Tilray Shares Face Market Pressure Amid Strong Financial Performance

Tilray US88688T1007

Despite posting its strongest quarterly results to date, Tilray Brands saw its share price decline as trading concluded for the week. This creates a notable disconnect between the company's operational achievements and its current market valuation, with short-term caution overshadowing positive analyst commentary.

The recent weakness appears to be part of a broader trend affecting the cannabis industry, rather than a reflection of Tilray's specific fundamentals. Competitor Canopy Growth also traded lower. Market observers attribute this sentiment to evolving news concerning U.S. regulatory developments, which began circulating on Thursday. This has prompted a wait-and-see approach from investors, a shift from the more optimistic atmosphere that prevailed at the end of 2025.

On Friday afternoon, Tilray shares were trading at €8.19 on the Tradegate exchange, representing a decline of approximately two percent. This movement follows a 1-for-10 reverse stock split executed in early December. From a technical perspective, the stock is cooling off after a significant rally; its adjusted 52-week high stands near €20.

Record Fundamentals Tell a Different Story

In stark contrast to the share price action, the company's latest financial report painted a robust picture. Tilray recently confirmed record quarterly revenue of $218 million. Its international business segment was a particular highlight, expanding by an impressive 36 percent. Market experts also point to the stable, annualized revenue rate of $150 million from its medical cannabis division, which provides a solid foundation for cash flow generation.

Analysts reviewing the record quarter have highlighted the stock's attractive valuation. Tilray's diversified business model, with established operations in the alcohol and wellness sectors, coupled with its achieved net cash position, may offer relative insulation from regulatory delays compared to pure-play cannabis companies.

Investor Focus and Forward Path

The immediate focus for market participants is now on the €8.00 support level. A successful defense of this price point could redirect attention back to the fundamental case for potential undervaluation. The next significant catalyst will likely depend on whether Tilray can maintain the momentum of its international expansion as projected through the second half of the year.