High Tide (HITI) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of CAD 522.3 million, up 7% year-over-year, with Q4 revenue at CAD 138.3 million, up 9% year-over-year and 5% sequentially, driven by new store openings and same-store sales growth.

• Bricks and mortar segment expanded to 186 stores, now 94% of revenue, with 12% segment revenue growth.

• Maintained 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 (up 34% year-over-year) and 5.32 million globally after international expansion.

• Announced acquisition of a 51% majority stake in Purecan, a profitable German medical cannabis importer and wholesaler.

Financial highlights

• Gross profit rose 9% to CAD 142.5 million; gross margin stable at 27%.

• Adjusted EBITDA grew 25% to CAD 38.3 million; margin improved to 7%.

• Net loss narrowed 91% to CAD 3.8 million from CAD 41 million last year; loss per share improved to $(0.05) from $(0.53).

• Operating expenses decreased 20% to CAD 137.5 million; as a percentage of revenue, down to 26% from 35%.

• 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

• Targeting 20–30 new store openings in 2025, aiming for 300 locations long-term.

• Expects to remain free cash flow positive in 2025, using operational cash to fund growth.

• Anticipates revenue and EBITDA neutrality for global loyalty program expansion within 12 months.

• International expansion, especially in Germany, is expected to drive future growth.

• Anticipate lower gross margins in e-commerce as Cabana Club Global expands, offset by Purecan's high margins.