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Benzinga
Benzinga
Henry Khederian

Following Mixed Q4 Results, Tilray's Turnaround Strategy Is Put To The Test

Tilray Brands

Shares of Tilray Brands Inc (NASDAQ:TLRY) are trading lower Tuesday morning after the global cannabis and consumer goods company reported fourth-quarter revenue that fell short of analyst expectations. Here’s what investors need to know.

What To Know: For the fiscal fourth quarter ended May 31, Tilray announced total revenue of $224.53 million. This figure represents a roughly 2% decrease year-over-year and missed the consensus analyst estimate of $250.41 million.

The revenue shortfall was primarily driven by declines in the company’s core cannabis and beverage alcohol segments. Cannabis revenue dropped to $67.8 million from $71.9 million in the prior-year quarter, a move the company attributed to a strategic pause on certain product lines to improve profitability and delays in international permits. Beverage revenue also saw a significant decline to $65.6 million, down from $76.7 million.

However, the company did post an unexpected adjusted profit of two cents per share, beating analyst estimates that had projected a loss of three cents per share. Tilray’s Distribution and Wellness segments showed growth, with revenues increasing to $74.1 million and $17.0 million, respectively.

Looking forward, Tilray provided optimistic guidance for fiscal year 2026, projecting adjusted EBITDA between $62 million and $72 million, which would signify growth of 13% to 31%. The company highlighted its strong liquidity, ending the fiscal year with $256 million in cash and marketable securities.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Tilray presents the profile of a potential value play. The stock scores very low on Momentum at 6.10 and Growth at 21.80.

In stark contrast, it boasts a strong Value score of 81.18, suggesting the stock may be undervalued based on its fundamental metrics despite its lagging performance.

Price Action: According to data from Benzinga Pro, TLRY shares are trading lower by 12.3% to 61 cents Tuesday morning. The stock has a 52-week high of $2.15 and a 52-week low of 35 cents.

Read Also: Award-Winning Breckenridge Distillery Makes Bold Entry Into Tequila With Launch Of Casa Breck

How To Buy TLRY Stock

By now you're likely curious about how to participate in the market for Tilray Brands – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Tilray Brands, which is trading at $0.56 as of publishing time, $100 would buy you 178.57 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Image: Shutterstock

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