TLRY - This Cannabis Giant Only Generates 35% of Its Revenue From Its Marijuana Products. Here's Where the Rest Comes From.
2024-01-24 08:30:00 ET
The cannabis industry still is in its early growth stages, and many companies are staking out positions to set up for big gains later on. But there's also a problem: Marijuana remains banned federally in the U.S., a huge potential market. That means there are hurdles to growth. Companies can't simply transport products across state lines, meaning a producer must have duplicative operations in every state where it's legal to sell marijuana.
The net effect of that is that some marijuana companies have turned to alternative ways to expand their businesses. One example of that is Tilray Brands (NASDAQ: TLRY) . The Canadian marijuana producer can't enter the U.S. market without jeopardizing its position on the Nasdaq . How the company has looked to grow and tried to make up for those limitations may surprise you.
In January, Tilray Brands posted record revenue of $194 million for the second quarter of fiscal 2024, which ended Nov. 30. And while cannabis is a key part of its operations, the majority of Tilray's revenue comes from other area of its business.
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This Cannabis Giant Only Generates 35% of Its Revenue From Its Marijuana Products. Here's Where the Rest Comes From.