High Tide (HITI) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of CAD 522.3 million for the year ended October 31, 2024, up 7% year-over-year, with Q4 revenue at an all-time high of CAD 138.3 million, up 9% year-over-year and 5% sequentially.

• Positive free cash flow for six consecutive quarters, totaling CAD 22 million in 2024, up 217% from 2023.

• Cabana Club membership reached 1.72 million in Canada and 5.32 million globally, including over 76,000 ELITE members, after international expansion.

• Expanded international presence with the acquisition of a majority stake in Purecan, a profitable German medical cannabis importer and wholesaler, to drive European growth.

• Opened 29–30 new stores in 2024, primarily through organic growth, and plan to add 20–30 more in 2025.

Financial highlights

• Fiscal year revenue: CAD 522.3 million, up 7% year-over-year; Q4 revenue: CAD 138.3 million, up 9% year-over-year and 5% sequentially.

• Gross profit for the year was CAD 142.5 million, up 9% year-over-year; Q4 gross profit was CAD 35.8 million, up 8% year-over-year.

• Adjusted EBITDA reached a record CAD 38.3 million for the year, up 25% year-over-year; Q4 Adjusted EBITDA was CAD 8.2 million.

• Free cash flow: CAD 22.2 million for 2024, up 217% year-over-year; Q4 free cash flow CAD 5.9 million, up 4% year-over-year.

• Ended fiscal year with CAD 47.3 million in cash and total debt of CAD 27 million, with no maturities due for almost three years.

Outlook and guidance

• Plans to open 20–30 new stores organically in 2025, aiming for 300 stores long-term, with any M&A activity incremental to this target.

• Expects to remain free cash flow positive in 2025 while continuing expansion.

• Anticipates revenue and EBITDA neutrality for the international Cabana Club expansion within 6–12 months.

• Sees opportunity to increase gross margins in Canada as competitors exit the market.

• International expansion focus on Germany, with potential to enter other European and Australian markets.