High Tide Inc.

High Tide reported Q2 fiscal 2026 revenue of CAD 179.3 million, up 30% year over year and 1% sequentially. Gross profit was CAD 48.4 million, up 36% year over year, and gross margin was 27%, an eight-quarter high. Income from operations was CAD 6.1 million, up 554% year over year and 157% sequentially, while adjusted EBITDA was CAD 13.9 million, up 73% year over year, with an 8% margin. Adjusted net income was CAD 0.01 per fully diluted share versus a loss of CAD 0.04 a year ago and a loss of CAD 0.02 sequentially. Free cash flow was CAD 1.5 million, operating cash flow before working capital was CAD 8.8 million, and the company invested CAD 4.3 million in working capital. Looking ahead, management reiterated a target to add 20-30 stores in Canada during the calendar year, said it is already at 10, maintained a long-term goal of more than 350 stores, and said the newly announced acquisition of four Northern Helm stores is expected to close soon.

Raj Grover framed the quarter as the strongest in company history, emphasizing that High Tide set records across revenue, gross profit, operating income and adjusted EBITDA. He repeatedly pointed to the company’s differentiated discount club model, the Cabana Club, and the Germany strategy as proof that its approach is working ahead of internal timelines. His tone was confident and expansive, with continued focus on disciplined M&A, Canada as the home base, and optionality in the U.K., Europe and the U.S. over time.

Mayank Mahajan focused on the financial quality of the quarter and the company’s balance sheet. He highlighted CAD 179.3 million in revenue, 27% consolidated gross margin, CAD 13.9 million of adjusted EBITDA, CAD 1.5 million of free cash flow, and CAD 8.8 million of operating cash flow before working capital, noting the quarter included a significant CAD 4.3 million investment in working capital. He also said total debt was CAD 63.6 million and cash and restricted cash were CAD 36.5 million at quarter-end, while the planned Bank of Montreal facility includes a CAD 25 million revolving facility and a CAD 15 million committed delayed draw term loan.

Analysts focused on Remexian’s tonnage, sourcing, and margin sustainability, and management said May was between February and April in strength, with margins expected to remain healthy and around 25% long term. Another key topic was Canadian same-store sales, which management said were down 1.2% due to trade-down behavior, macro pressure on core blue-collar customers, and some sales transfer to newer stores not yet in the comp base. Questions also covered Northern Helm and broader M&A; management said the deal was an inbound opportunity, was done at 4.5x, and fit its disciplined, accretive approach.