Is Now a Good Time to Buy Tilray Brands Stock?

Tilray Brands' (NASDAQ: TLRY) stock rose dramatically after its initial public offering, then plunged, tracking the broader marijuana sector's rise and fall. The huge growth that Wall Street had hoped for simply didn't materialize, and investors moved on. But Tilray is still around and, more to the point, is repositioning its business for the long term. Is now a good time to buy it?

What does Tilray Brands do?

Tilray Brands started life as a marijuana company. It is still doing that, but it has branched out. The company now describes itself as "a global lifestyle and consumer packaged goods company," with operations in cannabis, beverages, and hemp-based foods. In the beverage space, it recently acquired BrewDog, a craft brewer that also operates physical bars/restaurants.

Image source: Getty Images.

Acquisitions have played a big role in the company's business pivot. Tilray is a relatively small company with a market cap of roughly $500 million. Execution risk is something that investors need to monitor closely, since it is fairly easy for management at a small company to get stretched too thin. For example, the purchase of BrewDog required multiple transactions spread across three countries. And Brew Dog was bought out of administration, which is the U.K. version of bankruptcy, so it wasn't exactly a strongly performing business. Simply put, Tilray is making bold moves. So far, however, management appears to be executing its plans reasonably well.

At this point, Tilray is looking more and more like a consumer staples company and a brand manager. It is an interesting pivot that could lead to a material long-term opportunity for investors. Indeed, the company now has more diversification, and the new business lines aren't as politically and legally complex as pot. Notably, the company reported record revenues backed by 11% organic growth in the fiscal third quarter of 2026.

What it didn't report was positive earnings. In fact, it has never reported positive earnings in its entire existence as a public company. So, from a big picture perspective, Tilray is still a money-losing start-up.

Tilray: Right direction, more time needed

For aggressive growth investors, a deep dive into Tilray's business might be well worth the effort. There are interesting and positive things happening as the company reworks its business model. However, most investors should probably watch the company from the sidelines. Until it is proven that the revamped business is sustainably profitable, the risk/reward balance will remain tilted toward risk.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.