How Tilray Brands Is Acting on Its Vast International Opportunity

Tilray Brands TLRY delivered one of its strongest international quarterly performances in the second quarter of fiscal 2026. Revenues from the company’s high-margin international cannabis business rose 36% year over year and 51% sequentially to $20 million amid ongoing permit challenges, regular transitions in Portugal and Germany and sustained price compression, particularly in flower. As Tilray continues to expand its global footprint, management expects this momentum to be sustained. 

International markets remain one of the key long-term growth drivers, supported by growing market opportunities, revenues and profitability. With the continued growth of international cannabis, the company chose to scale back supply into the Canadian wholesale market in the quarter and redeploy that supply, along with new production, into the international cannabis markets through the rest of the year. In Canada, Tilray continues to hold a leading market position across dried flower, non-infused pre-rolls, beverages, oils and chocolate edibles. During the quarter, the adult-use medical sales channel, net of excise tax, reached $46 million, with recreational cannabis growing 6%.

The company also entered the Quebec market with vapes with a Good Supply brand, quickly securing top three SKU positions in the province. Tilray’s cannabis cultivation capacity has now risen to 200 metric tons annually, supporting its expansion into fast-growing markets, alongside offering products at reduced costs and margin improvement. Tilray also maintains one of the largest cannabis footprints in Europe, leveraging scale, speed to market, data-driven decision-making and experience gained from the Canadian operation into expansion efforts.

Tilray is also expanding its beverage business into new markets worldwide, with an emphasis on craft beer and non-alcoholic drinks. HiBall Energy is set to launch in the U.K. in the fiscal fourth quarter, with additional expansion planned for the Middle East and Africa.

TLRY’s Peer Updates

Village Farms International’s VFF wholly owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world and a low-cost producer. The company recently announced the launch of 10 new product offerings in the Netherlands through its wholly-owned subsidiary, Leli Holland. The product portfolio expansion draws on Village Farms’ deep operational expertise and consumer insights from regulated cannabis markets globally, and reflects an intentional focus on format innovation, consumption occasions and competitive differentiation.

SNDL Inc. SNDL has completed the acquisition of five cannabis retail stores located in Alberta and Saskatchewan from 1CM. The transaction marks the first closing under the amended and restated arrangement agreement dated Dec. 15, 2025. SNDL anticipates the second closing, in respect of 27 additional cannabis retail stores located in Ontario, will occur sometime in the first half of 2026, subject to obtaining the required regulatory approvals.

TLRY Price Performance, Valuation & Estimates

In the past six months, Tilray Brands shares have surged 40.4% against the industry’s 6.6% fall.

TLRY is trading at a forward 12-month Price-to-Sales (P/S) of 1.22X, lower than its median and the 2.81X industry average.

Tilray’s earnings estimates are showing a mixed trend, as you can see below.

TLRY stock currently carries a Zacks Rank #3 (Hold).  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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