Financial Data and Key Metrics Changes - High Tide reported record revenue of CAD 164 million for Q4 2025, representing a 19% year-over-year increase and a 10% sequential increase [7][26] - The annual revenue run rate exceeded CAD 650 million, with record Adjusted EBITDA of CAD 12.4 million, up 51% year-over-year [7][28] - Consolidated gross margins were 26% in Q4, consistent with the previous year, while Adjusted EBITDA margins reached a new record of 9.4% [27][28] Business Line Data and Key Metrics Changes - The brick-and-mortar segment led revenue growth, achieving a 15% year-over-year increase, driven by same-store sales growth of 5.5% [7][26] - Cabanalytics, the business data and insight platform, generated CAD 13.1 million in Q4, up 20% year-over-year [26] - The adjusted EBITDA for the brick-and-mortar segment was CAD 14.1 million, highlighting strong cost controls and operational efficiency [28] Market Data and Key Metrics Changes - Canna Cabana's market share in the five provinces increased to 12%, up from 11% a year ago, while total industry sales in these provinces grew by only 4% [11][12] - The average Canna Cabana store generated an annual revenue run rate of CAD 2.6 million, significantly higher than the peer average of CAD 1.2 million [11] - The company has expanded its store count by 27% in Ontario, accounting for all growth in the province, while the rest of the industry remained flat [15] Company Strategy and Development Direction - High Tide aims to add another 20-30 new stores in 2026, continuing its focus on organic growth [8] - The company is exploring M&A opportunities, with discussions ongoing regarding potential acquisitions [8][56] - High Tide's strategy includes leveraging relationships with licensed producers to enhance procurement and operational efficiency, particularly in the German market through the acquisition of Remaxion [19][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, particularly in the German medical cannabis market, despite short-term challenges related to inventory [22][40] - The company anticipates that the U.S. regulatory environment may shift positively, creating opportunities for strategic partnerships and market entry [75] - Management highlighted the resilience of the business model, noting that competitors are exiting the market, which could provide further growth opportunities [56] Other Important Information - High Tide generated CAD 12 million of Free Cash Flow for the fiscal year, meeting its goal of remaining positive [32] - The company has a strong balance sheet with total debt of CAD 65.5 million and CAD 47.9 million in cash and cash equivalents [32] - The Cabana Club loyalty program has grown to 2.5 million members, up 45% year-over-year, contributing to customer retention and sales growth [9][47] Q&A Session Summary Question: Impact of inventory issues in Germany on Q1 results - Management acknowledged that inventory issues in Portugal would impact Q1 results but expressed confidence in future growth once these challenges are resolved [36][40] Question: Brick-and-mortar business margins and growth - Management confirmed that brick-and-mortar margins have increased for four consecutive quarters, driven by strong sales and operational efficiencies [41][46] Question: M&A environment and competitor exits - Management noted that smaller competitors are exiting the market, creating opportunities for potential acquisitions, and expressed optimism about future M&A activity [56][57] Question: Budtender training and engagement - Management emphasized the importance of budtender training and engagement to enhance customer experience and brand loyalty [64] Question: January performance and Remaxion's outlook - Management reported improved performance in January compared to previous months and expressed optimism about future gross margins for Remaxion [67][68]

Core Insights - High Tide reported record revenue of $164 million for Q4 2025, achieving a revenue run-rate exceeding $650 million and the highest Adjusted EBITDA to date [1][2] - The company remains free cash flow positive for the fiscal year, generating $12 million in fiscal 2025 [4] - High Tide solidified its position as the largest cannabis retailer in Canada with 218 locations and a 12% market share [1][3] Financial Performance - Revenue for Q4 2025 was $164 million, a 19% increase year-over-year and the fastest growth rate in nine quarters [2][3] - Adjusted EBITDA reached a record $12.4 million, up 51% year-over-year, marking the 22nd consecutive positive quarter [2][3] - The company reported a net loss of $46.7 million for Q4 2025, impacted by one-time items, but adjusted net income would have been $1.4 million [2][3] Retail Highlights - Same-store sales increased by 4.1% in fiscal 2025 and rose 5.5% year-over-year in Q4 2025 [2][3] - Canna Cabana's annualized retail sales per square foot were $1,775, consistent year-over-year [2][3] - The company opened 27 new Canna Cabana locations in 2025, achieving the higher end of its target [1][4] Market Expansion - High Tide completed the acquisition of a majority stake in Remexian Pharma GmbH, entering the German medical cannabis market [1][3] - The company is exploring partnerships in the U.K. for distributing medical cannabis products [1][3] - Canna Cabana's membership in Canada surpassed 2.5 million, growing 45% year-over-year [2][4] Operational Developments - The company anticipates opening an additional 20-30 locations in 2026, aiming to surpass 350 locations nationwide [4] - High Tide's white label cannabis product portfolio reached 32 SKUs, with plans for significant growth [4] - The company is evaluating strategic initiatives for its U.S. CBD brands in light of recent federal developments [3][4]

Core Insights - High Tide Inc. will release its financial and operational results for the quarter and year ended October 31, 2025, on January 29, 2026, after market close [1] - A webcast will be held on January 30, 2026, at 11:30 AM Eastern Time to discuss the financial results and plans for 2026 [2] Company Overview - High Tide is a leading retail-forward cannabis enterprise with a focus on delivering value across all components of cannabis [4] - Canna Cabana, a wholly owned subsidiary, is the second-largest cannabis retail brand globally, operating 218 locations in Canada and holding a 12% market share [4] - High Tide has been recognized as one of Canada's Top Growing Companies for five consecutive years and ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023 [6] Operational Highlights - High Tide operates multiple global e-commerce platforms offering accessories and hemp-derived CBD products [4] - Remexian Pharma GmbH, a subsidiary, is a leading German pharmaceutical company focused on the importation and wholesale of medical cannabis products [5]

Core Insights - High Tide Inc. has achieved significant milestones in 2025, including surpassing 200 stores and entering the German medical cannabis market, while maintaining strong financial performance [1][2][3] Company Performance - The company reported over $2 billion in cumulative sales since cannabis legalization in Canada, with an annualized revenue run-rate of $600 million as of the last reported quarter [3][4] - High Tide ended 2025 with an annualized Adjusted EBITDA run-rate exceeding $42 million, driven by a 7.4% increase in same-store sales in Q3 2025 [4] - The retail sales per square foot across the Canna Cabana store network reached $1,735, outperforming many leading retailers [4] Market Position - High Tide holds a 12% market share in the retail cannabis sector across five Canadian provinces, reinforcing its position as a market leader [4][6] - The company added 27 new Canna Cabana locations in Canada in 2025, achieving its goal of opening 20 to 30 locations [4] Brand and Loyalty Program - The Cabana Club membership surpassed 2.4 million members, including 139,000 ELITE members, making it the largest cannabis loyalty program globally [4] - High Tide's Canna Cabana brand is recognized as the most prominent cannabis retail brand in Canada, with 218 stores [4][6] International Expansion - The company successfully entered the German medical cannabis market by acquiring a majority stake in Remexian Pharma GmbH, positioning itself as a major importer and distributor in Germany [4][7] - High Tide aims to expand its global footprint and strengthen its brand presence, with potential future expansion into the United States [3][4]

Core Insights - High Tide Inc. is actively engaging with investors through upcoming conferences to highlight its growth and long-term value creation potential [2][7] - The company has made a significant acquisition of a majority stake in Remexian, positioning itself as a key player in Germany's medical cannabis market, while also expanding its retail presence in Canada with plans to exceed 300 Canna Cabana stores [2][3] - High Tide's loyalty-driven discount club model is performing well, contributing to its competitive advantage in the cannabis sector [2] Company Overview - High Tide is a leading retail-forward cannabis enterprise with a diversified and integrated business model across all cannabis components [3] - Canna Cabana, its subsidiary, is the second-largest cannabis retail brand globally, with 207 locations in Canada and a 12% market share [3] - The company operates multiple e-commerce platforms for cannabis accessories and hemp-derived CBD products [3] Recent Achievements - 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 [5]