Tilray Brands revenue rises 20% in Q1 2027

USA – Tilray Brands has reported a 20% increase in first-quarter fiscal 2027 revenue, supported by strong beverage sales following its addition of BrewDog, as the company works to improve profitability and reduce costs across its operations. 

The cannabis, beverage and wellness company recorded net revenue of US$257.1 million for the quarter ended 31 August 2026, up from US$209.5 million in the corresponding period last year. Gross profit increased 35% to US$77.5 million, while gross margin expanded to 30% from 27%. 

Beverages were the main contributor to revenue growth, with segment revenue climbing 82% to US$101.5 million, reflecting the addition of BrewDog. Beverage gross margin also improved to 41%, compared with 38% a year earlier. 

Management said BrewDog became profitable during the quarter following operational stabilisation, cost reductions, lease renegotiations and the withdrawal from unprofitable activities. Improved sales following new marketing campaigns and favourable summer trading at retained bars and pubs also supported performance. 

“The budget for this year is profitability and some good profitability coming from BrewDog,” management said in response to an analyst’s question. 

Tilray’s distribution business also recorded growth, with revenue increasing 14% to US$84.3 million. However, cannabis revenue declined to US$56.1 million from US$64.5 million in the prior-year quarter. Despite the drop, cannabis gross margin improved to 39% from 36%. Wellness revenue remained broadly stable at US$15.3 million. 

The company reported a net loss of US$40 million, or US$0.32 per share, driven predominantly by non-cash charges. Its adjusted net loss was US$3 million, equivalent to US$0.02 per share. 

Adjusted EBITDA declined to US$9.2 million from US$10.2 million a year earlier, partly reflecting approximately US$1.7 million in global fuel surcharges during the quarter. 

Tilray also reduced its total outstanding debt by US$42 million during the fiscal year to date. At quarter-end, it held US$221.4 million in cash, restricted cash and marketable securities, and reported a net cash position. 

Operational improvements continued at its international cultivation facilities. Management said its Portugal operation had reduced operating and cultivation costs by approximately 40% while improving strains and potency.  

The facility is expected to produce more than 40 metric tonnes of flower at full capacity in fiscal 2027. Its Aphria RX operation in Germany is running at full capacity. 

For the fiscal year ending 31 May 2027, Tilray reaffirmed its adjusted EBITDA guidance of US$68 million to US$75 million, representing expected double-digit growth from fiscal 2026.  

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

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.