Tilray Brands (TLRY) Gets Smoked Out on Q3 Earnings, Trading Down 20%

PRISM Cannabis Index laggard, Tilray Brands (TLRY) announced disappointing Q3 earnings that missed on Q3 EPS ($0.12) vs Factset ($0.05) as well as quarterly revenues $188.3M vs Factset $198.3M. Furthermore, the company cited due to delayed timing of cash collection on various asset sales, the generation of positive adjusted free cash flow for the full FY24, is no longer expected.

Some highlights from the company Q&A that were discussed included opportunity in Germany as laws have changed, impacts to market share occurred from operational complexities due to SKU relocations and expect to recover once this process is complete, a Canadian excise tax change could positively impact Tilray and savings would be reinvested into the business, and if the US reschedules medical cannabis, Tilray intends to utilize its expertise to rapidly expand into the market.

While its Q3 earnings were dismal, as legislation evolves there may be opportunity for Tilray to turn things around if it can successfully execute.