WEBULL

Could Tilray (TLRY) Leverage New 10mg THC Drinks to Strengthen Its U.S. Wellness Strategy?

Simply Wall St · 08/22 10:17
  • Earlier this month, Tilray Brands expanded its hemp-derived Delta-9 THC beverage portfolio by launching new 10mg format drinks under the Fizzy Jane's and Happy Flower brands, now available online and across retail markets in 10 states.
  • This development marks a significant step for Tilray Brands into higher-dosage beverage offerings, broadening consumer choice and expanding distribution reach in the U.S. hemp beverage category.
  • We'll explore how the entry into the 10mg THC beverage segment could reshape Tilray's long-term prospects in the consumer wellness market.

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Tilray Brands Investment Narrative Recap

Shareholders in Tilray Brands are typically betting on the company's ability to lead and scale within the tightly regulated U.S. cannabis and hemp wellness market, despite challenging legalization timelines and persistent unprofitability. The launch of 10mg Delta-9 THC beverages across multiple states extends Tilray’s reach and consumer appeal, but it is unlikely to materially alter the company’s most important short-term catalyst: U.S. regulatory progress. The high cash burn and net losses also remain the key operational risk, with no immediate solution from this product launch.

Among recent Tilray announcements, the June 2025 release of a new Summer Cannabis Collection, featuring additional THC beverages and innovative formats, underscores management’s push to diversify the product mix. This aligns with the catalyst of driving higher-margin revenue streams, complementing the expanded beverage portfolio and positioning Tilray to appeal to wellness-focused consumers even as broader regulatory changes remain uncertain.

But while product innovation is encouraging, investors should be aware that persistent net losses and negative cash flow raise ongoing concerns over...

Read the full narrative on Tilray Brands (it's free!)

Tilray Brands' narrative projects $940.4 million revenue and $193.4 million earnings by 2028. This requires 4.6% yearly revenue growth and a $2.4 billion earnings increase from current earnings of -$2.2 billion.

Uncover how Tilray Brands' forecasts yield a $0.928 fair value, a 16% downside to its current price.

Exploring Other Perspectives

TLRY Community Fair Values as at Aug 2025
TLRY Community Fair Values as at Aug 2025

Sixteen members of the Simply Wall St Community estimate Tilray’s fair value from US$0.93 to US$44.45 per share, reflecting a wide spread of expectations. With persistent unprofitability and cash flow challenges, the company’s next steps could have broad implications for long-term holders, see how other investors are assessing the outlook.

Explore 16 other fair value estimates on Tilray Brands - why the stock might be a potential multi-bagger!

Build Your Own Tilray Brands Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.