Tilray Earnings: HEXO Acquisition Helps Needed Consolidation, but Canada Remains a Crowded Market

In its third fiscal quarter, no-moat Tilray again suffered from tough Canadian market conditions, plagued by pricing pressures amid too many licensed producers, or LPs, and a stalwart illicit market. Net cannabis revenue grew marginally compared with the second quarter but is about 7% lower year to date compared with the prior-year period. We’ve lowered our full-year fiscal 2023 net revenue forecast about 2% from our prior forecast to $598 million.