High Tide (HITI) investor relations material

Executive summary

• Q1 FY2026 revenue reached CAD 178.3 million ($178.3 million), up 25% year-over-year and 9% sequentially, marking the fastest growth in 10 quarters.

• Adjusted EBITDA was CAD 11.5 million ($11.5 million), up 62% year-over-year, the fastest pace in 2 years and the second-highest quarter ever.

• Free cash flow was CAD 2.9 million ($2.9 million) for the quarter and CAD 16.8 million ($16.8 million) over the past 12 months, reversing a negative result last year.

• Canna Cabana remains the largest cannabis retailer in Canada with 220 locations and a 12% market share across five provinces.

• Loyalty program membership in Canada grew 47% year-over-year to 2.58 million, with Elite members doubling to 162,000.

Financial highlights

• Gross profit reached a record $44.4 million, up 25% year-over-year and 4% sequentially.

• Consolidated gross margin was 25% in Q1, consistent with Q4 and year-over-year; brick-and-mortar segment margin reached 28%, the highest in over three years.

• Adjusted EBITDA margin was 6% overall and 9% for the brick-and-mortar segment.

• Annualized revenue per sq ft in Q1 was CAD 1,728 ($1,728), slightly lower year-over-year but above many leading blue-chip retailers.

• Cash and equivalents at quarter-end was CAD 46.4 million ($46.4 million); total debt stood at CAD 64.5 million.

Outlook and guidance

• Targeting 20–30 new stores in Canada in 2026, mostly organic, with a long-term goal to exceed 350 stores and reach 3 million loyalty members, including 1 million elite.

• White label products expected to grow from 1.6% to 20% of sales over five years.

• Remexian gross margins in Germany expected to reach 20–25% as Canadian biomass arrives.

• Exploring entry into the U.K. market within 12 months and ongoing M&A opportunities.

• U.S. e-commerce recovery expected to continue, with potential growth from Medicare/Medicaid CBD pilot programs.