High Tide Q4 Earnings: Revenue Beat, EPS Miss, Positive Free Cash Flow, Accelerating Membership Growth And More

High Tide Inc HITI reported fourth-quarter financial results after the market close on Wednesday. Here’s a look at the highlights from the quarter.

Q4 Earnings: High Tide reported fourth-quarter revenue of 138.3 million Canadian dollars ($95.9 million), beating analyst estimates of CA$135.37 million, according to Benzinga Pro. The cannabis retailer reported a fourth-quarter loss of six cents (Canadian dollar) per share, missing analyst estimates for a loss of two cents (Canadian dollar) per share.

High Tide said it now has more than 1.72 million members in its Cabana Club, up approximately 34% year-over-year. The company noted that ELITE members crossed 73,000 in the quarter, up 161% year-over-year. Canna Cabana held 19% market share in Alberta and 10% in Ontario in the fourth quarter.

“We are witnessing an accelerating rate of growth in our membership program, which continues to enhance our ability to connect with and serve our customers. In fiscal 2024, our Canna Cabana bricks-and-mortar stores once again outperformed the market in every province where we operate,” said Raj Grover, founder and CEO of High Tide.

Same store sales were up 0.4% year-over-year and High Tide generated CA$5.9 million in free cash flow during the quarter. The company ended the period with CA$47.3 million in cash and cash equivalents.

“Our commitment to operational excellence continues to strengthen our financial foundation, with the fourth quarter marking our sixth consecutive quarter of positive free cash flow. Trailing free cash flow came in at [CA]$22.0 million, fueling our organic growth trajectory and positioning us for sustained success,” Grover said.

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Outlook: High Tide expects to remain free cash flow positive for the remainder of the fiscal year. The company said it plans to focus on expanding its membership programs in the coming quarters. High Tide also noted that it’s monitoring the German market as it expects its majority stake acquisition of Purecan to close imminently.

High Tide executives will further discuss the quarter on a conference call with analysts and investors Thursday morning at 11:30 a.m. ET. The company noted that it will discuss plans for 2025 on the call.

HITI Price Action: High Tide shares were down approximately 4.5% year-to-date heading into the print. The stock was down 1.35% in after-hours, trading at $2.96 at the time of publication Wednesday, according to Benzinga Pro.

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Photo: courtesy of High Tide.