Sep 15, 2026 earnings call — Record quarter driven by loyalty and Remexian
High Tide reported record quarterly revenue of CAD 198.8 million, up 33% year-over-year.
Revenue $0.1B (est $0.1B) · EPS $0.09 (est $0.01)
Key quotes
"With 2.73 million loyal members of Cabana Club across the country, we are up over 11x from when we launched the discount club model in October 2021."
"Revenue of CAD 38.2 million was up 21% sequentially, but with cost controls and operating leverage, adjusted EBITDA grew almost twice as fast, up 38% sequentially to CAD 4.4 million, representing a record 12% adjusted EBITDA margin."
"We generated record net income of CAD 12.7 million this quarter."
Analyst Q&A 6
Germany quota, margins, UK expansion
Q (Neal Gilmer · Haywood): Analyst asked how Germany import quotas could affect results going forward, whether current medical distribution gross margins are the new normal, and the company's plans for expansion into the U.K. or other international markets.
A: Management said the German market is growing fast and Remexian is gaining share. Import quotas happen annually and are a short-term issue, not a long-term one. On margins they expect to maintain mid/high-20s and will be patient on U.K. deals while focusing on growth in Canada and Germany.
"Import quota can become a short-term issue, but it is definitely not a long-term issue." — Raj Grover (CEO)
Impact of Aurora tie-up; Canada sales trends
Q (Bill Kirk · ROTH Capital Partners): Analyst asked how a Curaleaf-Aurora tie-up would affect the German market and the company's plan to use Canadian supply, and asked about recent Canadian consumer habits and August same-store sales.
A: Management would not take sides on the potential deal but said if Aurora leaves the market it would remove a competitor and likely benefit Remexian. In Canada they reported transactions were up 1.1% and continuing into August, with customers buying smaller baskets (ounce bags rather than 3.5 g) due to inflationary pressures.
"I would view it as effectively one competitor leaving the marketplace, right?" — Raj Grover (CEO)
Germany capacity and Canada store counts
Q (Frederico Gomes · ATB Cormark): Analyst asked if Remexian has capacity limits to keep growing volumes in Germany, and whether rising store counts in Alberta and Ontario will continue or revert to contraction.
A: Management said Remexian has plenty of room and continues to scale tonnage (noting a move from 7.6 tons to 10.2 tons) and expects to target a 15%-20% market share in Germany over the long term. For Canada, they warned the market could contract again and said they may pursue acquisitions rather than only organic growth, despite recent store count increases.
"I think we continue our march towards that 15%-20% market share in the long term in Germany, which is exponential for any operator." — Raj Grover (CEO)
Factoring receivables and operating leverage
Q (Luke Hannan · Canaccord Genuity): Analyst asked why the company is factoring receivables for Remexian, whether prior owners did this, and if it will continue; and asked whether operating leverage mainly comes from lower wages and benefits and why.
A: Management said they will continue factoring in Germany because they obtain financing at sub 9% and pharmacies are creditworthy, aided by prior Remexian relationships. They also said operating leverage comes from disciplined cost control, scale (232 stores) and efficiencies, resulting in the lowest trailing G&A and salaries lines reported.
"We are getting factoring done for sub 9%, and it is working out really, really well." — Raj Grover (CEO)
Free cash flow uses and Remexian margins
Q (Derek Lessard · TD Cowen): Analyst asked about normalized consolidated cash conversion and how incremental cash will be allocated (stores, acquisitions, debt), and asked for the long-term margin outlook for Remexian and how much volume is sourced from Canada.
A: Management said they fund organic store builds with internally generated cash (noting trailing cash flows are over CAD 12 million) and that building 30 stores a year uses around CAD 9 million–CAD 10 million; Remexian's growth also needs funding. They said cash flow will be managed opportunistically and disciplined, and they expect Remexian margins to settle in the mid to high 20s while leveraging Canadian suppliers.
"Trailing cash flows are over CAD 12 million." — Raj Grover (CEO)
Drivers of same-store sales and ELITE impact
Q (Pat McCann · D. Boral Capital): Analyst asked what drove the June/July same-store sales inflection (traffic, basket, ELITE penetration), and what changes in customer behavior occur after converting to paid ELITE membership.
A: Management said the uptick is driven by multiple factors, with the dominant driver being their discount club model and strong brand and loyalty (Cabana Club and ELITE). They reported 2.7 million Cabana Club members and 186,000 ELITE members paying CAD 35, and said ELITE members build higher baskets and shop more often.
"It is absolutely all of the above, but most importantly, it is our dominant discount club model that we launched in October of 2021." — Raj Grover (CEO)