Q1 2025 High Tide Inc Earnings Call Transcript
Key Points
- High Tide Inc (HITI) achieved record revenue for Q1 2025, reaching $142.5 million, up 11% year-over-year.
- The company remains the highest revenue-generating cannabis company in Canada with an annual revenue run rate of approximately $570 million.
- Same store sales increased by 5% year-over-year in Q1, marking the fastest pace of growth in four quarters.
- The Cabana Club loyalty program has expanded significantly, surpassing 1.76 million members in Canada, with a long-term target of 2.5 million members.
- High Tide Inc (HITI) plans to expand its retail footprint by opening 20 to 30 new stores in Canada in 2025, with a focus on organic growth.
- Adjusted EBITDA was down 32% year-over-year and 14% sequentially due to initiatives taken to grow the business.
- The resurgence of the illicit market continues to impact the brick-and-mortar business in certain municipalities.
- The e-commerce segment showed a decline in revenue year-on-year, partly due to the launch of the Cabana Club loyalty program.
- New stores initially act as a drag on consolidated results due to upfront costs and longer ramp-up times.
- Free cash flow was negative $1.9 million in Q1, driven by unusually high working capital investments.
Welcome to your conference call. Please continue the standby your confess will begin in approximately five minutes. Good morning. My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to the High Tide of first quarter 2025 and audited financial results conference call. (Operator Instructions) Thank you.
Mr. Brownlie. You may begin your conference.
Thank you, operator. Good morning, everyone. Welcome to High Tide Inc's quarterly earnings call. Please note that all earnings discussed on this call are presented on an unaudited basis. Joining me on the call today are Mr. Raj Grover, President and Chief Executive Officer, and Mr. Mayank Mahajan, Chief Financial Officer. On March 17, 2025, the company released unaudited financial and operational results for the fiscal quarter that end of January 31, 2025.
Before we begin, please let me remind you that during the course of this conference call, High Tide management may
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