High Tide Caps Record Year with Strong Q4, Eyes German Expansion and U.S. Ambitions
High Tide Inc. (NASDAQ: HITI) closed its fiscal 2025 on a high note, posting record revenue and profitability in its fourth quarter. During the earnings call, executives underscored the resilience of its core Canadian retail operations while mapping out an ambitious growth strategy that hinges on domestic expansion and the strategic integration of its newly acquired German medical cannabis distribution business, Remaxion.
President and CEO Raj Grover announced the company achieved quarterly revenue of CAD 164 million, culminating in an annual revenue run rate exceeding CAD 650 million. Adjusted EBITDA reached a record CAD 12.4 million, a 51% surge compared to the same period last year. "We are not just growing; we are scaling profitably," Grover stated, attributing the success to operational discipline and a powerful loyalty program.
CFO Mayank Mahajan detailed the drivers: fourth-quarter revenue jumped 19% year-over-year, primarily from physical stores. Operating efficiency improved markedly, with salaries and wages falling to 11.5% of revenue, a nine-quarter low. The brick-and-mortar segment itself achieved a record Adjusted EBITDA margin of 9.4%.
Canadian Retail: The Engine of Growth
Management repeatedly highlighted the strength of the Canadian footprint. Same-store sales growth of 5.5% propelled a 15% annual increase in the retail segment. The company added 27 stores in calendar 2025, hitting the top end of its target, and aims to open another 20-30 in 2026. With 218 stores currently open and a long-term goal of over 350, High Tide is solidifying its position as a dominant national retailer. A pipeline of 15 Tier 1 locations, particularly in Ontario, is underway.
Central to this strategy is the Cabana Club loyalty program, which now boasts 2.5 million members in Canada, a 45% annual increase. The more premium ELITE tier saw its membership more than double to 151,000. "These members are our most valuable customers, driving frequency and basket size," Grover noted.
Integrating the German Footprint
A significant portion of the call focused on Remaxion, the German medical cannabis distributor in which High Tide acquired a 51% stake last September. Grover reported the asset contributed "almost $10 million in revenue" in under two months, though margins were pressured by legacy inventory issues in Portugal. The company is actively diversifying supply routes through Malta, Czechia, and direct activity in Germany starting in March. Grover revealed High Tide is already sourcing biomass at costs 30-40% lower than Remaxion's previous rates, expecting a significant margin uplift once old inventory clears in the coming quarters.
Balance Sheet Strength and U.S. Prospects
The company ended the quarter with CAD 47.9 million in cash and no major debt maturities for over two years. Full-year free cash flow of CAD 12.12 million allowed it to fund expansion internally.
Perhaps the most forward-looking comments concerned the United States. Grover expressed encouragement by recent federal regulatory developments, disclosing that "multiple large U.S. operators" have approached High Tide to explore partnerships. The company is evaluating a range of options but emphasized a patient, "slow-playing" approach pending clearer regulatory signals. Potential CBD policy changes, including a proposed Medicare pilot, could also benefit its U.S. e-commerce brands.
Analyst & Investor Commentary
"The numbers speak for themselves—profitable growth in a tough market is impressive," said David Chen, a portfolio manager at Horizon Growth Fund. "Their operational leverage and loyalty data show a mature retail model. The German move is a smart, asset-light way to test international waters."
Anya Sharma, a retail analyst at Cedar Point Capital, offered a more measured take: "The Canadian execution is stellar, but the Remaxion integration is the new variable. Their guidance about margin pressure lasting into Q2 is honest but adds near-term uncertainty. The U.S. talk is exciting but remains speculative."
Marcus Thorne, an independent investor and frequent commentator on cannabis forums, was sharply critical: "Another quarter, another promise about 'future margins' from Germany. They paid for a business with expiring inventory and now we have to wait six months for it to maybe work? And teasing U.S. deals without specifics feels like a distraction from the real work needed overseas. Show me the money from Remaxion, then we'll talk."
High Tide Inc. is an omnichannel retailer and branded consumer packaged goods company serving the regulated cannabis market, operating stores across Canada under banners like Canna Cabana, Meta Cannabis Supply Co., and The Hunny Pot.