Tilray Posted Record Numbers Last Quarter, but Where the Bulk of Its Growth Has Come From Over the Past 4 Years Might Surprise You

Tilray Brands (NASDAQ: TLRY) is a leading cannabis company based in Canada. However, despite leading the industry, intense competition in the domestic market has made it exceedingly difficult for it to both grow its top line and improve upon its earnings numbers. Many cannabis companies have struggled and closed up shop. Tilray still being around is an accomplishment all on its own. Due to poor market conditions, it has had to look to other markets and opportunities in order to grow its business without crippling its margins in the process.

Recently, the cannabis company posted quarterly results that featured record sales numbers. What may surprise you is how the business has grown over the past four years, and where its future growth might come from.

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Tilray's net revenue has risen by 36% in four years

On April 1, Tilray released its third-quarter results for fiscal 2026, which ended on Feb. 28. Net revenue of $207 million was up 11% from the same period last year. But Tilray's growth has been choppy over the years, and during the same period back in 2022, its net revenue was $152 million. That means over a four-year period, its top line has grown by a little over 36%. That averages out to a compounded annual growth rate of 8%.

Here's a breakdown of the company's different segments both in this most recent quarter and four years ago.

Table by author. Source: Company filings.

The vast majority of its growth has come from the beverage business, where sales have more than doubled. And that's where Tilray has been busy with acquisitions in recent years, adding craft beer brands to its portfolio. Its core cannabis business has been fairly underwhelming. This pattern is likely to continue in the future, given the limited growth opportunities in cannabis for the foreseeable future, unless the U.S. legalizes marijuana, which still appears to be a long shot.

The stock's poor performance isn't a surprise

While how the business has grown over the years may be a bit surprising, what isn't a mystery is why the cannabis stock has fallen by 90% over the past four years. Without strong growth and the business incurring losses, Tilray simply hasn't shown that it is a top growth stock to own. And until that changes, a rally may not be around the corner, even with its valuation declining so heavily.

Tilray is a high-risk investment that is suitable primarily for speculators rather than long-term investors.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.