High Tide (NASDAQ:HITI) executives highlighted record quarterly revenue and profitability while outlining plans for continued Canadian store expansion and a growing role for its newly acquired German medical cannabis distribution business during the company’s fiscal fourth-quarter 2025 earnings call.
Record quarterly results and profitability gains
President and CEO Raj Grover said the company “capped off fiscal 2025” with record performance in the quarter ended Oct. 31, 2025, citing revenue of CAD 164 million and record Adjusted EBITDA of CAD 12.4 million. Grover described the company’s annual revenue run rate as exceeding CAD 650 million.
Mahajan also pointed to operating leverage, noting salaries and wages fell to 11.5% of revenue, the lowest level in nine quarters, while general and administrative expenses were 4.3% of revenue. Adjusted EBITDA increased 51% year-over-year and 17% sequentially, and the brick-and-mortar segment posted a record Adjusted EBITDA margin of 9.4%, with segment Adjusted EBITDA of CAD 14.1 million.
Canadian retail growth, loyalty metrics, and store expansion plans
Management repeatedly emphasized the strength of the core Canadian retail business. Grover said same-store sales growth of 5.5% helped drive 15% year-over-year growth in the brick-and-mortar segment. He also said the company added 27 stores organically during calendar 2025, meeting the high end of its 20–30 store target, and set a goal to add another 20–30 stores in calendar 2026.
The company ended the call noting it had 218 stores open across Canada and reiterated a long-term goal of exceeding 350 locations. Grover said a pipeline of 15 Tier 1 locations was under development, “particularly in Ontario.”
Grover and analysts also discussed store maturation trends. Grover said newer stores are taking longer to ramp due to increased competition, but he argued the company’s model and site selection should still support strong returns over time.
Loyalty and membership metrics were a central theme. Grover said Cabana Club membership reached 2.5 million in Canada, up 45% year-over-year, and that the company had raised its long-term target to 3 million members nationwide. He said the Canadian ELITE member count reached 151,000, up 107% year-over-year, and described ELITE members as shopping more frequently with larger basket sizes.
Grover also cited operational KPIs and market share metrics, including annualized revenue per square foot of CAD 1,775 in the quarter (excluding stores open less than six months). He said Canna Cabana’s market share across the five provinces where the company operates was 12% in the quarter, up from 11% a year earlier.
Remaxion acquisition: early contribution and near-term headwinds
Grover said the quarter included the first contribution from Remaxion following High Tide’s acquisition of a 51% stake in September, along with a call option for the remaining 49%. He said Remaxion contributed “almost $10 million of revenue” in less than two months, though he noted revenue and gross margins were below prior run rates due to delays tied to product processing in Portugal.
On the Q&A, Grover provided additional detail, saying Remaxion had about 16–17 tons of biomass in Portugal at the time of acquisition and had reduced that to about half. He said shipments improved in December, describing December as the second-highest month for tonnage sold (2.6 tons), behind June (2.9 tons). He said some inventory nearing expiry has been sold at “single-digit” gross margins, and he expected similar pressures to persist into fiscal Q1 and “a couple more months into Q2,” with improvement anticipated from late Q2 or Q3 onward.
Grover said High Tide has worked to diversify supply routes beyond Portugal, citing Malta, Czechia, and direct activity in Germany beginning in March. He also said High Tide has begun sourcing biomass at prices “30%–40% less” than Remaxion previously achieved and expects this to improve Remaxion’s future margin profile once legacy inventory clears.
Non-cash accounting items, free cash flow, and balance sheet
Mahajan discussed two significant non-cash items in the quarter:
- CAD 23.6 million impairment related to goodwill and intangible assets in the e-commerce segment, following annual impairment testing. He said this resulted in all goodwill and intangibles in the segment being written off.
- A CAD 23.5 million loss from a change in the fair value of derivative liability, driven by a 44% rise in the company’s share price during the quarter (affecting warrant valuation) and improved Remaxion EBITDA projections increasing the value of a put option liability for the remaining 49% stake.
Mahajan said that after adjusting for these non-cash charges, net income was CAD 1.4 million, or CAD 0.02 per fully diluted share.
Free cash flow was CAD 1.3 million in Q4, which management attributed largely to a CAD 2.3 million working capital investment during the quarter. For the full fiscal year, Mahajan said free cash flow totaled CAD 12.12 million, meeting the company’s goal of remaining positive and funding store expansion internally.
On the balance sheet, Mahajan said total debt at the High Tide level was CAD 65.5 million, and the company ended the quarter with CAD 47.9 million in cash and cash equivalents. He added that High Tide had “no upcoming maturities for over two years.”
U.S. regulatory developments and e-commerce optionality
Grover said the company was encouraged by an executive order from U.S. President Donald Trump on Dec. 18 advancing cannabis rescheduling and that High Tide has received inbound interest from “multiple large U.S. operators” to explore partnerships. He said the company is evaluating possibilities “across the spectrum” from licensing agreements to mergers, while emphasizing it is still early and management does not want to rush.
Grover also highlighted potential CBD-related policy changes, including a proposed Medicare pilot program that could allow seniors coverage for up to $500 of CBD products annually. He said that if enacted, it could be a “game changer” for High Tide’s U.S. CBD brands NuLeaf Naturals and FAB CBD. Mahajan and Grover both referenced prior disclosure that the company has explored strategic alternatives for its U.S. e-commerce business, but Grover said the company is “slow-playing” any deal discussions pending further clarity on regulation.
About High Tide (NASDAQ:HITI)
High Tide Inc (NASDAQ: HITI) is an omnichannel retailer and branded consumer packaged goods company serving the regulated cannabis market. The company operates a network of licensed cannabis retail stores across Canada, offering a curated assortment of cannabis flower, pre-rolls, vapes and lifestyle accessories. In parallel, High Tide maintains an e-commerce platform that delivers hemp-derived products, vaporizers, glassware and other ancillary goods to consumers in multiple jurisdictions.
Within Canada, High Tide’s retail division includes banners such as Canna Cabana, Meta Cannabis Supply Co and The Hunny Pot, each designed to provide differentiated in-store experiences.
