Tilray Stock Plummets Amid Mixed Q4 Earnings and $1.3B GAAP Loss

Tilray shares cratered 14.2% following a fiscal Q4 report that revealed a stark divergence between adjusted profits and GAAP realities. While the cannabis company posted $0.02 per share in adjusted net income, it recorded a staggering $1.30 per share loss under standard accounting principles.

The $1.4 billion impairment charge reflects reckless acquisition spending during 2021's cannabis bubble, when investors overestimated the imminence of US legalization. Revenue declines of nearly 4% year-over-year to $224.5 million further undermined confidence in the company's turnaround narrative.

Market sentiment mirrors the broader collapse of cannabis equities since Canada's legalization euphoria faded. Tilray's predicament underscores the sector's fundamental challenge: converting regulatory milestones into sustainable profitability.