High Tide Reports Strong Q2 2026 Financial and Operational Results
High Tide Inc. (Nasdaq: HITI) announced its second‑quarter results for the fiscal period ended April 30, 2026, highlighting record revenue, improved profitability and continued expansion across its retail, medical‑cannabis and loyalty‑program platforms.
Financial Highlights
The company generated revenue of CAD 179.3 million for the quarter, a 30 % increase year‑over‑year and the fastest growth rate in the last eleven quarters. Gross profit rose to CAD 48.4 million, pushing the gross margin to 27 %—up from 26 % a year earlier and marking an eight‑quarter high.
Adjusted EBITDA reached a record CAD 13.9 million, up 73 % versus the prior year. Free cash flow for the period was CAD 1.5 million, reflecting working‑capital investments to support growth. Net income turned positive at CAD 24 thousand, a significant improvement from a CAD 2.8 million loss in the same quarter of 2025.
Operating efficiency also improved: general and administration expenses fell to 4.0 % of revenue, while salaries, wages and benefits represented 11.9 % of revenue, both reaching their lowest levels in seven quarters.
Retail Performance
High Tide’s flagship Canna Cabana brand continued to outperform peers. The Cabana Club loyalty program surpassed 2.65 million members, a 39 % increase year‑over‑year, while the paid ELITE tier exceeded 178,000 members, up 84 % from the prior year. Same‑store sales declined modestly by 1.2 % versus the prior year, but the company noted that its discount‑club model has driven a cumulative 161 % increase in same‑store sales since launch in October 2021, compared with a 7 % decline for the average operator.
Canna Cabana maintained a 12 % share of the Canadian cannabis retail market across the five provinces where it operates (14 % when excluding British Columbia, where store caps apply). Annualized retail sales per square foot stood at CAD 1,620, remaining above many international benchmarks.
Medical Cannabis Distribution – Remexian Pharma GmbH
The German subsidiary Remexian delivered record results in Q2 2026. It distributed 7.6 tonnes of medical cannabis into Germany, a 49 % increase year‑over‑year, and generated CAD 31.6 million in revenue—up 26 % sequentially. Gross margin for the segment improved to 27 %, more than doubling the 12 % margin recorded in the first quarter of 2026.
Remexian’s market share of tonnage distributed in Germany reached 14 % for the three months ended March 2026, building on steady growth from 6.5 % in September 2025 and 10.3 % in December 2025.
Operational and Strategic Updates
During the quarter, High Tide opened three new Canna Cabana locations in Ontario (Scarborough, Sarnia and Caledonia), bringing the total store count to 221 locations across Canada. Subsequent events added stores in Toronto, Welland and Calgary, and a definitive agreement to acquire four additional Ontario stores, raising the projected total to 228 locations.
The company also secured credit approval from the Bank of Montreal for a CAD 40 million senior secured credit facility, which will support further non‑dilutive growth initiatives.
Outlook
Looking ahead, High Tide aims to expand its Canna Cabana footprint to 350 stores nationwide, with plans to open 20‑30 new locations in calendar 2026 through organic growth and selective M&A. The Cabana Club and ELITE loyalty programs target 3 million and 1 million members, respectively, with a goal of converting at least 50 % of base‑tier members to ELITE.
In Europe, Remexian intends to leverage its Canadian supply chain to grow its share of the German medical‑cannabis market and explore additional European jurisdictions. In the United States, the company continues to monitor federal rescheduling developments and assess opportunities for its hemp‑derived CBD platform, NuLeaf Naturals.
Management remains confident that the integrated retail‑forward model, strong cash‑flow generation and strategic partnerships position High Tide for sustained long‑term value creation.
For the full press release and additional details, see the source: Here
