High Tide Reports Record-Breaking Revenue of $522.3 Million in 2024, Marks Sixth Consecutive Quarter of Positive Free Cash Flow

High Tide Inc. has once again proven its dominance in the cannabis retail industry, reporting a record $522.3 million in revenue for the fiscal year ending October 31, 2024. The company, which operates the flagship Canna Cabana retail chain, also marked its sixth consecutive quarter of positive free cash flow, with $5.9 million in the fourth quarter alone. With annualized revenue now exceeding $550 million, High Tide maintains its position as the highest revenue-generating cannabis company reporting in Canadian dollars for the third straight year.

Strong Financial Performance Amid Industry Challenges

High Tide’s latest financials highlight steady growth, even as the broader cannabis industry faces pricing pressures and regulatory hurdles.

• Fourth-quarter revenue hit an all-time high of $138.3 million, up 9% year-over-year and 5% sequentially.
• Gross profit for the fiscal year grew to $142.5 million, reflecting a 9% increase from the previous year.
• The company slashed its net loss to $3.8 million in 2024, a major improvement from a $41.0 million loss in 2023.

Notably, High Tide’s adjusted EBITDA came in at $38.3 million for the year, marking a 25% increase compared to 2023. Despite increased operating expenses due to aggressive store expansion, the company’s cost-cutting strategies kept its general and administrative expenses at just 4.2% of total revenue.

Loyalty Program Growth Fuels Market Expansion

High Tide’s Cabana Club loyalty program remains a key driver of its market penetration.

• The program now boasts 5.32 million members globally, including 76,000 ELITE members.
• In Canada alone, membership surged 34% year-over-year, reaching 1.72 million customers.
• The company recently expanded its loyalty initiative into the U.S., the European Union, and the U.K. through dedicated platforms.

The rapid growth of the loyalty program underscores the effectiveness of High Tide’s discount-based retail model, which continues to attract price-sensitive cannabis consumers.

Canna Cabana’s Market Share Stays Strong

Despite operating only 5% of the cannabis retail stores in five Canadian provinces, Canna Cabana holds a commanding 11% market share in those regions.

• In Alberta, the brand captured a 19% retail market share in Q4 2024.
• In Ontario, it secured a 10% share, reinforcing its status as a top cannabis retailer.
• Same-store sales grew 0.4% year-over-year in Q4 and climbed 3% sequentially.

Over the last three years, same-store sales at Canna Cabana have surged 130%, while the average cannabis retailer in the same provinces has seen a 5% decline.

Strategic Expansion and International Growth

High Tide’s aggressive expansion strategy continues to pay off.

• The company added 30 new stores in 2024, pushing its total retail footprint past 170 locations.
• It recently launched its Cabana Club membership program in Germany, positioning itself for future European growth.
• Through its acquisition of Purecan GmbH, High Tide is entering the German medical cannabis market, which is poised for rapid expansion.

CEO Raj Grover emphasized that the company’s retail model is built for sustained long-term success. “Despite economic headwinds, our ability to generate positive free cash flow while expanding our retail presence demonstrates the strength of our business model,” Grover stated.

Retail Performance Rivals Industry Giants

High Tide’s retail performance stands out even when compared to established mainstream retailers.

• The company reported annualized sales of $1,699 per square foot at Canna Cabana locations in Q4 2024.
• This figure surpasses some of the largest retail chains, including Wal-Mart, Target, and Canadian Tire.

The strong per-square-foot sales performance highlights the efficiency of High Tide’s retail footprint and its ability to maximize profitability despite market challenges.

Future Outlook: Continued Expansion and Profitability

Looking ahead, High Tide plans to continue its expansion both in Canada and internationally.

• The company recently repaid $13 million in debt, further strengthening its balance sheet.
• Its Fastendr retail kiosks are now installed in over 95% of Canna Cabana locations, improving the customer experience.
• High Tide expects its international cannabis ventures, including in Germany, to contribute significantly to revenue growth in the coming years.

With a proven business model, a growing customer base, and a disciplined approach to cost management, High Tide remains well-positioned to capitalize on the evolving cannabis market.