Tilray Brands Posts $26.6M Q3 Loss, Narrows Deficit 97% Year-Over-Year

Tilray Brands, Inc. (NASDAQ: TLRY), a global cannabis and consumer packaged goods company, reported a net loss of $26.6 million for the quarter ending February 28, 2026, compared to a loss of $789.4 million in the same quarter a year earlier. The 97% reduction in losses came despite a 11% increase in revenue. Read more earnings reports.

Net revenue for the three months ending February 28, 2026 reached $206.7 million, up from $185.8 million in the prior-year quarter. For the nine-month period ending February 28, 2026, revenue climbed 6% to $633.7 million from $596.8 million.

Gross profit for the quarter was $55.0 million, up 6% from $52.0 million a year earlier. The company's gross margin held relatively steady at 26.6%, compared to 28.0% in the prior-year period.

Operating Performance Improves Sharply

Operating expenses dropped to $81.3 million in the third quarter, down 90% from $811.9 million in the same quarter last year. The company posted an operating loss of $26.4 million for the quarter, versus an operating loss of $759.9 million a year earlier.

For the nine-month period, the operating loss narrowed to $46.6 million from $838.7 million in the prior-year period. Operating expenses for the nine months totaled $216.5 million, down 79% from $1.01 billion.

Segment Revenue Mix

The company's beverage alcohol segment generated $104.9 million in the quarter, up 45% from $72.4 million. Cannabis revenue fell 24% to $42.6 million from $55.9 million. Distribution revenue rose 19% to $48.2 million from $45.9 million, while wellness revenue climbed 16% to $16.4 million from $14.1 million.

Cash Flow and Balance Sheet

Tilray reported negative operating cash flow of $31.8 million for the nine months ending February 28, 2026, an improvement from negative $81.8 million in the prior-year period. Cash from financing activities totaled $62.8 million, down from $116.9 million a year earlier.

The company held $204.6 million in cash and cash equivalents as of February 28, 2026, down from $221.7 million as of May 31, 2025. Total assets remained flat at $2.07 billion.

Long-term debt stood at $135.0 million, down from $148.5 million at the end of fiscal 2025. Total liabilities declined to $549.1 million from $584.8 million.

Stockholders' equity increased to $1.56 billion from $1.51 billion. Common shares outstanding rose to 116.5 million from 106.1 million. The company's accumulated deficit widened to $4.92 billion from $4.85 billion.

Financial Summary