High Tide Reports Financial Results for Third Fiscal Quarter Featuring Record Revenue and Adjusted EBITDA, Along With Positive Free Cash Flow and Net Income

Executive Summary

• High Tide Inc. reported record financial results for its third fiscal quarter ended July 31, 2025, driven by a 14% year-over-year increase in revenue to $149.7 million and record Adjusted EBITDA of $10.6 million.
• The company achieved positive net income of $832,000 and generated $7.7 million in free cash flow, marking a significant turnaround from the previous quarter's net loss.
• The release highlights the closing of the acquisition of a 51% majority stake in Remexian Pharma GmbH for €26.4 million, entering the German medical cannabis market, alongside continued expansion of its Canna Cabana retail footprint in Canada.

Key Details

• Revenue: Record $149.7 million for Q3 2025 (up 14% YoY and 9% sequentially); core bricks-and-mortar revenue up 18% YoY.
• Profitability Metrics:
  • Gross Profit: Record $40.1 million (27% margin).
  • Adjusted EBITDA: Record $10.6 million (up 11% YoY, 32% sequentially).
  • Net Income: $0.8 million (reversal from $2.8 million net loss in Q2).
  • Income from Operations: Record $3.7 million (up 22% YoY).
• Cash Flow & Balance Sheet:
  • Free Cash Flow: $7.7 million (up 148% YoY).
  • Cash and Cash Equivalents: $63.8 million as of July 31, 2025.
  • Raised $25.2 million in net proceeds via a junior secured loan during Q3.
• M&A Activity (Remexian):
  • Closed acquisition of 51% interest in Remexian Pharma GmbH for €26.4 million.
  • Provides entry into the German medical cannabis market; company holds a five-year option to acquire remaining 49% after 24 months.
• Retail Operations (Canna Cabana):
  • Store Count: 207 locations across BC, AB, SK, MB, and ON.
  • Market Share: 12% share of the cannabis retail market in the five provinces (up from 11% YoY).
  • Same-Store Sales: Up 7.4% YoY (fastest growth in two years).
  • Membership: Cabana Club surpassed 2.15 million members in Canada; ELITE members exceeded 115,000 in Canada.
  • Efficiency: Annualized retail sales per square foot of $1,735; shrink rate of 0.2%.
• Financing Updates:
  • Closed a $30 million junior secured loan.
  • ATM Program Update: Issued 11,600 common shares for aggregate gross proceeds of $52,000 over the nine months ended July 31, 2025. No shares issued in Q3 or post-Q3.
• Operational Highlights:
  • Opened 7 new stores in Q3 (Brantford, Cornwall, Calgary, Sherwood Park, Toronto, Winnipeg, Drayton Valley).
  • Opened 4 new stores post-Q3 (Saskatoon, Lasalle, Burlington, London).
  • White Label Portfolio: 75 SKUs available across Queen of Bud and Cabana Cannabis Co. brands, generating $6.4 million in sales over the last 12 months.

Notable Quotes

• "I'm thrilled to share that this has been our most powerful quarter to date across nearly every financial metric, including record revenue and adjusted EBITDA, along with positive free cash flow and net income." — Raj Grover, Founder and CEO
• "The cherry on top of these results is the recent closing of our acquisition of a majority stake in Remexian, which positions us as a major player in Germany's medical cannabis market... High Tide is now not only a leader in Canada, but a leader in Europe's largest cannabis market." — Raj Grover, Founder and CEO