Q2 2026 High Tide Inc Earnings Call Transcript
Key Points
- High Tide Inc (HITI) reported its best Q2 ever, setting new all-time records in revenue, gross profit, income from operations, and adjusted EBITDA.
- Consolidated revenue for the quarter was $179.3 million, up 30% year-over-year, marking the fastest pace of growth in 11 quarters.
- The company's medical cannabis distribution segment in Germany, Remexian, achieved a gross profit margin of 27%, more than double the 12% in Q1.
- High Tide Inc (HITI) has secured a $40 million credit facility with Bank of Montreal, enhancing its financial flexibility.
- The Cabana Club membership grew by 39% year-over-year, reaching 2.65 million members, with elite memberships up 84% year-over-year.
- Same-store sales experienced a modest decline of 1.2%, attributed to customers trading down to larger formats and less frequent visits.
- Free cash flow was lower at $1.5 million in Q2, impacted by a significant $4.3 million investment in working capital.
- The company faces competitive pressures from both legal and illicit operators, which may affect brick-and-mortar gross margins.
- There is potential volatility in the German medical cannabis business due to the timing of bulk shipments and regulatory changes.
- High Tide Inc (HITI) is cautious about entering the US market, citing the need for the right conditions and partnerships.
(Operator Instructions) Good morning. My name is Jenny and I will be your conference operator today. This time I would like to welcome everyone to High Tide Inc's second fiscal quarter 2026 audited financial and operational results conference call. (Operator Instructions)
I will now turn the call over to your host.
Thank you, Operator. Good morning, everyone, and welcome to Hightide Inc.'s quarterly earnings call. Joining me on the call today are Mr. Raj Grover, President and Chief Executive Officer, and Mr. Mike Mahajan, Chief Financial Officer. On June 15, 2026, the company released financial and operational results for the fiscal quarter that ended April 30, 2026.
Before we begin, please let me remind you that during the course of this conference call, HITI's management may make statements, including with respect to management's expectations or estimates of future performance. All such statements, other than statements of historical facts, constitute forward-looking
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