Has Tilray Inc (NASDAQ:TLRY) Hit Bottom?

Tilray Inc (NASDAQ:TLRY), an established leader in the cannabis space, just reported financial results for the second fiscal quarter ended November 30, 2021. The Company also announced a new parent name, Tilray Brands, Inc., reflecting the Company’s evolution from a Canadian LP to a global consumer packaged goods company powerhouse with a market leading portfolio of cannabis and lifestyle CPG brands.

The stock has been steadily declining in a bearish trend over the past year after exploding higher early in 2021 as it gained strong popularity among WallStreetBets traders on the Reddit platform. Now, as traders look for dark horse candidates for the new year, TLRY could gain fresh attention after its latest report.

Tilray Inc (NASDAQ:TLRY) frames itself as a company that engages in the research, cultivation, production, marketing, and distribution of medical cannabis products. The company operates through five segments: Cannabis Business, Distribution Business, Beverage Alcohol Business, Wellness Business, and Business Under Development. It provides medical and adult-use cannabis products; pharmaceutical and wellness products; beverage alcohol products; and hemp-based food and other wellness products. 

The company offers its products to retailers, wholesalers, patients, physicians, pharmacies, clinics, hospitals, governments, and researchers. 

As noted above, TLRY just announced recent financial results. According to the company’s release, Net Revenue Increased ~20% to $155 Million from the Prior Year Quarter, Net Income Improved $95 Million to $6 Million from the Prior Year Quarter, Adjusted EBITDA of $13.8 Million, 11th Consecutive Quarter of Positive Adjusted EBITDA, and the company Achieved $70 Million in Cost Synergies To Date; On-Track to Exceed Original Plan of $80 Million Ahead of Schedule and to Generate Additional $20 Million of Synergies in Fiscal 2023.

Irwin D. Simon, Tilray’s Chairman and Chief Executive Officer, stated, “Our second quarter performance reflects notable success building high-quality and highly sought-after cannabis and lifestyle CPG brands which, coupled with our scale, operational excellence and broad global distribution, enabled us to increase sales and maintain profitability despite sector-specific and macro-economic headwinds.”

Traders will note 4% piled on for shareholders of the listing during the trailing week, but this action is running counter to the larger trend in the name. The situation may be worth watching. TLRY has a track record that includes a number of dramatic bounces. In addition, the name has seen interest climb, with an increase in recent trading volume of a bit less than 110% above the average volume levels in play in this stock over the longer term. 

Earning a current market cap value of $3.44B, TLRY has a significant war chest ($376.3M) of cash on the books, which must be weighed relative to about $526.8M in total current liabilities. One should also note that debt has been growing over recent quarters. TLRY is pulling in trailing 12-month revenues of $326.4M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 222.5%.