Is the cannabis stock turning? Both US presidential candidates support it, and Tilray (TLRY.US) beats expectations!

As the 2024 U.S. presidential election approaches, Tilray Brands (TLRY.US) CEO and Chairman Irwin Simon predicts a turning point for the cannabis stock industry regardless of the election result. Simon believes both Trump and Harris could bring positive regulatory reforms to the U.S. cannabis market. This optimistic forecast aligns with Tilray's Q1 2025 financial results, which saw revenue fall short of expectations but beat Wall Street's earnings expectations. In this context, supporters of cannabis legalization saw hope as both candidates have publicly expressed support for cannabis legalization.

Tilray, a Canadian cannabis producer with operations worldwide, reported a net revenue of $20 million in Q1 2025, up about 13% YoY, mainly due to a significant growth in its alcoholic beverage business.

However, the company's cannabis and distribution segments saw a YoY revenue decline of 13% and 2%, respectively. Despite this, Tilray's net loss decreased by about 38% YoY to $34.7 million, mainly due to the increase in gross margin from 25% to 30%.

On the political front, U.S. Vice Presidential candidate Kamala Harris has been a vocal supporter of cannabis reform and reiterated her stance in a recent podcast interview, emphasizing that people should not be imprisoned for cannabis use.

At the same time, former President Donald Trump has shifted his stance on cannabis, expressing support for Florida's legalization of recreational cannabis, which contrasts with his administration's Jeff Sessions memo that rescinded protections for state-level cannabis programs.

Overall, as the U.S. presidential election approaches, the future of the cannabis industry is uncertain, but the support for cannabis reform from the two major candidates offers a glimmer of hope. The changes in Tilray's financial performance and political stance both suggest that significant regulatory reforms may be on the horizon for the cannabis industry.