Every cannabis rally starts the same way: A politician floats reform, stocks rip 15% to 20% in hours, and retail chases the "next green rush." Tilray Brands (TLRY +0.92%) just lived the script again, jumping about 35% on Sept. 29 after President Donald Trump posted a video promoting CBD for seniors.
Tilray isn't just a cannabis company anymore. It now owns eight craft brands Anheuser-Busch InBev (BUD +0.43%) spent decades building -- Shock Top, Breckenridge, Blue Point, 10 Barrel, Redhook, Widmer, Square Mile, and HiBall -- helping diversify cash flow beyond Canada's oversupplied cannabis market. In fiscal 2025, beverages generated approximately $241 million versus approximately $249 million for cannabis, making the mix far more balanced than most realize.
Image source: Getty Images.
Still, the marijuana and beverage stock changes hands at roughly 1 times sales, and it's still down about 99% from the 2018 peak -- a setup that looks less like pure speculation and more like a sum-of-the-parts situation with policy torque.
The beer business nobody's watching
Tilray's late-2023 purchase of eight AB InBev craft brands did more than diversify revenue; it vaulted the company into the top tier of U.S. craft brewers. At closing, Tilray said the deal made it the fifth-largest craft brewer by volume, and the Brewers Association's 2024 rankings later placed Tilray Beer Brands at No. 4 nationwide.
The beer portfolio isn't theoretical. These are established labels with national distribution and entrenched retail relationships. Tilray's filings describe a reinforced nationwide footprint, including four production facilities, eight brewpubs, and a scale-up from approximately 4 million to 12 million cases on a pro forma basis after the acquisition.
NASDAQ: TLRY
Key Data Points
While cannabis revenue declined year over year in fiscal 2025 ($249 million versus $273 million), management delivered one of its best quarterly adjusted EBITDA results in Q4 fiscal 2025 at approximately $27 million to $28 million, with commentary noting stronger international cannabis and steady beverage contribution. Alcohol sales also avoid many of the regulatory frictions that crimp cannabis margins.
Put together, Tilray now controls distribution infrastructure across the U.S. that would take most rivals years to replicate -- and it's doing so with recognizable brands and an existing wholesale and retail network, rather than trying to build shelf space from scratch.
The balance sheet nobody expects
For a stock that's been pummeled, Tilray's liquidity is better than most assume. At fiscal year-end 2025 (reported July 28, 2025), the company cited a $256.4 million liquidity position ($221.7 million cash plus $34.7 million marketable securities). Management also noted it had reduced total debt by almost $100 million over the year, improving leverage to 0.3 times net debt to trailing-12-months adjusted EBITDA.
On the liability side, Tilray's primary convertible issuance is the 5.20% senior notes due June 15, 2027, originally $150 million. The company has been exchanging portions of the 2027 converts into equity, which helps push maturities out but carries dilution risk.
Why this matters: With over a quarter-billion dollars in cash and lower net debt, Tilray has runway -- the ability to keep pruning unprofitable cannabis SKUs, integrate its beer portfolio, and stay opportunistic if distressed assets come to market.
Internationally, the growth vector is real. In Q4 fiscal 2025, international cannabis revenue hit $22.4 million, up 71% year over year, with Germany up 134%. That provides a non-Canada, non-U.S. leg of expansion while the domestic cannabis market remains promotional.
The rescheduling lottery ticket
If marijuana moves from Schedule I to Schedule III, U.S. cannabis companies could finally deduct normal business expenses, ending the punitive 280E tax treatment. While this wouldn't directly impact Canadian companies like Tilray, the sentiment shift alone could double or triple valuations across the industry.
Trump's recent CBD endorsement suggests cannabis reform might have bipartisan momentum. But here's the key: Tilray doesn't need rescheduling to work. The beverage business provides enough diversification to survive indefinitely, while maintaining massive upside if U.S. markets open.
The verdict
Tilray suits risk-tolerant investors who understand you're buying three businesses for the price of one cannabis stock. The beer portfolio alone could justify today's valuation. International cannabis offers steady growth. And U.S. optionality provides lottery-ticket upside.
