Q1 Fiscal 2027
Filed Oct 8, 2026Tilray Brands Delivers Record Q1 Fiscal 2027 Revenue and Record Q1 Gross Profit, Demonstrating the Power of Its Global Platform, Driven by Double-Digit Year-Over-Year Growth Across International Cannabis, Beverage and Pharmaceutical Distribution
Net revenue and gross profit increased, gross margin expanded, and fiscal 2027 adjusted EBITDA guidance was reaffirmed. However, operating income moved to a loss, net loss widened, adjusted EBITDA declined, and operating and free cash flow were negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, three months ended August 31GAAP | $257.1M | – | 23 % |
| Cost of goods sold, three months ended August 31GAAP | $179.6M | – | 18 % |
| Gross profit, three months ended August 31GAAP | $77.51M | – | 35 % |
| Gross margin, three months ended August 31GAAP | 30 % | – | – |
| General and administrative expense, three months ended August 31GAAP | $57.61M | – | 40 % |
| Selling expense, three months ended August 31GAAP | $13.59M | – | 5 % |
| Amortization expense, three months ended August 31GAAP | $6.5M | – | 65 % |
| Marketing and promotion expense, three months ended August 31GAAP | $15.74M | – | 55 % |
| Research and development expense, three months ended August 31GAAP | $89K | – | 117 % |
| Change in fair value of contingent consideration, three months ended August 31GAAP | — (in thousands of U.S. dollars) | – | (100 )% |
| Litigation costs, net of recoveries, three months ended August 31GAAP | $787K | – | (22 )% |
| Restructuring costs, three months ended August 31GAAP | $2.45M | – | 182 % |
| Transaction costs, net, three months ended August 31GAAP | $4.80M | – | 1101 % |
| Total operating expenses, three months ended August 31GAAP | $101.6M | – | 83 % |
| Operating income (loss), three months ended August 31GAAP | −$24.05M | – | (1250 )% |
| Interest expense, net, three months ended August 31GAAP | −$6.48M | – | (3 )% |
| Non-operating income (expense), net, three months ended August 31GAAP | −$7.77M | – | (303 )% |
| (Loss) before income taxes, three months ended August 31GAAP | −$38.31M | – | 4862 % |
| Income tax expense (recovery), net, three months ended August 31GAAP | $1.73M | – | (175 )% |
| Net income (loss), three months ended August 31GAAP | −$40.03M | – | (2746 )% |
| Net loss per share - basic, three months ended August 31GAAP | $ (0.32 ) | – | 10553 % |
| Net loss per share - diluted, three months ended August 31GAAP | $ (0.32 ) | – | 10553 % |
| Adjusted EBITDA, three months ended August 31non-GAAP | $9.21M | – | (10 )% |
| Adjusted cash operating income (loss), three months ended August 31non-GAAP | $1.17M | – | (85 )% |
| Adjusted net income (loss), three months ended August 31non-GAAP | −$2.99M | – | (189 )% |
| Adjusted net income (loss) per share - basic and diluted, three months ended August 31non-GAAP | $ (0.02 ) | – | (167 )% |
| Net cash used in operating activities, three months ended August 31GAAP | −$16.54M | – | 1133 % |
| Free cash flow, three months ended August 31non-GAAP | −$27.45M | – | 160 % |
| Adjusted free cash flow, three months ended August 31non-GAAP | −$23.42M | – | 392 % |
| Cash, restricted cash and marketable securities, as at the period endednon-GAAP | $221.4M | – | (18 )% |
| Working capital, as at the period endedother | $376.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Beverage businessreflecting the acquisition of BrewDog. | $101.5M | – | 82% |
| Cannabis businessCannabis gross margin expanded to 39% in the first quarter compared to 36%. | $56.11M | – | – |
| Distribution businessDistribution gross margin was 11% in the first quarter and was unchanged. | $84.27M | – | 14% |
| Wellness businessWellness net revenue was $15.3 million, consistent with the previous year period. | $15.28M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal year ending May 31, 2027 outlook
- NoteAdjusted EBITDA of $68 million to $75 million
- Noterepresenting double-digit growth as compared to fiscal year 2026
What drove it
- Beverage net revenue increased 82% year-over-year to $101.5 million, reflecting the acquisition of BrewDog.
- Beverage gross margin expanded to 41% from 38%.
- Distribution net revenue increased 14% to $84.3 million.
- International cannabis revenue was $ 16,237 (in thousands of U.S. dollars), compared with $ 13,367 (in thousands of U.S. dollars).
- The company stated that adjusted EBITDA was burdened by approximately $1.7 million of global fuel surcharges in this quarter.
- The company stated that financial results are typically more weighted toward the second half of the fiscal year, with results strengthening significantly in the fourth quarter.
Concerns
- Cannabis net revenue was $56.1 million in the first quarter compared to $64.5 million.
- Operating income (loss) was (24,053 ) (in thousands of U.S. dollars), compared with operating income of 2,092 (in thousands of U.S. dollars).
- Total operating expenses increased 83 % to 101,562 (in thousands of U.S. dollars).
- Adjusted EBITDA declined to $ 9,205 (in thousands of U.S. dollars) from $ 10,181 (in thousands of U.S. dollars).
- Net cash used in operating activities was $ (16,541 ) (in thousands of U.S. dollars).
- Free cash flow was $ (27,449 ) (in thousands of U.S. dollars).
What to watch
- Delivery against fiscal 2027 adjusted EBITDA guidance of $68 million to $75 million.
- The pace of Beverage business growth following the acquisition of BrewDog and its 41 % gross margin.
- Cannabis business revenue and international cannabis revenue.
- Operating-expense levels, including general and administrative expense, marketing and promotion, restructuring costs, and transaction costs.
- Operating cash flow, free cash flow, inventory, and the stated fiscal-year-to-date reduction in total outstanding debt.
Balance sheet and cash flow
- Cash and cash equivalents were $ 214,960 (in thousands of US dollars) at August 31, 2026, compared with $ 225,977 (in thousands of US dollars) at May 31, 2026.
- Restricted cash was 3,383 (in thousands of US dollars) at August 31, 2026, compared with 3,365 (in thousands of US dollars) at May 31, 2026.
- Marketable securities were 3,047 (in thousands of US dollars) at August 31, 2026, compared with 5,289 (in thousands of US dollars) at May 31, 2026.
- Total outstanding debt was reduced by $42 million fiscal year to date.
- Bank indebtedness was $ 8,688 (in thousands of US dollars) at August 31, 2026, compared with $ 8,775 (in thousands of US dollars) at May 31, 2026.
- Current portion of long-term debt was 15,457 (in thousands of US dollars) and long-term debt was 118,046 (in thousands of US dollars) at August 31, 2026.
- Current portion of convertible debentures payable was 59,224 (in thousands of US dollars) at August 31, 2026.
- Investment in capital and intangible assets was (11,009 ) (in thousands of US dollars) for the three months ended August 31, 2026, compared with (9,523 ) (in thousands of US dollars).
- Net cash used in investing activities was (9,253 ) (in thousands of US dollars), compared with net cash provided by investing activities of 24,467 (in thousands of US dollars).
- Net cash provided by financing activities was 13,967 (in thousands of US dollars), compared with 19,848 (in thousands of US dollars).
Analysis
Tilray reported first-quarter net revenue of $ 257,147 (in thousands of U.S. dollars), compared with $ 209,501 (in thousands of U.S. dollars), while gross profit rose to $ 77,509 (in thousands of U.S. dollars) from $ 57,469 (in thousands of U.S. dollars). Gross margin expanded to 30 % from 27 %. Beverage was the principal reported growth contributor, with revenue of $ 101,496 (in thousands of U.S. dollars), compared with $ 55,739 (in thousands of U.S. dollars), reflecting the acquisition of BrewDog. Distribution revenue was $ 84,266 (in thousands of U.S. dollars), compared with $ 74,007 (in thousands of U.S. dollars).
The revenue mix changed materially. Beverage represented 39% of total revenue, compared with 27% in the prior-year period, and its gross margin expanded to 41 % from 38 %. Cannabis revenue was $ 56,109 (in thousands of U.S. dollars), compared with $ 64,511 (in thousands of U.S. dollars), although cannabis gross margin expanded to 39 % from 36 %. International cannabis revenue was $ 16,237 (in thousands of U.S. dollars), compared with $ 13,367 (in thousands of U.S. dollars). Distribution gross margin was 11 % in both periods, while wellness gross margin was 29 % compared with 32 %.
Profitability below gross profit weakened. Total operating expenses were 101,562 (in thousands of U.S. dollars), compared with 55,377 (in thousands of U.S. dollars), and operating income (loss) was (24,053 ) (in thousands of U.S. dollars), compared with 2,092 (in thousands of U.S. dollars). Net income (loss) was $ (40,031 ) (in thousands of U.S. dollars), compared with $ 1,513 (in thousands of U.S. dollars). Adjusted EBITDA was $ 9,205 (in thousands of U.S. dollars), compared with $ 10,181 (in thousands of U.S. dollars), with the company stating it was burdened by approximately $1.7 million of global fuel surcharges.
Cash generation was negative in the period. Net cash used in operating activities was $ (16,541 ) (in thousands of U.S. dollars), and free cash flow was $ (27,449 ) (in thousands of U.S. dollars). Cash, restricted cash and marketable securities were 221,390 (in thousands of U.S. dollars), while the company stated that it reduced total outstanding debt by $42 million fiscal year to date. Management reaffirmed fiscal 2027 adjusted EBITDA guidance of $68 million to $75 million and noted that financial results are typically more weighted toward the second half of the fiscal year, with results strengthening significantly in the fourth quarter.
Management, verbatim
Tilray’s record first-quarter revenue and gross profit demonstrate the power of the diversified platform we have built and the momentum we are creating across cannabis, beverage, hospitality, wellness and pharmaceutical distribution. We are no longer dependent on a single market or regulatory catalyst. We have multiple engines of growth, a scaled international footprint and the ability to convert scale into stronger margins, greater efficiency and sustainable, profitable growth.
Irwin D. Simon, Chairman and Chief Executive Officer, Tilray Brands
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported income-statement, segment, cash-flow, and balance-sheet metrics.
- Fiscal 2027 revenue guidance.
- Fiscal 2027 gross-margin guidance.
- Fiscal 2027 operating-expense guidance.
- Fiscal 2027 tax-rate guidance.
- Share repurchases.
- Dividends.
- A precise reported net cash amount.
- GAAP net-income guidance or a reconciliation of fiscal 2027 adjusted EBITDA guidance to GAAP net income.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.