Shares of Tilray Brands (TLRY -14.41%) tumbled 14.2% through 12:15 p.m. ET after the company reported mixed fiscal Q4 2025 earnings last night. Tilray is one of a handful of marijuana stocks that became popular with Canadian legalization a few years ago but have fallen upon hard times since.

Analysts forecast Tilray would just break even on quarterly sales of $233.3 million, but Tilray reported a $0.02-per-share profit on sales of only $224.5 million.

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Tilray Q4 earnings

That sounds like good news -- earning more while selling less -- but that's not how investors are reading it. Why not?

Begin with earnings. Turns out, they were only "adjusted net income." According to generally accepted accounting principles (GAAP), Tilray lost money for the quarter. A lot of money. $1.3 billion -- or $1.30 per share.

Granted, Tilray chalked the loss up to a $1.4 billion "non-cash impairment charge" it took to account for overpaying for acquisitions back in 2021, when "stock prices and market values for cannabis companies reflected expectations for U.S. cannabis legalization," which didn't happen. Still, the facts remain: Tilray overpaid for those acquisitions. It's had to write down the value of its assets as a result, causing a big loss.

And however it came about, a loss is still a loss.

Is Tilray stock a buy?

Granted, this loss might be forgivable if business were going gangbusters at Tilray today. It isn't. Revenue actually declined in Q4, and so did gross profit. While revenue did increase 4% for the full fiscal year, and gross profit grew 8%, revenue from marijuana sales still declined, and only beverages revenue grew.

Beverages aren't why investors own Tilray stock, though. Until the marijuana biz improves, Tilray is a sell.