Is Tilray Stock a Buy on Positive Cannabis Data?

Cannabis stocks are in focus today, with most of the action centered around U.S.-based multi-state operators (MSOs) after reports suggested that President-elect Donald Trump may look to deschedule marijuana as part of a broader deregulation agenda. 

Tilray Brands (TLRY) also closed higher, with the global distributor and medical cannabis pioneer rising more than 5% on the day.

About Tilray Brands Stock

Valued at $1.26 billion by market cap and listed in both New York and Toronto, Tilray Brands (TLRY) is a lifestyle consumer goods company that focuses on the research, production, cultivation, and distribution of medical and recreational cannabis-related products. It operates through four different segments: Cannabis, Beverage Alcohol, Wellness, and Distribution. It markets its products under the brands Shock Top, Aphria, CC Pharma, Breckenridge Distillery, and many more. 

TLRY has global reach, primarily as a medical and recreational cannabis distributor in Canada, Europe, Australia, and New Zealand, and as a craft brewer and distributor of hemp products in the U.S.

Tilray stock is down considerably this year, off more than 36% on a YTD basis, and down by 50% from the 52-week high set in April. 

Tilray Reports Q1 Earnings

Tilray published its Q1 2025 results on Oct. 10, posting a loss of $0.04 per share, slightly narrower than analysts' estimated $0.05 per share loss, and much improved from its $0.10 per share loss a year ago. Revenue for the quarter rose 13% year over year to $200.4 million, but missed Wall Street's estimate of $219.46 million.

Revenue from the Cannabis business brought in $61.25 million, lagging analysts' $72.77 million estimate, while revenue from its Beverage Alcohol business was $55.97 million, again short of the market’s $64.31 million estimate. On the other hand, revenue generated from its Wellness business came to $14.75 million, and its Distribution business revenue totaled $68.07 million, both of which narrowly surpassed estimates.

The company's gross profit was $59.7 million, up 35% year over year, as its gross margin increased 30% year over year. Adjusted EBITDA was $9.3 million, compared to $10.7 million reported last year, while cash and cash equivalents were $2.05 million at the end of the quarter. 

“We believe that there is a greater likelihood that the upcoming U.S. Presidential elections will result in improved regulatory changes in the cannabis industry, as both candidates have publicly confirmed their support for further legalization," said Chairman and CEO Irwin D. Simon.

Positive Medical Cannabis Update 

More recently, Tilray reported a positive update on its study of an oral cannabis extract for the treatment of chemotherapy-induced nausea and vomiting in patients who have not responded to standard nausea treatment. 

Among 147 participants, the rate of complete response improved from 8% with a placebo to 24% with a 1:1 ratio of THC to CBD. However, the drastically improved response rate was accompanied by a higher risk of side effects, including sedation, dizziness, and transient anxiety. 

Analysts Are Bullish on TLRY

Analysts have a consensus “Moderate Buy” rating and a mean price target of $2.22, suggesting an upside potential of 51% from the current market price. The stock is being covered by 8 analysts, with 3 “Strong Buy” ratings and 5 “Hold” ratings. 

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On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.