Tilray Brands reported a standout performance in its international operations during the most recent quarter, with cannabis revenues climbing 36% year over year. This surge was driven by expanded supply agreements in Europe and Latin America, where the company added three new distribution partners and increased production capacity at its Portuguese cultivation facility by 25%. Management highlighted that international markets now contribute nearly 45% of total cannabis revenues, up from 35% a year ago, underscoring the strategic importance of global expansion for Tilray’s top line.

For the quarter ended November 30, Tilray Brands delivered record quarterly revenue of $218 million, marking its highest ever performance for the period and exceeding consensus analyst expectations. However, year-over-year growth was a modest 3%, reflecting continued pricing pressure in Canada and competitive discounting in key European markets. Gross margin contracted to 26% from 29% in the prior-year quarter, while operating expense discipline helped narrow the net loss to $43.5 million, compared to a $85.3 million loss in the same period last year. The improved loss figure demonstrates progress on cost containment, but margin headwinds remain a near-term concern.

The federal rescheduling of cannabis to Schedule 3 has unlocked several opportunities for Tilray Brands in the U.S. The company launched Tilray Medical USA to capitalize on easier access to banking services, the ability to deduct standard business expenses, and expanded clinical research possibilities. While this model mirrors its approach in Germany and Australia, those operations have yet to turn a profit. Tilray faces stiff competition from established multi-state operators and must navigate ongoing interstate transport restrictions. Success will hinge on developing unique product offerings and securing strategic partnerships in the medical channel.