High Tide Stock Earnings Reports

High Tide reported its best quarter ever for Q2 (ended April 30, 2026) with consolidated revenue of CAD 179.3M (up 30% YoY) and record consolidated gross profit of CAD 48.4M (up 36% YoY). Consolidated gross margin rose to 27%, consolidated adjusted EBITDA reached CAD 13.9M (up 73% YoY) and adjusted EBITDA margin improved to 8%. The brick-and-mortar (Canna Cabana + e‑commerce) business delivered stronger margins (28%) driven by ELITE and white‑label initiatives and growth in loyalty (2.65M Cabana Club members; ELITE >178k). Remexian (German medical distribution), acquired in Sept 2025, was a major driver—Q2 revenue CAD 31.6M, gross margin 27% (vs 12% in Q1), tonnage up significantly and market share in Germany increased to 14.1% with a stated long‑term target of ~20%. The company reported positive net income on an adjusted basis and generated CAD 1.5M free cash flow in the quarter (CAD 13.4M free cash flow over last 12 months), noting a CAD 4.3M working capital build to support growth. High Tide secured CAD 40M in credit approval from Bank of Montreal (CAD 25M revolver + CAD 15M delayed draw term loan) to support expansion. Management reiterated plans to add 20–30 Canadian stores in the calendar year (350+ store target long term, potentially >500 if Ontario cap increases), pursue selective M&A domestically and in Europe (U.K. priority), and remain disciplined on U.S. expansion. Key risks noted: potential volatility in Remexian quarter-to-quarter (timing of shipments), competitive and illicit market pressure in retail, and regulatory changes in Germany or provincial retail caps.