Tilray’s cannabis stock has plunged 45.6% over the past six months and is now trading at $0.64. The drop stems from weak quarterly results and deteriorating financial indicators, raising concerns about the company’s outlook.

The company’s operating margin fell to -103% over the last 12 months, a 70 percentage point decline year-over-year, reflecting rising costs that Tilray couldn’t offset with revenue gains.

Earnings per share (EPS) also disappointed, dropping 60.5% over the past three years while revenue grew by 10.2%, highlighting declining profitability per share.

Free cash flow is in negative territory as well — Tilray burned $8.02 for every $100 in revenue, signaling heavy capital spending and limited capacity to return funds to investors.

Given these metrics, StockStory analysts advise holding off on TLRY and instead focusing on companies with stronger financial fundamentals.