High Tide Q2 Revenue Hits $179.3M; Adjusted EBITDA Jumps 73%
HITI•High Tide Inc reported Q2 revenue of $179.3M, up 30% year-over-year, with gross profit rising 36% to $48.4M and a 27% gross margin, while income from operations surged 554% to $6.1M and adjusted EBITDA climbed 73% to $13.9M. The company generated $8.8M cash from operations, secured a $40M credit facility, grew Cabana Club membership 39% to 2.65M, and plans to open 20-30 additional Canadian stores this year.
1. Q2 Financial Performance
High Tide delivered record quarterly results with consolidated revenue of $179.3 million, marking a 30% year-over-year increase. Gross profit rose 36% to $48.4 million with a 27% margin, while income from operations jumped 554% to $6.1 million and adjusted EBITDA climbed 73% to $13.9 million, reversing prior losses to net income of $0.01 per diluted share.
2. Cash Flow and Liquidity
The company achieved $8.8 million in operating cash flow, its highest in seven quarters, and generated $1.5 million in free cash flow, though working capital investments totaled $4.3 million. Total debt stands at $63.6 million against $36.5 million in cash and restricted cash, providing a solid liquidity position.
3. Store Network and Membership Growth
High Tide operates 228 retail locations and plans to add 20 to 30 new stores in Canada this year. Its loyalty program expanded significantly, with Cabana Club membership rising 39% to 2.65 million members and elite memberships up 84%, driving recurring revenue streams.
4. Financing and German Segment
The company secured a $40 million credit facility with the Bank of Montreal to fund expansion initiatives. In Germany, its Remexian medical cannabis segment increased market share to 14.1% post-acquisition and doubled gross margins from 12% to 27% through cost reductions of 30-40%.
