Tilray (NASDAQ: TLRY) reported lower-than-expected fiscal 1Q results.

The company reported negative EPS of $0.08, in-line with the analyst estimate of negative $0.08. Revenue for the quarter came in at $168 million versus the consensus estimate of $177.92 million.

“Tilray’s first quarter 2022 results affirm that, amid the paradigm shift towards global cannabis legalization, we are unquestionably executing against two key objectives. The first is maximizing near-term profitability through leadership in both higher-margin international medical markets and in Canada, complemented by incremental growth at SweetWater and Manitoba Harvest in the U.S,” Irwin Simon, Tilray’s Chairman and Chief Executive Officer, stated.

Stifel analyst Andrew Carter has weighed in on the reported results to note an underperformance despite “muted expectations.” The analyst rates TLRY as Hold.

“Tilray reported F1Q22 results with net revenue of $168 million, below our $173 million estimate. The company underperformed our muted expectations with cannabis revenue $10 million below our estimates. We await further details, but our estimates suggest underlying revenue declined 10% in the quarter versus our estimates for a roughly 5% decline,” Carter said in a client note.

“While the profit performance/limited cash needs provides a point of differentiation, we believe the ability to drive stronger underlying revenue growth could prove elusive given the increasing expense of the Canadian adult use market with growth decelerating,” the analyst added.

Shares of Tilray closed at $10.79 yesterday and are up 19.9% YTD.