High Tide (HITI) investor relations material

Growth and market position

• Expanded from 30 to 228 stores since 2020, aiming to exceed 350 locations long-term.

• Holds 12% national market share in Canada, rising to 14% excluding British Columbia.

• Same-store sales have increased 161% since October 2021, while the average operator declined 7%.

• Revenue per store and per square foot outpaces major retailers and industry peers.

• Largest loyalty program in the sector with 2.65 million members, including 178,000 paid ELITE members.

Business model and customer focus

• Discount club model drives high membership and customer retention, with 90%+ of customers joining.

• Core customer base is price-conscious, daily users aged 18-40, primarily blue-collar workers.

• Accessories account for 4-5% of sales, with higher margins due to direct sourcing and manufacturing.

• ELITE tier offers paid membership with deeper discounts and exclusive promotions, growing 84% year-over-year.

• Store format is compact (1,200-1,500 sq ft), focusing on efficiency and high turnover.

Financial performance and strategy

• Achieved record quarterly revenue of CAD 179 million and EBITDA of CAD 13.9 million.

• Free cash flow positive, generating CAD 13 million over the past 12 months.

• Stock trades at 5.7x trailing and under 4x forward EBITDA, with a market cap of CAD 283 million.

• Shifted focus in 2023 to cash flow sustainability, slowing store openings to prove profitability.

• Re-accelerating growth after demonstrating consistent free cash flow and operational stability.