High Tide (HITI) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 revenue of CAD 137.8 million, up 11% year-over-year, with brick-and-mortar sales up 16% and daily same-store sales rising 6.2% year-over-year.

• Opened the 200th store, expanding footprint by 10% in Alberta and 30% in Ontario year-over-year, while the industry contracted.

• Cabana Club loyalty program reached 1.9 million members in Canada, up 33% year-over-year, with paid ELITE tier up 120% year-over-year.

• Entered exclusive discussions for a transaction with a leading German medical cannabis importer and wholesaler.

• Market share increased to 12% in key provinces, up from 11% last year.

Financial highlights

• Q2 revenue: CAD 137.8 million (up 11% year-over-year, down 3% sequentially due to fewer days in the quarter).

• Brick-and-mortar segment: 97% of consolidated revenue, up 16% year-over-year.

• Cabanalytics and other revenue: CAD 11.3 million, up 26% year-over-year.

• Consolidated gross margin: 26% (vs. 28% last year, 25% sequentially).

• Adjusted EBITDA: CAD 8.1 million (down 20% year-over-year, up 14% sequentially).

• Free cash flow: CAD 4.9 million (vs. CAD 9.4 million last year, CAD -1.9 million in Q1).

• Net loss of CAD 2.8 million, compared to net income of CAD 0.2 million last year.

• Cash and equivalents: CAD 34.7 million; total debt: CAD 25.4 million (0.8x trailing adjusted EBITDA).

Outlook and guidance

• Q3 expected to be seasonally stronger, with further gross margin improvement anticipated.

• On track to add 20-30 new stores in 2025, with more than a dozen under construction and a long-term goal of surpassing 300 stores in Canada.

• Expects to remain free cash flow positive for the fiscal year, despite quarterly variability.

• Anticipates Cabana Club membership in Canada to exceed 2.5 million over the long term.

• Preparing for entry into the German market, with supply secured and partner selection underway.

• E-commerce remains under review; flexibility to restructure or exit if not profitable.