High Tide Reports Record Revenue, Positive Free Cash Flow in First Quarter of 2026
- High Tide reported record Q1 fiscal 2026 revenue of $178.3 million, a 25% increase year-over-year and 9% growth from the prior quarter, marking its fastest growth in 10 quarters and third consecutive quarter of record revenue.
- Gross profit reached a record $44.4 million, with adjusted EBITDA rising to $11.5 million and free cash flow improving to $2.9 million, narrowing the net loss to $0.4 million from $2.7 million a year earlier.
- The Canadian retail business grew strongly, with Cabana Club memberships up 47%, ELITE paid members doubling to over 162,000, and market share rising to 12%; the company opened nine new Canna Cabana stores in total during the quarter and early next quarter.
- Progress in Germany through Remexian Pharma resulted in $25 million revenue for the quarter; High Tide plans to open 20-30 new stores in 2026, explore UK market entry, and boost U.S. e-commerce and CBD brand growth linked to federal policy changes.
High Tide says it brought in record revenue in the first quarter of fiscal 2026, while also posting positive free cash flow and narrowing its losses as its Canadian retail business continued to grow and its German medical marijuana operation gained traction. The company reported $178.3 million in revenue for the three months ending January 31, up 25% from $142.5 million during the same period a year earlier and up 9% from the prior quarter. High Tide says this marks its third straight quarter of record revenue and its fastest year-over-year growth rate in 10 quarters.
Gross profit reached a record $44.4 million, also up 25% from a year ago. Adjusted EBITDA was $11.5 million, compared to $7.1 million in the first quarter of fiscal 2025. The company generated $2.9 million in free cash flow for the quarter, improving from a negative $1.9 million a year earlier and from $1.3 million in the prior quarter. Over the last four quarters, High Tide says it has generated $16.8 million in free cash flow.
The company’s net loss fell to $0.4 million, down from $2.7 million a year earlier and sharply improved from a $46.7 million loss in the prior quarter, which it says was impacted by non-cash impairment charges and changes in derivative liabilities. Cash and cash equivalents, including restricted cash, totaled $46.4 million at the end of the quarter.
High Tide says its retail business remained a major driver of results. Cabana Club membership in Canada surpassed 2.58 million, up 47% from a year ago, while ELITE paid members topped 162,000, a 100% increase. The company says Canna Cabana now holds a 12% share of the cannabis retail market across the five Canadian provinces where it operates, up from 11% a year earlier.
The company opened seven new Canna Cabana stores during the quarter, bringing its total to 218 by January 31. Since then, it has opened two more in Ontario, bringing the total to 220 locations across Canada.
High Tide also highlighted progress in Germany through Remexian Pharma GmbH, which marked its first full quarter under the company’s control following the acquisition of a majority stake last year. The segment generated $25 million in revenue during the quarter. In February alone, Remexian sold 2.6 tonnes of medical marijuana and generated €7.5 million, or about C$12 million, in revenue, with a preliminary gross margin of 20%.
Looking ahead, the company says it plans to open another 20 to 30 stores in calendar 2026, mostly through organic growth, while continuing to explore acquisitions. It also says it is evaluating a possible entry into the United Kingdom through a merger or acquisition within the next 12 months. In the U.S., High Tide says its e-commerce business posted its first sequential quarterly revenue increase in two years, while the company continues positioning its CBD brands for possible growth tied to evolving federal policy.