Should You Buy, Sell, or Hold Tilray Stock After Q1 Earnings?

In recent months, cannabis stocks have regained momentum with investors showing renewed optimism about the potential rescheduling of cannabis in the U.S. and improved company fundamentals. Investors are quickly recognizing companies displaying tangible growth potential, and Tilray Brands (TLRY) stands out as a notable contender for significant gains.

On October 9, Tilray revealed robust first-quarter earnings, igniting excitement across the cannabis sector. Management highlighted successful expansion across all three operational areas—cannabis, beverages, and wellness—leading to a sharp uptick in share prices post-announcement. In a fluctuating market, Tilray is emerging as one of the more resilient players, bolstered by increasing international sales and effective cost management.

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Let’s delve deeper into Tilray’s impressive earnings to evaluate if this is the right moment to adjust your investment strategy.

Headquartered in Canada, Tilray is a leading global consumer products company focused on research, cultivation, processing, and distribution of medical cannabis products. The company’s extensive product lineup encompasses medical and recreational cannabis, wellness products, beverages, and hemp-based foods.

This year has seen considerable volatility for Tilray’s stock. At the start of 2025, TLRY was priced between $0.60 and $0.70, but it has since experienced a remarkable rally, currently trading around $1.70. Thus far, shares have increased 29% year-to-date and a staggering 240% over the last six months.

Although often classified as a penny stock, Tilray commands a premium market valuation based on conventional metrics. The cannabis and beverage entity has a market capitalization nearing $2 billion, buoyed by annual revenue exceeding $820 million in 2024.

For example, the company’s adjusted forward price-to-earnings ratio stands at 53x, significantly higher than the sector median of 17.5x, highlighting investor confidence in future profitability and growth.

Tilray Brands experienced a solid start to fiscal 2026, with first-quarter net revenue reaching a record $209.5 million—an increase of approximately 5% year-over-year, driven by stronger cannabis and distribution channels. Gross profit for the quarter was reported at $57.5 million, with a consolidated gross margin of 27%, slightly below the 30% margin from the previous year. Tilray successfully returned to profitability in Q1, reporting net income of $1.5 million, a notable turnaround from a $34.7 million loss a year earlier, while adjusted EBITDA increased by 9% to $10.2 million.