The Company's German Medical Cannabis Subsidiary, Remexian Pharma GmbH (Remexian) Generated Record Revenue of $31.6 Million with Gross Margins Increasing to 27%
The Company Has Secured Credit Approval with Bank of Montreal for $40MM of Senior Secured Credit Facilities to Fuel Further Non-Dilutive Growth
Canadian Cabana Club Membership Now Exceeds 2.65 Million, Up 39% Compared to the Previous Year
ELITE Members in Canada Have Surpassed 178,000, Up 84% Compared to the Previous Year
High Tide Remains the Highest Revenue Generating Cannabis Company Reporting in Canadian Dollars,1 and Continues to Hold a Leading 12% Share of the Cannabis Retail Market Across the Five Provinces in Which the Company Has a Presence2
CALGARY, AB, June 15, 2026 /CNW/, High Tide Inc. ("High Tide" or the "Company") (NASDAQ:HITI) (TSXV:HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, today released its financial results for the second fiscal quarter of 2026 ended April 30, 2026, the highlights of which are included in this news release. The full set of unaudited condensed interim consolidated financial statements for the three months ended April 30, 2026 and 2025 (the "Financial Statements") and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.hightideinc.com, its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov/edgar.
"Our second quarter results highlight the strength of High Tide's diversified growth strategy and our ability to execute at a high level across multiple geographies. Through the continued integration of Remexian, we have expanded our supply chain capabilities, eliminated unnecessary intermediaries, and are procuring biomass at materially lower costs than Remexian could on its own, enabling us to achieve key operational and financial objectives approximately 90 days ahead of our internal expectations," said Raj Grover, Founder and Chief Executive Officer of High Tide."Meanwhile, our core Canadian bricks-and-mortar business continues to outperform the broader cannabis retail sector across virtually every meaningful metric. This has resulted in High Tide reporting significantly higher income from operations, sustained positive free cash flow, and net income. As we look ahead, although we are already the leaders in both Canada and Germany when it comes to market share, we believe we have significant runway ahead to keep posting gains. We remain highly optimistic about the strong momentum we are generating, and are now eyeing other markets in Europe to build upon our global ambitions. I believe High Tide remains exceptionally well positioned for long-term value creation. In particular, we are thrilled to have a tier one bank as our long-term credit partner to fuel our global expansion," added Mr. Grover.
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1 Based on public company reporting
2 Based on publicly available store count data for February 2026 and March 2026 in the five Canadian provinces where Canna Cabana operates and as per publicly available data from Statistics Canada and provincial regulators
Second Fiscal Quarter 2026, Financial Highlights:
Revenue was a record $179.3 million for the three months ended April 30, 2026 compared to $137.8 million during the same period last year, an increase of 30% compared to last year, representing the fastest growth rate in 11 quarters. Revenue was up 1% sequentially during the three months ended April 30, 2026. Despite the quarter being seasonally slowest and having three fewer days, this was the fourth consecutive quarter marking a new all-time high in revenue.
Gross profit was a record $48.4 million for the three months ended April 30, 2026, up 36% compared to the previous year and up 9% sequentially.
Gross margin was 27% for the three months ended April 30, 2026, which was up from 26% a year ago, and up 200 basis points compared to 25% sequentially. The second fiscal quarter of 2026 marked an eight-quarter high in consolidated gross margin. The margins in the Company's medical cannabis distribution segment were 27% in the second fiscal quarter, which was more than double the first fiscal quarter's level of 12%.
Adjusted EBITDA was yet another record of $13.9 million in the three months ended April 30, 2026. This was up 73% compared to last year, marking the fastest growth rate in nine quarters, and up 21% sequentially despite there being three fewer days in the quarter.
The Company generated $1.5 million in free cash flow in the three months ended April 30, 2026. While this was below the $4.9 million generated in the previous year, and $2.9 million sequentially, this was mainly due to working capital investments to grow the business. Cash flows from operations before changes in non-cash working capital reached a seven-quarter high at $8.8 million in the second fiscal quarter of 2026. During the past four quarters, the Company has generated $13.4 million in free cash flow.
General and administration expenses represented 4.0% of revenue in the three months ended April 30, 2026, which improved from 4.2% during the previous year, and 4.1% sequentially, and was the lowest level in seven quarters.
Salaries, wages, and benefits represented 11.9% of revenue in the three months ended April 30, 2026, which improved from 12.7% during the previous year, and compared to 11.8% sequentially.
Income from operations was a record $6.1 million in the three months ended April 30, 2026. This was up 554% compared to last year, and up 157% sequentially.
During the second fiscal quarter, the Company generated positive net income, which represented significant improvements from a net loss of $2.8 million compared to a year ago, and a net loss of $0.4 million sequentially. Adjusted for changes in non-cash derivative liability, which were driven by out performance in the Company's medical cannabis distribution segment ahead of management's expectations, and excluding the non-controlling interest, net income was $0.6 million, marking a meaningful reversal from $(2.9) million a year ago, and $(2.1) million sequentially.
During the second fiscal quarter, adjusted for changes in non-cash derivative liability, earnings per fully diluted share were $0.01, which improved from $(0.04) a year ago and $(0.02) sequentially.
Cash and cash equivalents, including restricted cash, as at April 30, 2026 totaled $36.5 million, which compared to $34.7 million in the prior year, and $46.4 million sequentially.
Second Fiscal Quarter 2026, Retail Highlights:
Canadian Cabana Club membership has surpassed 2.65 million, an increase of 39% compared to last year, and 3% sequentially. In the last twelve months, the Cabana Club added 750,00 new members. Cabana Club remains the largest cannabis loyalty program globally. The Company has also exceeded 178,000 ELITE members in Canada, an increase of 84% from the previous year and 10% sequentially.
The average Canna Cabana store generated 1.9x revenue versus peers.3
Same-store sales were (1.2%) compared to last year in the second fiscal quarter of 2026. Based on public filings and the intelligence the Company has gathered, it believes that it nevertheless outperformed its publicly traded and privately held peers. Since the launch of its discount club model in October 2021, same store sales at Canna Cabana are up 161% while the average operator has experienced a 7% decline in sales.4
Canna Cabana maintained a 12% market share, consistent with the previous year.5 Excluding British Columbia, where all cannabis retailers are capped at eight stores, Canna Cabana's market share was 14%, up from 13% in the previous year.
For the 12 months ended March 2026, total industry sales in the five provinces where the Company operates were up 3% year over year. In contrast, total Canna Cabana sales were up 13% during this period.
Canna Cabana had a shrink rate of 0.2% during the three months ended April 30, 2026. This marked an improvement from 0.3% during each of the three months ended January 31, 2026, and April 30, 2025.
Excluding stores open less than six months which are still ramping up, annualized retail sales per square foot were $1,620 across the Canna Cabana store network during the second fiscal quarter of 2026, which was 5% lower compared to the previous year and 6% sequentially, largely due to the three fewer days in the quarter. This was higher than many best-in-class international retailers.
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3 For the month of March 2026, based on publicly available store count data in the five Canadian provinces where Canna Cabana operates and as per publicly available data from Statistics Canada and provincial regulators
4 Calculated by chaining monthly data, and based on publicly available store count data in the five Canadian provinces where Canna Cabana operates and as per publicly available data from Statistics Canada and provincial regulators
5 For the months of February 2026 and March 2026, based on publicly available store count data in the five Canadian provinces where Canna Cabana operates and as per publicly available data from Statistics Canada and provincial regulators
Second Fiscal Quarter 2026, Operational Highlights (February 1, 2025, April 30, 2026):
The Company opened three new Canna Cabana locations in Ontario—Scarborough, Sarnia and Caledonia—bringing the total Canna Cabana store count to 221 locations across Canada.
The Company announced the appointment of Kathleen Skerrett and Menashe Kestenbaum as directors of the Company, and the appointment of David Wallach and Filip Ernest as members of the Company's Advisory Board.
The Company's wholly owned U.S. hemp-derived CBD subsidiary, NuLeaf Naturals, announced its intention to pursue participation in the U.S. Centers for Medicare & Medicaid Services Innovation Center's Beneficiary Engagement Incentive pilot program as a supplier of eligible hemp-derived CBD products, and began engaging with participating organizations.
Subsequent Events (May 1, 2026 - Present):
The Company opened new Canna Cabana locations in Toronto and Welland, and announced a new location in Calgary alongside a definitive agreement to acquire four stores in Ontario, which will bring the total Canna Cabana store count to 228 locations across Canada.
The Company secured credit approval from Bank of Montreal for $40MM of credit facilities as its new senior lender.
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.
Second Fiscal Quarter 2026, Medical Cannabis Update
During the second fiscal quarter of 2026, Remexian distributed a record 7.6 tonnes of medical cannabis into the German market, marking the highest quarterly distribution volume in the company's history. Volumes increased 49% compared to the previous year and 21% sequentially.
The segment generated record revenue of $31.6 million during the second fiscal quarter of 2026, compared to $25.0 million during the first fiscal quarter of 2026.
During the second fiscal quarter of 2026, Remexian generated gross margin of 27%, more than doubling the 12% Remexian generated during the first fiscal quarter of 2026.
Remexian's market share of tonnage distributed in Germany now exceeds 14% for the three months ended March 2026, building on its upward trajectory from 6.5% for the three months ended September 2025 and 10.3% for the three months ended December 2025.6
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6 Market share estimate based on total BfArM import data
Note that Q4 2025 revenue and gross margin include two months of contribution from Remexian.
Selected financial information for the Three Months Ended April 30, 2026:(Expressed in thousands of Canadian Dollars)
Three months ended April 30,
Six months ended April 30,
2026
2025
Change
2026
2025
Change
$
$
∆
$
$
∆
Free cash flow(i)
1,482
4,896
(70) %
4,421
2,996
48 %
Net cash provided by operating activities
4,433
8,255
(46) %
10,293
8,938
15 %
Revenue
179,296
137,804
30 %
357,625
280,265
28 %
Gross profit
48,391
35,471
36 %
92,800
70,911
31 %
Gross profit margin(ii)
27 %
26 %
