High Tide Reports Strong Q3 Earnings with Net Income of $0.6mln, Revenue of $108.3mln and Gross Margin of 26.8%

High Tide reported Q3 2025 earnings with net income of $0.6 million, beating estimates. Revenue reached $108.3 million, up 7.4% YoY and 26.8% gross margin, the highest in two years. Operating expenses were $26.3 million, and Adjusted EBITDA was $7.7 million, up from $6.9 million in the year-ago quarter. The company maintains ample liquidity to fund new store openings and potential M&A.

High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) reported its financial results for the third fiscal quarter of 2025, ending July 31, 2025, with a net income of $0.6 million, surpassing analyst expectations. The company's revenue reached $108.3 million, representing a 7.4% year-over-year (YoY) increase and a 26.8% gross margin, the highest in two years. Operating expenses totaled $26.3 million, while adjusted EBITDA stood at $7.7 million, up from $6.9 million in the year-ago quarter High Tide Reports Financial Results for Third Fiscal Quarter Featuring Record Revenue and Adjusted EBITDA, Along With Positive Free Cash Flow and Net Income^[1].

Same-store sales growth was particularly notable, with a 7.4% YoY increase, the fastest growth rate in two years. This growth was driven by High Tide's core bricks-and-mortar segment, which saw an 18% YoY increase in revenue. The company's gross profit margin remained stable at 27%, and adjusted EBITDA continued its streak of 22 consecutive positive quarters, up 11% YoY and 32% sequentially. Free cash flow also improved, with $7.7 million generated in the third quarter, up 148% YoY and 57% sequentially High Tide Reports Financial Results for Third Fiscal Quarter Featuring Record Revenue and Adjusted EBITDA, Along With Positive Free Cash Flow and Net Income^[1].

High Tide's expansion efforts continued, with the company opening seven new Canna Cabana locations across Ontario, Manitoba, and Alberta during the quarter. Additionally, the company announced its acquisition of a 51% stake in Remexian Pharma GmbH, positioning itself as a major player in Germany's medical cannabis market High Tide Reports Financial Results for Third Fiscal Quarter Featuring Record Revenue and Adjusted EBITDA, Along With Positive Free Cash Flow and Net Income^[1].

The company's retail performance was strong, with Canna Cabana reaching a 12% market share across the five provinces where it operates. The company's Canadian Cabana Club membership surpassed 2.15 million, an increase of 39% YoY and 13% sequentially. Average store sales per square foot were $1,735, higher than best-in-class retailers like Wal-Mart, Target, and Canadian Tire High Tide Reports Financial Results for Third Fiscal Quarter Featuring Record Revenue and Adjusted EBITDA, Along With Positive Free Cash Flow and Net Income^[1].

High Tide's financial results indicate a strong position in the cannabis retail market, with ample liquidity to fund new store openings and potential mergers and acquisitions. The company's focus on loyalty and innovation continues to resonate with customers, as evidenced by its robust same-store sales growth and expanding market share.