High Tide Inc (NASDAQ:HITI), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, stock fell 7.65% (As on September 15, 11:46:16 AM UTC-4, Source: Google Finance) after the company reported positive free cash flow of $4.1 million for the fiscal first quarter, achieving this milestone ahead of its year-end target. The improvement from negative free cash flow of $2 million in the year-ago quarter was driven by increases in the company’s same-store sales growth. Loss from operations, which included $8.5 million of non-cash depreciation and amortization expenses improved to ($0.7) million in the third fiscal quarter of 2023, compared to ($4.7) million during the same period in 2022, and ($2.6) million sequentially, representing a reduction in losses of 86% and 75%, respectively. Net loss was ($3.6) million in the third fiscal quarter of 2023, compared to ($2.7) million during the same period in 2022 and ($1.6) million sequentially, driven by a decrease in income arising from revaluation of derivative liabilities during this quarter. Cash on hand as of July 31, 2023, totalled $25.7 million, compared to $18.3 in the same period of 2022, representing an increase of 40% year-over-year and 14% sequentially without obtaining any external funding during the quarter and spending over $1 million on capital expenditures.

HITI in the third quarter of FY 23 has reported the adjusted loss per share of 3 cents, beating the analysts’ estimates for the adjusted loss per share of 4 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 30 percent to $93.17 million in the third quarter of FY 23, beating the analysts’ estimates for revenue by 4.52%. Gross profit increased to $34.6 million in the third fiscal quarter of 2023 compared to $25.8 million during the same period in 2022, representing an increase of 34% year-over-year and 10% sequentially. Gross profit margin in the three months ended July 31, 2023, was 28%, consistent with previous several quarters. The Company notes that gross margins earned in its bricks-and-mortar stores once again ticked higher sequentially.

Moreover, Sales from Cabanalytics business data and insights platform increased to $6.5 million in the third fiscal quarter of 2023 from $5.5 million during the same period in 2022, representing an increase of 19% year-over-year and 3% sequentially. For locations operational throughout the third fiscal quarter of 2023 and 2022, same-store sales increased by 19% year-over-year and 8% sequentially.