Canadian cannabis stocks have fallen hard this year, and net debt, the amount a company owes after subtracting its cash on hand, is the number that separates the two biggest names. Tilray Brands (NASDAQ: TLRY) holds roughly $700,000 in net debt. Canopy Growth (NASDAQ: CGC) carries about CA$126 million.
Canopy's shares are down more than 12% this year. Tilray's have dropped more than 49%. Those declines look dramatic, but they don't tell you what is actually happening inside each business.
What the revenue numbers show
Tilray no longer positions itself as a pure cannabis company. It owns more than 40 brands across craft beverages, hemp-based foods, and cannabis, including SweetWater Brewing, Breckenridge Distillery, and several former Anheuser-Busch craft brands. That mix showed clearly in the fourth quarter. Beverage net revenue came in at $105.6 million, up 60.9% from a year earlier. Cannabis net revenue was $71.5 million, up 5%. Total net revenue reached $281.7 million, a 25% increase year over year, with gross margin widening to 32% from 30%.
Canopy's growth is narrower. It reported CA$81.2 million in fiscal first-quarter 2027 revenue, up 13% year over year, with nearly all of it from cannabis. The company has some diversity through European sales and THC beverages, but nothing comparable to Tilray's beverage business. Gross margin reached 27%, up from 25%.
The profitability gap
Neither company is profitable. But the path there looks shorter for Tilray. It recorded $61.1 million in adjusted EBITDA for 2026, up 11%. Adjusted EBITDA strips out interest, taxes, depreciation, and amortization to measure how much cash a business generates from operations before those costs. Tilray's management projects $68 million to $75 million in adjusted EBITDA for the full year 2027. Canopy recorded an adjusted EBITDA loss of CAD$3.2 million in Q1 fiscal 2027.
Per-share losses narrowed sharply at Tilray. Its earnings per share loss fell from $13.01 in Q4 2025 to $0.43 in Q4 2026. Canopy improved its loss to CA$0.03 per share from CA$0.24 in Q1 2026.
Total debt looks heavier for Tilray at roughly $733 million, against Canopy's CA$415.3 million ($299.7 million). But the source notes that much of Canopy's apparent reduction came through debt-for-equity swaps, exchanges where lenders accept newly issued shares instead of cash repayment, diluting existing shareholders in the process. That is why the net debt figures land so far apart.
The Motley Fool, which recommends Tilray Brands, noted that after its steep share-price decline, Tilray now trades at roughly one-third of Canopy's price-to-sales ratio.