High Tide Inc.

Q3 revenue was CAD 198.8 million, up 33% year over year and up 11% sequentially. Gross margin was 27%, unchanged year over year and sequentially. Adjusted EBITDA was CAD 16.2 million, up 52% year over year and 17% sequentially, with an 8.2% consolidated adjusted EBITDA margin. Operating income was CAD 8.7 million, up 133% year over year, and net income was CAD 12.7 million; adjusted net income was CAD 2.2 million, up 186% sequentially and 157% year over year. Free cash flow was CAD 7 million, cash flow from operations before changes in non-cash working capital was CAD 11.9 million, and cash increased by CAD 10.6 million during the quarter. On the segment side, Remexian revenue was CAD 38.2 million, up 21% sequentially, with adjusted EBITDA of CAD 4.4 million and a 12% margin. Management did not provide formal next-quarter or full-year guidance, but said Canada has room for about 118 more stores, reiterated a long-term target of 350 locations, and said the company believes it can reach CAD 1 billion in revenue in the not-too-distant future.

Raj Grover said this was the best quarter in company history and framed it as proof that years of building the loyalty model, scale, and cost discipline are now flowing through to profits. He emphasized the Cabana Club and ELITE memberships, tighter expense control, and the company’s ability to fund growth internally rather than rely on equity. His tone was highly confident on Canada and Germany, while also stressing discipline on acquisitions and international expansion.

Mayank Mahajan focused on the financial discipline behind the quarter: revenue of CAD 198.8 million, gross margin of 27%, adjusted EBITDA of CAD 16.2 million, and free cash flow of CAD 7 million. He highlighted salaries and wages at 11.4% of revenue, the lowest in 12 quarters, and G&A at 3.9% of revenue, the lowest in eight quarters. He also said total debt stands at CAD 60 million, the company has not drawn on its CAD 25 million Bank of Montreal facility, and the business remains well positioned to self-fund working capital and growth.

Analysts focused on Germany, asking about import quota timing, margin sustainability, capacity constraints, and the potential impact of a competitor tie-up like Curaleaf and Aurora. Management said quota issues are typically short-term and not a long-term concern, that demand for Canadian cannabis in Germany is very strong, and that Remexian can likely sustain margins in the mid- to high-20s due to Canadian sourcing advantages. Questions on Canada centered on same-store sales and consumer stress; management said June and July were positive, August transactions were still up, but consumers are buying slightly smaller baskets due to inflation and job stress.