TLRY earnings analysis
What we found in TLRY's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Tilray delivered 11% FY2026 revenue growth to $915.454 million, led by international cannabis, EMEA and distribution, while adjusted EBITDA rose to $61.139 million. The reported GAAP loss improved materially because the prior year’s $2.096 billion impairment did not recur, but operating cash flow remained negative at $69.144 million and implied free-cash-flow use was approximately $102.131 million. The company is building a broader global beverage and medical-cannabis platform through BrewDog, Lyphe, Carlsberg licensing and European infrastructure, but dilution, pricing pressure, tariffs and a new lawsuit claiming over $1.0 billion constrain the outlook.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth and GAAP loss normalization
- FY2026 revenue rose 11% to $915.454 million from $821.309 million, while gross profit increased to $260.441 million from $240.570 million. GAAP operating loss narrowed sharply to $63.027 million from $2.283 billion, primarily because FY2025 included $2.096 billion of impairment charges that did not recur.
- International cannabis is the key growth engine
- International cannabis revenue grew 34% to $84.910 million, led by a $9.7 million increase in Germany, $8.0 million in Poland and $1.7 million in the U.K. Tilray cites two EU-GMP cultivation facilities, owned sales/distribution infrastructure in Germany, Australia and Italy, and one of only three German medical-cannabis manufacturing licenses as strategic advantages.
- EMEA and Distribution offset U.S. decline
- Distribution revenue grew 21% to $327.244 million, supported by a 6% increase in average selling price and 8% unit growth; Wellness revenue increased 9% to $65.892 million. EMEA became the largest geography at $445.698 million, up 38%, while U.S. revenue declined 11% to $242.390 million.
- Beverage platform expands despite category pressure
- Beverage revenue increased 6% to $253.976 million, including $51.1 million from the fourth-quarter BrewDog acquisition. Project 420 achieved its $33.0 million synergy target, while the Carlsberg license beginning January 1, 2027 grants Tilray U.S. rights to Carlsberg, Carlsberg Elephant, 1664 and Kronenbourg 1664 Blanc for an initial five-year term.
- Underlying profitability improved, not yet sustained
- Adjusted EBITDA increased to $61.139 million from $55.035 million, but the company remained GAAP loss-making: net loss was $105.158 million, versus $2.181 billion in FY2025 and $222.404 million in FY2024. Gross margin was 28.5% in FY2026, versus 29.3% in FY2025 and 28.3% in FY2024.
- Acquisitions funded partly through equity issuance
- Capital deployment emphasized growth and balance-sheet actions: Tilray spent $53.699 million on acquisitions, $32.987 million on capital and intangible assets, repaid $25.353 million of long-term debt, and raised $157.974 million net through ATM equity issuance. It also exchanged $17.0 million principal of 2027 notes for equity during FY2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- New tariff exposure targets Wellness and inputs
- A newly disclosed July 20, 2026 U.S. announcement of additional 50% tariffs on certain Canadian imports could predominantly affect the Wellness segment. Tilray also says tariffs have affected, and may continue to affect, imported aluminum, hops, barley, malt and vape componentry costs.
- New MedMen-related lawsuit seeks over $1 billion
- A new complaint filed December 31, 2025 by MMIRF seeks damages exceeding $1.0 billion over alleged MedMen-related fiduciary breaches. Management says loss is neither probable nor reasonably estimable, but the claimed amount is material relative to Tilray's $1.595 billion total equity.
- Pricing pressure and Canadian share loss
- International cannabis sales rose 34% to $84.910 million, but price compression reduced international revenue by approximately $21.1 million. Canadian market share fell from 8.5% to 7.9% sequentially in Q4, including a 162-basis-point decline in whole flower and a 660-basis-point decline in straight-edge pre-rolls.
- Cash burn persists after acquisitions
- Cash used in operations was $69.144 million and capex was $32.987 million, implying free-cash-flow use of about $102.131 million. Working-capital use was $87.3 million, including $43.7 million related to BrewDog, while accounts receivable rose $66.4 million.
- Beverage margins weakened despite acquired growth
- Beverage gross margin declined to 36% from 39%, as discounts increased to 6.9% of sales from 4.5% and legacy beverage volume declined. Excluding BrewDog, fiscal-year beverage revenue would have declined, with margin-focused actions reducing revenue by about $16.6 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.09
- Gross margin
- 28.5%
- Operating margin
- -6.9%
- Segment
- Beverage: $253.976 million revenue, $91.233 million gross profit
- Segment
- Cannabis: $268.342 million revenue, $107.086 million gross profit
- Segment
- Distribution: $327.244 million revenue, $40.655 million gross profit
- Segment
- Wellness: $65.892 million revenue, $21.467 million gross profit
What they said about what is next.
The 10-K provides no quantitative revenue or EPS outlook. It discusses fiscal-2027 initiatives, including Project 420 expected to be substantially completed by the end of fiscal 2027; separately, the July 28 earnings release provided FY2027 adjusted EBITDA guidance of $68 million to $75 million.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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