Why High Tide (TSXV:HITI) Is Up 14.2% After Record Q3 Results and German Expansion
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High Tide Inc. reported record third-quarter results for 2025, with sales rising to CA$149.69 million and positive net income, while solidifying its international expansion through the acquisition of a majority stake in Remexian, increasing its presence in Germany’s medical cannabis market.
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An interesting insight is that Canna Cabana, High Tide’s retail chain, reached 12% market share in five Canadian provinces, and the Cabana Club loyalty program saw significant growth, underpinning strong same-store sales and operational execution.
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We’ll consider how High Tide’s robust sales growth and international expansion shape its investment narrative going forward.
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To be a shareholder in High Tide, you need faith in the company’s disciplined expansion and ability to translate sales momentum into real profitability, particularly as it grows internationally. The record third-quarter revenue and Germany acquisition reinforce the near-term catalyst of strong same-store sales growth, but current store expansion also amplifies the most pressing risk: pressure on cash flow and margins amid a competitive market. For now, this news does not substantially change that core risk/catalyst equation.
Among recent developments, the steady rollout of new Canna Cabana locations, now totaling 207, stands out as especially relevant. Each new store increases scale, but also places greater demands on working capital, which ties directly to High Tide’s biggest short-term concern and the ongoing balance between growth and profitability. This momentum boosts visibility, but also puts a spotlight on the need for ongoing operational efficiency.
Yet on the other hand, investors should be aware of how the strain on free cash flow from rapid store expansion could impact margin resilience if …
Read the full narrative on High Tide (it’s free!)
High Tide’s narrative projects CA$897.7 million in revenue and CA$58.3 million in earnings by 2028. This requires a 17.7% yearly revenue growth rate and a CA$68 million increase in earnings from the current CA$-9.7 million.
Uncover how High Tide’s forecasts yield a CA$7.33 fair value, a 36% upside to its current price.
Twelve Community members on Simply Wall St offered fair value estimates for High Tide ranging from CA$3.02 to CA$52.21 per share. With ongoing store expansion placing demands on cash flow, you’ll find a spectrum of opinions that reflect differing expectations for growth and profitability, explore these contrasting viewpoints to inform your own outlook.
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