High Tide (HITI) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of CAD 522.3 million for the year ended October 31, 2024, up 7% year-over-year, with Q4 revenue at CAD 138.3 million, up 9% year-over-year and 5% sequentially.

• Positive free cash flow for six consecutive quarters, totaling CAD 22 million in 2024, up 217% from 2023.

• Cabana Club membership reached 1.72 million in Canada (up 34% year-over-year) and 5.32 million globally, including over 76,000 ELITE members, after international expansion.

• Expanded international presence, including entry into the German medical cannabis market and global rollout of the Cabana Club program.

• Announced acquisition of a majority stake in Purecan, a profitable German medical cannabis importer and wholesaler.

Financial highlights

• Gross profit for the year was CAD 142.5 million, up 9% year-over-year; Q4 gross profit was CAD 35.8 million, up 8% year-over-year.

• Q4 Adjusted EBITDA was CAD 8.2 million, down 1% year-over-year and 14% sequentially, reflecting new store ramp-up.

• Adjusted EBITDA reached a record CAD 38.3 million for the year, up 25% year-over-year.

• Consolidated gross margin was 26% in Q4, consistent with Q4 2023 but down from 27% in Q3; annual gross margin was 27%.

• Ended fiscal year with CAD 47.3 million in cash and total debt of CAD 27 million, with no maturities due for almost three years.

Outlook and guidance

• Plans to add 20–30 new locations in 2025, aiming for 300 stores long-term.

• Expects to remain free cash flow positive in 2025 while expanding store count.

• Anticipates revenue and EBITDA neutrality for the international Cabana Club expansion within 6–12 months.

• International expansion, especially in Germany, is expected to drive future growth.

• Anticipate lower gross margins in e-commerce as Cabana Club Global expands, offset by Purecan's high margins.