High Tide Q3 Fiscal 2026 Earnings: Revenue Beats $198.8 Million

Quick Verdict

High Tide posted record Q3 fiscal 2026 revenue of C$198.8 million, up 33% year over year, alongside diluted EPS of C$0.12 and record net income of C$12.7 million. Reported U.S.-listed EPS of US$0.02 beat consensus by US$0.01. HITI rose 3.95% in regular trading and added 1.33% after hours.

About High Tide Inc.

High Tide Inc. is a Calgary, Alberta-headquartered cannabis retailer and distributor founded in 2009 by Raj Grover, who remains founder and chief executive officer. Its shares trade as HITI on Nasdaq and the TSX Venture Exchange, and as 2LYA in Frankfurt. The company operates a vertically integrated cannabis platform spanning Canadian retail, German medical-cannabis distribution, e-commerce accessories, and hemp-derived CBD products. Its core retail banner, Canna Cabana, operated 232 Canadian stores and one German accessories location at the reporting date; the company also owns a majority interest in German medical-cannabis distributor Remexian Pharma GmbH.

High Tide’s current equity value is approximately US$222 million, based on recent market data, though this fluctuates with the share price. A conventional trailing P/E ratio is not especially informative because historical earnings have been volatile, including non-cash fair-value movements. The Q3 release instead highlights operating measures including an 8.2% adjusted EBITDA margin, the highest in 12 quarters, and a Canadian Cabana Club base exceeding 2.73 million members.

Top Financial Highlights

1. Record quarterly revenue of C$198.8 million, up 33% from C$149.7 million in Q3 fiscal 2025 and up 11% sequentially.
2. Revenue represented High Tide’s fifth consecutive all-time quarterly revenue high and implies an annualized run rate of roughly C$800 million.
3. Gross profit reached a record C$52.7 million, increasing 32% year over year.
4. Gross margin remained 27%, unchanged from the prior-year quarter and the immediately preceding quarter.
5. Reported net income was a record C$12.7 million, versus C$0.8 million one year earlier.
6. Basic and diluted earnings per share were C$0.13 and C$0.12, respectively, compared with C$0.01 for both measures in Q3 fiscal 2025.
7. Adjusted net income, excluding specified non-cash derivative-liability and long-term contract-asset changes, was C$2.2 million, up from C$0.9 million a year earlier.
8. Adjusted EBITDA rose 53% year over year to a record C$16.2 million, yielding an 8.2% adjusted EBITDA margin.
9. Income from operations increased 133% to C$8.7 million.
10. Cash flow from operations before non-cash working-capital changes was C$11.9 million, up 44% year over year.
11. Net cash provided by operating activities was C$10.1 million, while free cash flow totaled C$7.0 million.
12. Cash and cash equivalents, including restricted cash, stood at C$47.1 million as of July 31, 2026, versus C$36.5 million at the end of the prior quarter.
13. Remexian distributed a record 10.2 tonnes of medical cannabis in Germany, with volume up 62% year over year and 35% sequentially; its revenue was C$38.2 million and gross margin was 26%.
14. Canna Cabana held a 14% cannabis-retail market share in its operating provinces excluding British Columbia, compared with 13% a year earlier.
15. Management reiterated its long-term target of more than 350 Canadian locations and its plan to open more than 20 locations in calendar 2026, principally through organic expansion. It did not issue explicit revenue or EBITDA guidance for the next fiscal quarter.

Beat or Miss?

High Tide Reports Record-Breaking Third Quarter 2026 Financial Results

(Source: prnewswire.com)

What Leadership Is Saying

“Nearly every major financial metric moved in the right direction this quarter, with many reaching the highest levels in our history. We delivered record revenue, record gross profit, record Adjusted EBITDA, record income from operations, record net income and record operating cash flow before working capital.”
— Raj Grover, Founder and Chief Executive Officer, High Tide

“High Tide is approaching an $800 million annualized revenue run rate, our Adjusted EBITDA margin is at its highest level in twelve quarters, and we continue to generate meaningful free cash flow while investing aggressively in growth.”
— Raj Grover, Founder and Chief Executive Officer, High Tide

Historical Performance

The important takeaway is operating leverage: revenue grew 33%, while operating expenses increased 24%, allowing income from operations and adjusted EBITDA to grow materially faster than sales. However, readers should separate the C$12.7 million reported net-income figure from underlying profitability because it includes a large non-cash derivative-liability fair-value gain; management’s adjusted net income was C$2.2 million.

Competitor Comparison

The earnings release does not provide standardized current-quarter and prior-year financial statements for named competitors. A direct company-versus-company revenue, net-income, and operating-expense table would therefore require separate competitor filings and could be misleading because Canadian cannabis retailers use differing fiscal periods, accounting policies, retail footprints, and business models.

Operationally, Canna Cabana reported a 14% share of the cannabis retail market across its operating provinces excluding British Columbia, while its average store generated 1.8x peer revenue. The company said total industry sales in its five operating provinces grew 3% in the 12 months through June 2026, compared with a 10% increase in total Canna Cabana sales. These are management-reported relative benchmarks rather than independently standardized competitor financial comparisons.

How the Market Reacted?

The release was issued after the September 14 market close. HITI ended the regular session at US$2.63, up US$0.10 or 3.95%, and traded at US$2.66 in extended hours, up a further 1.33% as of 7:59 p.m. Eastern Time. The immediate market tone was constructive, consistent with a reported EPS and revenue beat and record quarterly operating metrics