Should You Buy Tilray Brands Stock Before July 28?

Next week, on July 28, leading cannabis producer Tilray Brands (NASDAQ: TLRY) is scheduled to report its latest quarterly results. They'll be for its fourth quarter, wrapping up the company's 2026 fiscal year. That's always a big one for companies, as they may make major announcements and also provide guidance for the year ahead.

If the results and news are encouraging, Tilray's stock may soar, leading to a rally in the weeks and months to follow. With the stock trading near its 52-week low, is it a good idea to buy Tilray Brands stock right now, before the company reports its latest results?

If Tilray Brands' growth rate continues improving, that could be the catalyst the stock needs

Tilray operates in a highly competitive Canadian cannabis market, where it's tough to grow its business while maintaining high margins. As a result, it has leaned heavily on acquisitions and on diversifying into other parts of the world, even into beverages, to grow its sales. The good news is that the company's growth rate has been improving in recent quarters and was back up to double digits in the third quarter.

TLRY Revenue (Quarterly YoY Growth) data by YCharts

If the cannabis company continues to show progress and its growth rate rises further in Q4, that may give investors renewed confidence that the business is going in the right direction. Tilray has struggled to prove it's a good buy, as over the past five years its value has fallen tremendously, by 97%.

However, not only will Tilray need to show good top-line numbers, but its bottom line has been particularly troubling. While acquisitions can boost the top line, they can also add costs and lead to greater losses. In two of the past three fiscal years, Tilray incurred annual losses exceeding $1 billion, as it often incurs non-cash expenses and impairment charges. Avoiding another mammoth loss this fiscal year may be just as important as the company showing strong growth.

Tilray's stock may seem cheap, but it's not a no-brainer buy

Unfortunately, Tilray doesn't have a great track record of growing and staying out of the red. It has a lot to prove to growth investors, which is why buying the stock heading into Q4 would be a bit of a gamble. There are still plenty of concerns around the business, and no shortage of uncertainty. That's why a wait-and-see approach still makes the most sense, as despite its losses over the years, it wouldn't be surprising if Tilray's stock continued to decline after earnings.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.