3. Tilray Brands, Inc. (NASDAQ:TLRY)
Stock Upside Potential: 47.37%
Tilray Brands, Inc. (NASDAQ:TLRY) has a highly diversified global portfolio with businesses in medical adult-use cannabis, beverages, spirits, wellness products, and a vast array of consumer-connected lifestyle brands. The company operates in over 20 countries across five continents with a portfolio of over 40 consumer-connected lifestyle brands and 20 vertically integrated facilities that produce approximately 90% of its products in-house.
The core business of Tilray Brands, Inc. (NASDAQ:TLRY) is cannabis and it operates the largest cannabis business in Canada by revenue, the leading medical cannabis business across Europe, and the largest branded hemp business in North America. However, cannabis is a notoriously tough business to profit from and Tilray hasn’t been able to turn a single annual profit over the last four years. This forced the company to diversify beyond cannabis and so it expanded into the craft beer industry with the acquisition of several breweries from Ab InBev and Molson Coors. What started off as a venture is now a serious segment and Tilray counts among the top five craft beer businesses in the United States in terms of scale.
Tilray Beverages, the beverage business of Tilray Brands, Inc. (NASDAQ:TLRY) now generates a third of the company’s global revenue and includes more than 20 beverage brands, which includes 15 American craft beer brands, 10 network manufacturing facilities, over 700 distributors, 20 brew pubs and restaurants, and a single integrated sales and marketing team operating across the US. Tilray Beverages booked $119 million in net revenue in the first half of FY 2025, a 68.5% increase on the year prior.
Tilray Brands, Inc. (NASDAQ:TLRY) reported a total revenue of $211 million for Q2 of 2025, and though it was up 9% YoY, the figure fell short of the broader market consensus of $218 million, due in part to a 16% decrease in the company’s Canadian adult-use cannabis sales. Tilray reported an operating loss of $42.2 million during the quarter, up from the $41.8 million loss it posted a year ago. The company’s reported cash flow for the first half of FY 2025 was a negative $76 million, up from the $46.3 million cash it burned during the same period a year earlier.
Despite all the aggressive diversification and expansion, Tilray Brands, Inc. (NASDAQ:TLRY) is struggling to turn a profit and so the company has recently announced its Project 420, a comprehensive plan focused on enhancing margins and profitability with an aim to achieve $25 million in cost savings, synergies, and cost avoidance initiatives. The company’s strategy to diversify geographically is also paying off and Tilray’s international business grew by 25% YoY in Q2 2025 as it launched new commercial products and expanded its reach across Europe.
Shares of Tilray Brands, Inc. (NASDAQ:TLRY) were held by 16 hedge funds in the IM database at the end of Q3 2024, putting it among the 7 Best CBD Stocks To Invest In Right Now.
