High Tide delivered one of its strongest quarters to date, reporting record revenue, record adjusted EBITDA, positive net income, and continued gains in both the Canadian retail and German medical cannabis markets.
The company also announced two major developments on June 15: approval of a new C$40 million senior secured credit facility from Bank of Montreal and an agreement to acquire four Ontario cannabis stores from Northern Helm.
Record Revenue and Profitability in Q2 2026
For the three months ended April 30, 2026, High Tide generated record revenue of C$179.3 million, a 30% increase from the same quarter last year. The result marked the company’s fourth consecutive quarter of record revenue and its fastest year-over-year growth rate in nearly three years.
Gross profit reached a record C$48.4 million, up 36% year over year, while gross margin improved to 27%, the highest level in eight quarters. Adjusted EBITDA climbed to a record C$13.9 million, increasing 73% from the prior-year period.
The company also reported positive net income, a notable improvement from losses recorded in both the previous quarter and the same period in 2025. Income from operations surged to C$6.1 million, up more than fivefold year over year.
Free cash flow remained positive at C$1.5 million, extending High Tide’s streak of cash-generating quarters. Over the past four quarters, the company generated approximately C$13.4 million in free cash flow.
Remexian Continues to Drive Growth in Germany
A key contributor to High Tide’s performance was its German medical cannabis subsidiary, Remexian Pharma GmbH.
During the quarter, Remexian generated record revenue of C$31.6 million and distributed a record 7.6 tonnes of medical cannabis into the German market. Distribution volumes increased 49% year over year and 21% sequentially.
The subsidiary’s gross margin improved significantly to 27%, more than double the previous quarter’s level. Meanwhile, Remexian’s share of Germany’s medical cannabis market exceeded 14% for the three months ended March 2026, continuing a rapid expansion from approximately 6.5% just six months earlier.
The performance suggests that High Tide is beginning to realize some of the benefits expected from the Remexian acquisition, particularly through supply chain efficiencies and improved sourcing capabilities.
New C$40 Million Credit Facility Lowers Financing Costs
Alongside its earnings release, High Tide announced that it had secured credit approval for new senior secured credit facilities totaling C$40 million from Bank of Montreal.
The financing package includes:
- A C$25 million revolving credit facility with a three-year term
- A C$15 million delayed draw term loan
The revolving facility will replace the company’s existing senior loan with connectFirst, while the term loan will refinance High Tide’s outstanding second-lien debentures. Based on current balances, management expects nearly C$19 million of borrowing capacity to remain available after refinancing existing obligations.
High Tide Acquires Four Ontario Cannabis Stores
The company also announced it is acquiring four retail cannabis stores operated by Northern Helm in Ontario.
The stores are located in:
- Bowmanville
- Kingston
- Courtice
- Oshawa
The transaction is valued at approximately C$7.74 million and includes assumed debt, cash consideration, and High Tide common shares. The purchase price represents approximately 4.5 times the stores’ annualized adjusted EBITDA based on the three months ended March 31, 2026.
Once completed, the acquisition will increase High Tide’s Canadian store count to 228 Canna Cabana locations, including 103 stores in Ontario alone.
The transaction remains subject to regulatory approvals from the Alcohol and Gaming Commission of Ontario and the TSX Venture Exchange. Closing is expected in the coming weeks.
Loyalty Program Continues to Expand
High Tide’s loyalty ecosystem remains one of its key competitive advantages.
The company’s Cabana Club membership program surpassed 2.65 million members during the quarter, up 39% from a year earlier. Over the last twelve months, approximately 750,000 new members joined the program.
Meanwhile, the paid ELITE membership tier grew to more than 178,000 members, up 84% year over year. Management continues to view both programs as important drivers of customer retention, repeat purchases, and market share growth.
High Tide maintained a 12% share of the cannabis retail market across the five Canadian provinces in which it operates, while overall Canna Cabana sales continued to outpace broader industry growth.
Can High Tide Become More Than a Retail Cannabis Company?
For years, investors largely viewed High Tide as a Canadian cannabis retailer. The latest results suggest that the narrative may be changing.
While Canna Cabana remains the company’s largest business, Remexian’s performance in Germany is becoming increasingly important. During the quarter, the medical cannabis subsidiary delivered record revenue and distribution volumes, and achieved significant margin improvement, helping drive overall profitability.
At the same time, High Tide continues to expand its retail network, grow its loyalty ecosystem, and develop higher-margin private-label products. Management’s long-term target of more than 350 stores across Canada remains intact, while the company is also exploring opportunities in additional European markets.
The newly approved C$40 million credit facility could provide another piece of the puzzle. Access to lower-cost capital may allow High Tide to continue making acquisitions without relying heavily on shareholder dilution, a key concern for investors across the cannabis sector.
The question now is whether High Tide can successfully balance these multiple growth avenues. If it can continue gaining market share in Germany while maintaining its leadership position in Canadian retail, investors may increasingly view it as a diversified cannabis platform rather than a retailer alone. That shift in perception could become one of the most important developments to watch over the coming quarters.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
