High Tide Inc. (HITI): Financial results for Q3 2026
High Tide Inc. (HITI) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 High Tide Reports Record-Breaking Third Quarter 2026 Financial Results High Tide Inc., September 14, 2026 • RECORD Quarterly Revenue of $199 Million and Annualized Revenue Run Rate of Approximately $800 Million • RECORD Gross Profit of $52.7 Million • RECORD Adjusted
How this was made
The 30-second read
Why it matters
Record earnings could attract new institutional interest and support a higher valuation multiple.
Market read
Earnings beat and record metrics provide a catalyst for short‑term price movement.
What to watch
Capital requirements for expansion and regulatory risks in medical cannabis markets.
High Tide Reports Record-Breaking Third Quarter 2026 Financial Results
Revenue grew 33%, gross profit grew 32%, Adjusted EBITDA grew 53%, and income from operations grew 133%. The Company reported record net income, positive free cash flow, stronger cash balances sequentially, and accelerating medical-cannabis distribution volumes in Germany.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $198.8 million | 11% | 33% |
| Gross profitother | $52.7 million | 9% | 32% |
| Gross marginnon-GAAP | 27% | – | – |
| Operating expensenon-GAAP | $36,514 (Expressed in thousands of Canadian Dollars) | – | 24% |
| Operating expense as a % of revenuenon-GAAP | 18% | – | (2) % |
| Total expensesother | $44,036 (Expressed in thousands of Canadian Dollars) | – | 21% |
| Income from operationsother | $8.7 million | 43% | 133% |
| Adjusted EBITDAnon-GAAP | $16.2 million | 17% | 53% |
| Adjusted EBITDA marginnon-GAAP | 8.2% | – | – |
| Adjusted EBITDA - trailing twelve monthsnon-GAAP | 54,019 | – | – |
| Net incomeother | $12.7 million | – | – |
| Adjusted net incomenon-GAAP | $2.2 million | – | – |
| Basic income per shareother | 0.13 | – | – |
| Diluted income per shareother | 0.12 | – | – |
| Cash flow from operations before changes in non-cash working capitalother | $11.9 million | 36% | 44% |
| Net cash provided by operating activitiesother | $10,091 (Expressed in thousands of Canadian Dollars) | – | (5) % |
| Free cash flownon-GAAP | $7.0 million | 373% | – |
| Free cash flow - trailing twelve monthsnon-GAAP | 12,761 | – | – |
| Cash and cash equivalents, including restricted cashother | $47.1 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Remexian medical cannabis distributionRemexian distributed a record 10.2 tonnes of medical cannabis into the German market, with volumes increasing 62% compared to the previous year and 35% sequentially. Segment gross margin was 26%. | $38.2 million | – | – |
Long-term and calendar 2026 targets outlook
- Notesurpassing 350 locations across Canada
- Noteopening over 20 locations in calendar 2026, mostly through organic growth
- Noteexceeding 3 million Cabana Club members in Canada
Capital returns
- Certain officers, directors, and consultants, led by the Company's President and Chief Executive Officer, in the aggregate, acquired 90,882 common shares in the capital of High Tide on the open market between May 6, 2026, and May 8, 2026, at an average price of $3.39 per Common Share.
What drove it
- Revenue growth of 33% represented the fastest growth rate in 13 quarters, while sequential revenue growth of 11% represented the fastest growth rate in 15 quarters.
- Canna Cabana held a 14% share of the cannabis retail market in the provinces where it operates, excluding British Columbia, up from 13% a year ago.
- Canna Cabana had 232 operating locations and opened new locations in Toronto, Welland, Ottawa and Calgary during the quarter.
- The Company acquired four additional Ontario stores through the acquisition of 100% of the equity interests of J. Supply Holdings Inc., operating as Northern Helm.
- Canadian Cabana Club membership surpassed 2.73 million, up 27% compared to last year and 3% sequentially. ELITE membership exceeded 186,000, up 62% from the previous year and 4% sequentially.
- Remexian distributed a record 10.2 tonnes of medical cannabis into the German market and generated record revenue of $38.2 million.
- General and administration expenses represented 3.9% of revenue, versus 4.4% during the previous year and 4.0% sequentially.
- Salaries, wages, and benefits represented 11.4% of revenue, versus 12.2% during the previous year and 11.9% sequentially.
Concerns
- Free cash flow was $7.0 million, compared to $7.7 million in the prior year, despite $4.2 million in additional investments in working capital to support business growth.
- Same-store sales for the entirety of the third fiscal quarter of 2026 were consistent with the prior year.
- Cash and cash equivalents, including restricted cash, totaled $47.1 million, compared to $63.8 million in the prior year.
- Future German medical-cannabis momentum is described as dependent on the current regulatory framework remaining materially unchanged.
What to watch
- Progress toward surpassing 350 locations across Canada and opening over 20 locations in calendar 2026.
- Whether Canna Cabana's same-store sales continue the positive growth reported for June 2026 and July 2026.
- Remexian's distribution volumes, gross margin of 26%, market-share trajectory, and any associated working-capital needs.
- Expansion of white label cannabis products, which increased from 41 to 48 SKUs sequentially and represented approximately 1.9% of total bricks-and-mortar cannabis sales.
- The effect of potential broader U.S. cannabis rescheduling and the Company's discussions with the Nasdaq Stock Exchange and the TSX Venture Exchange.
Balance sheet and cash flow
- Cash and cash equivalents, including restricted cash, as at July 31, 2026 totaled $47.1 million, compared to $63.8 million in the prior year, and $36.5 million sequentially.
- Net cash provided by operating activities was $10,091 (Expressed in thousands of Canadian Dollars), compared to $10,650 (Expressed in thousands of Canadian Dollars) in the prior year.
- Free cash flow was $7.0 million, compared to $7.7 million in the prior year and $1.5 million sequentially.
- The Company closed its previously announced senior secured credit facilities with Bank of Montreal in the aggregate principal amount of $40 million.
Analysis
High Tide reported a strong Q3 2026, led by record revenue of $198.8 million, up 33% from $149.7 million in the prior-year period and up 11% sequentially. Management characterized the year-over-year growth rate as the fastest in 13 quarters and the sequential growth rate as the fastest in 15 quarters. Gross profit reached a record $52.7 million, up 32%, while gross margin held at 27% versus both the prior-year period and sequentially. This preserved profitability while sales expanded at the fastest pace cited in the release.
Operating leverage was evident in the earnings measures. Income from operations rose 133% to a record $8.7 million, and Adjusted EBITDA rose 53% to a record $16.2 million. Adjusted EBITDA margin was 8.2%, the highest level in 12 quarters. Cost ratios also improved: general and administration expense represented 3.9% of revenue, versus 4.4% in the prior year and 4.0% sequentially, while salaries, wages, and benefits represented 11.4% of revenue, versus 12.2% and 11.9%, respectively.
Net income was a record $12.7 million, compared with $0.8 million a year ago, while adjusted net income was $2.2 million compared with $0.9 million a year ago and $0.8 million sequentially. The distinction is important because adjusted net income excludes fair value changes in the derivative liability and long-term contract asset. Basic income per share was 0.13 and diluted income per share was 0.12, compared with 0.01 for each measure in the prior-year quarter.
Cash generation remained positive. Cash flow from operations before changes in non-cash working capital was a record $11.9 million, up 44% year over year and 36% sequentially. Free cash flow was $7.0 million, up 373% from $1.5 million sequentially, but below $7.7 million in the prior-year period as the Company cited $4.2 million in additional investments in working capital. Cash and cash equivalents, including restricted cash, rose sequentially to $47.1 million from $36.5 million, though they remained below $63.8 million a year ago. Subsequent to quarter end, the Company closed $40 million of senior secured credit facilities with Bank of Montreal.
Operational momentum came from both Canadian retail and German medical-cannabis distribution. Canna Cabana reached 232 operating locations and held 14% market share excluding British Columbia, up from 13% a year ago. Same-store sales were consistent with the prior year for the quarter, although June 2026 and July 2026 each posted positive comparative-sales growth. Remexian distributed a record 10.2 tonnes, up 62% year over year and 35% sequentially, and generated record revenue of $38.2 million with a gross margin of 26%. The outlook provides expansion objectives for stores and loyalty membership but no formal financial revenue, margin, expense, or tax-rate guidance.
Management, verbatim
Nearly every major financial metric moved in the right direction this quarter, with many reaching the highest levels in our history. We delivered record revenue, record gross profit, record Adjusted EBITDA, record income from operations, record net income and record operating cash flow before working capital. But what excites me most is that our bottom line is now growing substantially faster than our top line. That is the operating leverage we have spent years building toward.
Raj Grover, Founder and Chief Executive Officer of High Tide
High Tide is approaching an $800 million annualized revenue run rate, our Adjusted EBITDA margin is at its highest level in twelve quarters, and we continue to generate meaningful free cash flow while investing aggressively in growth. With Canna Cabana strengthening its leadership position in Canada and Remexian scaling rapidly in Germany, we now have two powerful engines driving our business forward.
Raj Grover, Founder and Chief Executive Officer of High Tide
Not in the filing
stated, not guessed- Formal financial revenue guidance
- Formal gross-margin guidance
- Formal operating-expense guidance
- Formal tax-rate guidance
- Prior-release outlook for comparison
- Retail-segment revenue
- Remexian year-over-year revenue comparison
- Remexian sequential revenue percentage change
- Non-GAAP earnings per share
- Period-end debt balance as at July 31, 2026
- Share repurchases
- Dividend declaration or payment
- Tax rate
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is the first public disclosure of High Tide's Q3 2026 financials, released via SEC Form 6‑K.
Ticker impact
High Tide Inc. filed a Form 6‑K reporting record Q3 2026 revenue of $199 M, adjusted EBITDA of $16.2 M and net income of $12.7 M.
potential price appreciation on the back of record earnings
Quarterly results exceed prior year by >30% revenue and >50% EBITDA, indicating accelerating growth and operating leverage.
Market effects
Highlights strength in the Canadian cannabis retail sector.
May boost investor sentiment toward other TSXV‑listed cannabis firms.
Limited to cannabis niche; no broad market effect.
Counterpoint
Growth may be unsustainable if market saturation occurs in Canada.
Key entities
- companyHigh Tide Inc.
Cannabis retailer listed on Nasdaq (HITI).
