High Tide (HITI) investor relations material

Executive summary

• Achieved record quarterly revenue of $179.3 million for Q2 2026, up 30% year-over-year and 1% sequentially, marking the fourth consecutive all-time high despite Q2 being seasonally slow and having three fewer days.

• Adjusted EBITDA reached a record $13.9 million, up 73% year-over-year and 21% sequentially, with an 8% margin, also an eight-quarter high.

• Generated positive net income of $24,000, reversing prior losses; adjusted net income was $0.6 million.

• Free cash flow was $1.5 million, with $13.4 million generated over the past four quarters.

• Growth driven by Canadian bricks-and-mortar operations and Remexian, the German medical cannabis business, with significant gains in revenue, margin, and market share.

Financial highlights

• Gross profit hit a record $48.4 million, up 36% year-over-year and 9% sequentially; gross margin reached 27%, an eight-quarter high.

• Income from operations was $6.1 million, up 554% year-over-year and 157% sequentially.

• Net income per diluted share was $0.01, reversing a loss of $0.04 a year ago and $0.02 sequentially, excluding non-cash derivative impacts.

• Cash and cash equivalents stood at $36.5 million at quarter-end.

• General and administrative expenses were 4% of revenue, lowest in seven quarters.

Outlook and guidance

• Targeting 20–30 new stores in Canada in 2026, with 10 already added and a recent acquisition of four Northern Helm stores.

• Long-term goal to exceed 350 stores in Canada, with potential to increase to over 500 if Ontario raises its retail cap.

• Expects significant growth in white label cannabis products, aiming for 20% of total sales long-term.

• Remexian expected to sustain or grow its 14% share of the German medical cannabis market and expand into more European markets.

• Monitoring U.S. regulatory changes for expansion opportunities in hemp-derived CBD.