What Happened?

Shares of cannabis company Tilray Brands (NASDAQ:TLRY) fell 13.5% in the morning session after the company reported underwhelming fourth quarter results. Its revenue and EBITDA missed significantly, and its gross margin fell short of Wall Street's estimates. Also, the company recorded significant operating losses and continued to burn cash. On the other hand, revenue guidance for 2025 came in ahead of expectations, though sales are partly benefiting from recent acquisitions following the company's expansion to the beverage market, which suggests organic growth is not as strong. Zooming out, we think this was a mixed quarter. The market seemed to focus on the negatives, and the stock traded down.

The shares closed the day at $1.23, down 10.5% from previous close.

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What The Market Is Telling Us

Tilray’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. But moves this big are rare even for Tilray and indicate this news significantly impacted the market’s perception of the business.

Tilray is down 16.1% since the beginning of the year, and at $1.23 per share, it is trading 57% below its 52-week high of $2.85 from April 2024.

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