High Tide Reports Second Fiscal Quarter 2025 Financial Results
The Company Generates $4.9 Million in Free Cash Flow
Daily Same Store Sales Across the Canna Cabana Network Increased by 6.2% Year Over Year
The Company Discloses That it is in Exclusive Discussions Related to a Transaction with a Leading German Medical Cannabis Importer and Wholesaler
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.
The Company Now Operates 200 Canna Cabana Locations Across Canada and Continues to be the Largest Cannabis Retail Brand in the Country
During February and March 2025, Canna Cabana Held a 12% Share of the Cannabis Retail Market Across the Five Provinces in Which the Company Has a Presence, Up From 11% in the Previous Year1
High Tide Remains the Highest Revenue Generating Cannabis Company Reporting in Canadian Dollars.2 Trailing Revenue Has Now Surpassed $550 Million
The Company Has Reached 1.9 Million Members in its Cabana Club in Canada, with ELITE Memberships Having Recently Surpassed 97,000—the Fastest Pace of Onboarding Paid Members Since Inception
CALGARY, AB, June 16, 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 second fiscal quarter of 2025 ended April 30, 2025, the highlights of which are included in this news release. The full set of unaudited condensed interim consolidated financial statements for the three and six months ended April 30, 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.
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1 Based on publicly available store count data for February 2025 and March 2025 in the five Canadian provinces where Canna Cabana operates and as per publicly available data from Statistics Canada and provincial regulators
2 Based on reporting by New Cannabis Ventures as of May 30, 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/
"I'm incredibly proud of the continued momentum we are seeing in our core bricks-and-mortar business, which once again led the pack in retail market share, same-store sales growth, and free cash flow generation—even in a seasonally slower quarter with three fewer days. Our success is a testament to the strength of our loyalty-focused retail model, which is unmatched in the cannabis industry," said Raj Grover, Founder and Chief Executive Officer of High Tide.
"Our team's laser-focus and relentless execution has allowed us to cross the 200-store milestone, achieved almost entirely through the use of our internally generated cash flows over the last two years. Meanwhile, our Cabana Club and ELITE memberships continue to exceed expectations, reinforcing a loyalty loop that is unique to our company. At a time when many competitors are shrinking or exiting the market, High Tide is only growing stronger. Our differentiated approach continues to attract both customers and industry attention—including from at least one direct competitor that has chosen to invest in our company."
"Building on this strong foundation, we're now advancing exclusive negotiations for a strategic entry into the German medical cannabis market—marking a major step forward in our global ambitions. I look forward to sharing more on this transformational opportunity in the near term. I've never been more excited about what lies ahead," added Mr. Grover.
GERMANY UPDATE
The Company announces that it has been engaged in ongoing and exclusive discussions regarding a transaction with a leading German medical cannabis importer and wholesaler. Due diligence on this transaction is in its final stages.
The Company also submitted a model project proposal to the German Federal Office for Agriculture and Food (BLE) in response to a December 2024 ordinance signed by the German Agriculture Minister related to the study of commercial cannabis use by adults.
CANNABIS BRANDS WHITE LABEL UPDATE
The Company notes that it currently sells 67 cannabis and accessory SKUs across both of its flagship Queen of Bud and Cabana Cannabis Co. brands, with additional exciting product offerings being worked on and expected to launch this summer. Below is a breakdown of the current Queen of Bud and Cabana Cannabis Co. inventory available in the Company's store network.
Queen of Bud and Cabana Cannabis Co.SKUs Available in Canna Cabana Stores
Brand
Product
SKUs
Last 12 Months Sales
Queen of Bud3
Cannabis
12
$1,377,013.00
Accessories
24
$569,782.00
Cabana Cannabis Co.
Cannabis
7
$2,300,804.00
Accessories
24
$1,052,660.00
Total
67
$5,300,259.00
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3 Sales for Queen of Bud branded cannabis and accessories commenced in September of 2024
2025 Second Fiscal Quarter, Financial Highlights:
Revenue was $137.8 million for the three months ended April 30, 2025, compared to $124.3 million during the same period last year, an increase of 11% year over year, and 12% when accounting for the one fewer day in this fiscal quarter, representing the fastest growth rate in six quarters. Revenue was down 3% sequentially during the three months ended April 30, 2025, given this quarter has three fewer days. The Company notes that its core bricks-and-mortar segment revenue increased by 16% year over year.
Gross profit was $35.5 million for the three months ended April 30, 2025, which was consistent year over year. Gross profit was also consistent sequentially, despite the quarter having three fewer days.
Gross profit margin was 26% for the three months ended April 30, 2025, which compared to 28% year over year as the Company took its Cabana Club loyalty program global across its e-commerce platforms. Gross profit margin improved from 25% sequentially, as the margins in the Company's core bricks-and-mortar segment, which generates 97% of its revenue, increased by 1% sequentially.
Adjusted EBITDA was $8.1 million in the three months ended April 30, 2025, representing the 21st consecutive positive quarter, and compared to $10.0 million during the previous year. Sequentially, Adjusted EBITDA increased by 14% despite this being a seasonally slower quarter with three fewer days.
The Company generated $4.9 million of free cash flow in the second fiscal quarter. While this was less than the record level of $9.4 million generated in the same quarter last year, it marked a strong improvement from the $(1.9) million generated sequentially. As stated by the Company previously, the quantum of free cash flow generated can vary significantly in any given quarter.
General and administration expenses represented 4.2% of revenue in the three months ended April 30, 2025, which represented improvements compared to 4.5% during the previous year, and 4.6% sequentially.
Salaries, wages, and benefits represented 12.7% of revenue in the three months ended April 30, 2025, which compared to 12.4% in the previous year and 12.3% sequentially.
Income from operations was $0.9 million for the three months ended April 30, 2025, marking a significant improvement from $0.1 million sequentially. During the second fiscal quarter, the Company generated a net loss of $2.8 million, which compared to net income of $0.2 million in the prior year and a net loss of $2.7 million 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 April 30, 2025—an all time-record—compared to $9.0 million in the same period last year, representing an increase of 26% year over year and up marginally sequentially.
Cash and cash equivalents as at April 30, 2025 totaled $34.7 million, compared to $34.5 million a year ago, and was up 4% sequentially.
2025 Second Fiscal Quarter, Retail Highlights:
Canna Cabana remains the largest cannabis retail brand in the country with 200 stores across Canada.
Average Canna Cabana store generated 2.3x revenue versus peers.4
Daily same-store sales were up 6.2% year over year, the fastest growth rate in five quarters.
Since the launch of its discount club model in October 2021 to March 2025, same store sales at Canna Cabana are up 132% while the average operator has experienced a 10% decline.5
Canna Cabana reached a 12% market share, up from 11% in the previous year.6
Canadian Cabana Club membership has surpassed 1.9 million, an increase of 33% year over year and 8% sequentially. The Company has also exceeded 97,000 ELITE members in Canada, an increase of 120% year over year and 20% sequentially—once again setting a new record in the pace of onboarding ELITE members.
Global Cabana Club membership has surpassed 5.87 million. This includes 104,700 ELITE members, which grew by 22% sequentially.
The Company reported approximately $6.8 million in retail sales during April 17, 2025, through April 20, 2025 ("'4/20' Long Weekend"). The Company also completed its largest ever 4/20 customer appreciation giveaway, with $100,000 having been awarded to an ELITE member from Winnipeg, Manitoba.
Canna Cabana had a shrink rate of just 0.3% during the three months ended April 30, 2025.
Annualized retail sales per square foot were $1,648 across the Canna Cabana store network during the second fiscal quarter of 2025. Adjusting for the fewer days, retail sales per square foot were only down 2% sequentially, in what is traditionally a seasonally slower quarter. This was higher than best-in-class retailers like Wal-Mart, Target, and Canadian Tire.7
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4 For the month of March 2025, based 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
5 Calculated by chaining monthly data, and based 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
6 For the months of February and March 2025, based 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
7 Data sourced from most recent public filings of the mentioned retailers
Second Fiscal Quarter 2025, Operational Highlights (February 1, 2025, April 30, 2025):
The Company opened four new Canna Cabana locations in Ontario—Hamilton, Cambridge, Collingwood, and Kitchener. Additionally, the Company opened a Canna Cabana location in Alberta, located in the town of Cochrane.
The Company was recognized as a Top 50 company by the TSX Venture Exchange for the second consecutive year.
Subsequent Events (May 1, 2025 - Present):
The Company opened four new Canna Cabana locations across Ontario and Alberta—Brantford, Cornwall, Calgary, and Sherwood Park. These openings bring High Tide's total store count to 200 Canna Cabana locations across Canada.
Province
Store Count
British Columbia
8
Alberta
87
Saskatchewan
12
Manitoba
11
Ontario
82
Total
200
At an annual general and special meeting of shareholders, each of the Company's five nominees proposed by management was elected as a director of the Company.
Selected financial information for the second quarter ended April 30, 2025:(Expressed in thousands of Canadian Dollars)
Three months ended April 30
Six Months Ended April 30
2025
2024
Change
2025
2024
Change
$
$
∆
$
$
∆
Free cash flow(i)
4,896
9,383
(48) %
2,996
12,991
(77) %
Net cash provided by ...
