Tilray Brands’ stock price plummeted 4% on Thursday morning, despite the company reporting a record revenue for the first quarter of fiscal year 2027. The decline was largely due to a significant decline in cannabis sales, which fell to $56.1 million, a 23% drop from the same period last year. Meanwhile, beer and distribution sales contributed to the company’s overall revenue growth.
In contrast, Canopy Growth and Aurora Cannabis, two other major players in the cannabis industry, saw their stock prices fall by a more modest 1%. The Amplify Alternative Harvest ETF, which tracks the broader cannabis sector, also fell by 0.3%. The S&P 500 ETF Trust, a broader market index, also fell by 0.3%, indicating that the sell-off was specific to Tilray Brands.
Tilray’s revenue for the quarter rose 23% year-over-year to a record high, driven by growth in beer and distribution sales. The company’s gross margin also expanded, and its gross profit reached a new high. However, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) declined year-over-year, despite the higher revenue and gross profit.
The company attributed the decline in EBITDA to global fuel surcharges, which had a negative impact on the quarter’s profitability. Tilray also reaffirmed its full-year adjusted EBITDA guidance and reported a net cash position on its balance sheet, with reduced outstanding debt.
Despite the decline in cannabis sales, Tilray’s beer and distribution businesses helped drive the company’s revenue growth. The company’s acquisition of BrewDog, a UK-based craft beer company, has been a key factor in its beer sales growth.
