Tilray Brands (NASDAQ: TLRY) is making another move in Europe, and this one could be particularly important for its international cannabis business.

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The company just launched its first direct-to-patient channel for Tilray Medical-branded cannabis in the U.K. Through Lyphe Clinic and Lyphe Dispensary, British patients can now access Tilray's medical cannabis products through a network that connects cultivation, prescribing, dispensing, and patient care.

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That might not sound like a big deal at first. But Tilray acquired Lyphe Group in April, specifically to establish a stronger position in the U.K. medical cannabis market. Lyphe brought the company clinical care, prescribing, pharmacy, and distribution capabilities. Now Tilray is putting its own cannabis products through that infrastructure.

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In other words, Tilray isn't simply selling cannabis into the U.K. wholesale market. It's attempting to control more of the process between growing the product and getting it to the patient.

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And that's where things get interesting.

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International cannabis is already growing

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Europe has become one of the strongest parts of Tilray's cannabis business.

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International cannabis net revenue reached $84.9 million in fiscal 2026, up 34% from $63.4 million the previous year. Even after adjusting for currency movements, revenue increased 25%. Germany was the biggest contributor, adding another $9.7 million, while Poland contributed an additional $8 million.

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The U.K. is much smaller, but it's already starting to contribute.

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Tilray says U.K. international cannabis revenue increased approximately $1.7 million during fiscal 2026, driven partly by the Lyphe acquisition and the company's expansion in the market. Now Tilray has another way to grow that business.

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Products supplied through Lyphe will come from Tilray's international production network, including its EU-GMP-certified facility in Portugal. The company also expects to expand the selection of Tilray-branded products available through Lyphe over the coming months.

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Why this matters to Tilray stock

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Tilray has spent years trying to prove it can become something more than a Canadian cannabis producer. And while Canada remains important, international medical cannabis offers something the company desperately needs: another source of cannabis growth.

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The numbers are already moving in the right direction.

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Tilray's total cannabis net revenue increased 8% to $268.3 million in fiscal 2026, while cannabis gross profit climbed another 8% to $107.1 million. International cannabis was one of the strongest pieces of that business.

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The Lyphe strategy could also make Tilray's U.K. operations more vertically integrated.

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Tilray already has European cultivation and pharmaceutical manufacturing. Lyphe gives it access to physicians, prescriptions, dispensing, and patients. Connecting those pieces potentially allows Tilray to capture more value than it would simply supplying cannabis to an independent distributor.

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To be sure, Tilray generated $915.5 million in total fiscal 2026 revenue, so the U.K. business is still relatively small. The company also lost $105.2 million for the year, although adjusted net income improved nearly 90% to $12.2 million.

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One new distribution channel won't transform those numbers overnight. But that's not really the point.

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The more important development is that Tilray's international cannabis business is actually growing, and management is building infrastructure designed to support additional expansion. Germany is already demonstrating what can happen when medical cannabis regulations become more favorable, and patient access improves.

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Now Tilray is trying to build a similar foundation in the U.K.

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The company has spent years talking about its international footprint. With international cannabis revenue growing 34% last year and its U.K. operation now connecting Tilray-grown cannabis directly with patients, that footprint is finally becoming easier to measure in dollars.

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