Tilray Brands, Inc. (TLRY) Q4 2026 Earnings Report, Transcript and Summary

Thank you. Thank you for joining today's conference call to discuss Tilray Brands' Financial Results for the Fourth Quarter and Fiscal Year 2026, ended May 31, 2026. [Operator Instructions] I will now turn the call over to Ms. Berrin Noorata, Tilray Brands' Chief Communications and Corporate Affairs Officer. Thank you. You may now begin.

Thank you, Operator, and good afternoon, everyone. By now, you should have access to the earnings press release, which is available on the investors section of Tilray Brands' website at tilray.com and has been filed with the SEC and OSC. Please note that during today's call, we will be referring to various non-GAAP financial measures that can provide useful information for investors. However, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. The earnings press release contains a reconciliation of each non-GAAP financial measure to the most comparable measure prepared in accordance with GAAP. In addition, we will be making numerous forward-looking statements during our remarks and in response to your questions. These statements are based on our current expectations and beliefs and involve known and unknown risks and uncertainties which may prove to be incorrect. Actual results could differ materially from those described in those forward-looking statements. The text in our earnings press release includes many of the risks and uncertainties associated with such forward-looking statements. Today we will be hearing from key members of our senior leadership team, beginning with Irwin Simon, Chairman and Chief Executive Officer, who will provide opening remarks and commentary; followed by Carl Merton, Chief Financial Officer, who will review our financial results for the fourth quarter and fiscal year 2026. And now I'd like to turn the call over to Tilray Brands' Chairman and CEO, Irwin Simon.

Thank you, Berrin. And good afternoon, everyone. And thank you for joining us today. Fiscal 2026 proves something important and exciting. Tilray Brands is more than the company many people think it is. Today, Tilray is a diversified global consumer products and pharmaceutical distribution company with leadership positions across cannabis, beverage, hospitality and wellness. We are no longer defined by one category, one market, or one regulatory outcome. We have transformed Tilray into a company with multiple cash-generating businesses, positive cash flow from operations excluding working capital, and significant runway for future growth. There is no other company with the scale, diversification, global infrastructure, or interconnected business segments across cannabis, beverages, hospitality and wellness that Tilray has built brand by brand. Since I took the helm in 2019, when Aphria was a singularly focused a $50 million revenue company, we have pursued disciplined acquisitions and thoughtfully invested in assets, infrastructures, and capabilities that define Tilray today. And we've done it with financial discipline. We ended fiscal 2026 with approximately $235 million in cash and marketable securities, net debt essentially a breakeven and nearly $700 million of operating assets. Those aren't just numbers on a balance sheet. They represent real brands, real facilities, real infrastructure, real operating capabilities that are generating cash today and creating long-term value for shareholders. The result is a scaled global operating platform with leadership positions across multiple high growth consumer categories. Tilray Brands is the largest cannabis cultivator with over 6 million square feet of cultivation capacity around the world. The revenue leader in Canadian cannabis, a leading medical cannabis company across Europe with the largest share of the German medical cannabis oil market, a top 100 global beverage company, the #1 craft supplier and fourth largest beer supplier at grocery in the U.K., and the fourth largest craft brewer in the United States, and a global leader in hemp foods and wellness. Tilray Brands now spans in more than 20 countries with more than 40 brands, supported by 22 production facilities, 37 pubs, 16 franchise pubs, and 3 hotels, with approximately 93% of our products are made in-house across our vertically integrated operation facilities. The market doesn't value companies like SpaceX, Amazon, or Tesla solely on what they've earned in a single quarter. It recognizes the long-term value of the infrastructure, the capabilities, and platforms they've built and how they changed the world. We have built Tilray and that same long-term mindset, investing in business and brands that generate returns in cash today while creating a much larger platform and strengthening our competitive position for the future. What makes Tilray different is not simply the breadth of what we own, but the way our businesses work together. Cannabis, beverage, hospitality, and wellness, each create distinct opportunities. But together, they give us consumer reach, brand building power, operating leverage, and multiple pathways to growth that a few companies can replicate today. That interconnected model gives us flexibility that single category companies do not have. We can allocate capital where we see the strongest return, bring brands into new channels, use our hospitality footprint to create direct consumer engagement and adapt as markets evolve. That is how we intend to keep building sustainable long-term shareholder value across categories, geographies, and consumer occasions. We continue to believe that medical cannabis is the future of medicine and remains one of the world's most compelling long-term opportunities. And Tilray is uniquely positioned to lead the future. As medical cannabis becomes increasingly integrated into patient care, we have the genetics, cultivation expertise, pharmaceutical manufacturing capabilities, clinical relationships, bodies of research and evidence, and international infrastructure to meet patients' needs and scale with demand. We also see a future where emerging therapeutic areas, including peptides, psilocybin for mental health, become part of the broader conversation around next generation patient care. In the U.S., cannabis markets, we continue to see encouraging regulatory momentum, including federal cannabis rescheduling. But our long-term growth strategy has never depended on a single regulatory event or one country. As a global leader in medical cannabis today, when the U.S. medical cannabis regulatory framework is in place, Tilray Medical is established and ready with the playbook, capabilities and optionality to meaningfully expand our medical cannabis platform across the U.S. when the opportunity opens. Tilray opportunity is global. We're already building leadership in marketplaces outside the U.S. where medical cannabis, pharmaceutical distribution, consumer health and wellness are expanding the fastest. Beer is the most consumed beverage alcohol in the world, making it one of the most resilient and enduring customer categories. AI is not replacing beer. Our acquisition of BrewDog added a globally recognized brand, a scale hospitality platform and significant international growth potential. We have looked at acquiring BrewDog at different valuations over time and ultimately acquired the business strategically at an administration at an incredible price. Today, we believe we have a jewel in our business that has accelerated our global beverage expansion, together creating an approximately $500 million beverage platform and accelerating the growth of our brands globally. Together with cannabis, beverages, and wellness portfolios, Tilray's diversified consumer product strategy is positioned to capitalize on evolving consumer preferences while expanding profitability, strengthening cash flow, and creating long-term shareholder value. Our strategy is working, our financial results prove it. Fiscal 2026 was a milestone year for Tilray. We delivered record revenue of over $915 million on an annualized pro forma basis. Tilray is now approximately a $1.2 billion global revenue company. We also achieved record adjusted EBITDA of $61.1 million, or $63.4 million, excluding the temporary impact of fuel surcharges. These results demonstrated the underlying strength and the accelerating momentum of our global businesses. At the same time, we continue investing in the future of our business through our acquisition of BrewDog. Since acquiring BrewDog for approximately $54 million, we have further invested nearly $50 million of additional working capital to support the business. Importantly, we made these investments from a position of strength. Even as we invest in BrewDog and the future of our business, we ended the fiscal year with approximately $235 million in cash and marketable securities and a significantly strengthened balance sheet. Positive cash flow from operations, excluding working capital, improved to approximately $18 million, an increase of over $50 million year-over-year. We reduced our debt by approximately $60 million as of this filing, lowering our net debt to less than $1 million at year end, a 95% improvement year-over-year. We've increased gross profit by 8% to $260 million and grew our adjusted EBITDA 11%, demonstrating discipline, cost control, and execution across our businesses. These results validate the strategy we have been executing against, which is building a diversified global consumer products and pharmaceutical distribution company with multiple engines for profitable growth. We are generating stronger cash flow, allocating capital with discipline, investing behind our highest return opportunities, and building a more resilient business designed to create sustainable long-term shareholder value. Now, turning to our business segments, beginning with Canadian cannabis. In fiscal 2026, Tilray reinforced its position as Canada's largest cannabis company by revenue. Adult-use cannabis revenue grew 5% year-over-year, driven by continued demand for ready-to-consume formats. We drove growth, improved profitability, strengthened our brand and product portfolio, and positioned the business for continued growth. Our strategies align with how the Canadian cannabis market is evolving. During the fourth quarter, pre-rolls grew 38%, edibles grew 39%, vapes grew 28%, and the THC beverage business grew 6%, increasing our exposure to Canada's fastest growing product categories. Canada is one of the most competitive cannabis markets in the world and Tilray continues to lead with the #1 market share in pre-rolls, the #1 THC beverage, #1 in oils, and #1 in chocolate edibles, and continue to hold leading positions across every other major product category. Cannabis flower premiumization also remained a strength with Broken Coast delivering its strongest fourth quarter in 2 years, growing 10% year over year. Looking ahead, our priorities are clear. Accelerated growth in vapes, infused pre-rolls, rebuild momentum in flower, expand our medical platform through HelloMD, and continue to optimize our cultivation and production network. Turning to our international. International is one of Tilray's greatest competitive advantages and one of our most compelling long-term growth opportunities. Over the past year, we established international as one of Tilray's strongest growth engines. On a pro forma basis, our international operations now represents approximately $700 million of revenue. During fiscal 2026, we strengthened every part of our European business from medical cannabis, pharmaceutical distribution to beverage and hospitality, while delivering record international revenue, quarter after quarter since Q2, despite regulatory complexity, pricing pressure, and evolving market dynamics. We strengthened our cultivation and manufacturing capabilities across Portugal and Germany. Portugal, which supplies approximately 85% of our international medical cannabis business, reached approximately 80% utilization during the fiscal year. And now with ample opportunities to expand, we have a clear path to operate our Portugal facility at full capacity. In Germany, our Aphria RX cultivation facility is fully utilized, and our new ARX brand has launched successfully with strong early patient response. Our execution delivered strong results. Medical cannabis revenue grew 34% to approximately $85 million, despite permit delays, regulatory complexity, and approximately $21 million in price compression. Germany and the U.K. each grew 25%, Poland grew 73%, Italy grew 53%, driven by expanded distribution, innovation, and higher volumes. Medical cannabis flower grew 87% and Tilray remains Germany's leading provider of medical cannabis oils with a 45% market share. CC Pharma continues to be a significant competitive advantage. Through one of Germany's leading pharmaceutical distributors, we reached approximately 16,000 pharmacies and major wholesalers. Fiscal 2026 revenue grew 21% to $327 million, strengthening both our pharmaceutical business and our medical cannabis leadership. Life completes our vertically integrated U.K. medical cannabis business by connecting cultivation, manufacturing, clinical care, dispensing, and pharmacy services. It gives Tilray direct patient access, stronger demand visibility, and greater participation across the patient journey. Together our cultivation assets, CC Pharma, Life, Tilray Medical have created one of Europe's most comprehensive medical cannabis and pharmaceutical distribution business. As we continue to scale, we also are improving profitability. Since the beginning of fiscal 2025, we've reduced our cost per unit by more than 30%, demonstrating the operating leverage. We continue to unlock across the business. Turning to our beverage business. In fiscal 2026, beverage revenue grew 6% to $254 million, which includes the acquisition of BrewDog in quarter 4. Tilray in the last 5 years has strategically built one of the most scalable global beverage platforms in the industry. And today, we are a top 100 beverage company with the brand's brewing capability, hospitality footprint, and commercial infrastructure to drive profitable growth around the world. Importantly, as we did not build this through transformational capital spending, we built it through strategic acquisition, operational integration, and brand investment, creating a scalable global beverage business positioned to deliver increasing returns time over time. BrewDog is the cornerstone of that strategy and one of the strongest examples of disciplined capital allocation. We acquired an over $200 million annual revenue business for approximately $54 million with globally recognized brand, scaled hospitality network and significantly international growth potential. In just a few months, we have stabilized operations, improved product availability, accelerated innovation, and begun unlocking synergies across our global beverage platform. BrewDog has significantly expanded our reach across the United Kingdom, Australia, and other international growth markets, while also becoming the gateway for introducing Tilray's American craft portfolio internationally. During fiscal 2026, we launched 23 American craft beers and non-alcoholic beverages from 9 Tilray brands into the U.K., demonstrating how quickly our global commercial infrastructure can scale brands into new markets and have sold out each of these shipments in the U.K. In less than 2 weeks. Our pubs are far more than hospitality assets. They're powerful consumer engagement platforms that strengthens our brands, deepens consumer loyalty, generates valuable consumer insights and creates experience that most beverage companies simply cannot replicate. The World Cup demonstrates the power of that model. Throughout the tournament, including every England match, our 1,800-capacity flagship BrewDog Waterloo pub sold out, showcasing the strength of our hospitality platform and the demand for our brand. Across the 6-week tournament, our brew pubs generate approximately GBP 412,000 of incremental revenue above budget, welcome more than 28,000 pre-booked guests, and generate approximately GBP 123,000 in ticket revenue. Our 2 strongest trading days generated GBP 218,000 and GBP 188,000 in revenue, respectively, or continually to build upon this momentum. Our brands also performed exceptionally well. We sold approximately GBP 1.3 million of BrewDog beer during the tournament, led by Lost Lager. While Tilray's American craft beer brands accounted for 58% of all guest beer sales, with Shock Top emerging as the strongest performing American craft beer brand. While we also launched our GBP 1 million bar tab campaign, one of the largest consumer activations in our company history, turning fan excitement into a global brand moment across our pubs and digital channels. Together, these activations generated more than 600 million organic creator and earned media impressions, extending the reach of our brand well beyond our pubs. This is the power of Tilray beverage and hospitality strategy. We just don't own a great brand. We own places where consumers experience them and can come together. That gives us a direct connection to consumers, building loyalty, drives traffic across our venues, and creates opportunities that traditional beverage companies simply cannot replicate. In the United States, Tilray has built one of the country's leading craft brewing platforms as the fourth largest craft brewer, we combine iconic regional brands and national brewing and commercial capabilities in growing hospitality network and strengthen our brands and deepens consumers' engagement. While the integration and optimization of acquired brands from Molson and ABI has taken longer than expected, particularly in beer category facing broader headwinds, we continue to see significant strategic value in the platform we've built. Our distributor network, retail customer relationship, on-premise presence, manufacturing capabilities, and brand portfolio provides the infrastructure to support our beverage business today while creating meaningful optionality if the THC beverages are permitted at scale in the future. Our exclusive long-term U.S. partnership with Carlsberg, the world's fourth largest brewer, is a powerful endorsement of that platform. Beginning January 1, 2027, Tilray will brew, market, sell Carlsberg. Carlsberg Elephant 1664, and Kronenbourg 1664 Blanc across the U.S. Carlsberg partnered with Tilray because of our brewing scale, operation excellence, and national commercial capabilities. Innovation remains a competitive advantage. During the year, we expanded our portfolio with Pub Light, Shock Top High Voltage, Sweetwater Big Trip, Popsicle Hard, and a new 10 Barrel RTD, extending the trusted brands into faster growing beverage occasions through disciplined innovation, and strategic partnerships. Breckenridge Distillery also continued to build momentum by expanding innovation, strengthening distribution through Southern Glazer's network into New York and California. Today, Tilray has built one of the most scalable and diversified global beverage platforms in the industry across craft beer, spirits, ready-to-drink, energy beverages, hospitality, for improving asset utilization, expanding margins, driving profitable growth. While federal hemp-derived THC beverages regulations are still pending in the U.S., Tilray beverage platform is ready to dominate the opportunity with the brands, products, manufacturing and distribution already in place at scale to win coast to coast. Beverage is becoming one of Tilray's most important growth engines, and we believe we're still in the early stages of unlocking full potential of this business. Wellness is another important engine within Tilray's diversified global business, positioned at the intersection of Better for You foods, functional nutrition, and everyday wellness. This business continues to benefit from the changing consumer preferences and growing global demand for Better for You products that leverage health and wellness trends. In fiscal 2026, wellness net revenue grew 9% to $66 million, driven by a continued demand for clean ingredients, functional foods, and everyday wellness products. We see significant opportunities to accelerate that momentum through innovation, expanded distribution, and continued brand investment. As we are broadening our international footprint, we're targeting high growth markets across India, the Middle East, Asia, where a rising consumer demand for health, nutrition, and wellness presents meaningful long-term opportunities. We're also seeing strong momentum with HiBall Energy, which has more than tripled since we acquired the brand. Together, these initiatives position our wellness business to become an increasingly important contributor to Tilray's long-term profitability and global expansion. Before I close, I want to expand a moment on capital allocation and the company we built. Every capital allocation decision we have made has been guided by one objective, maximizing long-term shareholder value. We have invested with discipline, focused on opportunities that strengthen our operating performance, expand our commercial reach, and improve our ability to generate durable cash flow over time. We continue to believe the market has not fully recognizing the value of what we've built. When you look at the strength of our balance sheet, the quality of our assets, the scale of our business, and the diversification of our global platform, we believe our stock price does not reflect the value of the global enterprise we have built. As we look forward, the focus is execution, converting the assets, brands and capabilities we have built into stronger margins, higher cash flow, and sustainable profitable growth. Fiscal 2026 demonstrated that our strategy is delivering results, and we believe the opportunity ahead remains significant. Looking ahead, AI will become another growth driver for Tilray across our businesses. AI and data-driven technologies are helping us build a smarter, faster, and more efficient company from improving genetics, cultivation, yields, quality and cannabis to optimization demand, planning, production, inventory management, and commercial execution across our beverages, our wellness business, pharmaceutical distribution, and hospitality business. AI is strengthening every part of our operations. We believe AI will enhance productivity, improve margins, and accelerate our innovation. I'll close with this. We entered fiscal 2027 with clear priorities: expand margins, improve efficiency, accelerate innovation, and convert the scale of our business into stronger earnings power. We have a clear path forward supported by organic growth, discipline acquisitions, innovation and global expansion. The next chapter for Tilray is about converting our scale, diversification and global capabilities into even greater growth, profitability and long-term shareholder value. We know what we need to do. We'll focus on delivery. Carl, you ready?

Thank you, Irwin. Before I begin, please note that we present our financials in accordance with U.S. GAAP and in U.S. dollars. Throughout our discussions, we will be referring to both GAAP and non-GAAP-adjusted results, and we encourage you to review the reconciliation contained within the press release of our reported results under GAAP with the corresponding non-GAAP measures. As Irwin stated, fiscal 2026 was a milestone year for Tilray Brands and a clear demonstration of the strength, scale, and resilience of our business model. We delivered record revenue, record adjusted EBITDA, strengthened our balance sheet, reduced debt, and ended the year with approximately $235 million in cash and marketable securities. These results reflect disciplined execution across our diversified global platform and the benefits of operating multiple growth engines across cannabis, beverage, hospitality and wellness. With a stronger financial foundation, improved cash generation, and significant liquidity, we enter fiscal 2027 well-positioned to invest behind our highest return opportunities, drive profitable growth, and create long-term shareholder value. More specifically, net revenue increased 11% in fiscal 2026, both organically and from acquisitions, to a record $915.5 million, compared to $821.3 million last year. On an annualized pro forma basis, Tilray is now approximately a $1.2 billion global revenue company. Importantly, revenue increased across all 4 business segments, demonstrating the breadth of our platform, with beverage growth supplemented by the strategic addition of BrewDog. Net cannabis revenue increased 8% to $268.3 million driven by international demand, broader distribution, particularly in Germany, improved supply availability grown in international markets, and Canadian adult-use innovation. These gains were partially offset by lower Canadian medical revenue, softer wholesale sales, and international price compression. International cannabis remained one of our strongest growth engines, with revenue increasing 34% to $84.9 million. Germany continued to lead growth, supported by improved supply and broader distribution, while Poland and the U.K. also contributed to year-over-year gains. The Life acquisition further strengthens our U.K. medical cannabis platform by adding direct patient clinic and pharmacy capabilities. While international cannabis revenue was impacted by approximately $21.1 million of price compression during the year, it is important to understand that price compression has a direct impact on profitability, as it largely flows through to gross profit and the bottom line. Even with that headwind, we sold higher gram equivalents and continued to generate attractive relative margins. That reflects the strength of our international platform, our ability to allocate inventory to higher return markets, and our focus on building the infrastructure needed to support profitable growth as European medical cannabis expands. We are currently harvesting at an annualized rate of more than 30 metric tons from our Portugal facility, from 4 metric tons 24 months ago, a significant increase in capacity to meet growing demand without significant capital investment. In Canada, gross adult-use cannabis revenue increased 5% to $236.4 million, supported by innovation across multiple product categories, including pre-rolls, vapes, edibles, and THC drinks. Canadian medical cannabis revenue decreased 5% to $23.7 million, predominantly due to Veterans Affairs reimbursement changes, which we calculate for fiscal 2027 will have a $4 million a year impact on revenue. Wholesale cannabis revenue decreased 60% to $7.3 million, reflecting our disciplined reallocation of inventory to higher-margin international markets. We also continued investing in cultivation, including the decision to restart our Quebec facility to support demand in Quebec, Canada, and internationally. The product from Masson will first reach market in September. Early harvest suggest yield improvements of 20% from the last time we grew cannabis in the facility. Another example of capacity increases without significant capital allocations. Distribution revenue increased 21% to $327.2 million and was driven by competitive pricing, higher velocity skews, increases in average selling price and units sold, and favorable foreign exchange. Together with our international cannabis footprint, this platform gives Tilray meaningful scale, infrastructure, and access across key European pharmaceutical channels. Beverage revenue increased 6% to $254 million, including $51.1 million from BrewDog following the acquisition in the fourth quarter. On a run rate basis, BrewDog adds over $200 million in annual revenues in the U.K., Australia and the U.S. and expands our international beverage scale, brand reach and hospitality footprint. Excluding BrewDog, our legacy U.S. beer business reflected broader industry dynamics, but we continued to take disciplined actions to improve the quality of revenue and strengthen profitability. These margin-focused actions reduced revenue by approximately $16.6 million during the year but support more profitable growth over time. We also made progress with spring resets with our legacy U.S. beer brands capturing a greater share of craft shelf space. Wellness revenue increased 9% to $65.9 million, supported by product innovation and continued momentum in HiBall clean energy drinks. By revenue contribution, cannabis represented 29% of net revenue, beverage 28%, distribution 36%, and wellness 7%. Gross profit increased 8% to $260.4 million. Gross margin was 28% compared to 29% last year. Full adjusted gross margin remained consistent at 29% in both periods. Despite higher revenue, adjusted gross margin was largely unchanged as disciplined cost management and operating scale helped offset the impact of international cannabis price compression and a greater mix of distribution revenue. By segment, cannabis gross margin remains strong and consistent at 40% as international price compression offset the benefit of higher gram equivalent sold. Beverage gross margin was 36% compared to 39% last year. While adjusted gross margin was 37% compared to 39% last year. While margins reflected lower overhead utilization, higher input costs and portfolio mix, we see a clear opportunity to improve the profitability profile of this business. BrewDog is margin accretive to our beverage segment, with gross margins expected to be meaningfully higher than our legacy U.S. beer platform. We have also strengthened our beer leadership team with the appointment of a Chief Operating Officer, whose primary focus in fiscal 2027 will be to find cost savings through rightsizing our footprint and cost structure to support stronger margins, greater operating efficiency, and more profitable growth. Distribution gross margin increased to 12% from 11% due to favorable changes in product mix and increases in average selling prices. Wellness gross margin increased to 33% from 32%. The increase was driven by strategic price increases that largely offset an unfavorable change in sales mix. Net loss improved significantly to $105.2 million or $1.09 per share, compared to approximately $2.2 billion, or $24.56 per share last year. The improvement was primarily driven by the absence of the approximately $2.1 billion non-cash impairment charge recorded in fiscal 2025. Adjusted net income improved 87% to $12.2 million or $0.11, compared to adjusted net income of $6.5 million or $0.7 in the prior fiscal year, which represents our continued focus of improving profitability. Adjusted EBITDA increased 11% to $61.1 million, reflecting revenue growth, gross profit improvement, and continued operating discipline. The result was impacted by approximately $2.3 million in unanticipated fuel surcharges. Excluding that impact, adjusted EBITDA would have been $63.4 million, which is within our guidance range, highlighting the underlying strength of the business and consistent with the risk we identified when we reconfirmed guidance in Q3. Cash used in operations improved to $69.1 million compared to $94.6 million last year. Before working capital investments, our operating businesses generated $18.2 million of cash from operations, representing a $50.3 million improvement year-over-year. This demonstrates the underlying cash generation of the business, while our working capital and capital expenditures reflect deliberate investments to support growth across BrewDog, international cannabis, and our broader platform. Cash used in working capital was $87.4 million for the year, compared to $62.6 million last year. The increase was primarily driven by approximately $50 million of working capital impact from the BrewDog acquisition, together with inventory investments to support international cannabis growth. The BrewDog working capital impact was largely timing related. Because the pre-closing receivables were not able to be acquired as part of the administration process, the revenues generated after closing had not yet converted to cash by year-end, reflecting standard 60- to 90-day payment terms with U.K. grocery customers. Overall, we view these investments as deliberate and aligned with our highest return opportunities, including BrewDog and international cannabis, as we continue to build scale in markets with long-term growth potential. Adjusted free cash flow improved to negative $86 million compared to negative $114.2 million in the prior fiscal year, reflecting meaningful year-over-year progress. This result included nearly $50 million of working capital investment in BrewDog and approximately $30 million of global capital investments back into the business, long-term strategic initiatives and build a higher growth, more scalable platform for the future. Turning to our fourth quarter results, total net revenue increased 25% to $281.7 million from $224.5 million, with growth across all 4 businesses. Cannabis net revenue was $71.5 million after $19.1 million of excise taxes and was comprised of $57.3 million in Canadian adult-use, $27.2 million in international cannabis, $5.4 million in Canadian medical, and $0.7 million in wholesale revenue. International cannabis revenue increased 22% year over year, continuing its growth trajectory with its third consecutive quarter of more than 20% year-over-year growth and represented the second consecutive Q4 that international cannabis revenues were up over 20%. Beverage revenue increased 61% to $105.6 million, including $51.1 million from BrewDog. Distribution net revenue increased 15% to $85 million, compared to $74.1 million in the prior year quarter. Wellness net revenue increased 16% to $19.7 million compared to $17 million in the prior year quarter. Fourth quarter gross profit increased 34% to $90.5 million and gross margin improved to 32%. By segment, cannabis gross margin remained consistent at 44%. Beverage gross margin remained consistent at 38%, but improved on an adjusted basis to 40%. Distribution gross margin increased to 14% from 10%. Wellness gross margin remained consistent at 33%. Fourth quarter net loss improved significantly to $37.9 million or $0.43 per share compared to approximately $1.3 billion or $13.01 per share last year, primarily due to the absence of the prior year non-cash impairment charges. Adjusted EBITDA for the fourth quarter increased 15% to a record $31.9 million, compared to $27.6 million in the prior year quarter, reflecting strong quarterly execution. In the last year, we, one, allocated capital to pay down our convertible notes balance in advance of their maturity in fiscal 2028. Two, allocated capital to build our cash reserves for strategic acquisitions and to integrate previous and current acquisitions into our core business before beginning to replenish our cash reserves late in the year, particularly around the U.S.'s rescheduling announcement. Three, utilized $54 million of the cash reserves to purchase the BrewDog entities and Life. And four, utilize approximately $50 million of the cash reserves to fund the initial working capital needs of the BrewDog entity. These actions reflect our focus on reducing debt, maintaining balance sheet flexibility, and investing behind opportunities to support scale, integration, and profitable growth. Cash used in operations was $37.3 million and adjusted free cash flow was negative $43.4 million for the quarter, which included the previously mentioned $50 million investment in working capital at BrewDog. We ended fiscal 2026 with cash, restricted cash, and marketable securities of $234.6 million, providing financial flexibility as we enter fiscal 2027 and continue investing behind our highest return opportunities. Since the beginning of fiscal 2026, we have significantly improved our capital structure, as we've reduced debt by approximately $60 million, including $25 million repaid on term loans, and $17 million of convertible debt non-cash settlements during the fiscal year, as well as a further $18 million of convertible debt non-cash settlements after year end. Since April, we raised $87 million of gross proceeds, or $84.9 million net of commissions and other fees, through our ATM program at an average sales price of $6.77 per share, including raising over $50 million in the 5 trading days related to the U.S. government's announcement of rescheduling medical cannabis to Schedule III. We intend to use ATM proceeds for strategic and accretive acquisitions, investments, and capital expenditures, including opportunities in the U.S. and internationally, just like the BrewDog opportunity. We ended the year with an improved net debt position of less than $1 million compared to net debt of approximately $14 million last year. Overall, fiscal 2026 was a year of meaningful progress. We increased scale, strengthened our balance sheet, improved adjusted EBITDA, enhanced our international cannabis and distribution platform in Europe, and expanded global beverage through BrewDog. Importantly, we did this while maintaining the disciplined financial approach and continuing to invest in the areas where we see the strongest potential returns. As we look to next year, our priorities are clear and financially disciplined. Profitable growth, margin expansion, integration, operating efficiency, stronger cash generation, and disciplined capital allocation across the businesses. For fiscal 2027, I already mentioned our revenue run rate of approximately $1.2 billion. We expect our combined international business revenue to be approximately $700 million, or 60% of our consolidated revenue. We have no pending maturities on our debt, yet continue to constructively reduce the current $70 million outstanding balance in advance of its 2028 maturity. And lastly, we are providing guidance of adjusted EBITDA between $68 and $75 million, representing a double-digit increase from fiscal 2026. Operator, we can now open the call for Q&A.

We will now be conducting a question-and-answer session. [Operator Instructions] Our first question will come from Kaumil Gajrawala with Jefferies.

Hi, guys, that was very thorough. Thank you for that. If I may try to maybe simplify for investors, how do you think about the whole machine moving together with all its various parts now? You know, is there an adjustment or a long-term algo that maybe, you know, some periods things will be better, some periods, things will be worse? But what is the sort of entirety at the group level? Which direction should it move, at least, in terms of the environments that we operate in now?

So, thank you for that question. And then, and again, it's an interesting question because, number one, if you go back and whether it's brand by brand and as last week, as I sat through our strategic planning meetings and Board meetings, and I look at what's in Tilray Brands today, it's pretty amazing and not that I'm complimenting myself and my team, but it's pretty amazing what we own in brands, businesses, infrastructure distribution today. And again, as we started in the cannabis business, and we started from basically almost scratch in Canada. We built a $200 million plus cannabis business in Canada with a population of 40 million people and half the population cannot enjoy cannabis. So it's what we built in Canada with, you know, high excise tax, something called COVID in between, and we went ahead and built that. And, again, the opportunities in Canada are tremendous in regards to ready-to-drink cannabis drinks that ultimately, hopefully, will be sold in beer stores, hopefully, sold on tap is the opportunity there. And as more and more consumers consume cannabis, we think there's a much bigger business. As a matter of fact, in the month of January, which is a dry January, there was more cannabis consumed than alcohol. So we see tremendous opportunities in cannabis. We see the growth there continuously, both in recreational and major and medical. And medical have been sold through drugstores, which is the case in Europe. So that is the machine there. But the machine there also encompasses us getting much bigger into the beverage business with our brands in Canada. And we see a much bigger business in Canada, with cannabis drinks that will be sold whether on premise or in the Canadian beer stores or liquor stores. Listen, the U.S., some time in my lifetime, I hope I will see legalization happen, whether it's a medical standpoint or recreational. I think we will see medical standpoint. There's lots of movement on peptides, psychedelics. So with that, as we had to parlay into some type of businesses, with synergies is the beer business and the beverage business and the wellness business. And from a standpoint, if I always say this here, if I could sell cannabis drinks in the U.S. today, it would be a billion dollar business for us. Ultimately, there's lots of discussions going on with hemp drinks. So what Tilray has today is a beverage business in the U.S. It has 8 manufacturing facilities, it has 18 brands. It has a major distribution system. As we know, we have that 3-tier distribution system with 900 distributors. We have a major sales force in place. So we have infrastructure in place for consumer products and ultimately, is it connected with hemp-type products? Is it THC products? And/or is it just consumer products? And what you heard me say within the alcohol industry, beer is the most consumed alcohol. Also, we've gone into the water business with Liquid Love. We've gone into the energy business with HiBall. So we have the infrastructure, we have the brands, we have the manufacturer, we have the distribution, we have the sales organization in place. So good diversified business. Europe, which today, ironically, is our largest business within all of Tilray and probably not getting the value for it. But on the other hand, if you come back and look already, we built $100 million medical cannabis business throughout Europe today. And that will continue to grow and there's opportunities we're seeing in India and other places. As you see today what we built in regards to our distribution system, and when we acquired that distribution system, it was acquired as part of a tender. But what we're seeing with that distribution business today, how it's becoming a major vertically integrated business within Tilray Medical and what it's helping us with licenses, potentially a compounder for pre-rolls and vapes, or depends what happens in the whole psychedelic market. And then last but not least, the acquisition of BrewDog has been phenomenal for us. It's given us 16 brew pubs in England, Scotland, London, and Ireland. It's given us a couple in Australia. It's given us 16 franchises out there. And with that, we can see us building our beverage beer business throughout the rest of the world. And so far, as we introduced our American beers in the U.K. for the World Cup in our brew hubs, I mean, it almost became half of our sales over there within our brewpubs. So bringing it all together, we have brands, we have manufacturing facilities, 93% of our products are made by ourselves. We have distribution systems. So we -- basically we're not a one-trick pony, but does it all come together with cannabis? Does it all come together with beverage? Or does it all come together with wellness and consumer products businesses. And with that, we've built a strong balance sheet and we built a good company that's got a lot of brands in it. So there's many, many, many ways for it to come together. And what I'm not sitting here today waiting for, as MSOs are a lot of others is legalization rescheduling to happen in the U.S. If it happens, and as we said, we're on a run rate to a $1.2 billion, none of that is basically projected in any of our numbers.

Okay, got it. And then on the recent acquisitions on becoming more vertically integrated, why is that the right structure to have sort of full vertical integration on the medical side as opposed to either being on one end of it or the other, given your infrastructure, you probably had the choice, but you've made 2 big moves on becoming a bit more vertically integrated. So what was the decision process behind deciding that's how you wanted to approach the market?

So, just number one, it's Grow and consistency of Grow. It's the genetics out there. It's the potency and basically from a cost standpoint, one of the big things, as you saw a lot of Canadian growers dump the product in the marketplace, one of the reasons a lot, you know, of distilleries, a lot of pharmacies want to deal with us. They know they're going to get consistent growth. They know they're going to get quality. They know the genetics we can use. They know the potency we can use. And with that, if we're going to invest money, which we are, in research and development, and doing testing and that out there, we want to know what's coming out of our facilities. Today we have over 6.5 million square feet of Grow around the world where we know, depending on where the market goes, we're going to have to get consistent Grow. So we're not going to be out there buying in a spot market. We're not going to have to go out there and try and buy different genetics and different potencies and different products, whether it's for pain, anxiety. We can plan all that out ourselves. So that's very, very important for us. What we did in the U.K. with our Life acquisition from a vertical integration. Today, we have the doctors on staff, we have the pharmacy on staff, and ultimately, we are supplying that facility. So we've made a lot of good moves in regards to the cannabis business from a vertical integration. We've made a lot of good moves in regards to the beverage business with the U.K. acquisition of BrewDog. There, we have a major manufacturing facility. In Aberdeen, Scotland, we have 16 brew pubs, which we control what goes in those brewpubs, what is being sold, what is being tested. And then it expanded our footprint throughout the rest of the world.

And our next question will come from Robert Moskow with TD Securities.

Hi, this is Victor Ma on for Rob Moskow, and thanks for taking the question. So my first question is on beverages. It seems like 4Q organic growth, excluding BrewDog, was down 17% despite the World Cup. I know the BrewDog acquisition and Carlsberg partnership will contribute outsized growth next year. But what gives you confidence that you can still fix the company's underlying beverage brands?

So number one, the decline is a couple of things. We went through a major skew rationalization, some brand rationalization. So some of that was basically self-inflicted, and then ultimately, where businesses that we were just not profitable. As you take our beverage business, and we're the #4 largest craft brewer, we put this business together in 2020. We bought SweetWater, we bought Montauk, Green Flash, Alpine, Nelson. We bought the 8 businesses from ABI and then the 4 businesses from Molson's which we ultimately sold one. So with that, there was integration that we had to do. There was facility closing we had to do. There was skew rationalization. There is distributor rationalization and something in between those five years or something called COVID where on-premise was closed. And let's not run away from it, the beer category declined 5%. So with that, we have done a major overhaul and with new products, with going through the skew rationalization, with really focusing on certain regional markets and Shock Top and Carlsberg will be our 2 national brands and the rest will be regional brands, we feel good going into this year that we'll get the growth. We've also brought in new people in regards to the operations and taking some costs out. So with that, we feel very good about going into this year with our beverage business.

Got it. Okay. And then my second question is on Canadian adult-use growth. So it seems like this slowed sequentially to 3.2% and 4Q from 9% in 3Q. What was the split of this 3.2% between volumes and pricing? And can you provide color on what drove the slowdown? Was it negative mix? Was it market maturity? Any color would be appreciated.

So I have Blair MacNeil on, who runs our Canadian business, but I'll jump in first. First of all, it was 5% growth on recreational cannabis is number one. Number two, some decisions, again, we make, and that was supply for our international business. We did not supply any wholesalers, and we got away from that. And we focused, and that's why our margins are up, we focused on businesses that are going to contribute margins to us and going to contribute profitable growth instead of just going out there and being in the price competitive market. Listen, I've come out, we talked about our growth in pre-rolls, our growth in chocolate edibles, our growth in vapes, our growth was down in flower and the flower market is being cannibalized by pre-rolls, vapes, and other categories. So that was the main reason there. But it's not it was not really on price. It was some of these again, our decisions and that's why you see our margins improve overall within the company. Blair, anything you want to add to that?

No, you're exactly right, Irwin. That was -- 90% of that was mixed. We actually had a little bit of positive pricing contribution on top of that, but it was the international shipments and the deprioritization of wholesale.

And again, that comes back to the point before about being vertically integrated with our own supply. You know, we don't buy cannabis from anybody else. We don't depend on a spot market, other pricing out there, different terpenes, different genetics. We know what we -- we know what we grow, we plant it out there ourselves. So that's what's important for us. And there's big time demand out there to buy cannabis from us. And that's not the business we're in. We're not going to supply our competitors and ultimately, hopefully, grow it to sell within ourselves. So that's what's important for us, that we have the Grow out there that we have today. And this past year, Blair and his team went ahead with the facility in Masson, where originally we were growing cannabis and cucumbers and converted that back to 100% cannabis, which the majority of it sold into the Quebec market. We have an outdoor grow in Cayuga. And with that, we're using it all between Canadian business and our international business to have consistent supply and make sure that we have supply.

And we'll go next to Aaron Grey with Alliance Global Partners.

Just regarding EBITDA, quick question there. First off, in terms of the sequencing for the year, just with the BrewDog acquisition, seem to expect the same quarterly sequence that we've seen historically for you, guys? And then a bigger picture question, how best to think about maybe the medium term EBITDA margin aspirations and where you believe you can get the company to on a profit margin perspective.

I'll let Carl answer the first one and I'll tell you my aspirational EBITDA percentage, okay?

So we've talked about this before on other calls, Aaron, and I really don't think it's going to change with BrewDog. We might see like a small softening, but realistically, we're still looking at quarters 1, 2 and 3 being roughly half the year, quarter 4 being the other half of the year. And within quarters 1, 2 and 3, you should see a relatively even breakdown on EBITDA. Now, that doesn't work perfectly. There's a little bit of room in each of those pieces. And you can see this year we actually beat the 50% in Q4 by a little bit, but it's a really good rule of thumb for our business.

So my aspiration, and again, you got to look at us from our branded products business. If you look at our branded products business today, I'd like to see us as a 15% to 18% EBITDA business. But you got to back out of there is our distribution business with 5%, 6% margins. With that, at 11.2% today, I think if you backed out that part of our business, our EBITDA percentage would be a lot higher. So from the standpoint of that, it's 15% to 18%, including our CC Pharma business because we're looking to transform that business in many, many ways where it is a compounder and it's -- again, it is a seller of cannabis products, with much higher products -- with much higher margins. So that's what I aspire to 15% to 18% EBITDA margins. I'm not telling you that's this year, but over the next couple of years, absolutely. We saw a great increase in our EBITDA percentages this year.

Second question for me. Just as we think about the U.S. opportunity with Phase 1 rescheduling for FDA medical, potential for Phase 2 coming, I just want to kind of double back and you provided some commentary already. But how are you thinking about potential M&A within the U.S. as we've seen some plant touching, operators now uplist to major exchanges. Does that open up more opportunity for you to enter the U.S. organically or inorganically? And does that change potentially with Phase 2 whole plant rescheduling anticipated to come in the fall?

As you step back and since I've been at this, everybody's talked about how we got to do the U.S., how we got to do the U.S., neither I nor no one else has truly figured it out yet. There was -- number one, if you bought a medical business in a certain state, you could use that. But what's your limitations there? In regards to rescheduling, what I can say is this here. If rescheduling happened tomorrow and it was federally legal and you had to go through the FDA and get the FDA approvals, we'd be right in there to spend the dollars on the research or taking some of the research that we've worked on in other countries in regards to cancer-induced drugs, epilepsy, pain, anxiety, et cetera, and taking our findings there and going to the FDA. And then as we've talked about, and the question I was asked before about vertical integration, and hopefully supply-wise, we would have enough supply to be able to supply it into the U.S. So we're ready with supply, we're ready with brands, we're ready with research, we're ready with historical cannabis that we sell in countries today that are prescribed by doctors. It's just, what is the path you go down here with the FDA? And is the FDA ultimately going to approve cannabis as a medical drug to be sold in distilleries? I'm not sure that's the right thing that you walk in and you get someone in a distillery that's recommending certain medical cannabis. And should the right way be similar to what's in Europe. It has to be prescribed by a physician. It has to be prescribed by a pharmacist, and that's the way it should be done. So, again, Tilray is ready for -- acquisition-wise, we'd be ready to acquire. And the reason we haven't jumped into this or we're listed on a NASDAQ exchange. So we don't have to do what some of the other companies do to get listed, but we're going to wait and see. And once we know the path, we'll be ready to jump into it because we're in this business as one of the largest growers in the world. I've never been lucky buying a lottery ticket, so I never really want to take a guess what's the right way to go about this until we know what the course is. And like I said, I've been down the path where we looked at it many, many ways, but it just did not make sense for us. And we've looked at, do we buy compounders? Do we buy different things? But is that the right path? So we're going to be disciplined and really know what is the right path before we just jump in and buy anything with a clear path, but knowing what we bring to the party.

And our next question will come from Pablo Zuanic with Zuanic & Associates.

I realize it's been a long conference call, but congratulations on the progress you've made in fiscal year '26. So my first question, as some U.S. companies get ready to export and claim they have a very low cost base, can you comment first on how cost competitive is Tilray in the export market? And second, your views on when U.S. companies may be able to export and whether they can be cost competitive versus producers like yourselves.

So, as I've displayed in our U.S. -- our European cannabis business, Pablo, I mean, our supply and our growth, all that is coming from Tilray. So I think what's important is ultimately one thing we see is the growth opportunities internationally. And with those growth opportunity, it's going to need supply. We know where there is growth internationally. And I think the thing is this here, we know, and what a lot of our customers are knowing that Tilray will be able to supply and supply to the custom of what the customer wants in regards to oils, in regards to the potency, the genetics, et cetera. And today with almost 1 million square feet of grow in Portugal and Germany, and close to 5.5 million square feet in Canada, we have plenty of supply to go about supplying growth in Europe. And again, I come back and I say this here, and why was I aspirational on my EBITDA numbers, I think we can be one of the lowest cost producers out there just because of our scale and size. Because if you're buying from a third party, Pablo, everybody else got to make margin. We got to make margin among ourselves and then sell it to the end user.

Yes. No, understood. Look, and I'm sorry to go back to the U.S. question. I think you covered most of it with Aaron, of course, but I know you keep talking about knowing the path, but let me give you this scenario, right? Let's say the U.S. reschedules medical, they already did, and also recreational, but they keep the current state silo model and there is no FDA oversight. So it's not the medical model that you have in Europe. In that case, would you still want to enter the U.S. market and how? Or would you prefer to wait for interstate commerce and clarity on import and exports and FDA direct involvement?

So, again, would we enter the U.S. market on all states that are legal? I'm not sure. Would we look to enter the big states where there is opportunities? Yes. Would it be more costly? Yes. And again, it's kind of coming back and doing the economics, does it make sense? And I come back and say this here, if it did happen in this administration, would it change in the next administration? So that's what we would have to weigh out is all the components and what's real and what's not. Canada today, we know the country is legal, both recreational and medical and staying there. We know what's happening in Germany, we know what's happening in Poland, we know what's happening in the U.K. What I wouldn't want is us to buy certain medical licenses in certain states. And ultimately, the next administration changes that.

We'll hear next from Brenna Cunnington with ATB Cormark Capital Markets.

Congrats on the quarter. Just a quick question from us regarding CC Pharma. The gross margin improved to what I believe is the highest level ever seen. Please correct me if I'm wrong. But could you just provide some more color on the key factors that underpinned this improvement? And then as a sort of secondary question to that, you mentioned in response to one of the earlier questions that you're looking to transform the CC Pharma business in a number of ways. Could you elaborate a little bit more on that and then maybe provide some color on how we should think about that segment's gross margins going forward?

Right. I have Rajnish Ohri, who is our Head of International on the phone, and he can jump in. But number one, the big growth there is having different medicines to supply and growing our footprint in Germany from 13,000 drugstores to 16,000 drugstores. Our gross margin improved 14% and that's just a good array of mix. And it also is us just buying medicines at much better prices. And the big thing there is having the capital available to do it. In regards to CC Pharma, one of the big things that we're looking at CC Pharma is having CC Pharma as a licensed cannabis facility that can store and sell cannabis, at the same time, can become a compounder. And as a compounder, you can compound and we could sell pre-rolls, we could sell vapes, and we can do different things with cannabis. So looking to do a lot and also looking to expand the CC Pharma format, whether it's in the U.K., whether it's in Italy and other different countries. So that's what we're looking to do with CC Pharma and also looking at it from a medical direct-to-consumer standpoint. So there's some of the things, whether we're looking at growth, we're looking at approving the margins, and we're looking to expand it throughout other parts of Europe. Rajnish, anything I missed on that or anything I need to be corrected on?

No, I think -- Irwin, I think CC Pharma has been, as you rightly said, first portfolio management and margin improvement basis, which is really looking at the right portfolio and also the right decision-making in buying. The right capital allocation to use it effectively in running the business profitably. I think on the compounding and the days how we want to structure the medical cannabis business through CC Pharma improves high value businesses and, therefore, finally affects the margin and the bottom line in the business. And thirdly, I think the extension what we just talked about, I think we are already now in U.K., we are working with our partners in U.K., in the NHS hospitals, et cetera. We are making inroads into Italy, they are looking at businesses outside the European market into the Middle East markets where we are talking to certain partners there. So that all is going on. And then finally, a direct-to-consumer model for a specialized services which we will provide in the German market. So, I think there are a lot of pillars of CC Pharma which we are working on today to see how the business is going to be.

And the big thing here is here, CC Pharma is a $350 million business, if we can grow, which our plan is a big part, our gross margins by another 5 to 7 points. What that is to contribute to our bottom line? So that's the big thing when you're asking the questions about where your EBITDA can go the growth here is just taking our existing businesses and growing the gross margin and taking more costs out of our business. And, again, like I said, there's a lot of costs that putting all our beer businesses together and purchasing today. There's close to a $0.5 billion beer business today, excluding Carlsberg coming in. If you come back and look at CC Pharma, there's $350 million of sales. So if you can grow just these businesses without organic growth, without other acquisitions, what we can drop to the bottom line by improving the gross margin on both of these, which is substantial.

And our next question will come from Indigo Baylis with Canaccord Genuity.

Congrats again on the quarter and especially your performance in the international cannabis. I was hoping to understand really how you expect to see international cannabis business grow, especially having seen this 34% in fiscal '26. And then also, if you have any commentary around how you plan to really protect margins, especially as you bring on your full capacity of your Portugal facility.

So, a big part of the growth is having supply where we did not have supply throughout last year. The second part is, you know, we've really worked with both the Portuguese government, the German government, and other governments not to depend upon delay of permits. And that's a big thing, which you've got to realize in Europe. And what I think a lot don't understand is the regulatory environment that we play within here. So when we get a PO, we need to get a permit from that country. We need to get a permit to ship into the other country. So it's the speeding up of permits. The next thing is this here, just the demand, for medical cannabis in these countries continues to grow. Last year, we were maybe less than $5 million of what we sold in the U.K. and what we've added now in regards to our Life acquisition. So where's our growth coming from? Number one, having supply. Number two is ultimately our speed of permits, and that way they can reorder. Number three is with our Life acquisition and being vertically integrated there with both the doctor part and with the pharmacy part. And as we look to grow into new markets. We potentially will talk about another time what some of the things we're potentially doing in India and other countries. So that's how we expect to grow our international cannabis business from standpoint. The big thing is, there is having supply. And listen, we went through some major price compression in Europe this year, too, and we're able to deal with it.

And this now concludes our question and answer session. I would like to turn the floor back over to Irwin Simon for closing comments.

Thank you everybody for joining us today and listening to our fiscal 2026 year. It was not without its challenges. It was not without its opportunities. And you come back and think about, what we accomplished in regards to our Canadian cannabis business since we started the year off, we had some challenges with Grow, but Blair and team overcame that and how we dealt with that, increasing our revenue and taking some costs out of business and dealing with some of the challenges out there. In regards to the beer market, with the beer market being down and bringing all these brands together and really growing the distribution out there with new products and timing on new products and pods and making sure that we were able to supply and not get left behind. Winning and doing a deal with Carlsberg, the fourth largest beer producer in the world, and it's incredible what Carlsberg sells in the U.S. today. But trust me, they just didn't put their hand up and say, I'm picking Tilray, and they are pretty stringent on the quality, the product, the partnership, and we work with them pretty thoroughly to be able to go ahead and produce Carlsberg beer which will start here on January 1st. In regards to our wellness business and some of the restrictions on hemp, our growth in HiBall, we felt this year we had some -- with our Delta-9, we thought we had a good-sized business and Mitch McConnell and crew decided that they wanted to block this and let's see what happens there because there is potentially some things going to change there. In regards to BrewDog, listen, I am really excited about the opportunities in BrewDog. At Tilray, we looked at this before and valuations were in the hemisphere and sometimes in life you're better off being luckier than smart and we got lucky here and I think we've acquired a great brand that gives us an entree and taking our beer brands into international markets, which would have been very difficult for us. So we're set up for a lot of great things in 2027, whether it's our balance sheet, whether it's our brands, whether it's the businesses that we have in here. But last but not least, I can't stop thinking about how great our people are. And there's close to 4,000 people within Tilray today, and they work pretty damn hard and I'm very lucky and fortunate to work with them. So I want to thank you, thank all our people out there that are part of Tilray today because they are the major part of our success. We have a Board that works very hard on multiple things and I want to thank them. I want to thank our consumers that buy all our products, whether it's pre-rolls, whether it's vapes, whether it's flower, whether it's our beer, whether it's our hemp products, whether it's visiting our brew pubs. I want to thank you for the support. And it was very interesting during the World Cup. And when I was in London for the World Cup during the England games, and especially our Waterloo facility where we would attract close to or over 1,800 people along the way, when I'd be on our way to our brew pubs, I could pass 50 brew pubs on the way there. But they were coming to BrewDog and they were coming to our facility because of our food, because of our ambiance, because of the energy there, and hopefully, which they were to buy BrewDog beer. So with that, I really think we're really in a good spot. And you come back and you look at companies, you look at your brand, you look at the financial situation, you look at what they've done, you look at the people, and we check a lot of boxes. Disappointment? Disappointed in how our stock performed and not the rewards we get for that. But we'll put our heads down and we'll keep plowing. At the end of the day, we know what we got and we know what we should be valued at and that's something that we will continue to do. I want to thank everybody for jumping on our call today. Enjoy the rest of your summer. Hopefully, go out there and buy some of our products because we've got some great products, and we look forward to talking to you in the near future. Thank you very much.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.