Tilray Brands, Inc. (TLRY): A Bull Case Theory

We came across a bullish thesis on Tilray Brands, Inc. on Value investing subreddit by MarketFlux. In this article, we will summarize the bulls’ thesis on TLRY. Tilray Brands, Inc.'s share was trading at $2.1000 as of October 9th. TLRY’s trailing P/E was 57.50 according to Yahoo Finance.

Tilray Brands (TLRY) has spent the past year executing a deliberate strategy of diversification and international expansion, strengthening its position across cannabis, beverage, and medical products while navigating a shifting U.S. regulatory landscape. In mid-2024, the company expanded its medical cannabis programs, obtained new cultivation and trading licenses in Germany, and launched additional products in Portugal and Canada, while Q4 revenue grew 25% year-over-year to $229.9 million. Beverage sales notably surpassed cannabis revenue for the first time, highlighting the company’s success in broadening its portfolio.

Tilray also acquired four craft breweries from Molson Coors and introduced new cannabis strains in Canada, reflecting a continued focus on self-funded, strategic growth even amid uncertainty around U.S. federal rescheduling. Political developments later in 2024, including Trump’s election and cabinet appointments of cannabis deregulation supporters, created heightened speculation around federal reform.

While Florida voters rejected a legalization amendment, market expectations for easing restrictions, potential descheduling, and banking access led to sector-wide optimism. Through late 2024 into 2025, Tilray integrated its beverage acquisitions, expanded European operations via Aphria RX, and maintained profitability on an adjusted basis, even as U.S. legislative progress remained slow.

By mid-2025, the Trump administration signaled a potential reclassification of cannabis, catalyzing a 14% post-market surge in Tilray shares and renewed investor interest. Subsequent developments, including compliant banking systems for cannabis firms and European expansion, reinforced the company’s operational momentum.

Q3 2025 results beat expectations, with revenue of $209.5 million and non-GAAP breakeven EPS, driving shares up 22% intraday to a 52-week high. With a stronger revenue mix, improving balance sheet, reduced short interest, and favorable policy sentiment, Tilray is now positioned to benefit from both operational growth and regulatory catalysts, presenting a compelling risk/reward profile for investors evaluating entry points.

Previously we covered a bullish thesis on Cronos Group Inc. (CRON) by Jake LaMotta in February 2025, which highlighted the company’s undervaluation, strong tangible assets, 30% top-line growth, improving margins, and leading domestic cannabis brand. The company's stock price has appreciated approximately by 40% since our coverage. The thesis still stands as CRON continues to grow while holding substantial cash reserves. MarketFlux shares a similar bullish view on Tilray Brands (TLRY) but emphasizes diversification, international expansion, and favorable U.S. policy developments as key growth drivers.

Tilray Brands, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held TLRY at the end of the second quarter which was 14 in the previous quarter. While we acknowledge the potential of TLRY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.