Tilray Brands (TLRY 3.67%) has always been focused on growth. The company has built up a diverse business over the years and undergone a significant transformation, diversifying its operations along the way.
In its next fiscal year, the cannabis company projects that it will hit a record $1.2 billion in annualized revenue. It's a huge milestone for the business. But what's particularly notable is how the company is going to get to that level, as it underscores just how much its business has changed over the past few years.
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Tilray's beverage operations are key to its growth
Five years ago, if you were expecting Tilray to generate over $1 billion in revenue, you probably would have assumed it was due to the U.S. marijuana market opening up. But that isn't the case. And rather than wait for that to happen, Tilray's management has been finding other ways to expand, specifically by acquiring craft brewers.
The Canadian-based company has been loading up on craft brewers over the years, and it's now one of the leaders in that space. Last week, it announced yet another acquisition, this time to acquire BrewDog, which it says has a "leading global craft brand," opening up growth opportunities in multiple markets, including the U.K.
Thanks to this and other beverage acquisitions, the company projects that in fiscal 2027, it will be on track to generate $1.2 billion in annualized revenue (Tilray will report its year-end results for fiscal 2026 later this year). That's a significant increase, as over the past four quarters, the company's revenue has totaled $837 million.
The company's beverage business has been growing significantly, and it's already one of its key segments. For the six-month period ending Nov. 30, 2025, Tilray generated $106 million in revenue from beverages. While that's less than the $132 million it generated from cannabis and $159 million from its distribution segment, with more acquisitions boosting its beverage business in the future, it may not be long before it becomes its largest business unit.
NASDAQ: TLRY
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Does this make Tilray a good growth stock to own?
Tilray's business has been growing, but the problem is that it's largely been due to acquisitions, rather than organic growth. That can muddy the picture of just how good a growth stock it is, since by simply adding businesses, any company can grow its top line, but that doesn't mean that it's doing so in a meaningful and profitable way. Growth due to acquisitions is temporary, and the real test of a company's growth is whether it is growing organically.
While its growth projections may look encouraging, investors are still likely better off avoiding Tilray. The company has incurred $75 million in operating losses over the trailing 12 months, and with it continuing to burn through cash, the risk of dilution remains high. As enticing as it may seem, there are plenty of better growth stocks out there than Tilray, and it just isn't worth the risk.
