High Tide Sees 25% Revenue Rise to $178.3M; EBITDA Soars 62% to $11.5M
High Tide Inc reported Q1 revenue of $178.3 million, up 25% year-over-year and 9% sequentially, with adjusted EBITDA of $11.5 million, up 62%. Free cash flow flipped positive to $2.9 million, bricks-and-mortar revenue hit $150 million, and Cabana Club membership rose 47% to 2.58 million.
1. Strong Revenue and Profit Growth
In Q1 2026, High Tide generated $178.3 million in revenue, marking a 25% increase year-over-year and a 9% sequential gain. Adjusted EBITDA rose 62% to $11.5 million while consolidated gross margin held at 25%, with the bricks-and-mortar segment achieving a 28% margin.
2. Cash Flow, Store Expansion and Membership
The company delivered $2.9 million in free cash flow, reversing a $1.9 million deficiency from the prior year. High Tide opened seven new stores in the quarter (27 in the past 12 months), driving $150 million in bricks-and-mortar revenue at a $600 million annual run rate, while Cabana Club membership grew 47% to 2.58 million and Elite membership doubled to 162,000.
3. Market Challenges and Outlook
High Tide faces a slowing Canadian cannabis market and competitive pressure that may affect margins, alongside import-permit delays stalling German operations. The e-commerce segment remains a drag on consolidated EBITDA though it shows signs of stabilization, and management plans to capture market share from marginal operators exiting the market.