Canada's High Tide Q4 revenue beats estimates

Overview

• Canada cannabis retailer's Q4 revenue rose 19% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q4 beat analyst expectations, reaching a record C$12.4 mln

• Company closed acquisition of majority stake in Remexian Pharma, entering German cannabis market

Outlook

• High Tide plans to open 20-30 new Canna Cabana locations in 2026

• Company expects white label cannabis sales to grow to 20% long-term

• High Tide is evaluating U.S. CBD opportunities following federal initiatives

Result Drivers

• SAME-STORE SALES - Same-store sales rose 5.5% year-over-year in Q4, contributing to revenue growth

• STORE EXPANSION - Opened 27 new Canna Cabana locations, reaching 218 stores, solidifying position as largest cannabis retailer in Canada

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the drug retailers peer group is "buy"

• Wall Street's median 12-month price target for High Tide Inc is C$7.25, about 115.8% above its January 28 closing price of C$3.36

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nPn2307cpa

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