Liquidity is tightening as cash reserves declined to $27.4 million in 2026Q2 from a peak of $63.8 million in 2025Q3, reflecting the challenges of funding operations through volatile free cash flow margins.
| Cash from Operations | 25.22M | 23.87M | 35.55M | 20.66M | 4.5M | -2.83M | 8.85M | -14.48M | -8.78M | 1.04M | 289.72K |
| Operating CF Margin % | - | 4.02% | 6.81% | 4.24% | 1.26% | -1.56% | 10.63% | -46.28% | -100.34% | 10.59% | 3.47% |
| Operating CF Growth % | 728.63% | -32.86% | 72.04% | 359.64% | 259.12% | -131.92% | 161.11% | -64.96% | -942.97% | 259.46% | - |
| Net Income | -44.03M | -51.4M | -3.81M | -40.95M | -70.85M | -35.04M | -6.35M | -26.29M | -4.53M | 296.32K | 1.22M |
| Depreciation & Amortization | 20.61M | 24.31M | 25.39M | 32.76M | 30.17M | 23.57M | 6.8M | 1.4M | 86K | 28.29K | 72K |
| Stock-Based Compensation | 1.86M | 3.92M | 2.98M | 5.03M | 8.08M | 4.88M | 129K | 2.21M | 146K | 0 | 0 |
| Deferred Taxes | -69K | -25K | -593K | -7.64M | -2.92M | -730K | 229K | -708K | -1.5M | 265.07K | 0 |
| Other Non-Cash Items | 53.09M | 47.36M | 8.54M | 36.33M | 44.62M | 14.39M | 2.85M | 6.71M | 2.08M | -213.8K | 685.48K |
| Working Capital Changes | -3.85M | -294K | 3.04M | -4.86M | -4.61M | -9.9M | 5.2M | 2.2M | -5.06M | 665.56K | -1.68M |
| Change in Receivables | -4.2M | -1.34M | 4.26M | 627K | -3.73M | -3.29M | -410K | -3M | -360K | -461.05K | -568.95K |
| Change in Inventory | -11.21M | -5.81M | -3.32M | -2.87M | -2.87M | -5.5M | 1.95M | -1.81M | -102K | 215.89K | -339.37K |
| Change in Payables | -283K | 0 | 0 | 0 | 0 | 0 | 2.47M | 2.81M | 1.72M | 299.06K | 0 |
| Cash from Investing | -22.36M | -22.29M | -11.01M | -5.72M | -8.59M | -28.49M | -3.3M | -16.92M | -4.23M | -534.14K | 818.11K |
| Capital Expenditures | -9.92M | -10.44M | -9.05M | -5.79M | -7.76M | -10.56M | -2.29M | -8.07M | -3.58M | -50.2K | -2.44K |
| CapEx % of Revenue | 1.48% | 1.76% | 1.73% | 1.19% | 2.17% | 5.83% | 2.76% | 25.8% | 40.93% | 0.51% | 0.03% |
| Acquisitions | 0 | -12.29M | -600K | 270K | 463K | -19.73M | -2.23M | -6.51M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -12.68M | -209K | -703K | -295K | -1.3M | 2.31M | -474K | -2.33M | -646K | 0 | 820.56K |
| Cash from Financing | 608.91K | 202K | -7.72M | -9.26M | 15.17M | 37.81M | 1.17M | 24.01M | 20.14M | -555.14K | -179.02K |
| Debt Issued (Net) | 4.94M | 1.27M | -10.92M | -11.38M | -3.8M | -10.08M | 3.43M | 24.41M | 535K | 4.87K | -23.7K |
| Equity Issued (Net) | 457.56K | 628K | 3.49M | 2.6M | 21.9M | 38.57M | 0 | 0 | 3.89M | 0 | 0 |
| Dividends Paid | -586.8K | -1.4M | -199.72K | -456.65K | -1.96M | 0 | 0 | 0 | -1.15M | -560.01K | -155.31K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -4.14M | -292.19K | -97.28K | -32.35K | -979.72K | 9.32M | -2.26M | -401K | 16.87M | 0 | 0 |
| Net Change in Cash | 1.95M | 616K | 17.15M | 5.04M | 11.07M | 6.49M | 6.72M | -7.39M | 7.13M | -47.84K | 928.82K |
| Free Cash Flow | 15.08M | 13.22M | 25.8M | 14.58M | -4.56M | -13.54M | 6.08M | -24.89M | -13.01M | 991.23K | 287.28K |
| FCF Margin % | 2.25% | 2.23% | 4.94% | 2.99% | -1.28% | -7.47% | 7.3% | -79.53% | -148.66% | 10.08% | 3.44% |
| FCF Growth % | 7.52% | -48.76% | 76.93% | 419.74% | 66.32% | -322.63% | 124.43% | -91.37% | -1412.1% | 245.05% | - |
| FCF per Share | 0.17 | 0.16 | 0.32 | 0.20 | -0.07 | -0.32 | 0.40 | -1.88 | -0.99 | 0.08 | 0.01 |
| FCF Conversion (FCF/Net Income) | -0.34x | -0.47x | -8.20x | -0.53x | -0.06x | 0.08x | -1.27x | 0.55x | 1.94x | 3.51x | 0.24x |
| Interest Paid | 7.95M | 7.37M | 6.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 392K | 329K | 638K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory and margin compression
As reported in financial statements, the relationship between net income and operating cash flow remains highly erratic, with OCF/NI ratios swinging from -512.32 in 2024Q2 to 17.81 in 2025Q3, indicating that accounting earnings are currently poor proxies for the company's actual cash-generating capacity.
The persistent gap between net income and operating cash flow suggests that significant non-cash items, such as depreciation and amortization, are heavily influencing the bottom line. Investors should monitor whether this divergence narrows as the company matures, as the current reliance on non-cash adjustments to bridge the profitability gap warrants further investigation.
Based on the provided cash flow data, free cash flow margins have fluctuated significantly, peaking at 8.5% in 2024Q2 before compressing to 1.3% in 2026Q2, which highlights the inherent difficulty in maintaining consistent cash generation within the company's aggressive retail expansion strategy.
While the company has achieved positive free cash flow in most recent quarters, the volatility suggests that cash generation is highly sensitive to operational scale and timing of expenditures. This inconsistency may indicate that the business model is still in a transition phase where cash flow stability remains elusive.
According to recent SEC filings, High Tide has maintained a consistent capital intensity, with CapEx/Revenue ratios hovering between 1.3% and 2.5% over the last ten quarters, suggesting that the company is successfully managing its physical footprint expansion without excessive capital expenditure requirements.
The relatively low and stable capital intensity appears to support the company's ability to scale its retail presence without placing undue strain on its liquidity. However, analysts should monitor whether future store openings require higher maintenance capital as the existing asset base ages.
As indicated by the quarterly cash flow data, working capital changes have been highly inconsistent, ranging from a $4.8 million inflow in 2024Q2 to a $4.3 million outflow in 2026Q2, reflecting the challenges of managing inventory and payables in a high-velocity retail environment.
These swings in working capital suggest that the company's cash position is susceptible to timing differences in inventory procurement and supplier payments. Investors should watch for signs of inventory buildup, which could signal potential future write-downs or inefficiencies in the discount club model.
Quick answers to the most common questions about buying HITI stock.
High Tide Inc. (HITI) generated $23.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
High Tide Inc. (HITI) generated $13.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
High Tide Inc. (HITI) spent $10.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, High Tide Inc. (HITI) returned $1.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.