💸 The Tape

High Tide is once again proving it’s no lightweight in the cannabis retail ring, flexing bigger numbers and bigger market share for the third year in a row. This cannabis giant just posted quarterly revenue of $138.3 million—an all-time record—underscoring its title as top Canadian-dollar earner. Not too shabby for a company that practically invented the term “cannabis superstore.” With an annualized revenue run rate topping $550 million, it’s safe to say the tide is rolling.

Canna Cabana’s club membership also continues to bloom with over 1.72 million Cabana Club members in Canada, up 34% from last year, and 73,000 ELITE members. Meanwhile, same-store sales avoided the dreaded plateau, rising 0.4% year over year, modest but respectable in a competitive market that generally hasn’t fared so well.

High Tide’s free cash flow hit $5.9 million in Q4, part of a whopping $22.0 million in positive free cash flow over the trailing four quarters. No wonder they’re scooping up market share at a rate that dwarfs their store count share. While only 5% of cannabis stores in Alberta and Ontario sport the Canna Cabana logo, they command a cool 11% in overall sales across five provinces.

Revenue for the year ended October 31, 2024, reached $522.3 million, topping last year by 7%. Gross profit also got a lift, ending up at $142.5 million for the year, a 9% boost. As for net loss? High Tide trimmed it to $3.8 million—a vast improvement over last year’s $41.0 million hole. Adjusted for impairment charges, net income even snuck into the black at $1.2 million, proving that High Tide is getting better at doing more with less.

On the EBITDA front, the company notched its 19th consecutive positive quarter. Adjusted EBITDA hit $38.3 million for the year, up from $30.6 million. Not too shabby for a chain still ramping up new organic stores. Add in tight cost management—G&A came down from 5.5% to 4.2% of revenue—and one might say they’re running a pretty efficient cannabis ship.

The real hidden gem might be the Cabanalytics platform, which raked in $36.7 million in the year, up 34% from 2023. Combine that with a war chest of $47.3 million in cash and equivalents, and you’ve got a cannabis retailer that seems set to ride this green wave for the foreseeable future—no smoke and mirrors necessary.

📈 Dog Walkers

C21 Delivers

C21 Investments just pulled off a subtle yet impressive pivot that would make any triple-jointed gymnast jealous. While Nevada’s broader cannabis market apparently hit snooze, C21 woke up with a 5.3% revenue growth from the previous quarter, clocking in at $7.9 million. Their gross margin hopped 250 basis points to a healthy 46%, which suggests they’ve dialed in their retail strategy and cost management to near perfection.

Income from operations jumped a whopping 219% from Q2, landing at $1.0 million. If you love a good underdog story, C21’s story arc from a Q2 EPS of $(0.01) to a neatly balanced $(0.00) this quarter. Add in an adjusted EBITDA boost of 21%, and you have a company that refuses to let statewide sales slumps dampen its vibe.

Even more encouraging, free cash flow soared 61% quarter-over-quarter, hitting $1.6 million. Liabilities are down by almost $1 million, while cash on the books is $0.4 million greener. Not content to rest on these laurels, C21 announced a Normal Course Issuer Bid—meaning they’re ready to buy back their own shares like a savvy investor eyeing undervalued stock.

Nextleaf Reports

Nextleaf Solutions (CSE: OILS) once again flexes its cannabis alchemy powers, transforming a year of headwinds into robust revenue and zero net debt. Boasting $16.57 million in gross revenue, $12.48 million net, and a tidy $3.74 million gross profit, OILS has proven it’s not just blowing smoke. With a positive $675k EBITDA, the Company stands firm, shrugging off a rocky economy like a buzzkill. For cannabis industry watchers, Nextleaf’s fiscal 2024 results might just be a beacon of green success.

BAM CTO

Body and Mind (BaM) just had a regulatory curveball thrown at them: the BCSC issued a cease trade order after missed filing deadlines, halting shares in all Canadian jurisdictions. There's a narrow escape hatch for certain non-insider shareholders selling on foreign markets. BaM promises a speedy catch-up on those overdue reports. Meanwhile, longtime director Josh Rosen has resigned, leaving behind a legacy of strategic input. Expect more announcements as BaM hustles to revamp its compliance game and restore investor confidence.

🗞️ The News

Ohio GOP Lawmakers Introduce Bill To Raise Marijuana Tax, Restrict Home Grow And Eliminate Social Equity Funding

Virginia Lawmakers Advance Drug Reform Bills—Including On Legal Marijuana Sales, Record Sealing And Psychedelics

Pennsylvania budget crisis boosts state’s adult-use marijuana legalization chances

📺 YouTube

What Weldon Angelos's Discussion on FOX News Means for Cannabis | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast, hosts Shadd Dales and Anthony Varrell will welcome cannabis advocate Weldon Angelos to discuss his appearance last week with Mike Tyson on FOX News, where they expressed their opinion on wanting the new Trump administration to fight for marijuana laws.

As two individuals whose lives have been deeply impacted by cannabis, they're encouraged by President Donald Trump’s recent statements supporting long-overdue reforms to U.S. cannabis policy. His potential commitments to reschedule cannabis, ensure banking access for cannabis businesses, reflect a possible vision for justice and economic opportunity.

For years, cannabis reform has been a promise made but rarely kept in Washington. Throughout his campaign, President Joe Biden pledged to decriminalize marijuana, expunge records, and release those incarcerated for cannabis. However, no cannabis reform has passed in Congress.

We'll find out if Weldon believes that change will happen under the Trump administration.

Plus, the latest developments from Washington involving RFK appearing on Capitol Hill for his HHS confirmation hearing, and whether or not he will receive enough votes.