With mortgage renewals pushing many Canadians to tighten their budgets, investors are taking a hard look at where their money goes. According to a June 2025 TD Bank survey, 73% of Canadians with upcoming renewals plan to reduce spending. Over half of prospective homebuyers say they’re cutting non-essential costs, and 31% are tapping into investments to afford new homes.
So it’s no surprise many are looking for undervalued opportunities in the market, stocks that may be down now but have long-term potential. One Canadian name that fits that bill is Tilray Brands (TSX: TLRY), which is down around 57% from its highs and trading under $1 per share.
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About Tilray
Tilray hasn’t had an easy run. Like many cannabis stocks, it soared on hype and tumbled when reality kicked in. The company’s stock once traded above $10 on the TSX and has since collapsed to about $0.55 as of writing. But Tilray is no longer just a cannabis company. It has transformed into a global consumer packaged goods player, with operations in both the cannabis and alcohol spaces. And that diversification could be exactly what helps it ride out market turbulence and eventually thrive.
The latest earnings results support that case. For the third quarter of fiscal 2025, Tilray reported net revenue of US$185.8 million, down just slightly from US$188.3 million the year before. More importantly, gross profit increased by 5% year over year to reach US$52 million, thanks to cost-cutting and better margins. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to US$10.4 million from US$14 million the previous year. Though Tilray still reported a net loss of US$105 million for the quarter, much of that was related to non-cash charges. It reaffirmed its full-year revenue guidance between US$850 million and US$900 million.
Prepared for anything
While its cannabis segment is still under pressure due to pricing and competition, Tilray leaned heavily into craft beverages. In August 2023, it made headlines when it acquired eight U.S. beer and beverage brands from Anheuser-Busch. This included established names like Shock Top and Breckenridge Brewery, which gave Tilray a major foothold in the U.S. craft beer market. It’s now the fifth-largest craft beer company in the United States. This move not only diversifies revenue but also gives Tilray an operational footprint in the U.S. ahead of potential cannabis legalization. If federal laws shift, Tilray will be ready to expand into cannabis through the same distribution channels.
On the cannabis side, Tilray remains the top market shareholder in Canada and has a growing medical cannabis business in Europe. Though the Canadian market is saturated, consolidation is underway, and Tilray’s scale makes it a survivor. It has also been focused on improving its product lineup, with a focus on higher-margin, value-added products rather than just dried flower. That pivot is helping protect its bottom line even while revenue growth remains slow.
A long-term hold
At a market cap of under $559 million, Tilray now trades at a steep discount compared to peers in the consumer staples and alcohol sectors. It’s also cheaper than many smaller cannabis stocks that don’t have nearly the same diversification or footprint. That makes it an attractive target for long-term investors who are willing to wait through some volatility.
The risk with Tilray is clear. It’s not yet profitable and still has to manage its debt, especially in an environment where interest rates are higher than a few years ago. But the cannabis stock has cash on hand, improving margins, and a strategy that includes much more than cannabis. For investors who believe in the long-term future of cannabis, and want exposure to U.S. craft beer and international distribution, Tilray offers a compelling opportunity.
Bottom line
Going back to the TD survey, with so many Canadians looking to make every dollar count, Tilray represents the kind of beaten-down stock that could provide upside over the next five to 10 years. It’s not for everyone. It’s a buy-and-hold-forever kind of pick, best suited for investors with patience and a stomach for ups and downs. But for those willing to wait, this cannabis stock, down more than 57%, might just become a magnificent comeback story.
