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CALGARY - High Tide Inc. (NASDAQ:HITI) shares surged 15% after the Canadian cannabis retailer reported third-quarter results that significantly exceeded analyst expectations, delivering record revenue and a return to profitability.
The company reported Q3 revenue of $149.7 million, substantially beating the consensus estimate of $106.5 million and representing a 14% increase YoY. Adjusted earnings per share came in at $0.01, compared to analyst expectations of -$0.01. The strong performance was driven by 7.4% same-store sales growth, the fastest in two years, while the company’s core brick-and-mortar segment grew 18% YoY.
High Tide generated $7.7 million in free cash flow during the quarter, up 148% YoY, while posting positive net income of $832,000, reversing a $2.8 million loss in the previous quarter. The company’s Canna Cabana retail chain now holds 12% market share across the five Canadian provinces where it operates, up from 11% last year.
"I’m thrilled to share that this has been our most powerful quarter to date across nearly every financial metric, including record revenue and adjusted EBITDA, along with positive free cash flow and net income," said Raj Grover, Founder and CEO of High Tide.
The company’s Cabana Club loyalty program has grown to over 2.15 million members in Canada, up 39% YoY, while its premium ELITE membership surpassed 115,000 members, a 102% increase from the previous year.
High Tide also recently closed its acquisition of a 51% stake in Remexian, positioning the company in Germany’s medical cannabis market. The company now operates 207 Canna Cabana stores across Canada and aims to exceed 300 locations in the long term.
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