Core Insights - High Tide Inc. is set to open a new Canna Cabana retail cannabis store in Hamilton, Ontario, on October 27, 2025, increasing its total store count to 211 across Canada and 89 in Ontario [1][5]. Group 1: Company Expansion - The new Canna Cabana location is strategically positioned in a high-traffic commercial area, enhancing visibility and accessibility, which is expected to attract significant local and commuter demand [4]. - High Tide's CEO, Raj Grover, emphasized the company's commitment to the Hamilton community, noting its strong performance and loyalty in this market [2][3]. Group 2: Market Position - Canna Cabana is recognized as the second-largest cannabis retail brand globally, holding a growing 12% market share in Canada [5]. - The company has been acknowledged as one of Canada's Top Growing Companies for four consecutive years and ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023 [7].

Core Insights - High Tide Inc. (NASDAQ:HITI) is recognized as a promising penny stock, with analysts at Canaccord Genuity Group maintaining a "Buy" rating and a price target of $7.25, driven by the company's expansion into the German cannabis market through the acquisition of Remexian [1] - The company has sustained growth in the Canadian cannabis retail sector, achieving a remarkable return of 154.68% over three years, significantly outperforming the market average of 62.39% [2] - High Tide Inc. holds the largest market share in Canadian cannabis retail, operating 207 Canna Cabana stores and utilizing a membership program to enhance customer retention [3] Company Overview - High Tide Inc. operates in the Canadian cannabis retail industry through two segments: Bricks and Mortar Operations and E-commerce Operations, and has been in business since 2009, focusing on integrating technology, data, and customer experience [4]

Core Insights - High Tide Inc. ranked No. 182 out of 400 companies in the 2025 Report on Business ranking of Canada's Top Growing Companies, achieving a three-year revenue growth rate of 188% [1][2] - The company previously ranked 87th out of 417 companies in 2024, with a significantly higher three-year growth rate of 486% [2] - High Tide's recent acquisition of Remexian marks a strategic expansion into Europe's largest cannabis market, expected to enhance revenue and create long-term growth opportunities [3] Company Performance - High Tide has been recognized for five consecutive years as one of Canada's Top Growing Companies, reflecting the dedication of its team and the loyalty of its customer base [2][7] - The company operates Canna Cabana, the largest cannabis retail chain in Canada, with 210 locations and a growing market share of 12% [6] - High Tide's subsidiary, Remexian Pharma GmbH, is a key player in the German medical cannabis market, licensed to import from 19 countries, including Canada [7] Industry Context - The Report on Business ranking celebrates innovative businesses in Canada, with 400 companies qualifying through a rigorous application process [4] - The cannabis industry in Canada continues to show significant growth potential, as evidenced by High Tide's performance and expansion efforts [3][6]

Core Insights - High Tide Inc. is expanding its retail footprint by opening three new Canna Cabana locations in Ontario and Alberta, increasing its total store count to 210 across Canada [1][7]. Expansion Strategy - The company plans to open two to three new locations per month, funded entirely by its own profits, reflecting a disciplined growth approach without reliance on external capital [2][3]. - High Tide is focusing on securing prime real estate in high-growth markets, with the new locations in Fort McMurray, North York, and Etobicoke being strategically chosen for their long-term value [3]. New Store Details - The North York location at 1448 Lawrence Avenue East will start selling products on September 26, 2025, benefiting from high visibility and accessibility [4]. - The Etobicoke store at 1020 Islington Avenue will open on September 27, 2025, positioned to attract significant daily traffic from nearby residential and business areas [5]. - The Fort McMurray location at 10024 Franklin Ave will commence sales on September 29, 2025, catering to both local residents and visitors, enhancing accessibility to the area's attractions [6]. Company Overview - High Tide is recognized as the second-largest cannabis retail brand globally, with a 12% market share in Canada, and operates a diverse range of cannabis-related businesses [7][10]. - The company has been acknowledged for its growth, being named one of Canada's Top Growing Companies for four consecutive years and ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023 [10].

High Tide Conference Call Summary Company Overview - **Company Name**: High Tide (NasdaqCM: HITI) - **Ticker**: HITI on NASDAQ since 2021 and TSX Venture Exchange since 2018 - **Main Operating Company**: Canna Cabana, the largest retail cannabis brand in Canada with over 207 stores [2][3] Financial Performance - **Trailing Revenue**: Approximately CAD 683 million, including recent acquisitions [2] - **Adjusted EBITDA**: CAD 58 million, with a pro forma trailing adjusted EBITDA multiple of 8.8 times [3] - **Same-Store Sales Growth**: Up 137% since October 2021, compared to a 2% decline for peers [4][14] - **Market Share**: 12% in the five provinces of operation, with a target to reach 15% [4][15] - **Revenue per Square Foot**: CAD 1,735, outperforming many blue-chip retailers [5][16] - **Free Cash Flow**: Generated CAD 4 million in July 2023, five months ahead of schedule [25][26] Recent Developments - **Acquisition**: Acquired 51% of Ramexian Pharma, a leading medical cannabis importer in Germany, for €26.4 million [19] - **Market Expansion**: Entering the German market, which has seen a significant increase in patient counts from 250,000 to 900,000 [20][21] - **Growth in German Cannabis Imports**: Annualized imports increased from CAD 30-40 million to CAD 300 million post-reclassification of medical cannabis [23] Strategic Insights - **Retail Strategy**: Focus on smaller, efficient store sizes (1,200 to 1,500 square feet) rather than larger stores [9][18] - **Loyalty Program**: 2.15 million loyalty members, with 115,000 ELITE members paying CAD 35 annually for additional discounts [4][12] - **Consumer Preferences**: Pre-rolls and dried flower account for about two-thirds of sales, with vapes at 22% [7][8] Market Context - **Canadian Cannabis Market**: Legalized in October 2018, now a CAD 5.5 billion market, with Canna Cabana's operations in a CAD 4.5 billion retail market [6] - **Competitive Landscape**: Canna Cabana's average store revenue significantly exceeds that of peers, with Alberta stores averaging CAD 2.3 million and Ontario stores over CAD 3.1 million [14][15] Future Outlook - **Store Growth**: Targeting to exceed 300 stores, with plans to open 20-30 new stores annually [27] - **Vertical Integration**: Exploring opportunities in cannabis accessories and white-label products, though full vertical integration is limited by regulations [34][36] - **International Expansion**: Monitoring other European markets (UK, Poland, Czech Republic, Switzerland) for potential entry [32] Key Takeaways - High Tide is positioned as a leading innovative retailer in the cannabis space, with strong financial metrics and growth potential in both Canada and Germany [41] - The company is leveraging its retail relationships to capitalize on the growing medical cannabis market in Germany, aiming for significant market share [42]

Financial Performance - High Tide Inc. reported record-high revenues, gross profit, and free cash flow for Q2-2025, marking it as the best quarter in the company's history [1] Market Expansion - High Tide has officially entered the German medical cannabis market, indicating a strategic expansion into new territories [1]

Financial Data and Key Metrics Changes - Revenue for Q3 reached an all-time high of $149.7 million, up 14% year over year and 9% sequentially [21] - Gross margin percentage was 27%, consistent with Q3 last year and up from 26% sequentially [22] - Adjusted EBITDA was a record $10.6 million, up 11% year over year and 32% sequentially [23] - Free cash flow of $7.7 million grew 148% year over year, marking the second highest level since disclosure began [25] - Net income turned positive at $832,000, a significant turnaround from a $2.8 million net loss in Q2 [8] Business Line Data and Key Metrics Changes - Bricks-and-mortar revenue was a record, up 18% year over year, with same-store sales growth accelerating to 7.4% [6][21] - Bricks-and-mortar adjusted EBITDA was $12.7 million, an all-time high, up 42% year over year [8][23] - E-commerce business continues to underperform, representing less than 3% of consolidated revenues [46] Market Data and Key Metrics Changes - Canna Cabana's market share across five operating provinces reached 12%, the highest level since legalization [6] - In Germany, High Tide has a 16% market share, positioning itself strongly in the medical cannabis market [12] Company Strategy and Development Direction - The company aims to leverage its relationships with licensed producers to channel German medical cannabis shipments through its network [10] - High Tide's acquisition of Remexian reflects a disciplined shareholder-first approach, targeting growth in the German market [9][15] - The company plans to expand its presence in other European markets, including the UK, Poland, Czechia, and Switzerland [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the bricks-and-mortar business, with no signs of slowing down in same-store sales [6][30] - The company is optimistic about the integration of Remexian and the potential for growth in the German market [62] - Management acknowledged temporary challenges in the supply chain from Portugal but expects normalization by November [40] Other Important Information - The company closed a $30 million junior subordinated loan with Kronos, validating its strategy and execution [17] - High Tide has now sold over $1.9 billion of federally legal cannabis, establishing itself as a leader in the industry [10] Q&A Session Summary Question: On same-store sales, how much of the recent acceleration is due to industry improvement versus market share gains? - Management indicated that the same-store sales growth is primarily due to having the best retail model, not just competitor closures [29][30] Question: What is the company's philosophy on capital allocation post-Remexian transaction? - Management highlighted the need for working capital to support Remexian's growth and emphasized organic store openings while considering M&A opportunities [36][39] Question: How confident is the company in executing a turnaround for the e-commerce business? - Management acknowledged the underperformance but expressed optimism about new initiatives and partnerships to improve the segment [46] Question: What is driving the expansion of margins in the bricks-and-mortar segment? - Management attributed margin increases to a combination of white label sales, price stabilization, and operational efficiencies [49][53] Question: How are newer stores performing relative to prior cycles? - Management reported that new stores are ramping up sales faster than expected, benefiting from brand recognition and high-quality locations [57][58] Question: What are the opportunities across Europe for future investments? - Management confirmed ongoing monitoring of other EU markets for compelling commercial opportunities while focusing on the integration with Remexian [61]

Financial Data and Key Metrics Changes - Revenue for Q3 reached an all-time high of $149.7 million, up 14% year over year and 9% sequentially [22] - Adjusted EBITDA was a record $10.6 million, up 11% year over year and 32% sequentially [24] - Free cash flow of $7.7 million grew 148% year over year, marking the second highest level since disclosure began [9][26] - Net income turned positive at $832,000, a significant turnaround from a $2.8 million net loss in Q2 [9] Business Line Data and Key Metrics Changes - Bricks-and-mortar revenue was a record, up 18% year over year, with same-store sales growth accelerating to 7.4% [7][22] - Bricks-and-mortar adjusted EBITDA reached an all-time high of $12.7 million, up 42% year over year [9][24] - E-commerce business continues to underperform, with less than 3% of consolidated revenues, prompting management to implement changes [25][47] Market Data and Key Metrics Changes - Canna Cabana's market share across five operating provinces reached 12%, the highest since legalization [8] - In Germany, the company started with a 16% market share, leveraging relationships with licensed producers [13][19] Company Strategy and Development Direction - The company aims to expand its brick-and-mortar presence, targeting 300 stores in Canada, with plans to open 20 to 30 new locations annually [40] - The recent acquisition of Remexian is seen as a strategic move to enter the German market, with plans to leverage existing relationships with Canadian licensed producers [10][11] - The company is focused on curating a diverse menu of cannabis strains in Germany and expanding into other European markets [15][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the bricks-and-mortar business, with no signs of slowing down in same-store sales [8][31] - The company is optimistic about the integration of Remexian and the potential for growth in the German market, despite temporary supply chain issues from Portugal [39][41] - Management highlighted the importance of maintaining a strong balance sheet while pursuing growth opportunities [18][39] Other Important Information - The company has closed a $30 million junior subordinated loan with Kronos, which is seen as validation of its strategy [18] - Management emphasized the importance of operational efficiency, with salaries and wages representing 12.2% of revenue, the lowest in seven quarters [24] Q&A Session Summary Question: How much of the recent acceleration in same-store sales is due to industry improvement versus market share gains? - Management indicated that the company has the best retail model, contributing to the acceleration in same-store sales, with competitor closures playing a minor role [30][31] Question: What is the company's philosophy on capital allocation post-Remexian transaction? - Management stated that significant working capital is required for growth, and they plan to use raised funds to support Remexian while continuing organic store openings [38][39] Question: How confident is the company in executing a turnaround for the e-commerce business? - Management acknowledged the underperformance of the e-commerce segment but expressed optimism about new initiatives and partnerships to improve sales [47][49] Question: What is driving the expansion of margins in the bricks-and-mortar segment? - Management attributed margin expansion to a combination of white label sales, price increases, and operational efficiencies [54] Question: How are newer stores performing relative to prior cycles? - Management reported that newer stores are ramping up sales faster than expected, benefiting from the strong brand recognition of Canna Cabana [58][60] Question: What are the opportunities for expansion in other European markets? - Management indicated that while the focus is on integrating Remexian, they are monitoring other EU markets for potential entry when compelling opportunities arise [63]

Financial Data and Key Metrics Changes - Revenue for Q3 reached an all-time high of $149.7 million, up 14% year-over-year and 9% sequentially [21] - Adjusted EBITDA was a record $10.6 million, up 11% year-over-year and 32% sequentially [23] - Net income turned positive at $832,000, a significant turnaround from a $2.8 million net loss in Q2 [8] - Free cash flow of $7.7 million grew 148% year-over-year, marking the second highest level since disclosure began [25] Business Line Data and Key Metrics Changes - Bricks-and-mortar revenue was a record, up 18% year-over-year, with same-store sales growth accelerating to 7.4% [6][21] - Bricks-and-mortar adjusted EBITDA reached an all-time high of $12.7 million, up 42% year-over-year [7][23] - E-commerce business continues to underperform, with less than 3% of consolidated revenues, prompting management to consider strategic changes [24][46] Market Data and Key Metrics Changes - Canna Cabana's market share across five operating provinces reached 12%, the highest since legalization [6] - In Germany, the company started with a 16% market share, leveraging its position in the two largest federally legal cannabis markets [12][18] Company Strategy and Development Direction - The company aims to expand its footprint in Germany through the acquisition of Remexian, which adds significant revenue and EBITDA to its operations [9][10] - High Tide plans to leverage relationships with licensed producers to enhance its supply chain and market presence in Germany and other European markets [14][66] - The company is focused on organic growth, targeting 20-30 new store openings in Canada while also considering potential acquisitions [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the bricks-and-mortar business, with no signs of slowing down in same-store sales [6][30] - The company is optimistic about the integration of Remexian and the potential for growth in the German market, despite temporary supply chain issues from Portugal [40][62] - Management highlighted the importance of maintaining a strong balance sheet while pursuing growth opportunities [17][19] Other Important Information - The company closed a $30 million junior subordinated loan with Kronos, which is seen as a validation of its strategy [17] - Management emphasized the importance of maintaining operational efficiency, with salaries and wages representing 12.2% of revenue, the lowest in seven quarters [23] Q&A Session Summary Question: On same-store sales growth and market share gains - Management indicated that the strong same-store sales growth is primarily due to having the best retail model in the country, not just competitor closures [29][30] Question: Capital allocation philosophy post-Remexian transaction - Management stated that significant working capital is required for Remexian's growth, and they plan to use raised funds for this purpose while continuing organic growth in Canada [36][38] Question: Confidence in e-commerce turnaround - Management acknowledged the underperformance of the e-commerce segment but expressed optimism about new initiatives and partnerships to drive sales [45][46] Question: Margins in bricks-and-mortar segment - Management noted that gross margins have expanded due to various factors, including white label sales and price stabilization, and they expect to maintain margins despite new store openings [49][52] Question: Performance of newer stores - Management reported that newer stores are ramping up sales faster than expected, benefiting from brand recognition and high-quality locations [58][59] Question: Opportunities across Europe - Management confirmed ongoing monitoring of other European markets for potential expansion, while focusing on successful integration with Remexian [61][62] Question: Exclusivity agreements with licensed producers - Management indicated that exclusivity agreements were expected and do not come with lower margins, as they leverage their buying power to secure favorable terms [66]

Financial Data and Key Metrics Changes - Revenue for Q3 reached an all-time high of $149.7 million, up 14% year over year and 9% sequentially [19] - Gross margin percentage was 27%, consistent with Q3 last year and up from 26% sequentially [21] - Adjusted EBITDA was a record $10.6 million, up 11% year over year and 32% sequentially [22] - Free cash flow of $7.7 million grew 148% year over year, marking the second highest level since disclosure began [8][24] Business Line Data and Key Metrics Changes - Bricks-and-mortar revenue was a record, up 18% year over year, with same-store sales growth accelerating to 7.4% [5][19] - Bricks-and-mortar adjusted EBITDA reached an all-time high of $12.7 million, up 42% year over year [7][22] - E-commerce business continues to underperform, with less than 3% of consolidated revenues, prompting management to implement a turnaround strategy [23][46] Market Data and Key Metrics Changes - Canna Cabana's market share across five operating provinces reached 12%, the highest since legalization [6] - In Germany, the company started with a 16% market share, leveraging relationships with licensed producers [12][17] Company Strategy and Development Direction - The company aims to expand its footprint in Germany through the acquisition of Remexian, which adds significant revenue and EBITDA to operations [10][14] - Plans to continue opening 20 to 30 new locations in Canada, focusing on organic growth while considering potential acquisitions [40] - The strategy includes leveraging existing relationships with licensed producers to enhance supply chain efficiency and market presence [12][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the bricks-and-mortar business, with no signs of slowing down in same-store sales [6][30] - The company is optimistic about future growth opportunities in both Canadian and German markets, with plans to capitalize on the eventual adult-use market in Germany [13][14] - Management acknowledged challenges in the e-commerce segment but remains committed to turning it around [23][46] Other Important Information - The company closed a $30 million junior subordinated loan with Kronos, validating its strategy and execution [16] - The acquisition of Remexian was structured to generate value for shareholders while providing growth opportunities [15] Q&A Session Summary Question: How much of the recent acceleration in same-store sales is due to industry improvement versus market share gains? - Management indicated that the company has the best retail model, contributing to the acceleration in same-store sales, with competitor closures playing a minor role [28][30] Question: What is the company's philosophy on capital allocation post-Remexian transaction? - Management highlighted the need for working capital to support Remexian's growth and emphasized the focus on organic store openings while considering M&A opportunities [36][40] Question: How confident is the company in executing a turnaround in the e-commerce business? - Management acknowledged the underperformance of the e-commerce segment but expressed optimism about new initiatives and partnerships to drive sales [45][46] Question: What is the expected gross margin for Remexian compared to the existing business? - Management indicated that Remexian's gross margin is in the mid-20s, with expectations to improve it through better procurement strategies [42][66] Question: How are newer stores performing relative to prior cycles? - Management reported that newer stores are ramping up sales faster than expected, benefiting from the strong brand recognition [58][59] Question: Are other provinces catching up to Ontario in terms of store performance? - Management confirmed that same-store sales are growing in every province, with improvements noted in Saskatchewan [70]