EarningsQ3 2026 Earnings Report
DE:2LYA Q3 2026 EPS Results
Actual EPS€0.07
Consensus EPS<€0.01
Beat/MissBeat by +€0.06
One Year Ago EPS<€0.01
DE:2LYA Q3 2026 Revenue Results
Actual Revenue€123.69M
Expected Revenue€121.28M
Beat/MissBeat by +€2.41M
YoY Revenue Growth+32.82%
Earnings Announcement Details
QuarterQ3 2026
Date09/14/2026
TimeAfter Close
Conference CallMonday, September 14, 2026
DE:2LYA Upcoming Earnings
High Tide's next earnings date is estimated for February 1, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:2LYA Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with record revenue, EBITDA, operating income, net income, cash flow, customer membership, Canadian market share, and German medical cannabis volumes. Management also highlighted improving expense ratios, strong liquidity, continued organic expansion, and disciplined international growth plans. The principal challenges were Canadian consumer pressure, thinner baskets, industry competition and store growth, potential market contraction, German import quota timing, and price compression. These issues were acknowledged but did not outweigh the broad-based financial and operational momentum.Company Guidance
Record Revenue and Broad-Based Financial Performance
Q3 revenue reached a record CAD 198.8 million, up 33% year-over-year and 11% sequentially, marking the fifth consecutive quarter with a new all-time revenue high and the fastest growth rate in 13 quarters. Both the bricks-and-mortar and medical cannabis distribution segments posted record results.
Strong Profitability and Operating Leverage
Gross profit was a record CAD 52.7 million, up 32% year-over-year. Adjusted EBITDA reached a record CAD 16.2 million, up 52% year-over-year and 17% sequentially, while the consolidated adjusted EBITDA margin reached 8.2%, its highest level in 12 quarters. Income from operations was CAD 8.7 million, up 133% year-over-year and 43% sequentially.
Record Net Income and Adjusted Net Income Growth
Record net income was CAD 12.7 million. Excluding the fair value change in derivative liability, adjusted net income was CAD 2.2 million, up 186% sequentially and 157% year-over-year.
Improved Expense Ratios and Cost Controls
Salaries and wages declined to 11.4% of revenue from 12.2% a year ago and 11.9% sequentially, the lowest level in 12 quarters. General and administrative expenses declined to 3.9% of revenue from 4.4% a year ago and 4.0% sequentially, the lowest level in eight quarters. Management also said trailing G&A and trailing salaries and wages as a percentage of revenue reached all-time lows.
Record Cash Generation and Liquidity
Free cash flow was CAD 7 million in Q3, the highest level in four quarters and the second-highest level in nine quarters. Cash flow from operations before changes in non-cash working capital reached a record CAD 11.9 million, up 44% year-over-year. The cash balance increased by CAD 10.6 million during the quarter, and the company generated CAD 12.8 million of free cash flow over the past 12 months.
Strong Balance Sheet and Funding Flexibility
High Tide reported total debt of CAD 60 million, no meaningful debt maturities for three years, and CAD 25 million available under its Bank of Montreal revolver. Management said the company can continue funding store growth, working capital, and operations through internally generated free cash flow without relying on external equity injections.
Cabana Club and ELITE Membership Growth
Cabana Club membership reached 2.73 million across Canada, up 27% year-over-year and more than 11 times the level when the discount club model launched in October 2021. ELITE membership increased 62% over the past year to more than 186,000 members, with members paying CAD 35 annually. Management said ELITE members build higher baskets and shop more often.
Canadian Market Share and Sales Outperformance
For the 12 months ended June 2026, total industry sales in the five provinces where High Tide operates increased 3% year-over-year, while total Canna Cabana sales increased 10%. Market share in four provinces excluding British Columbia reached 14% in May and June, up from 13% a year earlier. Management identified 15% market share as a milestone rather than a ceiling.
Positive Customer Traffic and Same-Store Sales Trends
Same-store sales were consistent with the prior year for the full quarter, while June and July each posted gains. Same-store transaction count increased 1.1%, and management said transactions also increased in August and quarter to date. Management attributed the performance to the discount club model, loyalty programs, store locations, and other initiatives including white-label products.
Strong Canadian Store Productivity
Annualized revenue per square foot was CAD 1,721 in Q3 for stores open more than six months. The average Canna Cabana store reached a CAD 2.6 million annual product-sales run rate in June, versus CAD 1.4 million for peers. The average Ontario store reached a CAD 2.8 million annual run rate, versus CAD 1.2 million for peers.
Continued Canadian Store Expansion
High Tide had 232 Canadian stores and had completed 14 of the planned 20 Cabanas for calendar 2026. Management reiterated its long-term target of 350 locations, with 118 stores still planned for addition in Canada.
Remexian Volume and Financial Growth
Remexian sold 10.2 tons of medical cannabis in Q3, up 35% sequentially and 165% above the pace at the time the transaction closed a year earlier. Remexian revenue was CAD 38.2 million, up 21% sequentially, while adjusted EBITDA increased 38% sequentially to CAD 4.4 million. Its adjusted EBITDA margin reached a record 12%.
German Medical Cannabis Market Expansion
The value of medical cannabis exported from Canada to Germany reached a record CAD 49.4 million in July. On a three-month average, the market was at a CAD 517 million annual run rate, up 62% year-over-year. In a separate comment, management said July Canadian medical cannabis exports to Germany were up 150% year-over-year and approaching a CAD 600 million run rate.
Medical Cannabis Distribution Margin Resilience
The medical cannabis distribution segment generated a 26% gross margin in Q3, compared with 27% in Q2 and 12% to 13% in Q1. Management said Canadian procurement capabilities and producer relationships were helping offset price compression and expected long-term gross margins to settle in the mid to high 20s.
Core Business EBITDA Growth
Despite the addition of Remexian, High Tide's core bricks-and-mortar segment increased adjusted EBITDA 11% year-over-year.
Disciplined International Expansion Strategy
Management is evaluating opportunities and negotiating with partners in the U.K. and other markets, but said it would not complete a transaction without the right opportunity, timing, and price for shareholders. The company said its existing Canadian and German growth opportunities provide substantial runway and that it has no pressure to rush into an international deal.
Per-Share Operating Performance and Valuation Position
After adjusting for the portion of Remexian High Tide does not currently own, management said revenue grew 2.5 times faster than the share count over the past year and adjusted EBITDA grew 3.9 times faster. Management cited a current enterprise-value-to-EBITDA multiple of 5.4 times the just-reported annualized EBITDA and characterized the setup as more of an opportunity than a risk.
Low-Cost German Receivables Factoring
High Tide expects its German factoring relationships to continue. Management said factoring costs were below 9%, rather than the 17% to 20% rates it associates with North America, and that the pharmacy receivables were viewed as creditworthy.
DE:2LYA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed