High Tide (HITI) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue of CAD 164 million, up 19% year-over-year and 10% sequentially, with an annual run rate exceeding CAD 650 million.

• Adjusted EBITDA reached a record CAD 12.4 million, up 51% year-over-year and 17% sequentially, with a margin of 9.4%.

• Added 27 new stores organically in 2025, reaching 218 stores nationwide, maintaining the largest cannabis retail footprint in Canada.

• Free Cash Flow for the year totaled CAD 12.12 million, funding all store growth internally despite significant working capital investments.

• Cabana Club membership in Canada surpassed 2.5 million, up 45% year-over-year, with ELITE members exceeding 151,000 and growing at record paces.

Financial highlights

• Q4 revenue: CAD 164 million (up 19% year-over-year, 10% sequentially), with gross profit of CAD 42.5 million and gross margin steady at 26%.

• Adjusted EBITDA: CAD 12.4 million (up 51% year-over-year, 17% sequentially).

• Net income (adjusted for non-cash items): positive CAD 1.4 million or CAD 0.02 per diluted share; reported net loss of CAD 46.7 million due to non-cash impairment.

• Free Cash Flow: CAD 1.3 million in Q4; CAD 12.12 million for the fiscal year.

• Cash and equivalents at year-end: CAD 47.9 million.

Outlook and guidance

• Targeting 20-30 new stores in 2026, aiming to exceed 350 locations nationwide.

• Expecting Remaxion/Remexian to be a significant contributor in the second half of the fiscal year as supply chain issues resolve.

• Anticipating first UK sales in Q2 or second half of the year.

• Monitoring U.S. regulatory changes for CBD, with potential growth for NuLeaf Naturals and FAB CBD brands.

• Expects continued free cash flow positivity in 2026, with ongoing expansion in Germany and other international markets.