High Tide Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.10%.
Did HITI Beat Earnings? Q3 2025 Results
High Tide delivered a mixed but broadly encouraging third fiscal quarter, posting an earnings beat alongside a revenue miss as the Canadian cannabis retailer's brick-and-mortar momentum continued to build. The company earned $0.01 per share against a consensus estimate of negative $0.01, a 237.74% beat, while revenue of $109.48 million fell 25.96% short of the $147.87 million analysts had forecast, though it still represented 13.7% growth year over year. The key driver behind the operational strength was the core bricks-and-mortar segment, which expanded 18% year over year and now accounts for 97% of consolidated revenue, with same-store sales climbing 7.4%, the fastest pace in two years. Adjusted EBITDA reached $7.78 million, its 22nd consecutive positive quarter, while free cash flow surged 148% year over year to $5.62 million. The recent acquisition of a 51% stake in Remexian Pharma opens a foothold in the German medical cannabis market, and with High Tide tracking toward the upper end of its 20 to 30 new store target for 2025, management sees a clear path toward its long-term goal of 300 Canna Cabana locations.
- Same-store sales up 7.4% year over year, fastest growth in two years
- Core bricks-and-mortar segment revenue increased 18% year over year
- Cabana Club membership surpassed 2.15 million in Canada, up 39% year over year
- ELITE paid members exceeded 115,000 in Canada, up 102% year over year
- Canna Cabana market share increased to 12% from 11% year over year
- Average Canna Cabana store generates 2.1x revenue versus peers
- Salaries, wages, and benefits as percentage of revenue improved to 12.2%, lowest in seven quarters
“I'm thrilled to share that this has been our most powerful quarter to date across nearly every financial metric, including record revenue and adjusted EBITDA, along with positive free cash flow and net income. Importantly, we also delivered our strongest same store sales growth in two years, which helped propel an 18% year-over-year increase in our core bricks-and-mortar business. These results once again prove that our loyalty-focused innovative discount club model continues to resonate strongly with our customers.”
High Tide CEO, on the earnings call
Forward Guidance & Outlook
High Tide is on track to reach the upper end of its 20-30 new store target for calendar 2025, having opened 16 new stores year-to-date, while advancing toward a long-term goal of surpassing 300 Canna Cabana locations nationwide. Cabana Club membership is expected to exceed 2.5 million in Canada over the long term. The e-commerce division, representing 3% of consolidated revenue, is tracking behind initial forecasts; management is executing a 12-month turnaround plan and considering contingency options including partnerships, divestitures, or maintaining pared-down platforms as strategic assets pending U.S. federal reforms. Following the Remexian acquisition, the company will need to assess ongoing cash needs as Remexian's growth requires additional working capital. The company has no meaningful debt maturities for the next two years and believes it can fund future store growth internally through free cash flow generation. The annualized revenue run rate is approximately $600 million.
HITI YoY Financials
HITI Revenue by Segment
HITI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.