Cannabis and related products seller Tilray Brands (NASDAQ: TLRY ) is headquartered in Canada. However, the company seeks to expand its presence in the U.S.
if/when cannabis is legally rescheduled there. In anticipation of this, investors should buy Tilray stock before the U.S.
“canna-boom” starts. Recently, the U.S.
Department of Justice under the Biden administration proposed to legally reschedule/reclassify cannabis. That’s a major potential catalyst, but as we’ll discuss in a moment, Tilray is already showing remarkable financial progress. So, there’s no need to wait for marijuana-law reform to start a small Tilray share position.
Tilray’s Excellent Financial Improvement There are a couple of reasons not to over-invest in Tilray stock. First, it’s unclear if cannabis will be legally reclassified in the U.S.
Second, Tilray is still an unprofitable business. Yet, while Tilray isn’t perfect, the company is improving. In the third quarter of fiscal 2024, Tilray narrowed its net earnings loss to $105 million (12 cents per share), versus $1.
2 billion ($1.90 per share) in the year-earlier quarter. This bottom-line improvement was made possible, in part, by Tilray’s impressive revenue growth.
Specifically, Tilray grew its net revenue by roughly 30% year over year to $188.3 million. An evident highlight of Q3 FY2024 was Tilray’s sales growth in the company’s beverage-alcohol segment.
Tilray managed to increase its beverage-alcohol revenue by 165% YOY to $54.7.
