CALGARY, AB – High Tide Inc., a retail-forward enterprise built to deliver real-world value across every component of cannabis, reported its financial results for the second fiscal quarter of 2025 ended April 30, 2025. The full set of unaudited condensed interim consolidated financial statements for the three and six months ended April 30, 2025 and 2024 and accompanying management’s discussion and analysis can be accessed by visiting the Company’s website, its profile pages on SEDAR+, and EDGAR.
“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.
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.
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.
Canna Cabana reached a 12% market share, up from 11% in the previous year.
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.
Operational highlights (February 1 – 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 – 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.
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.
Outlook
High Tide’s wholly owned subsidiary, Canna Cabana, operates 200 current locations. The Company intends to add 20-30 locations during calendar 2025, with a long-term goal to exceed 300 locations across Canada.
The Company’s Cabana Club and ELITE loyalty programs continue to expand at a rapid pace across Canada. Cabana Club membership has now reached 1.9 million members in Canada, which is up 33% in the past year. Over the long term the Company anticipates exceeding 2.5 million Cabana Club members in Canada. Globally, the Company has now surpassed 5.87 million Cabana Club members. ELITE, the paid membership tier, continues to break quarterly and annual growth records and now exceeds 97,000 members in Canada and 104,000 worldwide, with additional members being onboarded daily. ELITE members tend to shop more frequently and in larger quantities than base tier members.
Following the successful launch of its innovative discount club model in its core bricks-and-mortar business, in late 2024, the Company expanded Cabana Club across all its global e-commerce businesses, offering disruptive three-tier pricing. While the Company is currently behind its original revenue expectations, this line item represents an immaterial share of consolidated revenue of just 3%. The Company remains committed to its communicated 12-month plan to bolster its e-commerce platforms, which are strategically positioned to take advantage of further federal reforms in the U.S. and elsewhere.
As stated by the Company previously, the quantum of free cash flow generated can vary significantly in any given quarter, however, it anticipates remaining free cash flow positive for the fiscal year, and notes that free cash flow for the first half of fiscal 2025 was positive.
The Company continues to expand white label product offerings in its Queen of Bud and Cabana Cannabis Co. brands, with 67 cannabis and accessory SKUs now available across the Canna Cabana store network. The Company is currently working on exciting new white label product offerings that are expected to launch this summer.
The Company’s balance sheet remains healthy with total debt of $25.4 million, representing just 0.8x Adjusted EBITDA generated during the past 12 months, and with no maturities for over two years. As a result, the Company believes it can continue to fund future store growth with cash generated from existing locations.
The Company is in exclusive discussions regarding a transaction with a leading German medical cannabis importer and wholesaler. While there is no guarantee of a successful closing, the Company is working towards completing this transaction in the near term. With half of all German medical cannabis imports still coming from Canada, the Company believes that it is well-positioned to leverage its procurement expertise, based on over $1.7 billion in Canadian cannabis sales, to become a significant supplier of medical cannabis into Germany and potentially other European jurisdictions.
ATM program quarterly update
Pursuant to the Company’s ATM Program that allows the Company to issue up to $30 million (or the equivalent in U.S. dollars) of Common Shares from the treasury to the public from time to time, at the Company’s discretion and subject to regulatory requirements, as required pursuant to National Instrument 44-102 – Shelf Distributions and the policies of the TSXV, during the six months ended April 30, 2025, the Company issued an aggregate of 11,600 Common Shares over the Nasdaq or TSXV, for aggregate gross proceeds of $52. The Company has not issued any shares under the ATM Program during the three months ended April 30, 2025, or from May 1, 2025, to today.
Pursuant to an Equity Distribution Agreement cash commission of $1 on the aggregate gross proceeds raised was paid to the Agents in connection with their services under the Equity Distribution Agreement during six months ended April 30, 2025.
The Company intends to use the net proceeds of the ATM Program to fund strategic initiatives it is currently developing, to support the growth and development of the Company’s existing operations, funding future acquisitions as well as working capital and general corporate purposes.
ABOUT HIGH TIDE
High Tide Inc. (HITI) is a leading retail-forward cannabis enterprise engineered to unleash the full value of the world’s most powerful plant. Its wholly owned subsidiary, Canna Cabana, is the second-largest cannabis retail brand globally.
