High Tide Inc (NASDAQ:HITI) stock rose 1.53% (As on June 15, 11:42:45 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. Net loss improved to ($1.6) million in the second fiscal quarter of 2023, compared to ($8.3) million during the same period in 2022 and ($3.9) million sequentially, representing reductions in net losses of 81% and 59%, respectively. Free cash flow was ($2.0) million in the second fiscal quarter of 2023 compared to ($0.8) million in the first fiscal quarter of 2023. Importantly, this includes a meaningful reduction of $6.8 million dollars in accounts payable and accrued liabilities during the second fiscal quarter. Free cash flow also represented a 66% improvement versus ($5.8) million in the second fiscal quarter of 2024. Cash on hand as of April 30, 2023, totalled $22.5 million. Loss from operations improved to ($2.6) million in the second fiscal quarter of 2023, compared to ($7.6) million during the same period in 2022, and ($3.9) million sequentially, representing a reduction in losses of 65% and 33% respectively.

HITI in the second quarter of FY 23 has reported the adjusted loss per share of 1 cent, beating the analysts’ estimates for the adjusted loss per share of 4 cents, according to the Zacks Consensus Estimate. The company had reported 46 percent rise in the adjusted revenue to $87.13 million in the second quarter of FY 23, beating the analysts’ estimates for revenue by 2.70%. For locations operational throughout the second fiscal quarter of 2023 and 2022, same-store sales significantly increased by 30% year-over-year. Sequentially, same-store sales increased by 1%. Calculated daily, same-store sales increased by 5%, as there were 3 fewer days in the quarter, representing the seventh consecutive quarter of same-store sales growth. The Company continued the rollout of ELITE, the first-of-its-kind cannabis paid loyalty program in Canada, with membership reaching over 13,500 as of June 14, 2023 representing a 42% increase since March 17, 2023. The company Continued cost-saving measures implemented by the Company resulted in a decrease in general and administrative expenses as a percentage of revenue to 5% in the second fiscal quarter of 2023, an improvement from 7% in the second fiscal quarter of 2022 and 6% sequentially. Adjusted EBITDA increased to $6.6 million in the second fiscal quarter of 2023 compared to $2.4 million during the same period in 2022, representing increases of 174% year-over-year and 20% sequentially.