Investor interest in cannabis stocks has cooled since the legalization boom of 2021, and the craft beer and wellness sectors have had their own struggles navigating changing consumer tastes. But Tilray Brands TLRY may be quietly carving out a position that makes it different from any of its peers.
Tilray ended fiscal 2025 with record revenue of $821 million, driven by its cannabis, beverage, and wellness divisions. The company remains Canada's top cannabis brand and saw international cannabis sales surge 71% in the latest quarter, showing strength in Europe, where regulation is evolving quickly.
But what sets Tilray apart is the way it's combining those businesses. Its craft beer acquisitions — Hop Valley Brewing, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery — have given Tilray a U.S. distribution network that it's now leveraging to roll out hemp‑derived THC drinks. Those beverages are already on shelves in 13 states at roughly 1,300 locations, giving Tilray an early lead in a market segment that could accelerate if THC drink laws expand.
Other companies are circling this same convergence point, but none have fully committed. Canopy Growth CGC and Curaleaf CURLF have strong cannabis and CBD operations but aren't in beverages in a meaningful way. On the flip side, beverage players like Molson Coors TAP are experimenting with THC drinks, but don't have cannabis cultivation or international wellness businesses.
Tilray is essentially the only scaled player weaving it all together under one roof.
The company did report a headline $2.1 billion GAAP loss for the year — a figure that might alarm casual investors — but nearly all of that came from a non‑cash goodwill write‑down tied to older acquisitions made when valuations assumed U.S. legalization would arrive sooner. Strip that out, and Tilray actually posted a modest adjusted profit and improved its cannabis gross margins by 700 basis points.
While cannabis stocks have been hammered in recent years, Tilray's multi‑pronged strategy could give it resilience and serve as a hedge on where the industry is going. If cannabis sales lag, Tilray still has its beer portfolio and hemp drinks. If U.S. legalization finally hits, it's sitting on a built-in distribution machine.
Looking ahead, the bullish case for Tilray may rest on several catalysts, including U.S. federal cannabis reform, state‑by‑state loosening of THC beverage rules, or even further acquisitions in the craft beer space. Any of those could give Tilray a first‑mover advantage in a market where most competitors are still stuck in a single lane.
The company isn't without risks — from shifting regulations to dilution concerns as it finances growth — but its approach to connecting cannabis, beverages, and wellness could ultimately be its differentiator. And for investors looking for a long‑term play in the sector, that uniqueness might be the very thing that makes Tilray worth watching.
Disclosure: This article is for informational purposes only and is not investment advice. The author does not hold any position in the securities mentioned at the time of publication and does not plan to initiate any positions in the next 72 hours.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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