Shares of Tilray Brands Inc (NASDAQ: TLRY) took a hit during premarket trading following a revenue miss in its third-quarter financial report.

Downward Trend in Tilray Stock

The cannabis company saw its stock decline this morning due to the disappointing guidance given by its management for the full fiscal year.

Tilray now anticipates adjusted EBITDA to range between $60 million and $63 million but no longer foresees positive free cash flow (adjusted) in the fiscal year 2024. Nonetheless, Tilray Inc's CEO, Irwin D. Simon, highlighted the company's strategy of expanding into related markets like beverages and hemp-based consumer goods, positioning them well for future opportunities amidst the current challenges.

In the third quarter, Tilray noted a significant 165% growth in its alcoholic beverages segment, reaching $54.7 million. Despite this positive growth, Tilray stock remains approximately 50% higher than its year-to-date low.

Key Numbers from Tilray Q3 Report

Reported a loss of $104.98 million compared to a $1.19 billion loss in the same period last year

Per-share loss decreased from $1.90 to 12 cents

Adjusted EBITDA dropped to $10.2 million based on the earnings disclosure

Revenue climbed by 30% year-over-year to $188.3 million

Consensus expectations were a loss of 5 cents per share with revenue of $198.4 million

Adjusted gross margin was at 27% for the fiscal third quarter

Tilray showcased a solid 33% increase in its cannabis revenue in Q3, attributed to acquisitions like HEXO and Truss. CEO Simon also highlighted the completion of key goals during the quarter, which included reducing convertible debt, executing cost-saving initiatives in Canadian and international cannabis operations, and strengthening the company's financial position.