High Tide (HITI) Investor update summary

Financial performance highlights

• Free cash flow reached CAD 9.4 million in Q2, up from CAD 3.6 million in the previous quarter and negative CAD 2 million a year ago, with a margin of 7.6% and a yield over 8% of enterprise value.

• Quarterly revenue was CAD 124.3 million, up 5% year-over-year, with trailing 12-month revenue surpassing CAD 500 million for the first time.

• Market share increased to 10.9% in operating provinces, with Alberta and Ontario at 20% and 10% respectively.

• ELITE paid membership grew 226% year-over-year to 44,000, and total club membership rose 38% to 1.43 million.

• Achieved 17 consecutive quarters of positive adjusted EBITDA, with margin rising to 8.1% and gross margin at a nine-quarter high of 28.4%.

Operational and strategic drivers

• Differentiated strategic thinking and a unique discount club retail model have driven growth and market share gains.

• Strong operational focus and disciplined management of costs and processes underpin performance.

• Team quality and cohesion are credited as key to sustained success and international ambitions.

• Data-driven decision-making, supported by an internal data science team, enables effective pricing and loyalty strategies.

Market trends and competitive positioning

• Same store sales have increased 111% over 10 quarters, while the national average declined 10%.

• Retail sales per square foot exceed CAD 1,500, far above the peer average of CAD 400.

• Cash on hand stands at CAD 34 million, supporting further expansion and lease takeovers.

• Ongoing lease takeovers signal continued consolidation and competitive strength.