High Tide (HITI) investor relations material

Executive summary

• Achieved record quarterly revenue of $198.8 million (CAD 198.8 million), up 33% year-over-year and 11% sequentially, marking the fifth consecutive record quarter and surpassing analyst expectations.

• Gross profit reached a record $52.7 million, up 32% year-over-year and 9% sequentially.

• Adjusted EBITDA hit a record $16.2 million, up 53% year-over-year and 17% sequentially, with an 8.2% margin, the highest in 12 quarters.

• Net income was $12.7 million, a significant increase from $0.8 million a year ago.

• Free cash flow was $7.0 million, up 373% sequentially, despite increased investments in working capital.

Financial highlights

• Revenue: $198.8 million (+33% YoY, +11% QoQ), fastest growth in 13 quarters.

• Gross profit: $52.7 million (+32% YoY, +9% QoQ); gross margin steady at 27%.

• Adjusted EBITDA: $16.2 million (8.2% margin), up 53% YoY and 17% QoQ.

• Income from operations: $8.7 million, up 133% YoY and 43% QoQ.

• Net income: $12.7 million (vs. $0.8 million YoY); adjusted net income $2.2 million.

• Cash and equivalents: $47.1 million as of July 31, 2026.

Outlook and guidance

• Plans to surpass 350 retail locations in Canada, with over 20 new stores targeted for 2026, primarily through organic growth.

• Expects to exceed 3 million Cabana Club members in Canada and expand white label cannabis products.

• Remexian poised for further growth in Germany, with ambitions to reach 15-20% long-term market share.

• Monitoring U.S. regulatory changes for potential direct entry into the adult-use cannabis market.

• Anticipate continued positive net income and strong cash generation.