High Tide Reports First Quarter 2025 Financial Results Featuring Record Revenue of $142.5 Million

Same store sales increased 5% year over year, representing the fastest pace of growth during the past four quarters

Cabana Club loyalty program exceeds 1.76 million members in Canada, with ELITE memberships exceeding 81,000 and growing at its fastest pace since inception 

This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated August 31, 2023, to its short form base shelf prospectus dated August 3, 2023.

High Tide Remains the Highest Revenue Generating Cannabis Company Reporting in Canadian Dollars1, Delivers Quarterly Revenue of $142.5 Million, an All-Time Record. This Represents an Increase of 11% Year Over Year, 3% Sequentially and Reaches an Annualized Revenue Run Rate Of $570 Million

Revenue Generated in the Company's Bricks-and-Mortar Segment was $135.7 Million, Which was a Record Level and Up 17% Year Over Year, Representing the Fastest Growth Rate in Five Quarters. The Segment Accounts for 95% of The Company's Consolidated Revenue

Same Store Sales in the First Fiscal Quarter Increased By 5% Year Over Year and 2% Sequentially. Between October 2021 and December 2024, Same Store Sales at Canna Cabana were up 142%, While the Average Operator in the Five Provinces Where the Company Operates has Experienced a 4% Decline2

The Company Surpassed 5.66 Million Global Cabana Club Members. This Includes 85,500 ELITE Members, Which Increased 13% Sequentially.

In Canada Alone, the Company Now Exceeds 1.76 Million Cabana Club Members. Canadian Cabana Club Membership Rates Have Increased by 33% Year Over Year and 2% Sequentially. The Company Has Also Exceeded 81,000 ELITE Members in Canada, an Increase of 153% Year Over Year and 11% Sequentially, Growing at its Fastest Pace Since Inception.

During November and December 2024, Canna Cabana Held an 18% Share of the Cannabis Retail Market in Alberta and 10% in Ontario. Across the Five Provinces in Which the Company Has a Presence, Canna Cabana Represented an 11% Market Share, Which Is Consistent Sequentially3

The Company Notes it Has Launched 29 Queen of Bud SKUs Since Acquiring the Brand in March 2024, With More Planned Launches Underway

Annualized Retail Sales Per Square Foot Were $1,734 Across the Canna Cabana Store Network During the First Fiscal Quarter of 2025, up 2% Sequentially. This Was Higher Than Best-In-Class Retailers Like Wal-Mart, Target, and Canadian Tire4

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1Based on reporting by New Cannabis Ventures as of February 7, 2025. For the New Cannabis Ventures' senior listing, segmented cannabis-only sales must generate more than US$25 million per quarter (CAD$31 million), for full details, see: https://www.newcannabisventures.com/cannabis-company-revenue-ranking/  

2Based on publicly available data from Statistics Canada and provincial regulators

3Based on publicly available store count data in the five Canadian provinces where Canna Cabana operates and as per publicly available data from Statistics Canada and provincial regulators

4Data sourced from most recent public filings of the mentioned retailers

CALGARY, AB, March 17, 2025 /PRNewswire/ - High Tide Inc. ("High Tide" or the "Company") (NASDAQ:HITI) (TSXV:HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, today released its financial results for the first fiscal quarter of 2025 ended January 31, 2025, the highlights of which are included in this news release. The full set of unaudited condensed interim consolidated financial statements for the three months ended January 31, 2025 and 2024 (the "Financial Statements") and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.hightideinc.com, its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov.

2025 First Fiscal Quarter, Financial Highlights:

Revenue increased to $142.5 million for the three months ended January 31, 2025, an all-time record, compared to $128.1 million during the same period last year, representing an increase of 11% year over year and 3% sequentially

Gross profit was $35.4 million for the three months ended January 31, 2025, which was relatively consistent year over year and sequentially

Gross profit margin was 25% for the three months ended January 31, 2025, which compared to 28% year over year and 26% sequentially. The margins in the Company's core bricks-and-mortar segment, which generates 95% of its revenue, remained consistent. During the first fiscal quarter, the Company took its Cabana Club loyalty program global across its ancillary e-commerce platforms. As part of this strategy, the Company proactively lowered its gross margins in its E-commerce segment, which it believes will be offset by increased volumes in the quarters to come

The Company generated a net loss of $2.7 million during the three months ended January 31, 2025, which compared to break even in the prior year and a net loss of $4.8 million sequentially, where adjusted net income was $0.2 million excluding non-cash impairment charges

Adjusted EBITDA was $7.1 million in the three months ended January 31, 2025, representing the 20th consecutive positive quarter, and compared to $10.4 million during the previous year, representing a decline of 32% year over year and 14% sequentially. This was due to the Company accelerating the pace of its organic store openings during 2024, and continuing into 2025. Given the mature and competitive cannabis retail landscape, these new locations experience a longer initial ramp up period, thus impacting EBITDA in the short-term. Additionally, the Company's e-commerce segment was negatively impacted as expected given its new disruptive international loyalty strategy

The Company generated $(1.9) million of free cash flow in the first fiscal quarter primarily due to heightened investments in working capital which represented the largest outflow in the past seven quarters. As per the Company's prior commentary, free cash flow generation can vary significantly in any given quarter, however, the Company continues to anticipate being free cash flow positive for the fiscal year. The Company has generated $16.5 million of positive free cash flow in the trailing four quarters

General and administration expenses represented 4.6% of revenue in the three months ended January 31, 2025, which remained relatively consistent when compared to the previous year, and were 4.2% sequentially

Salaries, wages, and benefits represented 12.3% of revenue in the three months ended January 31, 2025, which remained relatively consistent when compared to the previous year and sequentially

Cabanalytics Business Data and Insights platform, advertising revenue, and other revenue, which includes management fees, interest income, and rental income, was $11.3 million for the three months ended January 31, 2025—an all time-record—compared to $7.6 million in the same period last year, representing an increase of 49% year over year and 4% sequentially

Cash and cash equivalents in the three months ended January 31, 2025 totalled $33.3 million, compared to $28.7 million a year ago, representing an increase of 16% year over year and a decrease of 29% sequentially. The Company notes that during the quarter it issued $5.0 million of secured debentures and paid down $13.0 million of notes payable which matured on December 31, 2024

"I am pleased to report yet another quarter featuring record revenue. This continued momentum is supported by our core Canadian bricks-and-mortar business which is generating double digit growth, and continues to get stronger every day. This is demonstrated by the fact that Q1 same store sales experienced their fastest pace of growth in four quarters. At the same time, Canadian Cabana Club membership has exceeded 1.76 million, with ELITE memberships also growing at their fastest rate since the club's inception," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"I also want to address the lower EBITDA number head on. This was due to a purposeful shift in our strategy to win market share in our ancillary business lines, which will provide long-term benefits by expanding our Cabana Club globally and diversifying our customer base. International opportunities in the medical cannabis space are very exciting and can contribute meaningfully to our bottom line acting as a hedge against short to medium-term volatility in our e-commerce platforms. We look forward to leveraging our $1.5 billion procurement expertise with Canadian licensed producers to fulfill demand in the growing German medical cannabis market, as well as other international markets in due course. As excited as I am about the opportunities outside of Canada, our team will keep working on all fronts in 2025–including growing our core bricks-and-mortar business," added Mr. Grover.

White Label Update (Queen of Bud)The Company notes it has launched 29 Queen of Bud SKUs since acquiring the brand in March 2024, with more planned launches underway. Below is a breakdown of the current Queen of Bud inventory available in our store network.

Queen of Bud SKUs Available in Canna Cabana Stores

Products

SKUs          

Candles

4

Lighters

11

Pre-Rolls

6

Water Pipes          

3

Grinders

5

First Fiscal Quarter 2025, Operational Highlights (November 1, 2024, January 31, 2025):

On November 13, 2024, the Company announced the closing of the final tranche of its previously disclosed $15,000 subordinated debt facility

On December 31, 2024, the Company repaid the $13,000 principal balance of the notes payable to Opaskwayak Cree Nation

The Company opened four new Canna Cabana locations in Ontario—Richmond, Pembroke, Scarborough and Hamilton—and one new Canna Cabana location in Hinton, Alberta

The Company expanded the first of its kind innovative Cabana Club membership program across the entirety of the United States (U.S.) through cabanaclubusa.com, as well as the European Union (E.U.) and the United Kingdom (U.K.) through cabanaclub.eu, with total Cabana Club membership now reaching over 5.66 million

Subsequent Events (February 1, 2025 - Present): 

The Company opened three new Canna Cabana locations in Ontario—located in Hamilton, Cambridge and Collingwood—bringing High Tide's Canna Cabana branded retail store count to 194 in Canada, and 79 in the province of Ontario.

The Company was recognized as a Top 50 company by the TSX Venture Exchange for the second consecutive year

During ongoing due diligence, the Company paused its previously announced acquisition of Purecan GmbH in order to explore alternative arrangements to enter the German medical cannabis market

Selected financial information for the first quarter ended January 31, 2025:(Expressed in thousands of Canadian Dollars)

Three months ended January 31

2025

2024

Change

$

$

∆

Free cash flow(i)

(1,900)

3,608

(153) %

Net cash provided by operating activities

683

6,873

(90) %

Revenue

142,461

128,068

11 %

Gross profit