Cannabis Stocks Blaze Higher as Industry Momentum Builds Again

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Thursday, October 9, 2025

The global cannabis sector is once again attracting investor attention as regulatory winds shift and growth across both recreational and medical markets accelerates. Optimism surrounding U.S. rescheduling efforts, European market expansion, and the normalization of cannabis beverages and wellness products has reignited momentum across the industry. With legalization debates resurfacing and institutional capital showing renewed interest, leading brands are positioning themselves to capitalize on the next wave of sector growth.

Shares of Tilray Brands, Inc. (TSX: TLRY) (Nasdaq: TLRY) are surging Thursday after the company reported strong fiscal first-quarter 2026 results, highlighted by record Q1 net revenue of $210 million and a return to profitability with net income of $1.5 million. The results mark a clear sign of operational discipline and sustained demand across the company’s diversified product portfolio spanning cannabis, beverages, and wellness.

Tilray’s first-quarter performance underscores steady execution in a challenging consumer environment. Net revenue grew 5% year-over-year to $209.5 million, with the company maintaining its #1 market share position in Canadian adult-use cannabis, where gross revenue rose 12%. International cannabis revenue climbed 10%, driven by ongoing growth in Germany, Portugal, and Australia, while the beverage segment remained stable at $55.7 million, led by Tilray’s craft beer and ready-to-drink brands.

Profitability metrics also improved notably. Adjusted EBITDA increased 9% to $10.2 million, and cash used in operations improved by $34 million year-over-year, signaling strengthened financial management. Tilray further reduced its net debt to just $4 million, ending the quarter with $265 million in cash, providing ample flexibility to pursue future strategic initiatives, including potential acquisitions or U.S. market expansion as regulatory reforms progress.

Chairman and CEO Irwin D. Simon credited the strong results to Tilray’s global platform and operational focus, stating, “Achieving a record Q1 net revenue of $210 million, delivering net income, and fortifying our balance sheet are proof points of our commitment to building sustainable growth, operational excellence, and unlocking value for our shareholders.” Simon added that Tilray’s position across key global markets allows it not only to participate in but to lead the next evolution of the cannabis, beverage, and wellness industries.

Tilray reiterated its full-year fiscal 2026 Adjusted EBITDA guidance of $62–$72 million, reaffirming confidence in continued growth and margin expansion.

Shares of TLRY are up 30.2% to $2.24 on the Nasdaq and 16.6% to C$2.81 on the TSX in Thursday morning trading following the release.

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