HITI Earnings Prediction
The chart below shows how HITI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HITI sees a -4.06% change in stock price 10 days leading up to the earnings, and a -5.51% change 10 days following the report. On the earnings day itself, the stock moves by +1.92%. This data can give you a slight idea of what to expect for the next quarter's release.
HITI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
142.46M
11.24%
3.01%
Gross Margin
20.77%
-8.74%
-5.51%
Operating Margin
1.09%
-64.61%
-60.07%
Net Margin
-1.89%
--
-45.53%
EPS
-0.03
--
-50.00%
No Data Available
HITI Earnings Analysis
High Tide Inc Corporation (HITI.O) Earnings Conference Call
Positive
Record Revenue Achievement: High Tide Inc. reported an all-time high revenue of $142.5 million for Q1 2025, marking an 11% increase year-over-year and a 3% sequential increase, with an annual revenue run rate of approximately $570 million.
Cannabis Revenue Leadership: The company remains the highest revenue-generating cannabis company in Canada, with a significant growth trajectory from $5 million in Q1 2019 to current levels.
Same Store Sales Surge: Same store sales increased by 5% year-over-year in Q1, representing the fastest growth in four quarters, and an impressive 142% increase from October 2021 to December 2024, while the average operator saw a 4% decline during the same period.
Store Revenue Performance: Canna Cabana's average store achieved an annual revenue run rate of $2.7 million, more than double the average peer revenue of $1.3 million, showcasing strong market performance.
Loyalty Program Expansion: The Cabana Club loyalty program has surpassed 1.76 million members in Canada, growing over 33% in the past year, with a new long-term target of 2.5 million members.
White Label Strategy Success: The company successfully launched its White Label strategy, generating over $0.5 million in sales and experiencing strong demand for its products, indicating a positive market response.
Bricks-and-Mortar Revenue Surge: High Tide's bricks-and-mortar revenue was up 17% year-over-year in Q1, representing the fastest growth in five quarters since reporting this segment separately.
Market Share Stability: The company maintains a steady market share of 11% in the five provinces where it operates, despite only holding 5% of the number of stores, indicating strong sales performance relative to competitors.
Adjusted EBITDA Performance: High Tide's adjusted EBITDA was $7.1 million for the quarter, reflecting strategic investments in growth initiatives, with expectations of future profitability as new stores mature.
Strong Balance Sheet Stability: The company has a solid balance sheet with total debt at $26.4 million, which is only 0.8 times its trailing adjusted EBITDA, and no upcoming debt maturities for 2.5 years.
Negative
Decline in Adjusted EBITDA: Adjusted EBITDA was lower this quarter than previous quarters, down 32% year-over-year and 14% sequentially, due to initiatives taken to grow the business.
Free Cash Flow Analysis: Free cash flow was negative $1.9 million in Q1, primarily due to unusually high working capital investments, contrasting with a trailing free cash flow of $16.5 million at the end of Q1, which was up 45% from the previous year.
Gross Margin Decline: Consolidated gross margins were 25% in Q1, down from 28% year-over-year and 26% sequentially, impacted by the resurgence of the illicit market and the launch of the Cabana Club loyalty program, which has lower gross margins initially.
Impact of New Stores: New stores initially act as a drag on consolidated results due to significant upfront costs and longer ramp-up times, with the initial drag from new stores being more meaningful than a year ago due to increased competition and market saturation.
Illicit Market Impact: The company has faced challenges with the illicit market affecting sales in certain municipalities, such as Regina, Toronto, and Ottawa, which has impacted overall performance.
HITI FAQs
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HITI Earning Call Sentiment
High Tide Inc. (HITI) Q1 2025 Earnings Call Transcript
HITI.O
-14.81%Positive
The earnings call shows mixed results: record revenue and optimistic guidance are positive, but margin compression and competitive pressures are concerning. The Q&A highlights uncertainties in the German market and unclear impacts of some initiatives. The lack of a shareholder return plan and negative free cash flow further balance the positive aspects, leading to a neutral sentiment.
