High Tide Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.15%.
Did HITI Beat Earnings? Q1 2026 Results
High Tide Inc. delivered a mixed but broadly encouraging fiscal first quarter, posting earnings per share of $0.01 against a consensus estimate of $0.00, a beat of 265%, even as revenue of $130.43 million came in below the $173.80 million analysts had expected. The top line still grew 25.2% year-over-year, propelled by the first full quarter of contribution from Remexian Pharma GmbH, the German medical cannabis distribution subsidiary acquired in September 2025, which added $18.27 million to consolidated revenue while the core Canadian bricks-and-mortar network contributed $109.48 million. Adjusted EBITDA climbed 62% to $8.38 million, free cash flow swung to positive $2.15 million from negative $1.39 million a year ago, and the net loss narrowed sharply to $257,453 from $1.97 million. Looking ahead, management is targeting 20 to 30 new Canna Cabana openings in calendar 2026, expects margin improvement in the medical cannabis distribution segment beginning in Q2 as better-priced Canadian biomass enters the supply chain, and anticipates entering the UK medical cannabis market within 12 months.
- Bricks-and-mortar revenue grew 10% YoY driven by same-store sales growth and new store openings
- Remexian acquisition contributed $24.979M in first full quarter of medical cannabis distribution revenue
- Bricks-and-mortar gross margin improved to 28% from 25% YoY through white label products and Elite membership signups
- Operating expenses as a percentage of revenue declined to 19% from 20% YoY reflecting cost discipline
- Adjusted EBITDA increased 62% YoY to $11.457M
- Free cash flow swung positive to $2.939M from negative $1.9M a year ago
Forward Guidance & Outlook
High Tide plans to open 20-30 new Canna Cabana locations in calendar 2026, advancing toward a long-term goal of exceeding 350 locations nationwide, through a mix of organic growth and supplemental M&A. White label cannabis products currently represent approximately 1.6% of bricks-and-mortar cannabis sales, with a long-term target of reaching approximately 20% of total sales. The Company expects gross margin improvement in the medical cannabis distribution segment beginning in Q2 2026 as Canadian biomass procured at better terms begins flowing through the supply chain. Remexian's February 2026 distribution of 2.6 tonnes represented its highest revenue-generating month at over $12 million since acquisition. The Company anticipates entering the UK medical cannabis market within the next 12 months through M&A. E-commerce platforms are undergoing relaunches with remaining platforms scheduled for Q2 2026. The Company is evaluating strategic alternatives for its e-commerce division, which currently represents 2% of consolidated revenue. Management expects the impact of U.S. tariffs on consolidated operations to be immaterial given the domestically sourced nature of the bricks-and-mortar business (84% of revenue) and the lack of U.S. tariff exposure for the medical cannabis distribution business (14% of revenue). The Company aims to generate cash flow from operations and remain free cash flow positive throughout 2026.
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Figures from SEC filings and company reports. Not investment advice.