High Tide Reports First Quarter 2026 Financial Results Featuring Record Revenue Exceeding $700 Million Annualized
Executive Summary
- High Tide Inc. reported record Q1 2026 revenue of C$178.3 million (≈ C$700 million annualized), up 25% YoY and 9% sequentially.
- Adjusted EBITDA reached C$11.5 million, a 62% YoY increase; net loss narrowed to C$0.4 million from C$2.7 million YoY.
- Free cash flow turned positive at C$2.9 million (vs. a C$(1.9) million loss YoY), bringing four‑quarter cumulative free cash flow to C$16.8 million.
Key Details
- Revenue & Profitability
- Revenue: C$178.3 M (+25% YoY, +9% Q/Q).
- Gross profit: C$44.4 M (+25% YoY, +4% Q/Q); gross margin stable at 25%.
-
Adjusted EBITDA: C$11.5 M (up 62% YoY, up C$4.3 M Q/Q).
-
Cash Flow
- Free cash flow: C$2.9 M (positive vs. C$(1.9) M prior year).
-
Cash & cash equivalents: C$46.4 M at quarter‑end.
-
Operating Metrics
- General & admin expense: 4.1% of revenue (down from 4.6% YoY).
- Salaries, wages & benefits: 11.8% of revenue (down from 12.3% YoY).
-
Net loss: C$0.4 M (vs. C$2.7 M loss YoY).
-
Retail Highlights
- Cabana Club members: 2.58 M in Canada (+47% YoY), 6.65 M globally (+17% YoY).
- ELITE members: 162 k in Canada (+100% YoY).
- Store count: 220 locations across Canada (up from 218 a month earlier).
-
Same‑store sales: +0.5% YoY, –1.3% sequentially (weather impact).
-
Medical Cannabis Distribution (Remexian)
- Q1 2026 revenue: $25.0 M (vs. $9.8 M for two months in Q4 2025).
- February 2026 shipment: 2.6 t → €7.5 M (C$12 M) with ~20% gross margin.
-
German market share rose to 10.3% (from 6.5%).
-
International & Strategic Updates
- Exploring UK entry via M&A within 12 months.
- U.S. CBD platforms positioned for potential Medicare pilot program.
-
Joined National Compassionate Care Council (U.S.).
-
Outlook & Guidance
- Plan to open 20‑30 additional Canadian stores in calendar 2026, targeting >350 total long‑term.
- Expect gross margin improvement in medical cannabis segment starting Q2 2026 as Canadian biomass flows through supply chain.
-
White‑label SKUs now 1.6% of brick‑and‑mortar sales; target ~20% long term.
-
Other Items
- No ATM equity issuances in the last four quarters; existing shelf capacity up to $100 k remains unused.
- Webcast for audited results scheduled for 2026‑03‑18, 11:30 AM ET.
Notable Quotes
“We delivered another quarter of solid results, highlighted by record revenue, record gross profit, and positive free cash flow.” – Raj Grover, Founder & CEO
Materiality Assessment: Material – Positive (record revenue, profitability improvement, positive cash flow, and strategic growth initiatives).