Tilray Profit Outlook Brightens as ETF Momentum Jumps 64 Points Post-Reclassification
The Trump administration's reclassification of marijuana now lets cannabis firms deduct standard business expenses, potentially boosting Tilray Brands' profitability and tax position. The AdvisorShares Pure U.S. Cannabis ETF's momentum score surged from 24.75 to 88.95 over one week, driven in part by Tilray's strong second-quarter earnings beat.
1. Record Q2 Earnings Beat Expectations for Tilray Brands, Inc.
Tilray Brands, Inc. delivered a record second quarter in 2026, posting revenue of $330 million—an increase of 18% year-over-year—and adjusted EBITDA of $52 million, surpassing the high end of guidance by 15%. The company reported net income of $8 million compared with a loss of $3 million in Q2 2025, driven by improved gross margins (up 320 basis points to 32.4%) and disciplined cost controls that reduced operating expenses by 7% sequentially. Tilray’s management highlighted that U.S. cannabis reform and the recent IRS reclassification of marijuana have significantly lowered its effective tax rate and are expected to boost after-tax margins by up to 400 basis points in the second half of the year.