Cannabis company Tilray Brands (NASDAQ:TLRY) reported its third-quarter earnings last week. The Canadian-based company, which has also been expanding heavily into alcohol, reported net revenue totaling $186 million for the period ending Feb. 28, which was down around 1% from the $188 million it posted in the prior-year period. Its adjusted EBITDA also declined by 11% to just over $9 million.
It wasn’t a terribly impressive quarter and to make matters worse, the company has also cut its guidance. For fiscal 2025, Tilray anticipates net revenue to be within a range of $850 million to $900 million. Back in January, the company was expecting revenue to be within $950 million and $1 billion. In its most recent fiscal year, Tilray’s net revenue totaled just under $789 million, which implies that at most, it may achieve full-year revenue growth of around 14%.
The company says that it faces “no current impact of tariffs” but if economic conditions deteriorate due to trade wars, it may not be unreasonable to expect a further decline in Tilray’s financials in the not-too-distant future. But despite its assurances, investors have continued to dump the stock this year – shares of Tilray are down more than 60% since January. And over a five-year period, the cannabis stock has lost over 90% of its value.
Unfortunately, without a catalyst on the horizon, investors are better off simply steering clear of Tilray Brands. The company faces an uncertain future, legalization of marijuana doesn’t apparent imminent in the U.S., and its financials simply aren’t great. The stock is down, and it may continue to plummet as the year goes on.