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High Tide Makes ROB Annual Ranking of Canada's Top Growing Companies for Fifth Consecutive Year
Prnewswire· 2025-09-26 15:30
Core Insights - High Tide Inc. ranked No. 182 out of 400 companies in the 2025 Report on Business ranking of Canada's Top Growing Companies, achieving a three-year revenue growth rate of 188% [1][2] - The company previously ranked 87th out of 417 companies in 2024, with a significantly higher three-year growth rate of 486% [2] - High Tide's recent acquisition of Remexian marks a strategic expansion into Europe's largest cannabis market, expected to enhance revenue and create long-term growth opportunities [3] Company Performance - High Tide has been recognized for five consecutive years as one of Canada's Top Growing Companies, reflecting the dedication of its team and the loyalty of its customer base [2][7] - The company operates Canna Cabana, the largest cannabis retail chain in Canada, with 210 locations and a growing market share of 12% [6] - High Tide's subsidiary, Remexian Pharma GmbH, is a key player in the German medical cannabis market, licensed to import from 19 countries, including Canada [7] Industry Context - The Report on Business ranking celebrates innovative businesses in Canada, with 400 companies qualifying through a rigorous application process [4] - The cannabis industry in Canada continues to show significant growth potential, as evidenced by High Tide's performance and expansion efforts [3][6]
High Tide (HITI) - 2025 Q3 - Earnings Call Transcript
2025-09-16 16:32
Financial Data and Key Metrics Changes - Revenue for Q3 reached an all-time high of $149.7 million, up 14% year over year and 9% sequentially [21] - Gross margin percentage was 27%, consistent with Q3 last year and up from 26% sequentially [22] - Adjusted EBITDA was a record $10.6 million, up 11% year over year and 32% sequentially [23] - Free cash flow of $7.7 million grew 148% year over year, marking the second highest level since disclosure began [25] - Net income turned positive at $832,000, a significant turnaround from a $2.8 million net loss in Q2 [8] Business Line Data and Key Metrics Changes - Bricks-and-mortar revenue was a record, up 18% year over year, with same-store sales growth accelerating to 7.4% [6][21] - Bricks-and-mortar adjusted EBITDA was $12.7 million, an all-time high, up 42% year over year [8][23] - E-commerce business continues to underperform, representing less than 3% of consolidated revenues [46] Market Data and Key Metrics Changes - Canna Cabana's market share across five operating provinces reached 12%, the highest level since legalization [6] - In Germany, High Tide has a 16% market share, positioning itself strongly in the medical cannabis market [12] Company Strategy and Development Direction - The company aims to leverage its relationships with licensed producers to channel German medical cannabis shipments through its network [10] - High Tide's acquisition of Remexian reflects a disciplined shareholder-first approach, targeting growth in the German market [9][15] - The company plans to expand its presence in other European markets, including the UK, Poland, Czechia, and Switzerland [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the bricks-and-mortar business, with no signs of slowing down in same-store sales [6][30] - The company is optimistic about the integration of Remexian and the potential for growth in the German market [62] - Management acknowledged temporary challenges in the supply chain from Portugal but expects normalization by November [40] Other Important Information - The company closed a $30 million junior subordinated loan with Kronos, validating its strategy and execution [17] - High Tide has now sold over $1.9 billion of federally legal cannabis, establishing itself as a leader in the industry [10] Q&A Session Summary Question: On same-store sales, how much of the recent acceleration is due to industry improvement versus market share gains? - Management indicated that the same-store sales growth is primarily due to having the best retail model, not just competitor closures [29][30] Question: What is the company's philosophy on capital allocation post-Remexian transaction? - Management highlighted the need for working capital to support Remexian's growth and emphasized organic store openings while considering M&A opportunities [36][39] Question: How confident is the company in executing a turnaround for the e-commerce business? - Management acknowledged the underperformance but expressed optimism about new initiatives and partnerships to improve the segment [46] Question: What is driving the expansion of margins in the bricks-and-mortar segment? - Management attributed margin increases to a combination of white label sales, price stabilization, and operational efficiencies [49][53] Question: How are newer stores performing relative to prior cycles? - Management reported that new stores are ramping up sales faster than expected, benefiting from brand recognition and high-quality locations [57][58] Question: What are the opportunities across Europe for future investments? - Management confirmed ongoing monitoring of other EU markets for compelling commercial opportunities while focusing on the integration with Remexian [61]
High Tide Reports Financial Results for Third Fiscal Quarter Featuring Record Revenue and Adjusted EBITDA, Along With Positive Free Cash Flow and Net Income
Prnewswire· 2025-09-15 20:00
Core Insights - High Tide Inc. reported record financial results for Q3 2025, including significant increases in revenue, adjusted EBITDA, and free cash flow, demonstrating strong operational performance and market growth [2][5][6]. Financial Highlights - Revenue reached $149.7 million for Q3 2025, a 14% increase year-over-year and the fastest growth rate in seven quarters [6]. - Adjusted EBITDA was a record $10.6 million, up 11% year-over-year and 32% sequentially, marking the 22nd consecutive positive quarter [11]. - Free cash flow for Q3 2025 was $7.7 million, representing a 148% increase year-over-year and a 57% increase sequentially [5][11]. - The company achieved positive net income of $832 thousand, a 1% increase year-over-year, reversing a net loss of $2.8 million sequentially [5][11]. Operational Highlights - Same-store sales increased by 7.4% year-over-year, the fastest growth rate in two years, with a 12% market share in the five provinces where Canna Cabana operates [5][10]. - The company opened seven new Canna Cabana locations across Ontario, Manitoba, and Alberta during the quarter [10]. - Canna Cabana remains the largest cannabis retail brand in Canada with 207 stores, and the company is on track to exceed 300 locations [18][26]. Strategic Developments - High Tide completed the acquisition of a 51% stake in Remexian Pharma GmbH, enhancing its position in Germany's medical cannabis market [3][15]. - The company’s loyalty programs, Cabana Club and ELITE, have seen significant growth, with membership surpassing 2.15 million in Canada, a 39% increase year-over-year [19]. Market Position - High Tide holds a 12% share of the cannabis retail market in Canada, up from 11% the previous year, and continues to attract top Canadian cannabis brands [5][26]. - The average Canna Cabana store generates 2.1 times the revenue compared to peers, indicating strong operational efficiency [11].
Bull Of The Day: High Tide
ZACKS· 2025-08-26 12:11
Core Viewpoint - High Tide (HITI) is positioned as a strong investment opportunity in the cannabis sector, with positive growth projections and a favorable Zacks Rank of 2 (Buy) [1] Company Overview - High Tide, Inc. is a retail-focused cannabis company involved in the manufacture and distribution of consumption accessories, operating through Retail, Wholesale, and Corporate segments [2] - The company offers various brands including Canna Cabana, Fastendr, Grasscity, and others, and was founded in 2009, headquartered in Calgary, Canada [2] Earnings History - High Tide has experienced three consecutive misses of the Zacks Consensus Estimate, alongside one beat, with the most recent earnings showing a loss of -$0.03 against a consensus of -$0.02, resulting in a positive earnings surprise of 50% [4] Earnings Estimates Revisions - Earnings estimates for High Tide have been revised upward, with the full year 2025 loss estimate improving from -$0.05 to -$0.04, and 2026 estimates increasing from a gain of $0.06 to $0.11 [5] Growth Projections - Analysts project revenue of $421 million for the current fiscal year, indicating a 10.7% growth, with expectations of $548 million in the next fiscal year, representing a 29.9% sales growth [6] Valuation Metrics - High Tide does not have a forward PE ratio, but the projected multiple for the end of the next fiscal year is 31x, with a low price to book ratio of 2.9x and a price to sales ratio of 0.74x [7]
High Tide Provides Corporate Updates
Prnewswire· 2025-08-12 10:00
Corporate Updates - High Tide Inc. is making significant progress on a proposed transaction with a leading German medical cannabis importer and wholesaler, which is fully funded through a junior secured loan [2] - The company has appointed Sri Pavithra Priyalakshmi as Vice President of Digital and eCommerce, bringing over 11 years of global experience in eCommerce and digital transformation [3] - High Tide will participate in Canaccord Genuity's 45th Annual Growth Conference from August 12–14, 2025, with scheduled presentations and one-on-one meetings with institutional investors [4] Financial and Regulatory Developments - High Tide has filed a final short form base shelf prospectus to replace its expiring prospectus, allowing for financing opportunities up to C$100 million over a 25-month period [5][6] - The prospectus enables the company to offer various securities, including common shares and debt securities, and may be used for "at-the-market distribution" [8][9] - The company has retained an investor relations agency for a month to enhance communication with shareholders and the investment community, with a fee of USD $140,000 [12][13] Company Overview - High Tide is a leading retail-forward cannabis enterprise with a diverse portfolio, including Canna Cabana, which is the second-largest cannabis retail brand globally [14] - The company operates a suite of e-commerce platforms for cannabis accessories and has a strong brand roster, including Queen of Bud™ and Cabana Cannabis Co™ [15][16] - High Tide has been recognized as one of Canada's Top Growing Companies and ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023 [18]
High Tide Reports Second Fiscal Quarter 2025 Financial Results
Prnewswire· 2025-06-16 20:00
Financial Performance - The company generated $137.8 million in revenue for the second fiscal quarter of 2025, an increase of 11% year over year, and 12% when accounting for one fewer day in the quarter [7][11][13] - Gross profit was $35.5 million, consistent year over year, with a gross profit margin of 26%, down from 28% the previous year [11][13] - Adjusted EBITDA was $8.1 million, marking the 21st consecutive positive quarter, although it decreased from $10.0 million in the previous year [11][13] - The company reported a net loss of $2.8 million, compared to net income of $0.2 million in the prior year [11][13] Operational Highlights - The company operates 200 Canna Cabana locations across Canada, maintaining its position as the largest cannabis retail brand in the country [6][11] - Daily same-store sales increased by 6.2% year over year, the fastest growth rate in five quarters [11][12] - Canna Cabana achieved a 12% market share in the cannabis retail market, up from 11% the previous year [11][12] Membership Growth - Cabana Club membership reached 1.9 million, a 33% increase year over year, with ELITE memberships surpassing 97,000, a 120% increase year over year [11][12][17] - Global Cabana Club membership exceeded 5.87 million, including 104,700 ELITE members [11][12][17] Strategic Initiatives - The company is in exclusive discussions regarding a transaction with a leading German medical cannabis importer and wholesaler, with due diligence in the final stages [5][22] - The company submitted a model project proposal to the German Federal Office for Agriculture and Food related to the study of commercial cannabis use by adults [7][22] Product Offerings - The company currently sells 67 cannabis and accessory SKUs across its brands, with plans for new product launches expected this summer [8][20] - The company continues to expand its white label product offerings under the Queen of Bud and Cabana Cannabis Co. brands [20]