Tilray Brands Delivers Record Q3 Fiscal 2026 Results; Net Revenue Increases to $207 Million with 11% Organic Growth and Gross Profit Expands to $55 Million, Increasing 6% Year-Over-Year
- International Cannabis Accelerates with 73% Net Revenue Growth and 100% Increase in Cannabis Flower Sales Volume Year-Over-Year
- Canadian Adult-Use and Medical Cannabis Net Revenue Combined Increased 8% Year-Over-Year; Tilray Maintains #1 Cannabis Leadership Position in Canada by Revenue
- BrewDog Acquisition¹ for ~£40 Million Cash Positions Tilray as a Global Craft Beverage Leader with Multi-Region Expansion Across Europe, Middle East, Australia, Asia-Pacific and the U.S.
- Strong Balance Sheet Supports Growth with $265 Million in Cash and Marketable Securities² and ~$3.5 Million Net Cash
NEW YORK and LONDON and LEAMINGTON, Ontario, April 01, 2026 (GLOBE NEWSWIRE) — Tilray Brands, Inc. (“Tilray”, “our”, “we” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a global lifestyle and consumer packaged goods company at the forefront of the cannabis, beverage, and wellness industries, today reported financial results for its third fiscal quarter ended February 28, 2026, highlighting record net revenue, record gross profit, record international cannabis revenue and continued successful execution of its global expansion strategy. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Irwin D. Simon, Chairman and Chief Executive Officer, Tilray Brands, stated, “Our third quarter results demonstrated the strength of our global strategy in action, delivering our strongest Q3 net revenue and gross profit to date. Our international cannabis business delivered its best quarterly net revenue in Company history, with over 70% year-over-year growth, which reflects the disciplined execution of our strategy across key global markets. We are seeing that our strategy works, driving growth through scale, product innovation, and strong distribution.”
Mr. Simon, continued, “With the acquisition of BrewDog, the UK’s leading craft beer brand, and our recently announced partnership with Carlsberg beginning in 2027, we are accelerating the buildout of a scaled global beverage platform. These initiatives broaden our infrastructure, strengthen our brand portfolio, and enhance our distribution capabilities, positioning Tilray to capture growth across key markets in the U.S., Europe, the Middle East, Australia, and Asia-Pacific. Supported by our diversified platform across cannabis, beverage, pharmaceutical distribution, and wellness, we are well-equipped to navigate industry headwinds while leveraging emerging opportunities driven by global consumer trends and regulatory changes. We remain focused on building a leading global consumer platform designed to drive sustained growth, expand profitability, and deliver long-term shareholder value.”
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1 BrewDog acquisition is not reflected in the Company’s third quarter results or balance sheet, as the transaction closed and completed subsequent to quarter end.
2 Cash, restricted cash and Marketable Securities is a Non-GAAP financial measure. See “Use of Non-GAAP Measures” below for additional discussion regarding these non-GAAP measures and for a reconciliation of such Non-GAAP Measures to our most comparable GAAP measure.
Financial Highlights
All comparisons made to the prior year period
- Net revenue increased 11% to a record $206.7 million in the third quarter compared to $185.8 million.
Gross profit increased 6% to a record $55.0 million in the third quarter compared to $52.0 million.
Gross margin was 27% in the third quarter compared to 28%.
Cannabis net revenue increased 19% to $64.8 million in the third quarter compared to $54.3 million as a result of a 73% increase in international cannabis revenue and an 8% increase in Canadian adult-use and medical cannabis net revenue combined.
Cannabis gross profit increased 18% to $26.0 million in the third quarter compared to $22.0 million.
Cannabis gross margin was 40% in the third quarter compared to 41%.
Beverage net revenue was $42.6 million in the third quarter compared to $55.9 million.
Beverage gross profit was $13.6 million in the third quarter compared to $19.9 million.
Beverage gross margin was 32% in the third quarter compared to 36%.
Wellness net revenue increased 16% to $16.4 million in the third quarter compared to $14.1 million.
Wellness gross profit increased 19% to $5.4 million in the third quarter compared to $4.5 million.
Wellness gross margin increased to 33% in the third quarter compared to 32%.
Distribution net revenue, which includes Tilray Pharma, grew to a third quarter record net revenue of $83.0 million compared to $61.5 million.
Distribution gross profit increased to $10.0 million in the third quarter compared to $5.6 million.
Distribution gross margin increased to 12% in the third quarter compared to 9%.
Net loss improved 97% to $25.2 million in the third quarter compared to a net loss of $793.5 million, and net loss per share improved to $(0.24) in the third quarter from $(8.69).
Adjusted net income (loss)³ and adjusted net income (loss) per share³ improved to $2.4 million and $0.02 in the third quarter compared to adjusted net loss of $2.9 million and $(0.03).
Adjusted cash operating income⁴ improved to $4.0 million in the third quarter compared to an adjusted cash operating loss of $3.1 million.
Adjusted EBITDA⁵ increased 19% to $10.7 million in the third quarter compared to $9.0 million.
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3 Adjusted net income (loss) and adjusted net income (loss) per share are Non-GAAP financial measures. See “Use of Non-GAAP Measures” below for a discussion of these Non-GAAP measures and for a reconciliation of this Non-GAAP Measure to our most comparable GAAP measure.
4 Adjusted cash operating income (loss) is a Non-GAAP financial measure. See “Use of Non-GAAP Measures” below for a discussion of these Non-GAAP measures and for a reconciliation of this Non-GAAP Measure to our most comparable GAAP measure.
5 Adjusted EBITDA is a Non-GAAP financial measure. See “Use of Non-GAAP Measures” below for a discussion of these Non-GAAP measures and for a reconciliation of this Non-GAAP Measure to our most comparable GAAP measure.
Balance Sheet Update: Our balance sheet remains strong, supported by cash, restricted cash, and marketable securities balance of $264.8 million at the end of the third quarter, providing flexibility for strategic opportunities and investment. In the quarter, we also further reduced our total outstanding debt by $4.2 million, highlighting our improved debt position.
Net (Debt) Cash Position: Our net cash position of $3.5 million improved $40.2 million from a net debt position of $36.6 million in the prior year period.
Project 420 Update: In the quarter, we completed the previously-announced Project 420 synergy program, delivering approximately $33 million in annualized cost savings and meaningfully strengthening the cost structure of our Beverage business.
Fiscal Year 2026 Guidance
For its fiscal year ended May 31, 2026, the Company reconfirms its guidance to achieve; adjusted EBITDA of $62 million to $72 million, representing growth of 13% to 31% as compared to fiscal year 2025.
Management’s guidance for adjusted EBITDA is provided on a non-GAAP basis and excludes stock-based compensation; change in fair value of contingent consideration; purchase price accounting step-up; impairments of intangible assets and goodwill; Other than temporary change in fair value of convertible notes receivable; litigation costs; restructuring costs, transaction (income) costs and other non-operating income (expenses) and other non-recurring items that may be incurred during the Company’s fiscal year 2026, which the Company will continue to identify as it reports its future financial results. Given the escalation of hostilities in the Middle East, including Iran, we are monitoring various factors that may directly and indirectly impact operating expenses and, therefore, our adjusted EBITDA expectations, including energy, fuel, logistics, and supply chain disruption.
The Company cannot reconcile its expected adjusted EBITDA to net income “Fiscal Year 2026 Guidance” without unreasonable effort because of certain items that impact net income, and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
Live Audio Webcast
Tilray Brands will host a webcast to discuss these results today at 8:30 a.m. Eastern Time. Investors may join the live webcast available on the Events & Presentations section of Tilray’s Investor Relations website. A replay will be available and archived on the Company’s website.
About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.
