High Tide Achieves Record Revenue of $142.5 Million in Q1 2025, Showing Remarkable Growth

High Tide Reports First Quarter 2025 Financial Results

High Tide Inc., a leading name in the cannabis retail market, has reported remarkable financial results for the first quarter of 2025, achieving a record revenue of $142.5 million. This milestone signifies an 11% increase compared to the same quarter last year and a 3% increase from the previous quarter. The company's success highlights its robust positioning within the cannabis industry.

Key Financial Highlights

The financial results showcase a 17% year-over-year increase in revenue generated from the physical retail segment, totaling $135.7 million, which accounts for 95% of High Tide's consolidated revenue. A steady same-store sales growth of 5% year-over-year was also recorded, dating back to the rapid expansion from October 2021 to December 2024, where same-store sales rose a staggering 142%. Underpinning this performance is the growth of Canna Cabana, which now commands significant market shares in Alberta and Ontario, placing it as a formidable player in the cannabis retail sector.

High Tide's customer engagement strategy is demonstrating results through the impressive growth of its Cabana Club loyalty program, which now boasts over 1.76 million members in Canada, along with a noteworthy rise of 153% in the ELITE membership tier year-over-year. The expansion of this program reflects the company's strategies to foster customer loyalty and retention, creating a robust consumer base to support future growth.

Operational Strategies

CEO Raj Grover expressed pride in the ongoing momentum, stating that the company continues its focus on refining its retail strategies while exploring international opportunities, particularly in the German medical cannabis market. The ongoing efforts to expand the Cabana Club loyalty program internationally coincide with the company's commitment to diversify its customer base. Future plans include launching additional product lines under the Queen of Bud brand, further solidifying High Tide's market presence.

Despite these positive trends, a net loss of $2.7 million was reported for the quarter due to strategic shifts and high investments in external growth initiatives. Adjusted EBITDA stood at $7.1 million, reflecting a continued profitable trajectory across twenty consecutive quarters; however, it marks a decline from previous quarters, driven by enhanced investments and changes in business strategy.

Future Plans and Market Expansion

Looking ahead, High Tide aims to open 20 to 30 new Canna Cabana locations by the end of 2025, reinforcing its goal of reaching 300 locations across Canada. The company is committed to maintaining positive cash flow and sustaining its growth trajectory through its strategic initiatives, demonstrated by a balance sheet that remains healthy and manageable debt levels.

As it moves forward, High Tide's focus on enhancing its core physical retail presence while simultaneously exploring opportunities in emerging markets like Germany positions the company to adapt to an ever-evolving industry landscape. The dedication to customer engagement through the Cabana Club, along with innovative operational strategies, is likely to yield further growth in the coming quarters.

High Tide will be hosting a webcast to discuss its financial results and future outlook, providing additional insights into its strategic vision and operational developments. Investors and stakeholders are encouraged to participate and engage with company leadership as they outline their path forward in the dynamic cannabis market.