Tilray Brands Inc. ( TLRY ) stock is surging on Thursday after the cannabis company reported better-than-expected first-quarter 2026 earnings.

The company reported a break-even versus a consensus loss of 2 cents per share. It reported adjusted net income of $3.9 million in the first quarter compared to adjusted net loss of $(6.1) million.

Adjusted EBITDA increased 9% year over year to $10.2 million in the first quarter, compared to $9.3 million.

Net revenue increased 5% to $209.5 million in the first quarter compared to $200.0 million, beating the consensus of $204.55 million.

Cannabis net revenue increased 5% to $64.5 million in the first quarter compared to $61.2 million.

Beverage net revenue was $55.7 million in the first quarter compared to $56.0 million.

Wellness net revenue increased to $15.2 million in the first quarter compared to $14.8 million.

Distribution net revenue was $74.0 million in the first quarter compared to $68.1 million.

Gross margin contracted from 30% to 27%.

Also Read: Tilray Stock Is Trading Higher Monday: What’s Going On?

Tilray reduced its debt by $7.7 million in the first quarter, further strengthening the balance sheet.

As a result, the ratio of net debt to trailing twelve months adjusted EBITDA was reduced to 0.07x. Tilray says $264.8 million cash balance provides flexibility for strategic opportunities.

In September, Tilray Medical, a division of Tilray Brands ( TLRY ), announced the expansion of its Tilray Craft portfolio in Germany with five new cannabis flower products produced in Germany at Tilray’s facility in Neumünster as part of the BfArM in‑country cultivation program.

Price Action: TLRY stock is up 29.36% at $2.23 at the last check on Thursday.

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