7 Reasons Why Tilray Bounced Higher After Reporting a C$500 Million Net Loss in the Fourth Quarter

Tilray Brands, Inc. (Nasdaq: TLRY) (TSX: TLRY) bounced higher after reporting fourth quarter financial results and is a cannabis company that we continue to closely follow. When compared to the prior year, the leading global cannabis-lifestyle and consumer packaged goods (CPG) company recorded impressive growth and we will monitor how the business continues to perform.

Today, we want to provide a simple breakdown of Tilray’s earnings report and highlight our 7 key takeaways from the quarter.

1. During the fourth quarter, Tilray generated more than $150 million of revenue which is higher than what was reported in the same period last year
2. The leading global cannabis-lifestyle company reported a more than $450 million net loss in the fourth quarter. Last year, Tilray reported a profit in the fourth quarter and we find the change to be significant. 
3. The management team expects to generate $70-$80 million of adjusted EBITDA in fiscal year 2023 and this would be an impressive feat to accomplish 
4. As of May 31st, Tilray had approx. $415 million of cash on hand which is lower than what they had as of May 31, 2021.
5. Germany has started to account for a larger portion of Tilray’s revenue and the European Union (EU) is expected to be a major growth category for the business on a going forward basis
6. Although the leading global cannabis-lifestyle brand has less cash on hand than it did last year, the amount of debt on the balance sheet has also decreased and we consider that to be an important trend
7. Through a strategic relationship with HEXO, Tilray Brands is better positioned to capitalize on North America and the EU

During the last year, Tilray has been a major underperformer and we have been closely following the business. Although the management team has reported a series of positive developments, the story has been unable to gain momentum and we have been surprised by this trend. 

If you are interested in learning more about Tilray’s earnings report, please send an email to support@technical420.com with the subject “Tilray Reports Earnings” to be added to our distribution list. 

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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