Tilray Brands (TLRY 4.82%) has become known as a cannabis company. The company expanded its product offerings to include beverages such as beer, although Tilray’s cannabis and wellness (hemp-based food) divisions combined for 38% of fiscal 2025 revenue (ended May 31).
Given how crucial cannabis is to the company’s results, investors considering investing in Tilray Brands’ stock should understand the importance of markets outside the United States.
Image source: Getty Images.
Focus outside the U.S.
The cannabis division accounts for a significant share of Tilray Brands’ sales and the largest portion of its profitability. The segment generated $196.9 million in sales for the first nine months of the year, or 31% of the total. But it produced a gross profit of $75.4 million, the company’s largest profit source, representing 44%.
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Current Price
$4.94
Key Data Points
Market Cap
$591M
Day’s Range
$4.85 – $5.48
52wk Range
$3.51 – $23.20
Volume
70.3K
Avg Vol
4.6M
Gross Margin
23.71%
These sales come from outside the United States, including Canada and the European Union, where regulations on medicinal and recreational marijuana aren’t as stringent. By comparison, there’s a mix of U.S. state regulations for companies to navigate.
Year to date, Tilray Brands’ sales totaled $633.7 million. Nearly three-quarters came from markets outside the U.S. Aside from being the largest, the Canada and EMEA (Europe, the Middle East, and Africa) segments have grown sales this year, while the U.S. and the rest of the world have seen top-line declines.
The company loses money, but to achieve profitability, Tilray Brands will have to continue growing Canadian and EMEA revenue. This year, it reported a loss of $67.2 million under generally accepted accounting principles. That’s narrower than the $913.5 million loss in the year-ago period, although that figure included a large $699.2 million impairment charge.
