On January 10, Tilray soundly beat second-quarter earnings estimates. Here's why TLRY is on track to become the worldwide weed market leader.

Get Tilray, Inc. Report reported solid numbers in its second-quarter earnings results. The Canada-based marijuana company surprised Wall Street estimates by reporting a reversal from the $89 million net loss recorded in the same period last year to $6 million in net income.

In addition, Tilray grew revenues by 20%, compared with last quarter, and posted its 11th consecutive quarter of positive earnings before interest, taxes, depreciation, and amortization (EBITDA).

According to CEO Irwin Simon, the positive performance recorded during the quarter was due to "high-quality and highly sought-after cannabis and lifestyle CPG brands." The success of the company's global distribution and operations allowed Tilray to increase sales and profitability while overcoming sector-specific and macro headwinds.

Simon also stated, "The totality of our performance, our prospects, and our global platform make Tilray Brands' opportunity as compelling as ever, driven by our success as a cannabis and lifestyle [consumer packaged goods] powerhouse and our relentless focus on delivering shareholder value."

The company recently experienced a small loss of market share in Canada. But with 10.8% of the market, it continues to hold the largest share due to its brand performance.

Tilray is also the market leader in Germany, with a 20% share. Germany is considered the largest and most lucrative medical cannabis market in the EU.

The company is not the leader in these countries by chance. Tilray has a bold plan to achieve global leadership in the cannabis industry and has been making acquisitions and mergers — including a merger with Aphria and the acquisition of cannabis company MedMen, which has 29 retail locations in seven U.S. states.

Looking ahead, Tilray will have huge opportunities here in the U.S. once the federal government legalizes cannabis. And in the meantime, it's expanding into the spirits business with the acquisition of Breckenridge Distillery. This should immediately contribute to Tilray's earnings.

In order to achieve global leadership of the cannabis industry, Tilray still needs to dominate the U.S. market, where it's facing many regulatory hurdles.

According to Statista, sales of the U.S. legal recreational cannabis are expected to reach an estimated $25 billion by 2025. And the medical cannabis market will reach more than $11 billion in 2024.

Tilray's own management has confirmed that legalization in the U.S. has been taking longer than they expected. The election of President Biden had brought high hopes to the sector, but few advances have actually occurred.

In the event of U.S. legalization, even considering strong competition from other marijuana companies such as Canopy Growth  (CGC) - Get Canopy Growth Corporation Report, Tilray will be in a good place.

It's already well-positioned with the acquisition of MedMen and its brands SweetWater Brewing and Manitoba Harvest. And the well-executed distribution and scaling of Tilray's brands in the Canadian market have given the company plenty of practice for legalization in the U.S.