Record Fiscal Year Net Revenue of $915 Million, Record Gross Profit, Consistent Adjusted Gross Margin3 and Record Adjusted EBITDA5 Highlights the Strength of Tilray’s Scaled Businesses and Profitable Growth Strategy
International Medical Cannabis Revenue Increased 34% for the Fiscal Year, Reinforcing Tilray's Leadership Across Europe and Expanding Patient Access at Scale
BrewDog Acquisition Ignited the Global Expansion of Tilray’s Beverage Platform, Unlocking New Growth Through the Power of Brands, Hospitality and Consumer Experiences
Disciplined Capital Allocation Strengthens Balance Sheet with Approximately $235 Million in Cash, Restricted Cash and Marketable Securities1; Net Debt2 Reduced to $0.7 Million
Fiscal Year 2027 Guidance of Adjusted EBITDA5 of $68 Million to $75 Million, Reflecting Double-Digit Growth Driven by Continued Momentum
NEW YORK and LONDON and LEAMINGTON, Ontario, July 28, 2026 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray”, “our”, “we” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a global lifestyle and consumer packaged goods company at the forefront of the cannabis, beverage, hospitality and wellness industries, today reported financial results for its fourth quarter and fiscal year ended May 31, 2026. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
Irwin D. Simon, Chairman and Chief Executive Officer, Tilray Brands, stated: “Fiscal 2026 marks an important milestone in Tilray’s evolution. We didn’t just deliver record revenue, record gross profit and record adjusted EBITDA5, we demonstrated the strength of the diversified global platform we’ve been building for the last five years. Today, Tilray Brands is a fundamentally different company: a global business with leadership positions across medical and adult-use cannabis, beverage, hospitality and wellness. We have built multiple growth engines, strengthened our balance sheet, expanded our global reach and created the financial flexibility to invest where we see the greatest opportunities. That combination gives us the ability to create value regardless of market conditions or regulatory timelines.”
Mr. Simon continued, “As we enter Fiscal 2027, we expect over $1 billion in annual revenue, with a stronger company than ever before. Across Europe, we have built one of the industry’s most comprehensive medical cannabis and pharmaceutical distribution platforms. In beverages, BrewDog, our American craft beer portfolio and our Carlsberg partnership create a global platform with significant opportunities for growth. Across every part of Tilray Brands, we remain focused on disciplined execution, stronger profitability, cash flow generation and creating long-term shareholder value. The next chapter for Tilray will not be defined by one product, one market or one regulatory event. It will be defined by disciplined execution across a diversified global platform built to create enduring shareholder value. We believe the opportunity ahead for Tilray Brands is greater than ever before.”
Strategic Business Highlights
- European medical cannabis and pharmaceutical distribution infrastructure: International medical cannabis revenue increased 34% in fiscal 2026, demonstrating the strength of Tilray's end-to-end medical cannabis platform across cultivation, pharmaceutical distribution, clinical care and patient access. Through Tilray Medical, CC Pharma and Lyphe, the Company has established one of the most comprehensive and strategically positioned medical cannabis and pharmaceutical distribution infrastructures in Europe, creating a differentiated platform for long-term growth as regulated markets continue to expand. CC Pharma gross profit increased 57% in the fiscal fourth quarter, reflecting the operating leverage and value of Tilray's pharmaceutical distribution network.
- Global beverage transformation: Tilray accelerated its beverage strategy through the acquisition of BrewDog, creating a pro forma global beverage platform of approximately $500 million and adding one of the world's leading craft beer and hospitality brands. In just a few months of ownership, Tilray has stabilized the business, improved performance and positioned BrewDog for profitability, while leveraging its iconic pub network and experiential consumer platform to drive engagement through activations such as the £1 million Bar Tab campaign. Together with expanded U.K. and European reach and Tilray's exclusive U.S. partnership with Carlsberg, the Company is building a scaled global beverage powerhouse with significant opportunities for growth and value creation.
- Balance sheet and cash flow discipline: Tilray further strengthened its financial position in fiscal 2026, ending the year with approximately $235 million in cash, restricted cash and marketable securities¹, reducing net debt² to $0.7 million, and improving positive cash flow from operations, excluding working capital, by 157% to approximately $18.2 million. These results reflect disciplined execution and provide the financial flexibility to invest in strategic growth opportunities and drive long-term shareholder value.
Financial Highlights – 2026 Fiscal Year
All comparisons made to the prior fiscal year
- Net revenue increased 11% to $915.5 million in fiscal 2026 compared to $821.3 million.
- Gross profit increased 8% to $260.4 million compared to $240.6 million.
- Gross margin was 28% for fiscal 2026 compared to 29%. Adjusted gross margin3 was 29% and remained unchanged.
- Cannabis net revenue increased 8% to $268.3 million in fiscal 2026 compared to $249.0 million.
- Cannabis gross profit increased 8% to $107.1 million in fiscal 2026 compared to $99.0 million.
- Cannabis gross margin was 40% in fiscal 2026 and was unchanged.
- Beverage net revenue increased 6% to $254.0 million in fiscal 2026 compared to $240.6 million.
- Beverage gross profit decreased 2% to $91.2 million in fiscal 2026 compared to $93.0 million.
- Beverage gross margin was 36% in fiscal 2026 compared to 39%.
- Distribution net revenue increased 21% to $327.2 million in fiscal 2026 compared to $271.2 million.
- Distribution gross profit increased 39% to $40.7 million in fiscal 2026 compared to $29.3 million.
- Distribution gross margin increased to 12% in fiscal 2026 compared to 11%.
- Wellness net revenue increased 9% to $65.9 million in fiscal 2026 compared to $60.5 million.
- Wellness gross profit increased 12% to $21.5 million in fiscal 2026 compared to $19.2 million.
- Wellness gross margin increased to 33% in fiscal 2026 compared to 32%.
- Driven predominantly by non-cash charges, net loss was $105.2 million in fiscal 2026 and net loss per share was $1.09. Adjusted net income4 increased almost 90% to $12.2 million, compared to adjusted net income4 of $6.5 million in the prior fiscal year. Adjusted net income per share4 or adjusted EPS was $0.11, compared to $0.07.
- Adjusted EBITDA5 was $61.1 million in fiscal 2026 compared to $55.0 million; eliminating the impact of approximately $2.3 million of fuel surcharges in the fourth quarter, adjusted EBITDA5 would have been $63.4 million.
Financial Highlights – 2026 Fiscal Fourth Quarter
All comparisons made to the prior year period
- Net revenue increased 25% to $281.7 million in the fourth quarter compared to $224.5 million.
- Gross profit increased 34% to $90.5 million in the fourth quarter compared to $67.6 million. Gross margin was 32% in the fourth quarter compared to 30%.
- Cannabis net revenue increased 5% to $71.5 million in the fourth quarter compared to $67.8 million.
- Cannabis gross profit increased 7% to $31.7 million in the fourth quarter compared to $29.6 million.
- Cannabis gross margin was 44% in the fourth quarter and was unchanged.
- Beverage net revenue was $105.6 million in the fourth quarter compared to $65.6 million.
- Beverage gross profit was $40.6 million in the fourth quarter compared to $25.0 million.
- Beverage gross margin was 38% in the fourth quarter and was unchanged.
- Distribution net revenue increased 15% to $85.0 million in the fourth quarter compared to $74.1 million.
- Distribution gross profit was $11.7 million in the fourth quarter compared to $7.4 million.
- Distribution gross margin was 14% in the fourth quarter compared to 10%.
- Wellness net revenue increased 16% to $19.7 million in the fourth quarter compared to $17.0 million.
- Wellness gross profit was $6.6 million in the fourth quarter compared to $5.6 million.
- Wellness gross margin was 33% in the fourth quarter and was unchanged.
- Driven predominantly by non-cash charges, net loss was $37.9 million in the fourth quarter and net loss per share was $0.43. Adjusted net income4 was $5.3 million in the fourth quarter and adjusted net income per share4 or adjusted EPS was $0.05.
- Adjusted EBITDA5 was $31.9 million in the fourth quarter compared to $27.6 million; eliminating the impact of approximately $2.3 million of fuel surcharges in the fourth quarter, adjusted EBITDA5 would have been $34.2 million.
U.S. Rescheduling Update: Following recent U.S. rescheduling developments, Tilray continues to evaluate multiple pathways to participation in an emerging federally compliant, science-driven medical cannabis market. Rescheduling represents an important federal policy milestone that may support expanded clinical research, greater product standardization, clearer quality and safety expectations, and the gradual development of a regulated medical cannabis framework in the United States. Meaningful regulatory uncertainty remains with ongoing legal challenges.
Tilray is approaching this opportunity with discipline, regulatory rigor and a medical-first strategy. Tilray has already developed a blueprint for a U.S. Tilray Medical platform that is focused on research, education, cannabinoid-based medicine development, patients and compliant medical cannabis access rather than adult-use retail. The strategy is designed to leverage Tilray Medical’s global foundation, including operations across more than 20 countries, pharmaceutical-grade cultivation, manufacturing capabilities, and quality management systems, complex regulatory expertise, clinical research experience, physician and pharmacy relationships, and patient access infrastructure. This foundation is supported by Tilray’s broader international medical cannabis platform, which has served hundreds of thousands of patients globally and includes more than 200 medical cannabis products across all of our markets.
Fiscal Year 2027 Guidance
For its fiscal year ending May 31, 2027, the Company expects to achieve adjusted EBITDA5 of $68 million to $75 million, representing double digit growth as compared to fiscal year 2026.
Management’s guidance for adjusted EBITDA5 is provided on a non-GAAP basis and excludes stock-based compensation; change in fair value of contingent consideration; purchase price accounting step-up; impairments of intangible assets and goodwill; other than temporary change in fair value of convertible notes receivable; litigation costs; integration and restructuring costs; transaction-related costs; and other non-operating income (expenses) and non-recurring items that may be incurred during the Company’s fiscal year 2027, which the Company will continue to identify as it reports its future financial results.
The Company cannot reconcile its expected adjusted EBITDA5 to net income under “Fiscal Year 2027 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
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(1) Cash, restricted cash and Marketable Securities is a non-GAAP financial measure. See “Use of Non-GAAP Measures” below for additional discussion regarding these non-GAAP measures and for a reconciliation of such Non-GAAP Measures to our most comparable GAAP measure.
(2) Net (debt) cash is a non-GAAP financial measure. See “Use of Non-GAAP Measures” below for additional discussion regarding these non-GAAP measures and for a reconciliation of such Non-GAAP Measures to our most comparable GAAP measure.
(3) Adjusted gross margin is a non-GAAP financial measure. See “Use of Non-GAAP Measures” below for additional discussion regarding these non-GAAP measures and for a reconciliation of such Non-GAAP Measures to our most comparable GAAP measure.
(4) Adjusted net income (loss) and adjusted net income (loss) per share (adjusted EPS) are a non-GAAP financial measure. See “Use of Non-GAAP Measures” below for additional discussion regarding these non-GAAP measures and for a reconciliation of such Non-GAAP Measures to our most comparable GAAP measure.
(5) Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Measures” below for additional discussion regarding these non-GAAP measures and for a reconciliation of such Non-GAAP Measures to our most comparable GAAP measure.
Live Audio Webcast
Tilray Brands will host a webcast to discuss these results today at 4:30 PM Eastern Time. Investors may join the live webcast available on the Events & Presentations section of Tilray’s Investor Relations website. A replay will be available and archived on the Company’s website.
About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this press release constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “position,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.
Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to become a leading lifestyle consumer packaged goods company; the Company’s ability to become a leading beverage alcohol Company; the Company’s ability to achieve long term profitability; the Company’s ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular business lines and markets; the Company’s ability to successfully achieve revenue growth, margin and profitability improvements, production and supply chain efficiencies, synergies and cost savings; the Company’s ability to achieve fiscal year 2027 financial guidance, including expected Adjusted EBITDA of $68 to $75 million and synergy optimizations; the Company’s expected revenue growth, sales volume, profitability, synergies and accretion related to any of its acquisitions; expected opportunities in the U.S., including upon U.S. federal cannabis legalization or rescheduling and the Company’s ability to leverage its platform in connection therewith; the Company’s ability to successfully leverage artificial intelligence strategies; the Company’s anticipated investments and acquisitions, including in organic and strategic growth, partnership efforts, product offerings and other initiatives; and the Company’s ability to commercialize new and innovative products.
Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of the Company made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Use of Non-U.S. GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including Adjusted gross margin (consolidated and for each of our reporting segments), Adjusted gross profit (consolidated and for each of our reporting segments), Adjusted EBITDA, Adjusted cash operating income (loss), Adjusted net income (loss), Adjusted net income (loss) per share, free cash flow, adjusted free cash flow, constant currency presentations of revenue, cash, restricted cash and marketable securities, and net (debt) cash. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, nor should adjusted net income (loss) per share be used as a measure of liquidity. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, impairments of intangible assets and goodwill, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.
The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company's consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. A reconciliation of prior year revenue to constant currency revenue the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.
Adjusted EBITDA is calculated as net income (loss) before income tax expense (recovery), net; interest expense, net; non-operating income (expense), net; amortization; stock-based compensation; change in fair value of contingent consideration; impairment of intangibles assets and goodwill; other than temporary change in fair value of convertible notes receivable; loss (gain) on sale of capital assets - non-operating facility; purchase price accounting step-up; project 420 optimization costs; litigation costs; restructuring costs, and transaction (income) costs, net. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.
Adjusted cash operating income (loss) is calculated as operating loss, less; amortization; stock-based compensation; change in fair value of contingent consideration impairment of intangibles assets and goodwill; and other than temporary change in fair value of convertible notes receivable. A reconciliation of adjusted cash operating income (loss) to operating loss, the most directly comparable GAAP measure, has been included below in this press release. Adjusted cash operating income (loss) is not calculated in accordance with GAAP and should not be considered an alternative for GAAP operating income or as a measure of liquidity.
Adjusted net income (loss) is calculated as net loss attributable to stockholders of Tilray Brands, Inc., less; non-operating income (expense), net; amortization; deferred income tax expense (benefits), net; stock-based compensation; change in fair value of contingent consideration; purchase price accounting step-up; project 420 optimization costs; impairment of intangibles assets and goodwill; other than temporary change in fair value of convertible notes receivable; litigation costs; restructuring costs and transaction (income) costs, net. A reconciliation of Adjusted net income (loss) to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release.
Adjusted net income (loss) per share (or adjusted EPS) is calculated as adjusted net income (loss) divided by weighted average number of common shares outstanding. A reconciliation of Adjusted net income (loss) per share to net loss attributable to stockholders of Tilray Brands, Inc., the most directly comparable GAAP measure, has been included below in this press release. Adjusted net income (loss) per share is not calculated in accordance with GAAP and should not be considered an alternative for GAAP net income (loss) per share or as a measure of liquidity.
Adjusted gross profit (consolidated and for each of our reporting segments), is calculated as gross profit adjusted to exclude the impact of purchase price accounting valuation step-up. A reconciliation of Adjusted gross profit, excluding purchase price accounting valuation step-up, to gross profit, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted gross margin (consolidated and for each of our reporting segments), excluding purchase price accounting valuation step-up, is calculated as revenue less cost of sales adjusted to add back amortization of inventory step-up, divided by revenue. A reconciliation of Adjusted gross margin, excluding purchase price accounting valuation step-up, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.
Free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Adjusted free cash flow is comprised of two GAAP measures which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets, net, and the exclusion of growth CAPEX from investments in capital and intangible assets, net, which excludes the amount of capital expenditures that are considered to be associated with growth of future operations rather than to maintain the existing operations of the Company, and excludes cash paid for litigation settlements. A reconciliation of net cash flow provided by (used in) operating activities to adjusted free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.
Cash, restricted cash and marketable securities are comprised of two GAAP measures, cash and cash equivalents and restricted cash added to marketable securities. The Company’s management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its short-term liquidity position by combing these two GAAP metrics.
Net (debt) cash is comprised of GAAP measures and reduces bank indebtedness, current and non-current portions of long-term debt, the principal balance of convertible debt by cash and cash equivalents and marketable securities. The Company believes this metric provides useful information to management, analysts, and investors regarding its liquidity and the Company’s ability to repay all of its debt.
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2025
Assets Current assets Cash and cash equivalents $225,977 $221,666 Restricted cash 3,365 — Marketable securities 5,289 34,697 Accounts receivable, net 189,170 121,489 Inventory 301,192 270,882 Prepaids and other current assets 64,692 34,092 Assets held for sale 2,449 5,800 Total current assets 792,134 688,626 Capital assets 680,225 568,433 Operating lease, right-of-use assets 42,318 22,279 Digital assets 674 — Intangible assets 42,779 21,423 Goodwill 752,350 752,350 Long-term investments 6,551 10,132 Other assets 10,981 11,084 Total assets $2,328,012 $2,074,327 Liabilities Current liabilities Bank indebtedness $8,775 $7,181 Accounts payable and accrued liabilities 318,088 235,322 Contingent consideration — 15,000 Warrant liability — 1,092 Current portion of lease liabilities 13,357 6,941 Current portion of long-term debt 18,160 14,767 Total current liabilities 358,380 280,303 Long - term liabilities Lease liabilities 158,155 64,925 Long-term debt 120,425 148,493 Convertible debentures payable 79,529 86,428 Deferred tax liabilities, net 12,256 3,748 Other liabilities 4,400 855 Total liabilities 733,145 584,752 Stockholders' equity Common stock ($0.0001 par value; 1,416,000,000 common shares authorized;131,683,075 and 106,067,875 common shares issued and outstanding, respectively)(1) 132 106 Treasury Stock (589,217 and 200,422 treasury shares issued and outstanding, respectively)(1) — — Preferred shares ($0.0001 par value; 10,000,000 preferred shares authorized; nil and nil preferred shares issued and outstanding, respectively) — — Additional paid-in capital 6,627,056 6,401,657 Accumulated other comprehensive loss (44,233) (43,063)Accumulated deficit (4,968,623) (4,847,226)Total Tilray Brands, Inc. stockholders' equity 1,614,332 1,511,474 Non-controlling interests (19,465) (21,899)Total stockholders' equity 1,594,867 1,489,575 Total liabilities and stockholders' equity $2,328,012 $2,074,327 (1) - Current and prior year share amounts have been retrospectively adjusted to reflect the Reverse Stock Split, which became effective on December 2, 2025.
For the three months For the twelve months ended May 31, Change % Change ended May 31, Change % Change(in thousands of U.S. dollars, except for per share data) 2026
2025
2026 vs. 2025 2026
2025
2026 vs. 2025Net revenue $281,714 $224,535 $57,179 25% $915,454 $821,309 $94,145 11%Cost of goods sold 191,193 156,902 34,291 22% 655,013 580,739 74,274 13%Gross profit 90,521 67,633 22,888 34% 260,441 240,570 19,871 8%Operating expenses: General and administrative 61,173 37,968 23,205 61% 203,629 167,324 36,305 22%Selling 14,007 14,282 (275) (2)% 49,328 56,039 (6,711) (12)%Amortization 6,192 20,703 (14,511) (70)% 19,585 88,616 (69,031) (78)%Marketing and promotion 13,462 8,969 4,493 50% 42,290 37,048 5,242 14%Research and development 180 34 146 429% 361 284 77 27%Change in fair value of contingent consideration — — — NM (15,000) — (15,000) NMImpairment of intangible assets and goodwill — 1,396,904 (1,396,904) (100)% — 2,096,139 (2,096,139) (100)%Other than temporary change in fair value of convertible notes receivable — 1,661 (1,661) (100)% — 21,661 (21,661) (100)%Litigation costs, net of recoveries 1,405 12,093 (10,688) (88)% 3,902 17,347 (13,445) (78)%Restructuring costs 7,192 17,034 (9,842) (58)% 13,113 34,283 (21,170) (62)%Transaction costs (income), net 3,364 1,971 1,393 71% 6,260 4,534 1,726 38%Total operating expenses 106,975 1,511,619 (1,404,644) (93)% 323,468 2,523,275 (2,199,807) (87)%Operating loss (16,454) (1,443,986) 1,427,532 (99)% (63,027) (2,282,705) 2,219,678 (97)%Interest expense, net (6,628) (3,966) (2,662) 67% (23,663) (29,952) 6,289 (21)%Non-operating income (expense), net (984) 54,915 (55,899) (102)% (1,370) 10,284 (11,654) (113)%Loss before income taxes (24,066) (1,393,037) 1,368,971 (98)% (88,060) (2,302,373) 2,214,313 (96)%Income tax expense (recovery), net 13,863 (125,142) 139,005 (111)% 17,098 (121,017) 138,115 (114)%Net loss $(37,929) $(1,267,895) $1,229,966 (97)% $(105,158) $(2,181,356) 2,076,198 (95)%Total net income (loss) attributable to: Stockholders of Tilray Brands, Inc. (49,572) (1,272,795) 1,223,223 (96)% (121,397) (2,186,738) 2,065,341 (94)%Non-controlling interests 11,643 4,900 6,743 138% 16,239 5,382 10,857 202%Other comprehensive gain (loss), net of tax Foreign currency translation gain (loss) 618 10,625 (10,007) (94)% 207 430 (223) (52)%Comprehensive loss $(37,311) $(1,257,270) $1,219,959 (97)% $(104,951) $(2,180,926) $2,075,975 (95)%Total comprehensive income (loss) attributable to: Stockholders of Tilray Brands, Inc. (49,607) (1,262,923) 1,213,316 (96)% (122,567) (2,186,302) 2,063,735 (94)%Non-controlling interests 12,296 5,653 6,643 118% 17,616 5,376 12,240 228%Weighted average number of common shares - basic(1) 115,511,367 97,795,989 17,715,378 18% 111,832,375 89,032,602 22,799,773 26%Weighted average number of common shares - diluted(1) 115,511,367 97,795,989 17,715,378 18% 111,832,375 89,032,602 22,799,773 26%Net loss per share - basic(1) $(0.43) $(13.01) $12.58 (97)% $(1.09) $(24.56) $23.47 (96)%Net loss per share - diluted(1) $(0.43) $(13.01) $12.58 (97)% $(1.09) $(24.56) $23.47 (96)% (1) - Current and prior year share amounts have been retrospectively adjusted to reflect the Reverse Stock Split, which became effective on December 2, 2025.
For the twelve months Ended May 31, Change % Change(in thousands of US dollars) 2026
2025
2026 vs. 2025Cash provided by (used in) operating activities: Net loss $(105,158) $(2,181,356) $2,076,198 (95)%Adjustments for: Income tax expense (recovery), net 17,098 (121,017) 138,115 (114)%Unrealized foreign exchange (gain) loss (9,543) (18,218) 8,675 (48)%Amortization 67,601 133,490 (65,889) (49)%Loss (gain) on sale of capital assets (509) 928 (1,437) (155)%Accretion of convertible debt discount 7,914 10,863 (2,949) (27)%Impairments — 2,096,139 (2,096,139) (100)%Other than temporary change in fair value of convertible notes receivable — 21,661 (21,661) (100)%Unrealized loss on digital assets 326 — 326 NMOther non-cash items 1,518 (2,203) 3,721 (169)%Stock-based compensation 45,940 24,289 21,651 89%Loss on long-term investments 4,533 5,550 (1,017) (18)%Loss (gain) on derivative instruments 3,495 (2,161) 5,656 (262)%Change in fair value of contingent consideration (15,000) — (15,000) NMChange in non-cash working capital: Accounts receivable (66,423) (17,801) (48,622) 273%Prepaids and other current assets (26,898) (8,264) (18,634) 225%Inventory (13,439) (13,561) 122 (1)%Accounts payable and accrued liabilities 19,401 (22,938) 42,339 (185)%Net cash used in operating activities (69,144) (94,599) 25,455 (27)%Cash provided by (used in) investing activities: Investment in capital and intangible assets (32,987) (32,917) (70) 0%Proceeds from disposal of capital and intangible assets 3,507 6,824 (3,317) (49)%Investment in digital assets (1,000) — (1,000) NMSale (purchase) of marketable securities, net 29,408 (2,515) 31,923 (1269)%Investment in long-term investments (3,595) — (3,595) NMProceeds from long-term investments 2,566 — 2,566 NMBusiness acquisitions, net of cash acquired (53,699) (18,110) (35,589) 197%Net cash provided by (used in) investing activities (55,800) (46,718) (9,082) 19%Cash provided by (used in) financing activities: Share capital issued, net of cash issuance costs 157,974 161,188 (3,214) (2)%Cash paid in lieu of fractional shares (159) — (159) NMProceeds from warrants 2,367 — 2,367 NMProceeds from long-term debt — 3,450 (3,450) (100)%Repayment of long-term debt (25,353) (15,506) (9,847) 64%Repayment of convertible debt — (330) 330 (100)%Repayment of lease liabilities (5,429) (2,900) (2,529) 87%Net increase (decrease) in bank indebtedness 1,594 (10,852) 12,446 (115)%Dividend paid to NCI — (1,544) 1,544 (100)%Net cash provided by (used in) financing activities 130,994 133,506 (2,512) (2)%Effect of foreign exchange on cash and cash equivalents 1,626 1,137 489 43%Net decrease in cash and cash equivalents 7,676 (6,674) 14,350 (215)%Cash and cash equivalents, beginning of year 221,666 228,340 (6,674) (3)%Cash and cash equivalents, end of year $229,342 $221,666 $7,676 3%
For the three months ended
For the three months ended
For the year ended For the year ended (In thousands of U.S. dollars) May 31, 2026 % of Total Revenue May 31, 2025 % of Total Revenue May 31, 2026 % of Total Revenue May 31, 2025 % of Total RevenueBeverage business $105,596 38% $65,621 29% $253,976 28% $240,595 29%Cannabis business 71,471 25% 67,826 30% 268,342 29% 249,001 30%Distribution business 84,958 30% 74,053 33% 327,244 36% 271,228 33%Wellness business 19,689 7% 17,035 8% 65,892 7% 60,485 8%Total net revenue $281,714 100% $224,535 100% $915,454 100% $821,309 100% Net Revenue by Operating Segment in Constant Currency
For the three months ended
For the three months ended
For the year ended For the year ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 (In thousands of U.S. dollars) as reported in constant currency % of Total Revenue as reported in constant currency % of Total Revenue as reported in constant currency % of Total Revenue as reported in constant currency % of Total RevenueBeverage business $104,513 38% $65,621 29% $252,893 29% $240,595 29%Cannabis business 68,981 25% 67,826 30% 260,773 30% 249,001 30%Distribution business 81,092 30% 74,053 33% 304,728 34% 271,228 33%Wellness business 19,444 7% 17,035 8% 65,510 7% 60,485 8%Total net revenue $274,030 100% $224,535 100% $883,904 100% $821,309 100% Net Cannabis Revenue by Market Channel
For the three months ended
For the three months ended
For the year ended For the year ended (In thousands of U.S. dollars) May 31, 2026 % of Total Revenue May 31, 2025 % of Total Revenue May 31, 2026 % of Total Revenue May 31, 2025 % of Total RevenueRevenue from Canadian medical cannabis $5,367 8% $6,225 9% $23,726 9% $24,998 10%Revenue from Canadian adult-use cannabis 57,267 80% 58,421 86% 236,352 87% 224,048 91%Revenue from wholesale cannabis 652 1% 2,214 3% 7,318 3% 18,207 7%Revenue from international cannabis 27,242 38% 22,365 33% 84,910 32% 63,356 25%Less excise taxes (19,057) (27)% (21,399) (31)% (83,964) (31)% (81,608) (33)%Total $71,471 100% $67,826 100% $268,342 100% $249,001 100% Net Cannabis Revenue by Market Channel in Constant Currency
For the three months ended
For the three months ended
For the year ended For the year ended May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 (In thousands of U.S. dollars) as reported in constant currency % of Total Revenue as reported in constant currency % of Total Revenue as reported in constant currency % of Total Revenue as reported in constant currency % of Total RevenueRevenue from Canadian medical cannabis $5,245 8% $5,600 9% $23,505 9% $24,998 10%Revenue from Canadian adult-use cannabis 55,959 81% 53,081 87% 234,365 90% 224,048 91%Revenue from wholesale cannabis 637 1% 1,682 3% 7,295 3% 18,207 7%Revenue from international cannabis 25,762 37% 21,945 36% 78,899 30% 63,356 25%Less excise taxes (18,622) (27)% (21,399) (35)% (83,291) (32)% (81,608) (33)%Total $68,981 100% $60,909 100% $260,773 100% $249,001 100%
For the three months ended May 31, 2026(In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness TotalNet revenue $105,596 $71,471 $84,958 $19,689 $281,714 Cost of goods sold 65,002 39,759 73,296 13,136 191,193 Gross profit 40,594 31,712 11,662 6,553 90,521 Gross margin 38% 44% 14% 33% 32%Adjustments: Purchase price accounting step-up 2,150 — — — 2,150 Adjusted gross profit 42,744 31,712 11,662 6,553 92,671 Adjusted gross margin 40% 44% 14% 33% 33% For the three months ended May 31, 2025(In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness TotalNet revenue $65,621 $67,826 $74,053 $17,035 $224,535 Cost of goods sold 40,630 38,201 66,615 11,456 156,902 Gross profit 24,991 29,625 7,438 5,579 67,633 Gross margin 38% 44% 10% 33% 30% For the twelve months ended May 31, 2026(In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness TotalNet revenue $253,976 $268,342 $327,244 $65,892 $915,454 Cost of goods sold 162,743 161,256 286,589 44,425 655,013 Gross profit 91,233 107,086 40,655 21,467 260,441 Gross margin 36% 40% 12% 33% 28%Adjustments: Purchase price accounting step-up 2,150 — — — 2,150 Adjusted gross profit 93,383 107,086 40,655 21,467 262,591 Adjusted gross margin 37% 40% 12% 33% 29% For the twelve months ended May 31, 2025(In thousands of U.S. dollars) Beverage Cannabis Distribution Wellness TotalNet revenue $240,595 $249,001 $271,228 $60,485 $821,309 Cost of goods sold 147,591 150,005 241,896 41,247 580,739 Gross profit 93,004 98,996 29,332 19,238 240,570 Gross margin 39% 40% 11% 32% 29%Adjustments: Purchase price accounting step-up 1,610 — — — 1,610 Adjusted gross profit 94,614 98,996 29,332 19,238 242,180 Adjusted gross margin 39% 40% 11% 32% 29%
For the three months ended May 31,
Change % Change For the year ended May 31,
Change % Change(In thousands of U.S. dollars) 2026
2025
2026 vs. 2025 2026
2025
2026 vs. 2025Net income (loss) $(37,929) $(1,267,895) $1,229,966 (97)% $(105,158) $(2,181,356) $2,076,198 (95)%Income tax (recovery) expense 13,863 (125,142) 139,005 (111)% 17,098 (121,017) 138,115 (114)%Interest expense, net 6,628 3,966 2,662 67% 23,663 29,952 (6,289) (21)%Non-operating income (expense), net 984 (54,915) 55,899 (102)% 1,370 (10,284) 11,654 (113)%Amortization 19,341 34,080 (14,739) (43)% 67,601 133,490 (65,889) (49)%Stock-based compensation 14,880 6,100 8,780 144% 45,940 24,289 21,651 89%Change in fair value of contingent consideration — — — NM (15,000) — (15,000) NMImpairment of intangible assets and goodwill — 1,396,904 (1,396,904) (100)% — 2,096,139 (2,096,139) (100)%Other than temporary change in fair value of convertible notes receivable — 1,661 (1,661) (100)% — 21,661 (21,661) (100)%Project 420 business optimization — — — NM 200 2,600 (2,400) (92)%Loss (gain) on sale of capital assets - non-operating facility — 1,787 (1,787) (100)% — 1,787 (1,787) (100)%Purchase price accounting step-up 2,150 — 2,150 NM 2,150 1,610 540 34%Litigation costs, net of recoveries 1,405 12,093 (10,688) (88)% 3,902 17,347 (13,445) (78)%Restructuring costs 7,192 17,034 (9,842) (58)% 13,113 34,283 (21,170) (62)%Transaction costs (income), net 3,364 1,971 1,393 71% 6,260 4,534 1,726 38%Adjusted EBITDA $31,878 $27,644 $4,234 15% $61,139 $55,035 $6,104 11% For the three months ended May 31,
Change % Change For the year ended May 31,
Change % Change(In thousands of U.S. dollars) 2026
2025
2026 vs. 2025 2026
2025
2026 vs. 2025Net loss attributable to stockholders of Tilray Brands, Inc. $(49,572) $(1,272,795) $1,223,223 (96)% $(121,397) $(2,186,738) $2,065,341 (94)%Non-operating income (expense), net 984 (54,915) 55,899 (102)% 1,370 (10,284) 11,654 (113)%Amortization 19,341 34,080 (14,739) (43)% 67,601 133,490 (65,889) (49)%Deferred income tax expense (benefits), net 5,584 (128,197) 133,781 (104)% 8,015 (125,511) 133,526 (106)%Stock-based compensation 14,880 6,100 8,780 144% 45,940 24,289 21,651 89%Change in fair value of contingent consideration — — — NM (15,000) — (15,000) NMImpairment of intangible assets and goodwill — 1,396,904 (1,396,904) (100)% — 2,096,139 (2,096,139) (100)%Other than temporary change in fair value of convertible notes receivable, attributable to stockholders of Tilray Brands, Inc. — 1,129 (1,129) (100)% — 14,729 (14,729) (100)%Project 420 business optimization — — — NM 200 2,600 (2,400) (92)%Purchase price accounting step-up 2,150 — 2,150 NM 2,150 1,610 540 34%Litigation costs, net of recoveries 1,405 12,093 (10,688) (88)% 3,902 17,347 (13,445) (78)%Restructuring costs 7,192 17,034 (9,842) (58)% 13,113 34,283 (21,170) (62)%Transaction costs (income), net 3,364 1,971 1,393 71% 6,260 4,534 1,726 38%Adjusted net income (loss) $5,328 $13,404 $(8,076) (60)% $12,154 $6,488 $5,666 87%Adjusted net income (loss) per share - basic(1) $0.05 $0.14 $(0.09) (64)% $0.11 $0.07 $0.04 57% (1) - Current and prior year share amounts have been retrospectively adjusted to reflect the Reverse Stock Split, which became effective on December 2, 2025.
Other Financial Information: Free Cash Flow
For the three months ended May 31,
Change % Change For the year ended May 31,
Change % Change(In thousands of U.S. dollars) 2026
2025
2026 vs. 2025 2026
2025
2026 vs. 2025Net cash provided by (used in) operating activities $(37,324) $(12,807) $(24,517) 191% $(69,144) $(94,599) $25,455 (27)%Less: investments in capital and intangible assets, net (8,440) (340) (8,100) 2382% (29,480) (26,093) (3,387) 13%Free cash flow $(45,764) $(13,147) $(32,617) 248% $(98,624) $(120,692) $22,068 (18)%Add: growth CAPEX 2,366 219 2,147 980% 9,779 6,537 3,242 50%Add: cash paid for litigation settlements — — — NM 2,804 — 2,804 NMAdjusted free cash flow $(43,398) $(12,928) $(30,470) 236% $(86,041) $(114,155) $28,114 (25)%
For the three months ended, May 31, For the year ended May 31,(in thousands of U.S. dollars) 2026
2025
2026
2025
Net beverage revenue $105,596 $65,621 $253,976 $240,595 Net cannabis revenue 71,471 67,826 268,342 249,001 Distribution revenue 84,958 74,053 327,244 271,228 Wellness revenue 19,689 17,035 65,892 60,485 Beverage costs 65,002 40,630 162,743 147,591 Cannabis costs 39,759 38,201 161,256 150,005 Distribution costs 73,296 66,615 286,589 241,896 Wellness costs 13,136 11,456 44,425 41,247 Adjusted gross profit (excluding PPA step-up) 92,671 67,633 262,591 242,180 Beverage adjusted gross margin (excluding PPA step-up) 40% 38% 37% 39%Cannabis adjusted gross margin (excluding PPA step-up) 44% 44% 40% 40%Distribution gross margin 14% 10% 12% 11%Wellness gross margin 33% 33% 33% 32%Adjusted EBITDA 31,878 27,644 61,139 55,035 Cash, restricted cash and marketable securities as at the year ended: 234,631 256,363 234,631 256,363 Working capital as at the year ended: 433,754 408,323 433,754 408,323
For the three months ended May 31,
Change % Change For the year ended May 31,
Change % Change 2026
2025
2026 vs. 2025 2026
2025
2026 vs. 2025Operating loss $(16,454) $(1,443,986) $1,427,532 (99)% $(63,027) $(2,282,705) $2,219,678 (97)%Change in fair value of contingent consideration — — — NM (15,000) — (15,000) NMImpairments — 1,396,904 (1,396,904) (100)% — 2,096,139 (2,096,139) (100)%Other than temporary change in fair value of convertible notes receivable, attributable to stockholders of Tilray Brands, Inc. — 1,661 (1,661) (100)% — 21,661 (21,661) (100)%Amortization 19,341 34,080 (14,739) (43)% 67,601 133,490 (65,889) (49)%Stock-based compensation 14,880 6,100 8,780 144% 45,940 24,289 21,651 89%Adjusted cash operating income (loss) $17,767 $(5,241) $23,008 (439)% $35,514 $(7,126) $42,640 (598)%