High Tide Revenue Hits Record $199 Million in Fiscal Third Quarter

High Tide Inc. (HITI ) released its financial results for the third fiscal quarter of 2026, the three months ended July 31, 2026, on September 14, 2026, reporting record revenue of $198.8 million, up 33% from $149.7 million in the same period last year. The Calgary-based company said the increase was its fastest revenue growth rate in 13 quarters, that revenue rose 11% sequentially, its fastest sequential growth in 15 quarters, and that the period marked a fifth consecutive quarter of all-time-high revenue. High Tide said it is approaching an $800 million annualized revenue run rate.

Gross profit was a record $52.7 million, up 32% year over year and 9% sequentially, with gross margin of 27%, consistent with both the prior-year period and the previous quarter. Adjusted EBITDA reached a record $16.2 million, up 53% from a year earlier and 17% sequentially, and the company’s Adjusted EBITDA margin of 8.2% was its highest in 12 quarters. Income from operations was a record $8.7 million, up 133% year over year and 43% sequentially, while net income was a record $12.7 million compared with $0.8 million a year ago. Adjusted for changes in a non-cash derivative liability and a long-term contract asset, net income was $2.2 million, versus $0.9 million a year earlier and $0.8 million sequentially.

Founder and Chief Executive Officer Raj Grover said the quarter delivered records across revenue, gross profit, Adjusted EBITDA, income from operations, net income and operating cash flow before working capital, adding that “our bottom line is now growing substantially faster than our top line.”

Cash flow from operations before changes in non-cash working capital was a record $11.9 million, up 44% year over year and 36% sequentially. Free cash flow was $7.0 million, compared with $1.5 million in the previous quarter and $7.7 million in the prior-year period, a comparison the company said reflected $4.2 million in additional working capital investment to support growth. General and administration expenses represented 3.9% of revenue, the lowest level in eight quarters and an improvement from 4.4% a year earlier and 4.0% sequentially. Salaries, wages and benefits represented 11.4% of revenue, the lowest in 12 quarters, improving from 12.2% a year earlier and 11.9% sequentially. Cash and cash equivalents, including restricted cash, totaled $47.1 million at July 31, 2026, compared with $63.8 million a year earlier and $36.5 million at the end of the previous quarter.

For the nine months ended July 31, 2026, revenue totaled $556.4 million versus $430.0 million a year earlier, an increase of 29%, while Adjusted EBITDA was $41.6 million versus $25.8 million, up 61%. Net income for the nine-month period was $12.4 million compared with a loss of $4.7 million in the prior year. Basic earnings per share for the third quarter were $0.13 versus $0.01 a year earlier.

Retail Network and Loyalty Membership

Canna Cabana operates 232 locations, which the company said remains the largest cannabis retail chain in Canada. Citing Statistics Canada data, High Tide said Canna Cabana held a 14% share of the cannabis retail market in the provinces where it operates, excluding British Columbia, up from 13% a year ago. Canadian Cabana Club membership surpassed 2.73 million, up 27% year over year and 3% sequentially, and the paid ELITE tier exceeded 186,000 members, up 62% from the previous year.

Same-store sales for the full quarter were consistent with the prior year, with positive comparative growth in each of June 2026 and July 2026 and a 1.1% gain in same-store transaction count. The company said same-store sales are up 171% since the October 2021 launch of its discount club model, while the average operator has experienced a 1% decline. For the 12 months ended June 2026, industry sales in the five provinces where the company operates rose 3% year over year while total Canna Cabana sales rose 10%, and the average Canna Cabana store generated 1.8 times the revenue of peers for June 2026. Annualized retail sales per square foot were $1,721 across the network, excluding stores open less than six months, and the shrink rate was 0.2%.

German Medical Distribution and Outlook

Remexian, the company’s German medical cannabis subsidiary, distributed a record 10.2 tonnes of medical cannabis into the German market during the quarter, up 62% year over year and 35% sequentially. The segment generated record revenue of $38.2 million, compared with $31.6 million in the second fiscal quarter of 2026, with a gross margin of 26%. High Tide said Remexian’s German market share rose from 6.5% to 10.5% in the first six months after the company’s majority-stake acquisition, and that shipments have increased 44% since the three months ended March 31, 2026, while noting that industry data is not available.

During the quarter, the company opened Canna Cabana locations in Toronto, Welland, Ottawa and Calgary, and closed the acquisition of four Ontario stores in Bowmanville, Oshawa, Courtice and Kingston through the purchase of 100% of the equity interests of J. Supply Holdings Inc., operating as Northern Helm. Certain officers, directors and consultants acquired 90,882 common shares on the open market between May 6, 2026, and May 8, 2026, at an average price of $3.39 per share. After quarter-end, the company closed its previously announced senior secured credit facilities with Bank of Montreal in the aggregate principal amount of $40 million; shareholders at the August 11, 2026 annual meeting elected all director nominees and approved a revised Shareholder Rights Plan; and three new Canna Cabana stores opened in Lindsay, Orléans and Regina, taking the Canadian store count to 232, including 105 in Ontario and 14 in Saskatchewan.

High Tide reiterated its long-term goal of surpassing 350 locations across Canada and opening more than 20 locations in calendar 2026, mostly through organic growth, while evaluating supplemental acquisition opportunities. White label cannabis SKUs under the Queen of Bud and Cabana Cannabis Co. brands increased from 41 to 48 sequentially and represent approximately 1.9% of total bricks-and-mortar cannabis sales, and the company said it anticipates exceeding 3 million Cabana Club members in Canada over the long term. The company also said it has initiated outreach to the Nasdaq Stock Exchange and the TSX Venture Exchange to understand how broader U.S. federal rescheduling of cannabis could affect listing policies and its ability to pursue opportunities in the U.S. adult-use market. It noted that on April 23, 2026, the U.S. Department of Justice and Drug Enforcement Administration moved FDA-approved cannabis drug products and cannabis subject to a state medical marijuana license from Schedule I to Schedule III of the Controlled Substances Act, and that the DEA held an administrative hearing from June 29 to July 15, 2026, on broader rescheduling.

High Tide will host a webcast and conference call at 11:30 a.m. Eastern Time on September 15, 2026, to discuss the unaudited results and outlook.