Tilray $TLRY ( ▲ 0.55% ) popped in after-hours trading after the cannabis company delivered an earnings report that came in better than Wall Street expected. The results marked Tilray’s first earnings release since President Trump signed an executive order aimed at reclassifying marijuana under federal law, adding an extra tailwind to investor sentiment.
The stock climbed more than 5% after the report and is now up roughly 54% over the past six months, as investors zero in on improving fundamentals and shifting regulatory dynamics.
Less Red Ink, More Revenue
Tilray posted a loss of $0.02 per share for the quarter ended November 30, beating analysts’ expectations for a much steeper $0.21 loss. Revenue also came in ahead of forecasts, totaling $217.5 million versus the $210.9 million Wall Street was expecting.
The earnings beat helped reinforce the idea that Tilray is gradually stabilizing its business after a volatile stretch for the cannabis sector.
Alcohol and International Markets Doing the Heavy Lifting
The company’s strongest growth didn’t come from U.S. cannabis sales, but from its alcohol business and international operations. Tilray reported $20 million in international revenue during the quarter, up from $14.8 million in the same period last year.
That diversification has become increasingly important as U.S. cannabis operators continue to wrestle with regulatory and tax hurdles.
Why the Trump Order Matters Anyway
On December 18, President Trump signed an executive order directing regulators to fast-track the reclassification of cannabis from Schedule I to Schedule III. If finalized, the move would significantly reduce the tax burden on U.S. cannabis companies, instantly improving profitability across the industry.
Tilray doesn’t currently sell adult-use cannabis in the U.S., but the stock still benefited from the news. Investors see the policy shift as a potential opening for Tilray to enter the market down the road if regulations continue to ease.
CEO Irwin D. Simon echoed that optimism, saying the company is prepared to leverage its experience as the U.S. regulatory landscape evolves.