Buying a stock when it's trading around its all-time low is a risky proposition. It's likely down because things haven't gone well, and investors aren't thrilled with the outlook for it. One stock that's at its all-time low right now is Tilray Brands (TLRY 2.52%).

The cannabis and alcohol company recently announced a reverse split to boost its share price back up over the $1 mark. It has taken a beating over the years, but to its credit, it has found ways to expand and grow its operations.

Investing in Tilray Brands isn't for the faint of heart, but if you have a high risk tolerance and are interested in the stock, here's what you need to know about why it has been struggling and what challenges are still ahead.

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Tilray Brands has lost 94% of its value in five years

If you invested $1,000 into Tilray five years ago, your investment would now be worth just over $57. The big reason for the stock's decline is that marijuana legalization in the U.S. simply hasn't materialized, which is what investors were banking on.

While hopes were high that by now, pot would be legal nationally, and Tilray would be in an excellent position to capitalize on those new opportunities, unfortunately nothing has happened on that front.

As a result, growth investors have looked elsewhere in order to pursue attractive returns. The company has also been pivoting to alcohol as a way to grow its top line in the process. But that hasn't resulted in enough growth to win over investors.

While Tilray trades at a significantly reduced valuation, that doesn't reduce the risk related to this investment.

The company's financials remain underwhelming

Without the nationwide pot market to expand into, Tilray has been looking to international cannabis markets and acquiring craft beer brands in the U.S. as ways to grow its top line. But for the most part, those haven't been terribly exciting growth opportunities.

During the company's most recent quarter, which ended on Feb. 28, total net revenue declined by 1% to $185.8 million, and it reported an operating loss of $760 million (including impairment charges of nearly $700 million). And it also burned through $5.8 million in cash from its day-to-day operations.

The good news is that the business is slowing its rate of cash burn, but unfortunately, acquisitions are likely going to remain a key way that the company can grow its operations. And that can put pressure on its cash position and result in continued stock offerings for the foreseeable future. For investors, that means there can still be more downside risk for the stock; you shouldn't assume that it has bottomed out.

Is Tilray Brands stock worth taking a chance on?

The stock has been in an almost endless tailspin for years. Buying it because it's cheaper hasn't proved to be a strong strategy because odds are, you can find a lower price for Tilray by just waiting a little while longer.

Until there's a significant catalyst or reason to believe that the business may have a brighter future, including improved growth prospects and a path to profitability, you're likely better off avoiding the stock. There's still too much uncertainty around its long-term future (e.g., whether it will even be around in five years) to make this a worthwhile stock to hold on to, especially since there are so many other better growth stocks out there to consider than Tilray Brands.