High Tide (HITI) investor relations material

Executive summary

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

• Adjusted EBITDA was CAD 11.5 million, up 62% year-over-year, the fastest pace in two years.

• Free cash flow was CAD 2.9 million, reversing a negative CAD 1.9 million last year and more than doubling Q4; trailing 12-month free cash flow reached CAD 16.8 million.

• Canna Cabana loyalty program reached 2.58 million members, up 47% year-over-year; Elite members doubled to 162,000.

• International expansion continues, with Remexian in Germany increasing its market share of medical cannabis imports and U.S. e-commerce showing first sequential revenue growth in two years.

Financial highlights

• Consolidated gross margin was 25% in Q1, consistent with Q4 and just below 26% sequentially; brick-and-mortar segment margin reached 28%, the highest in over three years.

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

• Adjusted EBITDA margin for brick-and-mortar was 9% in Q1, consistent with Q4 and above 6% last year.

• Net loss improved to $0.4 million from $2.7 million year-over-year and $46.7 million sequentially.

• Total debt stood at CAD 64.5 million, with CAD 46.4 million in cash and restricted cash, and no near-term maturities.

Outlook and guidance

• Targeting 20–30 new stores in Canada in 2026, mostly organic, with a focus on Ontario, aiming for over 350 stores nationwide.

• Long-term goal to exceed 3 million loyalty members and reach 1 million elite members.

• 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.