During the past five years, the reality of the cannabis industry has not lived up to the hype that accompanied Canada's historic legalization of pot for recreational use in 2018. Cannabis stocks have largely generated abysmal returns during much of that time.
During the past five years, investing in cannabis stocks has led to dreadful returns for investors. One of the top cannabis stocks in the industry is Tilray Brands (TLRY -2.50%), and during that stretch, its valuation has crumbled, falling by a staggering 94%.
Any investor hoping to reap the rewards by holding marijuana companies must be a shiny-eyed optimist at this point. Weed companies are among the worst performers on the stock exchange since they are constantly barraged by headwinds in North America.
Tilray shares fell over 10% after another revenue miss and significant cash burn, raising concerns about the stock setting new lows. Despite some growth in beverage revenues, overall financials remain bleak, with continued losses and significant shareholder dilution. If cash burn doesn't improve, investors will be significantly diluted even more, potentially leading to a reverse split if the stock falls below $1.
Tilray Brands (NASDAQ:TLRY) shares plunged more than 11% following the release of its fiscal second quarter 2025 earnings report, where sales fell short of estimates. The company reported net revenue of $211 million for the quarter, marking a 9% increase year-over-year but falling short of analysts' expectations of $216.3 million.
Tilray Brands, Inc. (NASDAQ:TLRY ) Q2 2025 Earnings Conference Call January 10, 2025 8:30 AM ET Company Participants Berrin Noorata - Chief Corporate Affairs & Communications Officer Irwin Simon - Chairman & Chief Executive Officer Carl Merton - Chief Financial Officer Ty Gilmore - President, Tilray Beverages North America Blair MacNeil - President, Tilray Canada Denise Faltischek - Chief Strategy Officer & Head, International Conference Call Participants Kaumil Gajrawala - Jefferies Robert Moskow - TD Cowen Aaron Grey - Alliance Global Partners Frederico Gomes - ATB Capital Markets Bill Kirk - Roth MKM Matt Bottomley - Canaccord Genuity Pablo Zuanic - Zuanic & Associates Michael Lavery - Piper Sandler Operator Thank you for joining us for today's conference call to discuss Tilray Brands' Financial Results for the Second Quarter ended November 30, 2024. All lines have been placed on mute to prevent any background noise.
Tilray Brands (TLRY -11.56%) stock tumbled 12% through 9:50 a.m. ET after missing analyst sales forecasts in its Friday morning report.
While the top- and bottom-line numbers for Tilray Brands (TLRY) give a sense of how the business performed in the quarter ended November 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Tilray Brands, Inc. (TLRY) came out with a quarterly loss of $0.10 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to break-even earnings per share a year ago.
The beer and cannabis company's revenue fell short of analyst estimates.
Tilray Brands has consistently missed analyst estimates and diluted shares via acquisitions and cash burn. The upcoming fiscal Q2 results are expected to show revenue growth but lack clarity on organic sales due to numerous acquisitions. Despite reporting sales growth, Tilray is still reporting losses due to low gross margins and a complex business structure.
The Tilray Brands stock price has crawled back in the past few days, rising from the December low of $1.15 to $1.45. This mini-rebound will be put to test when the cannabis company publishes its financial results later this week.