High Tide Inc. (HITI) Q3 2026 Financial Results
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High Tide Inc. (HITI) Q3 2026: Record Revenue and Profitability — Bullish
High Tide Inc. ("High Tide") reported a record-breaking third quarter for fiscal year 2026, with revenue reaching $198.8 million, an increase of $49.1 million or +33% compared to $149.7 million in the same period last year. This impressive growth marks the fastest rate in 13 quarters and reflects the company's strong operational momentum.
Overall, this quarter is a positive development for shareholders, primarily due to the substantial growth in net income, which surged to $12.7 million from just $0.8 million a year ago, showcasing the company's ability to scale profitability alongside revenue growth.
Key Financial Metrics:
- Revenue: $198.8 million, up 33% YoY
- Gross Profit: $52.7 million, up 32% YoY
- Gross Margin: 27%, consistent YoY
- Operating Income: $8.7 million, up 133% YoY
- Net Income: $12.7 million, up from $0.8 million YoY
- EPS (Basic): $0.13, up from $0.01 YoY
- EPS (Diluted): $0.12, up from $0.01 YoY
- Adjusted EBITDA: $16.2 million, up 53% YoY
- Free Cash Flow: $7.0 million, up 373% sequentially
- Cash and Cash Equivalents: $47.1 million, down from $63.8 million YoY
High Tide's gross margin remained stable at 27%, indicating effective cost management despite the increase in revenue. The company also reported a record Adjusted EBITDA of $16.2 million, reflecting an Adjusted EBITDA margin of 8.2%, the highest in 12 quarters.
The company generated a record cash flow from operations before changes in non-cash working capital of $11.9 million, which is a 44% increase compared to the previous year. This strong cash generation capability is crucial as High Tide continues to invest in growth initiatives.
Operational Highlights:
High Tide's retail segment, Canna Cabana, continues to dominate the Canadian cannabis market with a 14% market share in the provinces where it operates, up from 13% a year ago. The company has also expanded its store count to 232 locations, reinforcing its position as the largest cannabis retail chain in Canada.
In the medical cannabis sector, High Tide's subsidiary Remexian achieved record distribution volumes, delivering 10.2 tonnes of medical cannabis in Germany, a 62% increase YoY. This segment generated $38.2 million in revenue during the quarter, further diversifying High Tide's revenue streams.
Shareholder Returns and Guidance:
High Tide has not announced any dividends or buyback programs in this quarter. However, the company remains committed to maintaining capital discipline while pursuing aggressive growth strategies. The management has reiterated its long-term goal of surpassing 350 retail locations across Canada and expanding its white label product offerings.
Forward Catalyst:
Looking ahead, the most significant catalyst to watch is High Tide's continued expansion in the German medical cannabis market through Remexian, coupled with the potential for broader federal cannabis reform in the U.S. This could open new avenues for growth and market participation, enhancing shareholder value.
In conclusion, High Tide's Q3 2026 results reflect a robust operational performance with record revenue and profitability metrics, positioning the company favorably for future growth.
Income Statement (in thousands of Canadian Dollars)
| Three months ended July 31, 2026 | Three months ended July 31, 2025 | Nine months ended July 31, 2026 | Nine months ended July 31, 2025 | |
|---|---|---|---|---|
| Free cash flow (i) | 7,017 | 7,682 | 11,438 | 10,678 |
| Net cash provided by operating activities | 10,091 | 10,650 | 20,384 | 19,588 |
| Revenue | 198,818 | 149,690 | 556,443 | 429,955 |
| Gross profit | 52,746 | 40,091 | 145,546 | 111,002 |
| Gross margin (ii) | 27% | 27% | 26% | 26% |
| Operating expense (iii) | (36,514) | (29,448) | (105,423) | (85,208) |
| Operating expense as a % of revenue (iv) | 18% | 20% | 19% | 20% |
| Total expenses | (44,036) | (36,352) | (128,368) | (106,264) |
| Income from operations | 8,710 | 3,739 | 17,178 | 4,738 |
| Adjusted EBITDA (v) | 16,232 | 10,643 | 41,605 | 25,794 |
| Adjusted EBITDA as a percentage of revenue (vi) | 8% | 7% | 7% | 6% |
| Net income (loss) | 12,748 | 832 | 12,420 | (4,693) |
| Adjusted net income (loss) (vii) | 2,246 | 875 | (606) | (4,650) |
| Basic income (loss) per share | 0.13 | 0.01 | 0.14 | (0.06) |
| Diluted income (loss) per share | 0.12 | 0.01 | 0.13 | (0.06) |
Balance Sheet (in thousands of Canadian Dollars)
(Not available in this filing)
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