Record Quarterly Revenue
Consolidated revenue of CAD 179.3 million, up 30% year-over-year and up 1% sequentially; on an annualized pace well ahead of CAD 700 million and the fourth consecutive quarter of all-time high revenue.
High Tide
· HITI
June 15th, 2026
Summary
- Earnings Call Date:
- 2026-06-15
- Change Since:
- -1.78%
- Next Earnings Date:
- 2026-09-16
Earnings Call Sentiment
PositiveThe call presented strong operational and financial outperformance: record revenue, gross profit, operating income, and adjusted EBITDA; rapid and profitable scaling of Remexian; robust loyalty growth and superior store productivity; and improved balance sheet access. Key negatives were modest same-store sales softness, working capital-driven free cash flow variability, operational timing risks in Remexian, regulatory constraints in certain Canadian provinces, and potential German pricing pressure. Overall, the positives are numerous, material, and backed by clear metrics, while the negatives are mostly manageable or described as temporary.
Company Guidance
Management's guidance reiterated aggressive growth and profitability targets: add 20–30 stores in Canada this calendar year (10 already opened) while pursuing organic and accretive M&A to exceed 350 stores nationally (potentially >500 if Ontario expands its 150‑store cap to 300); continue scaling Remexian toward a ~20% Germany market share (now 14.1% vs 6.5% two quarters prior) with sustainable mid‑20% gross margins (Q2 Remexian margin 27%, Q2 revenue CAD31.6M, 7.6 tons sold in the three months ended March), push revenue on an annualized pace well ahead of CAD700M (Q2 consolidated revenue CAD179.3M, +30% YoY), grow loyalty to 3.0M Cabana Club members (2.65M today, +39% YoY) and ELITE >178k (+84% YoY), sustain positive net income on an adjusted basis (Q2 adjusted net income CAD0.01/sh), expand adjusted EBITDA (Q2 CAD13.9M, 8% margin) and free cash flow over time (Q2 FCF CAD1.5M; 12‑month FCF CAD13.4M), and finance growth with a CAD40M BMO facility (CAD25M revolver, CAD15M delayed‑draw term loan, ~CAD19M immediate draw capacity after payout).
Record Gross Profit and Margin Expansion
Consolidated gross profit of CAD 48.4 million, up 36% year-over-year (fastest growth in 12 quarters); consolidated gross profit margin 27%, an eight-quarter high and up over 200 basis points sequentially.
Outstanding Operating Income and Adjusted EBITDA
Income from operations of CAD 6.1 million, up 554% year-over-year and 157% sequentially. Adjusted EBITDA of CAD 13.9 million, up 73% year-over-year and 21% sequentially; adjusted EBITDA margin 8%, an eight-quarter high.
Positive Net Income (Adjusted) and Free Cash Flow Trajectory
Adjusted for non-cash derivative charges, net income of CAD 0.01 per fully diluted share (vs loss of CAD 0.04 prior year and loss of CAD 0.02 sequentially). Free cash flow for Q2 was CAD 1.5 million and CAD 13.4 million over the past 12 months.
Strong Cash Generation Before Working Capital
Cash flow from operating activities prior to changes in non-cash working capital was CAD 8.8 million, a seven-quarter high, demonstrating core business cash generation despite working capital investments.
Remexian — Rapid Scale and Margin Improvement
Remexian Q2 revenue CAD 31.6 million (avg > CAD 10.5M/month), sold 7.6 tonnes in the period (up 85% vs Sep 2025 quarter), market share increased to 14.1% from 6.5% in two quarters; gross margin surged to 27% in Q2 from 12% in Q1; segment adjusted EBITDA swung from -CAD 0.265M in Q1 to +CAD 3.2M in Q2.
Bricks-and-Mortar Performance and Loyalty Growth
Bricks-and-mortar segment revenue up 7% year-over-year; segment gross margin 28% (highest in two years); adjusted EBITDA up 33% year-over-year. Cabana Club membership 2.65 million (up 39% YoY, +750k members in 12 months); ELITE membership up 84% YoY to >178,000.
Superior Store Productivity Metrics
Excluding stores open <6 months, annualized revenue per square foot CAD 1,620. March average Canna Cabana store annual run rate CAD 2.4M vs peer average CAD 1.2M; Ontario average store run rate CAD 2.7M (2.5x peers at CAD 1.1M).
Balance Sheet and Credit Facility Progress
Total debt CAD 63.6 million with CAD 36.5 million cash and restricted cash at quarter end; secured credit approval from Bank of Montreal for CAD 40 million in facilities (CAD 25M revolver and CAD 15M delayed draw term loan) to support growth.
Strategic and Accretive M&A Execution
Announced acquisition of four Northern Helm stores generating CAD 8.5M annualized revenue and CAD 1.7M annualized adjusted EBITDA; transaction paid ~4.5x and is accretive to results; continued disciplined M&A pipeline in Canada and Europe.
Operator
[Break] Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to High Tide Inc's second fiscal quarter 2026 audited financial and operational results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Instructions will be provided at that time for you to queue up for questions. I will now turn the call over to your host.
Carter Brownlee
Thank you, operator. Good morning, everyone. Welcome to High Tide Inc's quarterly earnings call. Joining me on the call today are Mr. Raj Grover, President and Chief Executive Officer, and Mr. Mayank Mahajan, Chief Financial Officer. On June 15, 2026, the company released financial and operational results for the fiscal quarter that ended April 30th, 2026. Before we begin, please let me remind you that during the course of this conference call, High Tide's management may make statements, including with respect to management's expectations or estimates of future performance.
All such statements, other than statements of historical facts, constitute forward-looking information or forward-looking statements within the meaning of the applicable securities laws and are based on assumptions, expectations, estimates, and projections as of the date hereof. Specific forward-looking statements include, without limitation, all disclosures regarding future results of operations, economic conditions, and anticipated courses of action. For more information on the company's risks and unc...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free