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]

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]