Tilray Brands, Inc. has reported strong first-quarter fiscal 2026 results, showcasing continued growth with a record Q1 net revenue of $210 million. The company achieved net income of $1.5 million, which marks a significant turnaround from the net loss of $(34.7) million in the prior year period.
Adjusted EBITDA increased by 9% to $10.2 million in Q1 compared to $9.3 million in the previous period. Operational efficiencies and a focus on profitability were instrumental in driving these positive figures.
The company's cash flow also demonstrated improvement, with cash used in operations significantly decreasing by $34.0 million to $(1.3) million from $(35.3) million in the prior year period.
Tilray Brands strengthened its balance sheet by reducing total outstanding debt by $7.7 million, resulting in a reduced net debt to trailing twelve months adjusted EBITDA ratio of 0.07x. The company's cash balance stands at $264.8 million, providing flexibility for strategic opportunities.
In terms of revenue breakdown, cannabis net revenue increased by 5% to $64.5 million, maintaining the company's position as a leader in revenue and expanding market share in the Canadian adult-use cannabis market. International cannabis revenue also grew by 10% year-over-year.
The company's gross profit was $57.5 million in Q1, with a gross margin of 27%, compared to $59.7 million and a gross margin of 30% in the prior year period. These figures provide insight into the company's performance in various segments, including cannabis, beverage, wellness, and distribution.
Tilray Brands reiterated its fiscal year 2026 adjusted EBITDA outlook of $62 million – $72 million, indicating confidence in its ability to sustain and build upon its current performance.
As a result of these announcements, the company's shares have moved 0.58% on the market, and are now trading at a price of $1.72. For more information, read the company's full 8-K submission here.
