Tilray Brands (NASDAQ: TLRY) has witnessed a considerable surge, rising nearly 200% from $0.42 in early July to its present price of $1.24. This increase is largely attributed to the Trump administration's deliberation on reclassifying cannabis from a Schedule I to a Schedule III substance.
I believe Tilray's rally mainly hangs on Schedule III hype. I see limited direct benefit for Tilray from Schedule III, as its U.S. exposure is mainly beer and beverage, not cannabis. Momentum and insider buying are positive, but slow revenue growth and a high P/E make me cautious about chasing the stock now.
Tilray Brands (NASDAQ:TLRY) shares continued to gain momentum on Tuesday after the cannabis firm saw its price target boosted by Jefferies analysts. The analysts, who maintained a ‘Buy' rating on Tilray, upped their price target to $2 from $1.50, citing growing optimism about a potential shift in US federal cannabis policy.
Tilray Brands (NASDAQ: TLRY) stock has already climbed 2x in the past month after reports that the Trump administration may reclassify marijuana, underscoring the market's recognition of this transformative catalyst. But how significant could this opportunity become for Tilray?
In the closing of the recent trading day, Tilray Brands, Inc. (TLRY) stood at $1.03, denoting a -12.71% move from the preceding trading day.
Tilray Brands: Improving Fundamentals, De-Risked Balance Sheet, And A Re-Igniting Narrative
Tilray Brands (NASDAQ:TLRY), a pharmaceutical company that focuses on the production and distribution of medical and adult-use cannabis, craft beer, spirits, beverages, and hemp foods, offers an intriguing value opportunity after the stock surged by 42%, driven by regulatory optimism. The administration of President Trump is contemplating the reclassification of marijuana as a less harmful drug, which would be the most significant regulatory catalyst for the cannabis sector in many years.
Upgrading Tilray Brands to Buy due to improved valuation, net cash position, and technical support near recent lows, despite ongoing volatility and sector headwinds. Q4 results showed mixed performance: revenue missed expectations but adjusted EBITDA beat; cannabis margins improved, though overall growth remains challenging. Valuation is attractive, trading below tangible book value and at under 10x FY26 projected adjusted EBITDA, limiting downside risk versus peers.
Tilray posts record non-cannabis revenues in fiscal 2025, but Q4 sales slip as cannabis weakness pressures overall results.
Tilray Brands posted sequential revenue growth but showed a decrease YoY. The company reported a high net loss due to non-cash impairments. Tilray Brands expects 2026 to be better than 2025, but uncertainty and risk remain.
Tilray Brands, Inc. (NASDAQ:TLRY ) Q4 2025 Earnings Conference Call July 28, 2025 4:30 PM ET Company Participants Berrin Noorata - Chief Corporate Affairs Officer Carl A. Merton - CFO & Principal Accounting Officer Denise Menikheim Faltischek - Chief Strategy Officer & Head of International Irwin David Simon - President, CEO & Chairman Rajnish Ohri - Corporate Participant Conference Call Participants Aaron Thomas Grey - Alliance Global Partners, Research Division Frederico Yokota Choucair Gomes - ATB Capital Markets Inc., Research Division Kaumil S.
Tilray's fiscal Q4 results disappointed, with revenues missing estimates and a massive $1.26 billion net loss driven by impairment charges. TLRY's ongoing cash burn has resulted in tremendous shareholder dilution to keep the balance sheet from weakening further. A reverse stock split is likely coming to maintain exchange listing requirements, which typically pressures share prices further.