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High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) kicked off fiscal 2026 with another standout performance, reinforcing its position as one of the most consistent and customer-centric operators in the Canadian cannabis sector.

For the three months ended January 31, 2026, the company reported record revenue of $178.3 million — a 25% increase year-over-year and 9% growth sequentially. This marked the third consecutive quarter of all-time high sales, demonstrating sustained momentum despite ongoing industry pricing pressure. Gross profit reached a record $44.4 million, while adjusted EBITDA came in at $11.5 million. Most notably, High Tide generated positive free cash flow of $2.9 million in the quarter, swinging from a $(1.9) million outflow in the prior-year period. Over the trailing twelve months, the company has now produced $16.8 million in free cash flow, a clear sign of improving financial health and operational efficiency.

CEO Raj Grover highlighted the strength of the results: “We delivered another quarter of solid results, highlighted by record revenue, record gross profit, and positive free cash flow. Our innovative discount club model, built around customer loyalty, continues to be the backbone of our success. Cabana Club membership keeps growing rapidly, and our stores continue to outperform peers.”

The numbers back him up. The Canadian Cabana Club now exceeds 2.58 million members — up 47% year-over-year and the fastest growth pace in ten quarters. Globally, membership has surpassed 6.65 million. The premium ELITE tier in Canada has doubled to over 162,000 members, while worldwide ELITE membership stands at 171,000. Loyalty members accounted for 88% of retail transactions, which themselves rose 16% at Ascend retail locations.

High Tide maintained a leading 12% share of the cannabis retail market across the five provinces in which it operates, up from 11% the previous year. Its average Canna Cabana store generated 1.9 times the revenue of peer operators. Same-store sales were up 0.5% year-over-year despite harsh winter weather in Ontario impacting January performance. Since launching its discount club model in October 2021, same-store sales at Canna Cabana have increased 149%, while the average operator has seen flat sales.

During the quarter, the company opened seven new Canna Cabana locations across Alberta and Ontario, bringing the total to 218 stores. Two additional stores opened in Ontario shortly after quarter-end, pushing the count to 220. The retail development pipeline remains robust, with plans to open another 20–30 locations in calendar 2026 as the company works toward a long-term goal of surpassing 350 stores nationwide.

On the product and innovation front, High Tide continued to expand its portfolio. The company launched several new SKUs and packaging innovations during the quarter and has been steadily growing its white-label offerings under Queen of Bud and Cabana Cannabis Co. brands. These now represent approximately 1.6% of bricks-and-mortar cannabis sales, with a long-term target of reaching 20%.

E-commerce and digital tools also showed progress. Ascend Pay (the company’s pay-by-bank functionality) saw transactions increase 49.4% sequentially, driven by a 51.5% rise in transaction count and 57.8% growth in units sold. The redesigned shopping platform, AI-driven personalization, and enhanced loyalty program are clearly resonating with customers.

Internationally, the German medical cannabis business (Remexian) delivered a strong first full quarter under High Tide ownership. The segment generated $25.0 million in revenue — nearly 70% higher than the partial quarter contribution in Q4 2025. In February 2026, Remexian sold 2.6 tonnes, generating €7.5 million (C$12 million) in revenue with a preliminary gross margin of 20%. Market share of German imports rose from 6.5% in the quarter ended September 2025 to 10.3% in the quarter ended December 2025, despite older Portuguese biomass still working through the system. The company expects margin improvement in this segment starting in Q2 2026 as fresher Canadian-sourced biomass flows through.

High Tide is also exploring further European expansion, including potential entry into the United Kingdom within the next 12 months through merger or acquisition. In the United States, its CBD e-commerce businesses (NuLeaf Naturals and FAB CBD) showed the first sequential revenue growth in two years. The company has joined the National Compassionate Care Council and is positioning itself to benefit from emerging federal initiatives around Medicare and Medicaid coverage for CBD products.

Financially, the company ended the quarter with $46.4 million in cash and cash equivalents (including restricted cash). General and administrative expenses improved to 4.1% of revenue, while salaries, wages, and benefits declined to 11.8% of revenue — both reflecting continued operational discipline. The net loss narrowed to $0.4 million from $2.7 million year-over-year and a much larger loss in the prior quarter that included significant non-cash impairment charges.

The company’s capital allocation remains prudent. It has repurchased and retired shares under its normal course issuer bid and continues to evaluate organic and inorganic opportunities. The recent refinancing and mortgage financing in Ohio have extended debt maturities and improved overall liquidity.

Looking ahead, High Tide expects low to mid-single digit revenue decline in Q1 2026 due to post-holiday softness, pricing pressure, and weather-related disruptions. However, adjusted EBITDA margin is projected to remain in the low-20% range, supported by higher-margin SKUs, new store contributions, and vertical integration gains.

The company’s long-term vision remains ambitious: expanding the retail footprint toward 350+ stores, growing white-label sales to ~20% of total revenue, scaling Cabana Club membership beyond 3 million in Canada (with 1 million ELITE members as the goal), and capitalizing on international medical cannabis opportunities.

In an industry still navigating consolidation, regulatory uncertainty, and margin compression, High Tide’s results stand out. Record revenue, sustained margin improvement in core retail, explosive loyalty growth, positive free cash flow, and a clear international roadmap demonstrate a business that is maturing into a disciplined, customer-obsessed operator.

With a strong balance sheet, no near-term debt pressure, and multiple growth levers — retail densification, brand innovation, e-commerce stabilization, German medical expansion, and potential U.S. CBD upside — High Tide enters the remainder of fiscal 2026 with genuine momentum.

The cannabis sector has rewarded companies that can consistently execute, generate cash, and build genuine customer loyalty. High Tide is doing all three. As regulatory tailwinds potentially emerge in the U.S. and Europe, the company appears well-positioned to translate its operational strength into accelerated growth and long-term shareholder value.

📈 Dog Walkers

$AVTBF ( ▲ 2.68% ) Restructures

Avant Brands Reclaims European Rights to blk mkt™ Brand in Strategic Portfolio Reset

Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) (FRA: 1BU0) has taken a decisive step to tighten control over one of its flagship assets in Europe.

The company announced today that its wholly-owned subsidiary, GreenTec Holdings Ltd., has issued formal notice to terminate its Trademark Licensing Agreement with Adjupharm GmbH, a subsidiary of IM Cannabis Corp. The agreement, originally signed on May 1, 2024, will end effective May 31, 2026. Upon termination, all trademark and distribution rights for the premium blk mkt™ brand in Germany and Switzerland will revert fully to GreenTec.

The move is part of a broader strategic transition aimed at optimizing Avant’s international distribution channels and ensuring partnerships align closely with the company’s long-term global growth objectives. Germany remains Avant’s largest international export market, making brand control in the region particularly important.

Founder and CEO Norton Singhavon explained the rationale: “As Avant continues to scale globally, it is essential that our international partnerships are fully integrated with our evolving operational standards and long-term vision. Reclaiming the rights to blk mkt™ in Germany and Switzerland is a strategic decision to consolidate our brand equity and optimize our trajectory in Europe.”

With the termination notice issued, Avant has already begun the process of identifying a new partner for the German and Swiss markets. The company is evaluating established distributors and operators based on market leadership, financial and operational maturity, and strategic infrastructure. Avant’s extensive library of proprietary genetics and proven ability to produce ultra-premium cannabis at commercial scale give it strong leverage in these discussions. Management has confirmed sufficient supply capacity to ensure a seamless transition to the selected partner immediately after May 31, 2026.

This development reflects a growing trend among Canadian producers: shifting from broad licensing arrangements to more tightly controlled, high-value partnerships that better protect brand integrity and maximize margins in key international markets.

For Avant, the decision strengthens its position in Europe’s largest medical cannabis market while preserving flexibility to pursue opportunities that align with its premium positioning. The company expects the transition to support continued momentum in Germany, where demand for high-quality, consistent product remains robust.

By bringing blk mkt™ back under direct control and carefully selecting its next partner, Avant is positioning itself for a more integrated and profitable international presence. In an increasingly competitive global cannabis landscape, owning and strategically deploying premium brand assets is becoming a critical differentiator.

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The Cannabis Industry Is Starting To Build Some Major Tailwinds | TTB Powered by Flowhub

What we will cover:

✅ Trade To Black Podcast hosted by Anthony Varrell is back with another must-watch episode covering the biggest developments in the cannabis industry, hemp regulation, CBD policy, multi-state operators, and global cannabis expansion.

First, Anthony is joined by Eric Berlin of Dentons to discuss the recent FDA filing for CBD, what it could mean for the future of CBD regulation in the United States, and whether the market is moving toward a one-plant industry that brings cannabis and hemp together under a more unified framework. This conversation dives into the legal, regulatory, and commercial implications for operators, investors, and the future of the plant-touching economy.

Next, Curaleaf CEO Boris Jordan joins the show to break down Curaleaf’s latest earnings, the company’s strategy for European growth, and his broader outlook on the cannabis industry. From international expansion and capital allocation to market positioning and sector headwinds, this is a key interview for anyone following Curaleaf stock, cannabis earnings, global cannabis markets, and MSO strategy.

If you follow cannabis stocks, Curaleaf earnings, CBD regulation, hemp policy, FDA cannabis news, European cannabis growth, or the future of the cannabis and hemp industries, this episode of Trade To Black is one you do not want to miss.