Tilray Reports Record Fiscal Q1 Revenue of $257.1 Million, Up 23%

Tilray Brands, Inc. (NASDAQ: TLRY) began fiscal 2027 with its strongest first quarter to date, posting record revenue of 257.1 million, a 23% increase from a year earlier. Gross profit also reached a first-quarter record, rising 35% to 77.5 million, while gross margin widened three points to 30%. Beverage revenue increased 82%, making it the company’s largest business.

BrewDog became profitable seven months after Tilray took it out of administration. Tilray also reduced debt by 42 million this fiscal year while maintaining 221.4 million in cash, even as it invested in the business. CEO Irwin Simon has said Tilray was a 50 million company seven years ago. Since then, the company has grown organically and through acquisitions into a pro forma 1.2 billion global consumer business spanning beverages, cannabis, wellness and pharmaceutical distribution.

This quarter provides its clearest measure yet of that transformation. Beer now leads the company. Beverage revenue was 101.5 million, up 82% from 55.7 million a year ago. The segment now makes up Beverage accounted for 39% of total revenue, up from 27% a year earlier, overtaking cannabis and distribution to become Tilray’s largest business.

The expansion came alongside improved margins: beverage gross margin rose to 41% from 38%, while segment gross profit nearly doubled to $42.0 million, close to twice cannabis’s figure. BrewDog contributed $55.9 million in revenue and was profitable. The brand returned to profitability after years of operating losses, seven months after Tilray acquired it out of administration for about $44 million. Management said on the earnings call that BrewDog needed no cash from Tilray during the quarter and funded its own operations.

BrewDog’s first campaigns under its new ownership increased Punk IPA sales 187% at its top six retail chains over two weeks and brought more than 9000 additional distribution points. The combined platform now ranks as the #4 craft brewer in the United States and #1 in the UK, with Tilray beer served on tap at roughly 28000 American bars and restaurants. The beverage growth also reflects Tilray’s diversification strategy. Its platform spans beer, cannabis, wellness and Tilray said its pharmaceutical distribution business gives it options that few consumer companies can match.

Management reaffirmed fiscal 2027 adjusted EBITDA guidance of $68 million to $75 million, which would represent double-digit growth over fiscal 2026. Results are weighted toward the year’s seasonally stronger second half. Tilray reduced outstanding debt by $42 million fiscal year to date and ended the quarter with $221.4 million in cash, restricted cash and marketable securities. The remaining $52 million of convertible notes is due in June 2027.

The company said this progress gives it scope to fund brand investment and integration from its own resources rather than through additional borrowing or dilution. Tilray’s growth strategy also extends across Europe. EMEA revenue from medical cannabis, beverage and pharmaceutical distribution rose 71% in the quarter. International cannabis revenue increased 21% to $16.2 million, reflecting patient demand in Germany and the In the UK, CC Pharma, Tilray’s pharmaceutical distribution arm, which serves more than 16000 pharmacies, grew 14% to $84.3 million.

Volumes also increased: EU-GMP flower shipments rose 110%, while oil volumes climbed 150% from a year earlier. Cannabis gross margin widened to 39% from 36%, despite price pressure abroad. The Portugal facility, which supplies roughly 90% of the company’s international cannabis, helped support the margin. Cultivation costs there have fallen roughly 40%, and Tilray expects the facility to produce more than 40 metric tons of flower at full capacity this fiscal year.

The quarter was not without challenges. On the day of the report, the market initially reacted with a 4.6% decline to $3.55, as investors weighed the remaining issues. Most of the work is in the legacy American beverage business. Management acknowledged that the business would have declined without BrewDog as the company consolidates brands and breweries amid a soft category.

Tilray reported a net loss of $40.0 million, compared with net income of $1.5 million a year earlier. The loss was driven predominantly by non-cash charges and continued reinvestment. In the business, results also reflected increased marketing investment behind the brands. Adjusted earnings were $3.0 million, or 2 cents a share, compared with a 3-cent profit a year earlier.

Adjusted EBITDA declined to $9.2 million from $10.2 million, with about $1.7 million in global fuel surcharges and $8.8 million in price compression in international cannabis markets weighing on the figure. Canadian adult-use revenue decreased to $53.6 million from $64.1 million. The decline came amid strain rotations, temporary supply constraints and a decision to redirect inventory toward higher-return international markets. The U.S.

beverage turnaround remains an area with room for improvement, and Tilray is pursuing it through consolidation work already underway. A further measure is scheduled for January 1. Tilray will begin producing, marketing and distributing Carlsberg, Carlsberg Elephant, Kronenbourg 1664 and 1664 Blanc across all U.S. channels under an exclusive multi-year license.

The beers will be brewed at facilities Tilray already owns and sold through its existing national team. Carlsberg is the world’s third-largest brewer. Simon said on the call that its beverage business runs more than At 30 times Tilray’s size, the partner’s choice of Tilray as its U.S. brewing and commercial arm reflects the platform the company is building.

Washington’s pending decision on whether to extend Schedule III to cannabis more broadly remains a concern for the sector. In the release, Simon said, “We are no longer dependent on a single market or regulatory catalyst.” Tilray’s first quarter offered its strongest evidence so far for that claim, with Carlsberg volumes set to arrive in January and add to the evidence over time.