Tilray Brands (TLRY -2.08%) recently posted record earnings numbers and is focused on even more growth ahead. For the coming fiscal year, it anticipates full-year revenue will exceed $1 billion. It would be a huge milestone for the company, whose growth prospects have been a big concern in recent years.
For growth investors, it may seem a bit surprising, given that marijuana legalization still isn't on the horizon in the U.S., making it challenging for Tilray to continue finding ways to grow. But here's how it believes it can get to $1 billion in revenue.
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How Tilray expects to hit new records for fiscal 2027
Last month, Tilray wrapped up its 2026 fiscal year (which ended on May 31) with net revenue totaling $915.5 million, up 11% from a year ago, when its top line totaled $821.3 million. That's a solid growth rate, particularly at a time when many businesses are struggling to grow due to economic challenges, including higher prices.
Tilray, however, has been leveraging opportunities in international markets as well as through acquisitions in its beverage segment to unlock more growth. And those are the areas that it's continually focusing on in the coming year. CEO Irwin Simon says that the business has entered the fiscal year "a stronger company than ever before, " highlighting Tilray's strong medical and cannabis business in Europe and its growing craft beer portfolio.
While reaching $1 billion in sales would be impressive, the cannabis company could achieve that milestone even if its growth rate slowed; its top line would need to increase by just over 9% to hit that target. Thus, it's a milestone that may be highly attainable, particularly if Tilray continues to expand internationally and adds to its craft beer portfolio through acquisitions.
NASDAQ: TLRY
Key Data Points
Why more growth may not be enough to turn Tilray's stock around
Tilray has been growing its business over the years, and while getting to $1 billion may be a huge milestone, the market may be looking for much more: profitability. This past fiscal year, it incurred a loss of more than $105 million. While that was an improvement over a year ago, when it was more than $2 billion due to significant impairment charges, the business still hasn't demonstrated it can be consistently profitable.
Continual cash burn and costly acquisitions have weighed on the stock for years -- it's down 97% in five years -- and it may continue to struggle until it can prove to investors that it can grow and stay out of the red. Although it's growing, Tilray is still a risky stock to own.
