Down 70% in 2026, Has Tilray's Stock Finally Bottomed Out?
The cannabis stock has generated nearly $1 billion in revenue over the past year, and its market cap is less than half of that.
Tilray Brands (TLRY -3.20%) stock has plummeted 70% since the beginning of 2026, leaving investors questioning whether it has finally reached its bottom. Despite the company's growth and diversification, it has yet to see a payoff due to ongoing struggles with profitability. Tilray is a Canadian cannabis firm eagerly anticipating the U.S. market's opening to broaden its revenue sources.
However, competition is intense, and growth chances are limited in Canada. To offset this, Tilray has been expanding through acquisitions, increasing its presence in the U.S. with potential upside if marijuana legalization occurs. Despite generating over $963 million in revenue over the past year, Tilray has still incurred a $60.5 million operating loss.
While the stock may appear cheap at around $400 million in valuation, with annual sales nearing $1 billion, it remains unprofitable, and prospects for growth seem limited. The company is still burning through cash from daily operations, making it difficult to justify an investment in Tilray at this time.
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