unchanged at 11%. Wellness net revenue was $15.3 million, consistent with the prior-year period; segment gross profit was $4.4 million versus $4.9 million, with gross margin of 29% versus 32%.

Tilray said its EMEA revenue increased 71% in the quarter, with growth led by medical cannabis, beverage and pharmaceutical distribution.

Balance Sheet and Fiscal 2027 Guidance

Cash, restricted cash and marketable securities totaled $221.4 million at quarter end, compared with $264.8 million a year earlier, and working capital was $376.9 million versus $433.5 million. Tilray said it reduced total outstanding debt by $42 million fiscal year-to-date and ended the quarter in a net cash position, a non-GAAP measure.

Net cash used in operating activities was $16.5 million, versus $1.3 million in the prior-year quarter, and free cash flow was negative $27.4 million versus negative $10.6 million. Adjusted free cash flow, which excludes growth capital expenditures and cash paid for litigation settlements, was negative $23.4 million versus negative $4.8 million.

For its fiscal year ending May 31, 2027, the company reaffirmed its expectation of adjusted EBITDA of $68 million to $75 million, which it said represents double-digit growth compared with fiscal 2026. Tilray noted that, due to the seasonality of its business, financial results are typically weighted toward the second half of the fiscal year and strengthen significantly in the fourth quarter. The guidance is provided on a non-GAAP basis, and the company said it cannot reconcile expected adjusted EBITDA to net income without unreasonable effort.

Chairman and Chief Executive Officer Irwin D. Simon said Tilray operates more than 6 million square feet of cultivation capacity across Canada, Portugal and Germany, supported by what he described as one of the largest EU-GMP certified footprints in the world. Simon said Tilray is the fourth-largest craft brewer in the United States and the largest in the United Kingdom, and that Carlsberg has partnered with Tilray to begin producing and selling its brands in the U.S. market starting January 1, 2027. “We are no longer dependent on a single market or regulatory catalyst,” Simon said.

Tilray said it would host a webcast to discuss the results at 8:30 a.m. Eastern Time on October 8, 2026, with a replay to be archived in the Events and Presentations section of its investor relations website. Prior-year share and per-share amounts in the release were retrospectively adjusted to reflect a reverse stock split that became effective December 2, 2025, according to a footnote to the accompanying unaudited financial statements.