Tilray Brands reported third-quarter fiscal 2026 net revenue of $206.7 million, up 11% from $185.8 million a year earlier, and gross profit of $55.0 million, up 6% from $52.0 million.
The biggest growth came from cannabis and distribution. Cannabis net revenue rose 19% to $64.8 million from $54.3 million, driven by a 73% jump in international cannabis revenue and an 8% increase in combined Canadian adult-use and medical cannabis revenue. Cannabis gross profit increased 18% to $26.0 million from $22.0 million.
International cannabis was the standout, with revenue up 73% year over year and flower sales volume doubling. In Canada, Tilray said it held the No. 1 cannabis revenue position while adult-use and medical cannabis revenue combined increased 8%.
Distribution revenue, which includes Tilray Pharma, climbed to a quarterly record $83.0 million from $61.5 million, a gain of 35%. Distribution gross profit nearly doubled to $10.0 million from $5.6 million, and gross margin widened to 12% from 9%.
Wellness revenue increased 16% to $16.4 million from $14.1 million, while gross profit rose 19% to $5.4 million from $4.5 million.
Beverage was the weak spot. Revenue fell to $42.6 million from $55.9 million, a decline of 24%, while gross profit dropped to $13.6 million from $19.9 million. Beverage gross margin narrowed to 32% from 36%.
At the company level, gross margin slipped to 27% from 28%, even as gross profit hit a record. Net loss narrowed sharply to $25.2 million from $793.5 million a year earlier, and net loss per share improved to $(0.24) from $(8.69).
Adjusted results also improved. Adjusted net income was $2.4 million, compared with an adjusted net loss of $2.9 million a year ago. Adjusted net income per share was $0.02 versus $(0.03). Adjusted cash operating income swung to $4.0 million from a loss of $3.1 million, and adjusted EBITDA rose 19% to $10.7 million from $9.0 million.
Tilray ended the quarter with $264.8 million in cash, restricted cash and marketable securities, and said that balance was essentially flat from the $265 million figure it highlighted. Total outstanding debt fell by $4.2 million during the quarter. The company said its net cash position improved to $3.5 million from net debt of $36.6 million a year earlier, a swing of $40.2 million.
The company said it completed its Project 420 synergy program in the quarter and expects about $33 million in annualized cost savings.
For fiscal 2026, Tilray reaffirmed adjusted EBITDA guidance of $62 million to $72 million, which would represent growth of 13% to 31% versus fiscal 2025. The market has reacted to these announcements by moving the company's shares -5.76% to a price of $6.54. Check out the company's full 8-K submission here.
