Tilray Inc. (TLRY) shares surged 21.5% in late Thursday trading after the company reported third-quarter results that exceeded analyst expectations.

For the reporting period, Tilray Inc. announced revenue of $209.5 million, representing a 4.7% increase compared to the same period last year and surpassing Wall Street forecasts. The company made significant progress on profitability, with operating margins improving dramatically to 1% from negative 18.3% in the prior year period, marking a strong turnaround. Additionally, adjusted earnings per share reached breakeven at $0.00, an improvement from the $0.04 per share loss recorded in the same quarter last year.

The company's cash burn also slowed considerably, with free cash flow improving to a loss of $10.86 million versus a loss of $42.02 million in the prior year period. These positive developments offset the impact of adjusted EBITDA coming in slightly below expectations at $10.18 million.