Beverage sales jumped 82% to $101.5 million and now exceed cannabis sales, which fell 13%. First-quarter adjusted Ebitda of $9.2 million covers about 13% of the reaffirmed $68 million to $75 million annual range.
By revenue, Tilray is now more of a drinks company than a cannabis company.
Net revenue reached $257.1 million in the three months through Aug 31, 2026, the first quarter of Tilray Brands' 2027 fiscal year, compared with $209.5 million a year earlier, a 23% increase. Gross profit climbed faster, by 35%, to $77.5 million, lifting the gross margin three points to 30%.
The mix
The BrewDog acquisition pushed beverage sales up 82%, to $101.5 million, and the segment kept 41 cents of gross profit per dollar of sales, up from 38 cents. The company said BrewDog was profitable in the quarter.
Cannabis moved the other way on sales, slipping 13% to $56.1 million, even as its margin improved three points to 39%. International cannabis sales grew about 22%, but Canadian adult-use sales before excise taxes fell by about 15% in constant currency.
European pharmaceutical distribution added 14%, reaching $84.3 million at a thin 11% margin, and wellness held at $15.3 million.
Beverage now accounts for 39% of revenue and cannabis for 22%.
The profit line
The revenue growth did not reach adjusted earnings. Adjusted Ebitda slipped by about $1 million, to $9.2 million, with fuel surcharges of roughly $1.7 million weighing on the quarter. Tilray lost $40.0 million, or 32 cents a share, mostly because of non-cash charges, the company said; excluding those and other items, the loss narrowed to $3.0 million, or 2 cents.
"We are no longer dependent on a single market or regulatory catalyst," said Chairman and Chief Executive Irwin Simon.
The full-year arithmetic
The company kept its full-year adjusted Ebitda target at $68 million to $75 million. The first quarter delivered about 13% of the midpoint. To reach the range, the remaining three quarters need to produce $58.8 million to $65.8 million combined, or about $19.6 million to $21.9 million a quarter. That is more than double the first quarter's pace.
The balance sheet moved in a steadier direction. The company said it has cut outstanding debt by $42 million so far this fiscal year and ended the quarter in a net cash position. Cash, restricted cash and marketable securities totaled $221.4 million, down from $264.8 million a year earlier.
The stock
Tilray shares fell 3.4% to $3.59 on Thursday and touched $3.375 during the session, a 52-week low. The company's market value is about $400 million.
Two views
One reading is that the diversification is working. Gross profit grew faster than revenue, margins widened in three of four segments, the beverage acquisition is profitable, the balance sheet has net cash, and management stood by its full-year target.
A second reading is that the core business is shrinking and the target is back-loaded. Canadian cannabis sales fell, adjusted Ebitda declined despite 23% revenue growth, and the guidance requires a sharp acceleration that the first quarter did not show.
The next quarter
Second-quarter adjusted Ebitda against the roughly $20 million a quarter the guidance implies will be the clearest test. Beverage margins after the first full year of BrewDog, and the direction of Canadian cannabis sales, will show whether the growth is coming from the acquisition alone.