Tilray Brands (TLRY) experienced a significant decline today, closing at $1.23, down 10.22% from the previous close of $1.37. The stock opened at $1.24, reached a high of $1.27, and hit a low of $1.18, with trading volume surging to 60,472,917 shares, nearly double the average volume. The drop was primarily driven by the release of Tilray's fiscal Q2 2025 earnings report, which revealed mixed results. Revenue fell short of Wall Street's expectations at $211 million, compared to the anticipated $216.34 million, and cannabis revenue declined by 2.1% to $65.7 million. Despite exceeding expectations with flat adjusted EPS against a consensus of -3 cents per share, the market reacted negatively, with the stock trading approximately 8% lower in premarket activity.
Investor sentiment was further dampened by a quarterly loss of $0.10 per share, missing the consensus estimate of a $0.04 loss, representing a negative earnings surprise of 150%. Discussions on Reddit highlighted frustration over Tilray's increasing net losses, which have nearly doubled from the previous year, and a significant rise in share count by 26% y/y. One user commented, "Doubling their losses from last year is certainly an interesting business plan," while another noted the company's declining market share in Canada, stating, "No longer #1 in Canada after three companies merged."
Despite maintaining its fiscal 2025 revenue guidance of $950 million to $1 billion, which surpasses Wall Street's estimate, the mixed results and investor concerns over financial health and management strategy contributed to the stock's decline.