The stock opened nearly 20% higher Wednesday at just under $2 per share.
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While a Canadian company, Tilray has been positioning itself to be a leader in the U.S. adult-use cannabis market, but its plans have been hindered by the lack of major action on banking reform and federal legalization.
Tilray said its net loss for the three months ended May 31 was $119.8 million, or 15 cents a share, an improvement from the year-ago period when it lost $457.8 million, or 99 cents a share. Analysts polled by Refinitiv, however, expected a loss per share of just 5 cents per share.
Meanwhile, revenue soared 20% to $184.2 million, up from $153.3 million in the year-earlier period. That came in well above analysts’ expectations of $154 million, according to Refinitiv.
Tilray’s cannabis segment saw strong year-over-year growth after the company acquired Canadian rival HEXO in June for roughly $56 million. The sale cemented Tilray’s leading position in Canada’s cannabis market.
The cannabis segment, which deals in the cultivation, production, distribution and sale of both medical and adult-use cannabis products, saw revenue increase 21% to $64.4 million for the quarter.
“The recent closing of the HEXO transaction has boosted our competitive positioning in Canada, the largest, federally legalized cannabis market in the world,” said Tilray CEO Irwin Simon in a statement.
Simon said the company plans to lean into its consumer packaged goods business. It also plans to expand its product distribution in Canada and across international markets.
Tilray also saw healthy sector growth at its beverage alcohol and distribution businesses, which brought in $32.4 million and $72.6 million in revenue during the period, respectively, marking year-over-year increases of 43% and 19%.
For its fiscal year 2024, the company is forecasting adjusted EBITDA of $68 million to $78 million, representing growth of 11% to 27% over fiscal year 2023.