Tilray Brands Strengthens Domestic Lead With Strong Q1 Cannabis Growth

Tilray Brands TLRY delivered a strong quarter in Canada, reinforcing its position as the largest legal cannabis company in the country in terms of revenues. In the fiscal first quarter of 2026, Canadian cannabis revenues rose 4% year over year to $51 million, supported by the company’s significant scale, which includes approximately 5 million square feet of cultivation space and 210 metric tons of cannabis in production. This capacity positions TLRY to meet future domestic demand while also supplying international markets as regulations evolve.

In the adult-use channel, Tilray ranked among the top five licensed producers and continued to gain momentum, increasing market share and narrowing the gap to the #1 LP by 53 basis points. The company held the leading position in several key categories, including pre-rolls, beverages, oils, and chocolate edibles, and by the end of the quarter had also secured the #1 ranking in flower. Across the broader product landscape, Tilray consistently ranked among the top 10 in every category.

Looking ahead, the company anticipates long-term upside driven by still-low household cannabis penetration and potential regulatory improvements, including updates to excise taxes, expanded on-premise THC beverage consumption, and broader medical cannabis distribution through pharmacies.

Peer Update

Domestically, Cresco Labs CRLBF delivered steady operational results for the third quarter, driven by strong wholesale momentum and expanded cultivation capacity. The company continued to hold leading share positions in key limited-license states, including the #1 retail share in Illinois and Ohio and the #1 branded wholesale share in Illinois, Pennsylvania and Massachusetts. 

However, despite these operational strengths, the company's U.S. business remains highly exposed to the broader challenges of a tightly regulated and increasingly price-compressed domestic cannabis market. Revenues in the third quarter declined year over year, reflecting persistent top-line pressure. 

Domestically, Canopy Growth CGC reported solid momentum in its Canadian business during the fiscal second quarter, with meaningful improvement across both the adult-use and medical cannabis segments. The company saw notable progress in adult-use sales, supported by stronger commercial execution and the successful rollout of infused pre-rolls and all-in-one vape formats under flagship brands such as Tweed and 7ACRES. Canopy’s medical segment also continued to expand, benefiting from a growing insured patient base and higher-value product offerings. Additionally, ongoing cost-discipline measures contributed to improved operational efficiency and supported progress toward a more sustainable financial foundation. 

TLRY’s Price Performance

In the past six months, Tilray Brands’ shares have gained 129.1%, outperforming the industry’s 1.8% growth. The S&P 500 composite has grown 18.6% in the same period.

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Discounted Valuation

TLRY currently trades at a forward 12-month Price-to-Sales (P/S) of 1.30X compared with the industry average of 3.16X.

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TLRY Stock Estimate Trend

Over the past 30 days, its loss per share estimate for 2025 has remained unchanged at 5 cents.

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TLRY stock currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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