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Tilray Brands rebounded nicely in its fiscal Q1 2026 (Jun-Aug) after a tuffer stretch to end its fiscal 2025 (Jun 2024 - May 2025) and, for a change, started the year with slight operating profit. Total Tilray revs grew nearly 5% to $209.5 mil for the qtr, driven by its cannabis (+5%) and cannabis distribution (+9%) biz units, with bigger growth in Canadian adult use sales, plus 3% gain from smaller wellness division. Co's oper profit was just $2.1 mil, but that's a huge improvement vs $36.6 mil oper loss same period yr ago. Beverage Div Flattish in FQ1; Down 5% for Running 9 Mos w/ Incremental MC Brand Boost Bev division (mostly craft beer, plus some spirits and non-alc) also improved with revs down just 0.4% to $55.7 mil after slipping double digits the previous qtr. For running 9 mos (Dec 2024 thru Aug 2025), Tilray bev revs are down 5% to $177.3 mil. Tho keep in mind, Tilray's still getting incremental sales this period from acquired craft brands from MC as deals for Hop Valley, Terrapin, Revolver, Atwater closed in Sep 2024. In Circana scans, Tilray beer sales slipped 12% for similar 12-wk period to latest qtr and down 15% YTD thru Sep 7 with most brand fams down double-digits. Suggests financial report trends for the bev division will begin to more closely match scans in coming mos, barring any more M&A.But certain brands are lookin' better lately and co's "seeing progress" in its cost-saving initiatives. Tilray beer trends have seen an uptick in more recent periods, even posting one of the top growth rates among top 25 beer vendors in one recent week thru Sep 21. Tho that appears to be driven by promos. Currently Shock Top Belgian White and Runner's High non-alc beer 6pks are on BOGO across Publix stores in FL and SC (Monster Brewing's Cigar City 12pks also on BOGO too), which can have an outsized impact on natl scans. Still, CEO Irwin Simon is encouraged by getting products "relisted" after many acquired brands got delisted as they took 'em on, he noted on the earnings call.Still "More to Go" on Cost Saving Initiatives; Not Just a Beer Biz After $25 mil in cost savings, there's still "more to go," from SKU rationalization, distrib consolidation (still at 900+) and potential facility closures, Irwin promised. Adjusted beverage gross margin dipped ~300 bps to 38%, and Irwin acknowledged that the beer category is "not one of the easiest categories out there right now." But co's "fighting through it" to find growth and innovation. "We will be in the beverage business, not just the beer business," Irwin underscored in closing remarks. There are "a lot of interesting products we're working on," he hinted.Open to Cannabis Pharma Partnerships and/or M&A Execs also spoke of continued growth oppys in Canadian adult-use cannabis, international medical cannabis, cannabis beverages, and potential for US mkt to open up as co could replicate existing know-how there. Tilray has solid debt ratio and finished the qtr with over $260 mil cash & marketable securities on hand, Irwin highlighted. Oppys to either partner with a pharmaceutical company or acquire are "something we're open and ready to do," he added. "Looking forward, I am confident in Tilray's ability to seize the transformative opportunities ahead, especially as the US explores cannabis rescheduling and the European cannabis landscape continues to evolve," stated Irwin.

Tilray Revs +5% in FQ1 as Bev Division Improved to Flattish, Cannabiz Hummin'; Operating Growth

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