Core Insights - High Tide Inc. is expanding its retail presence with the opening of a new Canna Cabana store in Cornwall, Ontario, set to begin sales on May 12, 2025, bringing the total store count to 197 across Canada and 81 in Ontario [1][4] Group 1: Expansion Strategy - The new store is strategically located beside a national grocery chain in a high-traffic shopping center, targeting a community of over 50,000 people with little local competition [2] - The company aims to reach its milestone of 200 Canna Cabana locations by the end of May 2025, driven by free cash flow and a focus on high-quality real estate [4] Group 2: Market Position - High Tide is recognized as the second-largest cannabis retailer globally by store count, with a diversified and fully integrated operation across all components of cannabis [5] - Canna Cabana is the largest cannabis retail chain in Canada, with a unique loyalty-focused retail model contributing to leading same-store sales in the industry [4][5] Group 3: Innovation and Technology - High Tide employs Fastendr™, a fully automated technology that enhances the buying experience through retail kiosks for browsing, ordering, and pickup [6] - The company operates a suite of leading accessory e-commerce platforms, further diversifying its revenue streams [6] Group 4: Brand Portfolio - High Tide's brand roster includes several consumer-facing brands such as Queen of Bud™, Cabana Cannabis Co™, and Daily High Club™, among others [7] - The company is also involved in the CBD market through various online platforms, expanding its product offerings [7] Group 5: Recognition and Growth - High Tide has been recognized 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 [9]

Core Insights - Green Thumb Industries reported a total revenue of $280 million for Q1 2025, reflecting a 1.4% increase from the same period last year [5][9] - The company experienced a decrease in overall retail revenue by 2.5% compared to Q1 2024, primarily due to price compression in existing markets [5][6] - Adjusted EBITDA for the quarter was $85 million, representing 31% of revenue, down from $90.5 million or 32.8% of revenue in Q1 2024 [11][9] Financial Performance - Gross profit for Q1 2025 was $143.3 million, accounting for 51.3% of revenue, compared to $144.9 million or 52.5% of revenue in Q1 2024 [7][9] - Total selling, general, and administrative expenses increased to $100.8 million, or 36.1% of revenue, from $74.3 million or 26.9% of revenue in the prior year [8][9] - Net income attributable to the company was $8.3 million, or $0.04 per share, a decrease from $31.1 million, or $0.13 per share, in the prior year [10][26] Business Developments - The company opened two new RISE Dispensaries during the quarter, including locations in Nevada and Ohio [9][15] - Green Thumb is preparing for the launch of adult-use sales in Minnesota, expected to commence before the end of the year [4] - The company introduced the Bud Ball event in New York City, expanding its brand presence in the lifestyle segment [4] Balance Sheet and Liquidity - As of March 31, 2025, Green Thumb had $211 million in cash and cash equivalents, with total current assets of $444.9 million [13][27] - Total debt outstanding was $252.4 million, consisting of approximately $150 million in senior secured debt and $100 million in real estate mortgages [13] - The company repurchased approximately 160,000 Subordinate Voting Shares for about $1 million during the first quarter [14]

Core Insights - RISE Dispensaries, owned by Green Thumb Industries, is set to open its 22nd retail location in Florida and 104th nationwide on April 29, 2025 [1] - The new dispensary will offer a variety of cannabis products and will donate a portion of its profits to The Bridge 4 Veterans, a local community organization [1][2] Company Overview - Green Thumb Industries operates two production facilities in Florida, located in Ocala and Homestead, focusing on high-quality cultivation and manufacturing practices [3] - The company has expanded its retail presence to 104 locations across 14 U.S. markets since its inception in 2015, serving millions of patients and customers annually [5] Community Engagement - The opening of RISE Dispensary Ocala is expected to create additional job opportunities in the local community, building on nearly 100 jobs already provided by the cultivation facility [2] - The Bridge 4 Veterans, which supports veterans in securing permanent housing, has previously received donations from RISE for new store openings [2]

Core Insights - High Tide Inc. reported CAD $6.8 million in total retail gross revenues during the 4/20 long weekend, marking a 10% increase compared to the previous week [1] - The company launched its largest 4/20 customer appreciation giveaway, awarding a grand prize of CAD $100,000 [2] - The 4/20 giveaway was modified to feature a cash prize instead of a Tesla Model Y, with the winner being an ELITE member from Winnipeg [3] Financial Performance - Total sales during the 4/20 weekend reached CAD $6.8 million, reflecting strong sales momentum across all retail channels [1][4] - The increase in sales indicates a successful customer-first strategy that positions Canna Cabana as a leading retail brand in the cannabis sector [4] Customer Engagement - High Tide has over 1.8 million Cabana Club members, with ELITE memberships growing at an accelerated rate [5] - The annual 4/20 giveaway was open to all legal-age Canadians, reinforcing the company's commitment to customer engagement and loyalty [5] Employee Incentives - High Tide granted 136,000 incentive stock options to employees, consultants, and management, which are exercisable at the closing price of the company's common shares [6] Company Overview - High Tide is the second-largest cannabis retailer globally by store count, with 196 locations across Canada [7] - The company operates various retail and e-commerce platforms, including Canna Cabana and several accessory e-commerce sites [8][9] - High Tide has been recognized as one of Canada's Top Growing Companies and ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023 [11]

Core Viewpoint - High Tide Inc. is expanding its retail presence with the opening of a new Canna Cabana store in Kitchener, Ontario, which will enhance its market position in the cannabis industry and reflects the company's commitment to disciplined growth amidst a changing macroeconomic environment [1][3][4]. Group 1: Store Expansion and Market Position - The new Canna Cabana store in Kitchener will begin selling recreational cannabis products on April 16, 2025, bringing the total number of Canna Cabana locations to 195 across Canada, with 80 in Ontario [1]. - The store is strategically located in a high-visibility area with a young and growing population, which is expected to drive strong sales and establish Canna Cabana as a leading cannabis retailer in the neighborhood [2]. - Existing locations in Kitchener have outperformed competitors, indicating a positive market reception and potential for continued success with the new store opening [2]. Group 2: Financial Strategy and Shareholder Rights Plan - The company emphasizes the importance of maximizing free cash flow and is prepared to adjust the pace of new store openings to protect its balance sheet and capitalize on strategic opportunities [4]. - High Tide's board has adopted a Shareholder Rights Plan to ensure compliance with cannabis laws and fair treatment of shareholders in the event of a takeover bid, which will be in effect for three years if ratified [5][6]. - The Shareholder Rights Plan has been accepted for filing by the TSX Venture Exchange, pending ratification by shareholders within six months [7]. Group 3: Company Overview and Achievements - High Tide is recognized as the second-largest cannabis retailer globally by store count and operates a fully integrated business model across various components of the cannabis industry [9]. - 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 [13].

Financial Data and Key Metrics Changes - High Tide reported record revenue for Q1 at $142.5 million, an increase of 11% year-over-year and 3% sequentially, reaching an annual run rate of approximately $570 million [38] - Adjusted EBITDA was $7.1 million, down 32% year-over-year and 14% sequentially due to initiatives aimed at future growth [45] - Consolidated gross margins were 25% in Q1, down from 28% year-over-year and 26% sequentially, impacted by the illicit market and the launch of the Cabana Club loyalty program [42][43] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, up 17% year-over-year, representing the fastest growth in five quarters [16][38] - Same-store sales increased by 5% year-over-year, with a remarkable 142% increase from October 2021 to December 2024 [12][39] - The Cabanalytics Business Data and Insights Platform generated record revenue of $11.3 million, up 49% year-over-year [42] Market Data and Key Metrics Changes - High Tide maintained an 11% market share in total sales across the five provinces where it operates, consistent with previous performance [17] - The average Canna Cabana store achieved an annual revenue run rate of $2.7 million, significantly higher than the average peer revenue of $1.3 million [40] Company Strategy and Development Direction - High Tide aims to expand its store count to 300 locations in Canada and enter the German medical cannabis market [14][30] - The company is focusing on organic growth while remaining open to strategic M&A opportunities [25] - The Cabana Club loyalty program is a key component of the growth strategy, with a target of reaching 2.5 million members [14][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the cannabis industry being recession-resistant, despite economic volatility [18][66] - The company is optimistic about future growth, particularly in the German market, and is exploring various partnership opportunities [32][56] - Management noted that working capital investments turned free cash flow negative this quarter but expects to be free cash flow positive for the fiscal year [26][46] Other Important Information - High Tide's White Label strategy is showing promise, with over $0.5 million in sales from the Queen of Bud brand [27] - The company has successfully launched the Cabana Club globally, now boasting 5.66 million members [16] Q&A Session Summary Question: Changes in Germany's market conditions - Management confirmed commitment to enter the German medical cannabis market and is exploring alternative partnerships beyond Purecan due to recent political developments [52][56] Question: Consumer behavior and market share dynamics in Canada - Management indicated long-term ambitions to reach at least a 15% market share in Canada, with strong same-store sales growth and resilience against inflation [62][66] Question: Timeline for entering the German market - Management stated that they are in discussions with multiple partners and expect to enter the market in a couple of months, emphasizing the importance of selecting the right partner [75][76] Question: Impact of tariffs on business - Management reassured that 99% of their business does not cross the US-Canada border, minimizing tariff impacts, and that most accessories are sourced domestically [78][80] Question: E-commerce segment performance - Management acknowledged short-term headwinds in the e-commerce segment but remains optimistic about long-term growth potential, especially with the global Cabana Club initiative [92][95]