High Tide Reports Second Fiscal Quarter 2025 Financial Results

*CALGARY, AB –* High Tide Inc., a retail-forward enterprise built to
deliver real-world value across every component of cannabis, reported its
financial results for the second fiscal quarter of 2025 ended April 30,
2025. The full set of unaudited condensed interim consolidated financial
statements for the three and six months ended April 30, 2025 and 2024 and
accompanying management’s discussion and analysis can be accessed by
visiting the Company’s website, its profile pages on SEDAR+, and EDGAR.

“I’m incredibly proud of the continued momentum we are seeing in our core
bricks-and-mortar business, which once again led the pack in retail market
share, same-store sales growth, and free cash flow generation—even in a
seasonally slower quarter with three fewer days. Our success is a testament
to the strength of our loyalty-focused retail model, which is unmatched in
the cannabis industry,” said Raj Grover, Founder and Chief Executive
Officer of High Tide.

“Our team’s laser-focus and relentless execution has allowed us to cross
the 200-store milestone, achieved almost entirely through the use of our
internally generated cash flows over the last two years. Meanwhile, our
Cabana Club and ELITE memberships continue to exceed expectations,
reinforcing a loyalty loop that is unique to our company. At a time when
many competitors are shrinking or exiting the market, High Tide is only
growing stronger. Our differentiated approach continues to attract both
customers and industry attention—including from at least one direct
competitor that has chosen to invest in our company.”

“Building on this strong foundation, we’re now advancing exclusive
negotiations for a strategic entry into the German medical cannabis
market—marking a major step forward in our global ambitions. I look forward
to sharing more on this transformational opportunity in the near term. I’ve
never been more excited about what lies ahead,” added Mr. Grover.

2025 second fiscal quarter financial highlights

Revenue was $137.8 million for the three months ended April 30, 2025,
compared to $124.3 million during the same period last year, an increase of
11% year over year, and 12% when accounting for the one fewer day in this
fiscal quarter, representing the fastest growth rate in six quarters.
Revenue was down 3% sequentially during the three months ended April 30,
2025, given this quarter has three fewer days. The Company notes that its
core bricks-and-mortar segment revenue increased by 16% year over year.

Gross profit was $35.5 million for the three months ended April 30, 2025,
which was consistent year over year. Gross profit was also consistent
sequentially, despite the quarter having three fewer days.

Gross profit margin was 26% for the three months ended April 30, 2025,
which compared to 28% year over year as the Company took its Cabana Club
loyalty program global across its e-commerce platforms. Gross profit margin
improved from 25% sequentially, as the margins in the Company’s core
bricks-and-mortar segment, which generates 97% of its revenue, increased by
1% sequentially.

Adjusted EBITDA was $8.1 million in the three months ended April 30, 2025,
representing the 21st consecutive positive quarter, and compared to $10.0
million during the previous year. Sequentially, Adjusted EBITDA increased
by 14% despite this being a seasonally slower quarter with three fewer days.

The Company generated $4.9 million of free cash flow in the second fiscal
quarter. While this was less than the record level of $9.4 million
generated in the same quarter last year, it marked a strong improvement
from the $(1.9) million generated sequentially. As stated by the Company
previously, the quantum of free cash flow generated can vary significantly
in any given quarter.

General and administration expenses represented 4.2% of revenue in the
three months ended April 30, 2025, which represented improvements compared
to 4.5% during the previous year, and 4.6% sequentially.

Salaries, wages, and benefits represented 12.7% of revenue in the three
months ended April 30, 2025, which compared to 12.4% in the previous year
and 12.3% sequentially.

Income from operations was $0.9 million for the three months ended April
30, 2025, marking a significant improvement from $0.1 million sequentially.
During the second fiscal quarter, the Company generated a net loss of $2.8
million, which compared to net income of $0.2 million in the prior year and
a net loss of $2.7 million sequentially.

Cabanalytics Business Data and Insights platform, advertising revenue, and
other revenue, which includes management fees, interest income, and rental
income, was $11.3 million for the three months ended April 30, 2025—an all
time-record—compared to $9.0 million in the same period last year,
representing an increase of 26% year over year and up marginally
sequentially.

Cash and cash equivalents as at April 30, 2025 totaled $34.7 million,
compared to $34.5 million a year ago, and was up 4% sequentially.

2025 second fiscal quarter retail highlights

Canna Cabana remains the largest cannabis retail brand in the country with
200 stores across Canada.

Average Canna Cabana store generated 2.3x revenue versus peers.

Daily same-store sales were up 6.2% year over year, the fastest growth rate
in five quarters.

Since the launch of its discount club model in October 2021 to March 2025,
same store sales at Canna Cabana are up 132% while the average operator has
experienced a 10% decline.

Canna Cabana reached a 12% market share, up from 11% in the previous year.

Canadian Cabana Club membership has surpassed 1.9 million, an increase of
33% year over year and 8% sequentially. The Company has also exceeded
97,000 ELITE members in Canada, an increase of 120% year over year and 20%
sequentially—once again setting a new record in the pace of onboarding
ELITE members.

Global Cabana Club membership has surpassed 5.87 million. This includes
104,700 ELITE members, which grew by 22% sequentially.

The Company reported approximately $6.8 million in retail sales during
April 17, 2025, through April 20, 2025 (“‘4/20’ Long Weekend”). The Company
also completed its largest ever 4/20 customer appreciation giveaway, with
$100,000 having been awarded to an ELITE member from Winnipeg, Manitoba.

Canna Cabana had a shrink rate of just 0.3% during the three months ended
April 30, 2025.

Annualized retail sales per square foot were $1,648 across the Canna Cabana
store network during the second fiscal quarter of 2025. Adjusting for the
fewer days, retail sales per square foot were only down 2% sequentially, in
what is traditionally a seasonally slower quarter. This was higher than
best-in-class retailers like Wal-Mart, Target, and Canadian Tire.

Operational highlights (February 1 – April 30, 2025):

The Company opened four new Canna Cabana locations in Ontario—Hamilton,
Cambridge, Collingwood, and Kitchener. Additionally, the Company opened a
Canna Cabana location in Alberta, located in the town of Cochrane.

The Company was recognized as a Top 50 company by the TSX Venture Exchange
for the second consecutive year.

Subsequent Events (May 1 – present)

The Company opened four new Canna Cabana locations across Ontario and
Alberta—Brantford, Cornwall, Calgary, and Sherwood Park. These openings
bring High Tide’s total store count to 200 Canna Cabana locations across
Canada.

At an annual general and special meeting of shareholders, each of the
Company’s five nominees proposed by management was elected as a director of
the Company.

Outlook

High Tide’s wholly owned subsidiary, Canna Cabana, operates 200 current
locations. The Company intends to add 20-30 locations during calendar 2025,
with a long-term goal to exceed 300 locations across Canada.

The Company’s Cabana Club and ELITE loyalty programs continue to expand at
a rapid pace across Canada. Cabana Club membership has now reached 1.9
million members in Canada, which is up 33% in the past year. Over the long
term the Company anticipates exceeding 2.5 million Cabana Club members in
Canada. Globally, the Company has now surpassed 5.87 million Cabana Club
members. ELITE, the paid membership tier, continues to break quarterly and
annual growth records and now exceeds 97,000 members in Canada and 104,000
worldwide, with additional members being onboarded daily. ELITE members
tend to shop more frequently and in larger quantities than base tier
members.

Following the successful launch of its innovative discount club model in
its core bricks-and-mortar business, in late 2024, the Company expanded
Cabana Club across all its global e-commerce businesses, offering
disruptive three-tier pricing. While the Company is currently behind its
original revenue expectations, this line item represents an immaterial
share of consolidated revenue of just 3%. The Company remains committed to
its communicated 12-month plan to bolster its e-commerce platforms, which
are strategically positioned to take advantage of further federal reforms
in the U.S. and elsewhere.

As stated by the Company previously, the quantum of free cash flow
generated can vary significantly in any given quarter, however, it
anticipates remaining free cash flow positive for the fiscal year, and
notes that free cash flow for the first half of fiscal 2025 was positive.

The Company continues to expand white label product offerings in its Queen
of Bud and Cabana Cannabis Co. brands, with 67 cannabis and accessory SKUs
now available across the Canna Cabana store network. The Company is
currently working on exciting new white label product offerings that are
expected to launch this summer.

The Company’s balance sheet remains healthy with total debt of $25.4
million, representing just 0.8x Adjusted EBITDA generated during the past
12 months, and with no maturities for over two years. As a result, the
Company believes it can continue to fund future store growth with cash
generated from existing locations.

The Company is in exclusive discussions regarding a transaction with a
leading German medical cannabis importer and wholesaler. While there is no
guarantee of a successful closing, the Company is working towards
completing this transaction in the near term. With half of all German
medical cannabis imports still coming from Canada, the Company believes
that it is well-positioned to leverage its procurement expertise, based on
over $1.7 billion in Canadian cannabis sales, to become a significant
supplier of medical cannabis into Germany and potentially other European
jurisdictions.

ATM program quarterly update

Pursuant to the Company’s ATM Program that allows the Company to issue up
to $30 million (or the equivalent in U.S. dollars) of Common Shares from
the treasury to the public from time to time, at the Company’s discretion
and subject to regulatory requirements, as required pursuant to National
Instrument 44-102 – Shelf Distributions and the policies of the TSXV,
during the six months ended April 30, 2025, the Company issued an aggregate
of 11,600 Common Shares over the Nasdaq or TSXV, for aggregate gross
proceeds of $52. The Company has not issued any shares under the ATM
Program during the three months ended April 30, 2025, or from May 1, 2025,
to today.

Pursuant to an Equity Distribution Agreement cash commission of $1 on the
aggregate gross proceeds raised was paid to the Agents in connection with
their services under the Equity Distribution Agreement during six months
ended April 30, 2025.

The Company intends to use the net proceeds of the ATM Program to fund
strategic initiatives it is currently developing, to support the growth and
development of the Company’s existing operations, funding future
acquisitions as well as working capital and general corporate purposes.
ABOUT HIGH TIDE

High Tide Inc. (HITI) is a leading retail-forward cannabis enterprise
engineered to unleash the full value of the world’s most powerful plant.
Its wholly owned subsidiary, Canna Cabana, is the second-largest cannabis
retail brand globally.