The One Market That Could Make or Break Tilray Stock
Key Points
International markets represent nearly 75% of the company's sales.
These markets have proved easier than contending with various U.S. state regulations.
- 10 stocks we like better than Tilray Brands ›
Tilray Brands (NASDAQ: TLRY) has become known as a cannabis company. The company expanded its product offerings to include beverages such as beer, although Tilray's cannabis and wellness (hemp-based food) divisions combined for 38% of fiscal 2025 revenue (ended May 31).
Given how crucial cannabis is to the company's results, investors considering investing in Tilray Brands' stock should understand the importance of markets outside the United States.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Focus outside the U.S.
The cannabis division accounts for a significant share of Tilray Brands' sales and the largest portion of its profitability. The segment generated $196.9 million in sales for the first nine months of the year, or 31% of the total. But it produced a gross profit of $75.4 million, the company's largest profit source, representing 44%.
These sales come from outside the United States, including Canada and the European Union, where regulations on medicinal and recreational marijuana aren't as stringent. By comparison, there's a mix of U.S. state regulations for companies to navigate.
Year to date, Tilray Brands' sales totaled $633.7 million. Nearly three-quarters came from markets outside the U.S. Aside from being the largest, the Canada and EMEA (Europe, the Middle East, and Africa) segments have grown sales this year, while the U.S. and the rest of the world have seen top-line declines.
The company loses money, but to achieve profitability, Tilray Brands will have to continue growing Canadian and EMEA revenue. This year, it reported a loss of $67.2 million under generally accepted accounting principles. That's narrower than the $913.5 million loss in the year-ago period, although that figure included a large $699.2 million impairment charge.
Should you buy stock in Tilray Brands right now?
Before you buy stock in Tilray Brands, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tilray Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 8, 2026.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.
Recommended Articles
