“All of that revenue for this quarter is medical and we look forward to next quarter, when we’ll start to see some Canadian adult-use revenue in that earnings report,” Kennedy said.
“The biggest challenge is that there’s just so much demand, which is interesting to see,” he added. “It definitely takes six to 12 months for supply and demand to reach some sort of equilibrium.”
The pressure is on for Tilray to offer shareholders a reason for optimism as well as justify its steep valuation.
Tilray’s stock has climbed more than 320 percent over the past three months, making it one of the most speculative names on the Street. Though it posted just $20 million in revenue last year (and is projected to generate just $140 million in 2019), the company has a market cap of about $10.5 billion.
The stock, which trades on the NASDAQ, is down 23 percent over the past month as investors cashed in for profits.
The stock pared some of its losses following those comments and was last down 2 percent in after hours trading.
Based in Nanaimo, British Columbia, Tilray is the largest of the publicly traded Canadian cannabis companies by market capitalization.
The company reported an adjusted loss for last quarter of 8 cents versus an expected 12 cents per share loss, according to the four analysts polled by Refinitiv. Total kilograms sold increased over two-fold to 1,613 kilograms from 684 kilograms in the prior year.
Tilray announced earlier in the third quarter that it had become the first and only company to receive regulatory approval in Canada and Germany to export medical cannabis flower for distribution to German patients.