#Canada #Cannabis Retail #High Tide #Canna Cabana #Calgary

High Tide Reports Second Fiscal Quarter 2025 Results

High Tide Inc., a leading player in the cannabis retail industry, has unveiled its financial outcomes for the second quarter of fiscal 2025. During this period, the company has recorded an impressive free cash flow of $4.9 million daily, indicating its robust operational health and growth momentum.

One of the standout achievements for High Tide is the 6.2% year-over-year increase in same-store sales across the Canna Cabana network. This growth comes despite a seasonal dip in market activity, highlighting the effectiveness of their customer engagement strategies and loyalty programs.

As of now, High Tide operates 200 Canna Cabana locations throughout Canada, maintaining its status as the largest cannabis retail brand in the country. During February and March 2025, Canna Cabana captured a notable market share of 12%, up from the previous year's 11%. These achievements underscore High Tide's commitment to consistent growth.

In a significant move aimed at expanding its footprint, High Tide has entered exclusive discussions regarding a partnership with a prominent medical cannabis importer and wholesaler in Germany. This strategic negotiation represents a major leap in their vision to establish a presence in the international markets, particularly in Europe where they anticipate a lucrative opportunity in the medical cannabis sector.

During his comments on the company’s financial performance, Raj Grover, High Tide's Founder and CEO, expressed his pride in the momentum building in their core retail business. He emphasized that their unique loyalty-focused retail model sets them apart in the cannabis industry and bolsters their market share. The impressive ramp-up of their Cabana Club membership, now at 1.9 million, including over 97,000 ELITE members, further validates the strong consumer base that High Tide has nurtured over the years.

For the three months concluded on April 30, 2025, High Tide reported revenues of $137.8 million, marking an 11% increase from the same period last year. It’s a remarkable feat considering that this quarter experienced three fewer operational days compared to the previous year. Their core retail segment saw a 16% revenue increase year-over-year, showcasing the efficacy of their retail model and market strategies.

Despite a sequential decrease in revenues relative to the previous quarter, the company is welcoming these increases with optimism, reinforcing their plans to continue expanding their operations with 20-30 new store openings projected by the end of 2025. Additionally, High Tide remains committed to enhancing their e-commerce platforms and expanding their product lines under the Queen of Bud and Cabana Cannabis Co. brands, offering exciting new launches this summer.

Key Financial Highlights

• - Free cash flow generation reached $4.9 million per day this quarter, a decrease from $9.4 million in the previous year but an improvement compared to the negative cash flow experienced sequentially.
• - Gross profit stood firm at $35.5 million with a gross profit margin of 26%. This is consistent year-over-year, despite the minor fluctuations seen in revenue generation.
• - Adjusted EBITDA for the quarter was $8.1 million, reflecting 21 consecutive quarters of positive performance. This is a slight decrease from the previous year's $10 million but an improvement of 14% compared to the previous quarter.
• - General and administrative expenses improved to 4.2% of revenue, a positive sign of operational efficiency.

Expansion and Future Outlook

Looking ahead, High Tide aims for further growth and market expansion, particularly in the medical cannabis sector of Germany. Their negotiating position places them at a strategic advantage as the market continues to evolve, and they have plans to launch additional product offerings that cater to their expanding customer base.

The impressive performance in the second quarter is a clear indication of High Tide's operational strength and resilience in a competitive landscape, setting the stage for sustained growth and market leadership in the cannabis retail space. Their focus on enhancing member experiences coupled with strategic market entries will undoubtedly position them favorably in the evolving cannabis market.

For more information, updates, and financial discoveries regarding High Tide, visit their corporate website or tune into their upcoming earnings webcast for comprehensive insights.