Monthly Reversal - HITI - Pharmaceutical Retailers - September 16, 2026

Why this is a Monthly Reversal

HITI triggered a monthly reversal signal on September 16, 2026. Two stocks were screened out by this filter that day, and it ranked second. High Tide is a Nasdaq-listed leading Canadian cannabis retailer, with revenue growing double digits for multiple consecutive quarters and its 2026Q3 adjusted EBITDA margin rising to 8.2%, a twelve-quarter high. This is precisely the core characteristic of a monthly reversal. In terms of relative strength, RPS50 is 87.8, clearly in the leading range, meeting this filter's requirement for relative price strength.

How the filter reads it

Below are the dimensions the monthly reversal formula reads, and how HITI measured on September 16, 2026.

Dimension	Reading	Result
Relative Strength	In the leadership band (RPS50 87.8)	Pass
Trend structure	Moving averages stacked and rising	Pass
Price position	In the upper range	Pass
Volume	Advancing on heavy volume	Pass
Signal uniqueness	First trigger in about a month	Yes

Fundamental Fact Sheet

Market Cap About USD 240 million

PE (TTM) Not applicable (net loss)

Forward PE 17.52

ROE -26.04%

Net margin -0.11%

Revenue YoY +30.11%

Valuation metrics are from the latest snapshot; profitability and growth are trailing-twelve-month figures. These numbers are for reference only and do not constitute investment advice. Data sources and calculation methods may differ from official filings; verify independently before making any decision.

High Tide is a Nasdaq-listed leading Canadian cannabis retailer, mainly engaged in Canadian adult-use cannabis brick-and-mortar retail (the Canna Cabana chain, about 96.7% of revenue), German medical cannabis import and wholesale (Remexian) and consumer accessories distribution. It is Canada's second-largest cannabis retail chain and a leading German medical cannabis import distributor, dual-listed on TSXV and the Frankfurt Stock Exchange, reporting in Canadian dollars.

Growth

Revenue growth has climbed step by step: FY2025 up 13.7% year on year, 2026Q2 up 30.1% for the quarter, and 2026Q3 rising further to 33%.
There is hard evidence of margin repair: the 2026Q3 adjusted EBITDA margin was 8.2%, the highest in twelve quarters, with adjusted EBITDA up 52% year on year.
Germany's Remexian has become a second growth curve: 2026Q3 revenue was CAD 38.2 million, up 21% quarter on quarter, with an adjusted EBITDA margin of 12%, above Canadian retail.
Growth by squeezing out competitors: market share across four Canadian provinces reached 14% (up 1pt year on year), while total industry sales rose only 3% and the company's sales rose 10%.
Expense ratios fell to multi-quarter lows: in 2026Q3 compensation was 11.4% of revenue and G&A 3.9%, the direct source of the margin improvement.

Business catalysts

The FY2026 annual report (year ending 10-31, historically disclosed around mid-to-late December) will verify whether full-year revenue, net income, operating cash flow and net assets have stopped declining.
In August 2026 it completed a CAD 40 million senior secured credit facility and retained CAD 25 million of undrawn capacity from Bank of Montreal.
The acquisition of Northern Helm closed in July 2026, with the target's financial contribution still to be verified in later filings.

Risks

Net assets have fallen for two consecutive fiscal years with the decline widening: FY2025 net assets were CAD 88 million, down 38.9% year on year.
Interest-bearing debt nearly doubled: FY2025 reached CAD 149 million, up 99.6% year on year, and equity can no longer fully cover it.
Operating cash flow diverges from growth: FY2025 operating cash flow was CAD 24 million, down 32.9% year on year.
Net income is still negative and varies widely by measure: FY2025 net income was -CAD 51 million; the 2026Q3 figure of CAD 12.7 million included a gain on derivative liabilities at fair value, leaving only CAD 2.2 million on an adjusted basis.
Single-industry concentration: about 96.7% of revenue is cannabis-related and 100% depends on one regulatory framework, with no hedge.
Valuation and profitability are mismatched: PB is 3.70 against negative net income, and the premise for the forward PE, a return to positive net income, is not yet confirmed by the filings.

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