Quick Verdict: High Tide delivered record Q1 2026 revenue of $178.3 million, up 25% YoY, with gross margin at 25% and adjusted EBITDA at $11.5 million. EPS came in around CAD 0.01, missing consensus, but the company swung from a prior-year net loss to a modest profit. The stock reaction has been mixed, with an initial pop around results and subsequent range-bound trading in the low-$2s.
About High Tide Inc.
High Tide Inc. (Nasdaq: HITI, TSXV: HITI, FSE: 2LYA) is a Canada-based cannabis retailer and ancillary brand platform focused on serving value-conscious consumers through a vertically integrated ecosystem of brick-and-mortar stores, e-commerce sites, and proprietary consumption accessories. Founded in 2009 and headquartered in Calgary, Alberta, High Tide operates one of the largest non-franchised cannabis retail networks in Canada, anchored by its flagship Canna Cabana chain.
The company also runs global e-commerce platforms for consumption accessories and CBD products, and licenses in-house brands through wholesale channels. As of early 2026, High Tide’s market capitalization is around $200–205 million, with the stock trading near $2.30 per share on Nasdaq. The business is currently in a growth and scale phase, so traditional metrics like P/E are less meaningful, as earnings remain low relative to revenue; however, adjusted EBITDA and free cash flow have turned decisively positive. The company employs several hundred staff across retail, corporate, and logistics functions (exact current headcount not disclosed in the Q1 release).
Top Financial Highlights
- Total Revenue: $178.3 million for Q1 2026 (three months ended January 31, 2026), up 25% from $142.5 million a year earlier and 9% sequentially; third consecutive quarter of record revenue.
- Gross Profit: $44.4 million, a 25% YoY increase from $35.4 million, reflecting strong operating leverage.
- Gross Margin: 25%, flat versus Q1 2025 and slightly below 26% in the previous quarter, due to mix and promotional dynamics.
- Net Income: Approximately CAD 1.2 million, compared with a net loss of CAD 2.7–2.8 million in Q1 2025, marking a meaningful improvement in profitability.
- EPS: CAD 0.01 per share, below the consensus CAD 0.0241, representing an EPS miss of roughly 58% versus expectations.
- Adjusted EBITDA: $11.5 million, up from $7.1 million a year earlier, a 62% YoY increase and the second-highest quarter ever for the company.
- Free Cash Flow: $2.9 million, versus negative $1.9 million in Q1 2025, a 255% improvement and a key sign of improving cash discipline.
- Operating Cash Flow: $5.9 million of net cash provided by operating activities, up sharply from $0.7 million in the prior-year quarter (roughly 759% growth).
- Operating Expenses: $33.6 million, up 19% YoY, but operating expenses as a percentage of revenue improved from 20% to 19%, reflecting scale efficiencies.
- Total Expenses: $42.0 million, up 19% from $35.4 million, still growing slower than revenue.
- Segment – Brick-and-Mortar Revenue: Approximately $150 million in Q1 2026, implying a $600 million annualized run rate from physical stores alone.
- Segment – Brick-and-Mortar Gross Margin: Around 28%, marking the fifth consecutive quarter of sequential improvement in that segment.
- Cash on Hand: $46.4 million in cash and restricted cash at January 31, 2026, up from $33.3 million a year ago, albeit slightly below $47.9 million sequentially.
- Guidance / Outlook: Management highlighted continued focus on same-store sales growth, UK and international expansion, and disciplined cost control, but did not provide explicit numerical revenue or EPS guidance in the Q1 press release.
Beat or Miss?
Analyst and media takes on Q1 2026 performance are mixed: revenue is described as either roughly in line or well ahead of certain consensus figures, while EPS clearly missed expectations. One source cites consensus revenue of around $178.38 million (essentially in line), another mentions a much lower $129.5 million consensus that High Tide significantly beat; the more conservative interpretation is that revenue broadly met expectations while EPS missed.
| Metric | Reported Q1 2026 | Estimated / Expected | Difference / Analysis |
| Revenue | $178.3M | ~$178.3–$178.4M (consensus) / $129.5M (alt. consensus) | Essentially in line with most estimates; well above some lower consensus figures. |
| EPS (Basic/Diluted) | CAD 0.01 | CAD 0.0241 | Missed by ~0.0141, or roughly 58% below consensus. |
| Adjusted EBITDA | $11.5M | N/A | No widely cited Street consensus; viewed as strong YoY growth (+62%). |
| Free Cash Flow | $2.9M | N/A | Positive FCF vs. negative prior year; better than typical expectations for the sector. |
| Gross Margin | 25% | N/A | In line with prior-year level; slightly below previous quarter’s 26%. |
What Leadership Is Saying?
“This was the third consecutive quarter where we delivered record revenue, growing the top line by 25% year-over-year and 9% sequentially while maintaining a 25% gross margin. We continue to gain market share in our core Canadian retail markets and are laying the groundwork for international expansion, including entry into the UK, where we believe our value-focused model can resonate strongly with consumers.” – CEO
“Adjusted EBITDA of $11.5 million in the first quarter represents our second-highest quarter ever and a 62% increase versus last year, while free cash flow of $2.9 million marks a substantial improvement from negative $1.9 million a year ago. We are pleased with our cost discipline, as general and administrative expenses fell to 4.1% of revenue and salaries, wages and benefits decreased to 11.8% of revenue, both showing clear operating leverage as we scale.” – CFO
Historical Performance
Q1 2026 vs. Q1 2025 (High Tide Inc.)
| Category | Q1 2026 (Current) | Q1 2025 (Previous Year) | Change (%) |
| Revenue | $178.3M | $142.5M | 25% |
| Net Income | CAD 1.21M (approx.) | Net loss CAD 2.7–2.8M | Turned profitable (improvement of ~CAD 3.9–4.0M) |
| Gross Profit | $44.4M | $35.4M | 25% |
| Gross Margin | 25% | 25% | Flat |
| Operating Expenses | $33.6M | $28.4M | 19% |
| OpEx as % of Revenue | 19% | 20% | -1 percentage point |
| Total Expenses | $42.0M | $35.4M | 19% |
| Income from Operations | $2.37M | $0.07M | Very large % increase |
| Adjusted EBITDA | $11.5M | $7.1M | 62% |
| Free Cash Flow | $2.9M | -$1.9M | 255% |
| Operating Cash Flow | $5.9M | $0.7M | 759% |
| Cash & Restricted Cash | $46.4M | $33.3M | +39% (approx.) |
Historical Performance of Competitors
| Category | High Tide – Q1 2026 | High Tide – Q1 2025 | Change (%) | Nova Cannabis – Latest Reported (Q4 2025) | Nova – Prior Year (Q4 2024) | Change (%) |
| Revenue | $178.3Mprnewswire | $142.5Mprnewswire | 25% | ~$70–75M range (sector coverage)money.usnews | ~$60–65M (est.)money.usnews | Low-double-digit % growth |
| Net Income | CAD 1.21M (profit)marketscreener | Net loss CAD 2.7–2.8Mmarketscreener+1 | Turned positive | Slight loss / near breakeven (typical)money.usnews | Larger loss prior yearmoney.usnews | Improved but still negative |
| Operating Expenses | $33.6Mprnewswire | $28.4Mprnewswire | 19% | Rising with store basemoney.usnews | Lower base yearmoney.usnews | Up with scale |
How the Market Reacted?
Market reaction to High Tide’s Q1 2026 print has been volatile but ultimately cautious. One report notes that shares rose around 10% immediately following the announcement, helped by record revenue and strong gross profit despite the EPS miss. Another source focusing on the EPS shortfall highlights a more muted response, with the stock closing around CAD 3.35, down about 0.3% in one session after the detailed earnings call coverage. More broadly, High Tide now trades near $2.30 on Nasdaq with a market cap just above $200 million, reflecting a market that acknowledges the revenue and cash-flow improvements but remains wary of sector risk, regulatory uncertainty, and thin margins