Tilray’s second quarter was met with a significant negative market reaction, as the company missed Wall Street’s revenue and earnings expectations. Management attributed the underperformance primarily to delayed export permits in Europe, ongoing consumer softness in its beverage division, and strategic SKU rationalization efforts across its portfolio. CEO Irwin Simon noted that “approximately $8 million” in international cannabis sales were delayed due to regulatory challenges in Portugal and Spain, and the beverage segment saw lower volumes as it completed integration of recent acquisitions. Strategic choices to prioritize higher-margin products and cost efficiencies also led to lower near-term sales, reflecting a cautious tone from leadership regarding current market conditions.
Is now the time to buy TLRY? Find out in our full research report (it’s free).
Tilray (TLRY) Q2 CY2025 Highlights:
- Revenue: $224.5 million vs analyst estimates of $229.2 million (2.3% year-on-year decline, 2% miss)
- EPS (GAAP): -$1.30 vs analyst estimates of -$0.03 (significant miss)
- Adjusted EBITDA: $27.64 million vs analyst estimates of $23.69 million (12.3% margin, 16.7% beat)
- EBITDA guidance for the upcoming financial year 2026 is $67 million at the midpoint, below analyst estimates of $71.84 million
- Operating Margin: -643%, down from -7.2% in the same quarter last year
- Market Capitalization: $1.04 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Tilray’s Q2 Earnings Call
- Kaumil Gajrawala (Jefferies) asked about the timing and expected impact of resolving export permit delays in Europe. CEO Irwin Simon indicated that the issues are “mostly behind us now,” with shipments expected to resume in the next two quarters.
- Xin Ma (TD Securities) questioned how international cannabis growth will evolve given shipment lumpiness and permit timing. Simon responded that management has “big plans” for Europe and expects previously trapped inventory to contribute to next quarter’s results.
- Aaron Grey (Alliance Global Partners) requested details on the drivers of the upcoming year’s EBITDA guidance. CFO Carl Merton explained that improvements are expected from international cannabis, wellness innovation, and cost savings from Project 420.
- Pablo Zuanic (Zuanic & Associates) inquired how Tilray would benefit from potential U.S. cannabis rescheduling. Simon stated that regulatory clarity could open institutional investment and banking, though direct operational benefits remain limited without federal legalization.
- Nicholas Anderson (ROTH Capital Partners) raised concerns about proposed changes to telemedicine regulations in Germany. Chief Strategy Officer Denise Faltischek noted the legislation is still in proposal stage, and Tilray is engaging with industry groups to advocate for patient access.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will watch for (1) resolution of European export permit challenges and recovery in international cannabis sales, (2) measurable progress on Project 420 cost savings and facility integration, and (3) successful rollout and traction of new beverage and wellness innovations. We will also monitor regulatory developments in Germany and the U.S. cannabis landscape, both of which could significantly impact Tilray’s addressable market and strategic direction.
Tilray currently trades at $0.93, up from $0.70 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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