Tilray Brands Q1 Revenue Rises 23% to $257.1 Million as Beverage Sales Surge Following BrewDog Acquisition

Tilray Brands, Inc. (NASDAQ:TLRY) reported a 23% increase in net revenue for the first quarter of fiscal 2027, supported by substantial growth in its beverage business following the acquisition of BrewDog, although the company continued to report a net loss.

For the three months ended 31 August 2026, net revenue reached $257.1 million, compared with $209.5 million in the corresponding period of the previous financial year.

Gross profit increased 35% year on year to $77.5 million, while gross margin improved to 30% from 27%, reflecting a more favourable revenue mix and stronger profitability across parts of the business.

The beverage division was the largest contributor to the increase in group revenue, with sales rising 82% to $101.5 million.

The growth reflected the contribution from BrewDog, which expanded Tilray’s beverage operations and increased the segment’s importance within the company’s overall business.

Despite the stronger revenue and gross profit performance, adjusted EBITDA declined compared with the previous year, partly reflecting additional transportation-related costs.

Beverage Revenue Climbs 82% Following BrewDog Acquisition

Tilray’s beverage business recorded the strongest growth among its operating segments during the quarter.

Net beverage revenue increased to $101.5 million, representing an 82% rise from the corresponding period of fiscal 2026.

The increase was driven by the acquisition of BrewDog, which contributed to the expansion of the company’s beverage portfolio.

Profitability within the division also improved, with beverage gross margin rising to 41% from 38% a year earlier.

The combination of higher revenue and improved margins made beverages a major contributor to Tilray’s quarterly gross profit growth.

The company’s distribution business also recorded an increase in sales, with revenue rising 14% to $84.3 million.

Meanwhile, wellness revenue remained broadly unchanged at $15.3 million, indicating relatively stable demand within that segment.

The results highlighted the increasing contribution of beverages and distribution to Tilray’s overall revenue performance.

Cannabis Revenue Declines Despite Higher Gross Margin

Tilray’s cannabis business reported lower revenue during the first quarter, contrasting with the strong growth recorded in beverages and distribution.

Cannabis net revenue declined to $56.1 million from $64.5 million in the corresponding period a year earlier.

However, the segment achieved an improvement in profitability, with gross margin increasing to 39% from 36%.

The margin expansion indicated that the cannabis business generated a higher proportion of gross profit from each dollar of revenue, despite the reduction in sales.

The contrasting performance across Tilray’s operating divisions reflected changes in the company’s revenue composition following its recent acquisition activity.

While cannabis revenue declined, the growth of the beverage business helped drive a substantial increase in total group revenue.

Tilray Reports $40 Million Net Loss as Adjusted EBITDA Declines

Tilray recorded a net loss of $40.0 million for the quarter, equivalent to $0.32 per share.

The company attributed the reported loss predominantly to non-cash charges.

On an adjusted basis, the net loss was considerably smaller at $3.0 million, or $0.02 per share.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) reached $9.2 million, compared with $10.2 million in the prior-year quarter.

The decline in adjusted EBITDA occurred despite the increase in revenue and gross profit.

Tilray identified approximately $1.7 million in global fuel surcharges as a factor affecting profitability during the reporting period.

The additional costs weighed on adjusted operating performance as the company continued integrating and expanding its operations.

The results showed stronger sales and gross margins, although these improvements did not translate into higher adjusted EBITDA during the quarter.

Debt Reduction Strengthens Tilray’s Financial Position

Tilray also reported progress in reducing its outstanding borrowings during the first quarter.

The company reduced total outstanding debt by $42 million during the fiscal year to date.

At 31 August 2026, Tilray held $221.4 million in cash, restricted cash and marketable securities.

Management stated that the company ended the reporting period in a net cash position, indicating that its reported cash resources exceeded its outstanding debt under the company’s calculation.

The reduction in borrowings and available liquidity provide financial resources to support ongoing operations and business development activities.

The balance sheet update accompanied the company’s continued investment in its diversified beverage, cannabis, distribution and wellness businesses.

Fiscal 2027 Adjusted EBITDA Guidance Maintained at $68 Million to $75 Million

Tilray reaffirmed its adjusted EBITDA outlook for the financial year ending 31 May 2027.

The company continues to expect adjusted EBITDA of between $68 million and $75 million for the full year.

According to Tilray, achieving this guidance would represent double-digit growth compared with fiscal 2026.

The company also noted that its financial performance is typically weighted towards the second half of the fiscal year.

This seasonal pattern suggests that a greater proportion of annual adjusted EBITDA is expected to be generated during the remaining reporting periods, particularly in the latter half of fiscal 2027.

Tilray’s first-quarter results demonstrated the growing importance of its beverage operations following the BrewDog acquisition, alongside improvements in group gross margin and reductions in outstanding debt.

However, lower cannabis revenue and a decline in adjusted EBITDA highlighted continuing challenges across parts of the business.

The company maintained its full-year profitability forecast as it works to translate revenue growth and improved gross margins into stronger adjusted operating earnings.

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