High Tide achieves record revenue and improved operating margins, though working capital fluctuations temporarily pressured cash flow during the third quarter.
High Tide's record Q3 revenue and 133% operating income growth highlight strong profitability, while a working-capital swing dragged operating cash flow, warranting a neutral stance.
High Tide Inc. posted record fiscal third-quarter revenue of C$198.8 million, marking a 33% year-over-year increase. While operating income surged 133% to C$8.7 million, quarterly operating cash flow dipped slightly due to a C$4.2 million unfavorable swing in working capital requirements.
The decline was driven by a C$4.2 million unfavorable swing in non-cash working capital compared to the previous year, which outweighed improvements in operating profitability.