High Tide Reports Record-Breaking Third Quarter 2026 Financial Results

• RECORD Quarterly Revenue of $199 Million and Annualized Revenue Run Rate of Approximately $800 Million
• RECORD Gross Profit of $52.7 Million
• RECORD Adjusted EBITDA of $16.2 Million
• RECORD Income From Operations of $8.7 Million
• RECORD Net Income of $12.7 Million
• RECORD Cash Flow From Operations Before Changes in Non-Cash Working Capital of $11.9 Million, With Free Cash Flow of $7.0 Million
• Canna Cabana Held a 14% Share of the Cannabis Retail Market in the Provinces Where it Operates, Excluding British Columbia, Up From 13% a Year Ago¹

CALGARY, AB, Sept. 14, 2026 /PRNewswire/ -- High Tide Inc. ("High Tide" or the "Company") (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, today released its financial results for the third fiscal quarter of 2026 ended July 31, 2026, the highlights of which are included in this news release. The full set of unaudited condensed interim consolidated financial statements for the three months ended July 31, 2026 and 2025 (the "Financial Statements") and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.hightideinc.com, its profile pages on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov/edgar. 

"Nearly every major financial metric moved in the right direction this quarter, with many reaching the highest levels in our history. We delivered record revenue, record gross profit, record Adjusted EBITDA, record income from operations, record net income and record operating cash flow before working capital. But what excites me most is that our bottom line is now growing substantially faster than our top line. That is the operating leverage we have spent years building toward," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"High Tide is approaching an $800 million annualized revenue run rate, our Adjusted EBITDA margin is at its highest level in twelve quarters, and we continue to generate meaningful free cash flow while investing aggressively in growth. With Canna Cabana strengthening its leadership position in Canada and Remexian scaling rapidly in Germany, we now have two powerful engines driving our business forward. We intend to keep pushing hard on growth, profitability and cash generation while maintaining the capital discipline that got us here. This quarter is the clearest evidence yet of the earnings power we are building at High Tide," added Mr. Grover.

Third Fiscal Quarter 2026 – Financial Highlights:

• Revenue was a record $198.8 million for the three months ended July 31, 2026 compared to $149.7 million during the same period last year, an increase of 33%, representing the fastest growth rate in 13 quarters. Revenue was up 11% sequentially, representing the fastest growth rate in 15 quarters. This was the fifth consecutive quarter marking a new all-time high in revenue.
• Gross profit was a record $52.7 million for the three months ended July 31, 2026, up 32% compared to the previous year and up 9% sequentially.
• Gross margin was 27% for the three months ended July 31, 2026, which was consistent with a year ago and sequentially.
• Adjusted EBITDA was yet another record of $16.2 million in the three months ended July 31, 2026. This was up 53% compared to last year and up 17% sequentially. The Company generated Adjusted EBITDA margin of 8.2% in the three months ended July 31, 2026, which marked the highest level in 12 quarters.
• The Company continued to create shareholder value by growing key fundamental metrics far in excess of share dilution. Specifically, even excluding the non-controlling interest, revenue grew 2.5x faster than its average basic share count during the three months ended July 31, 2026, compared to the prior year, while Adjusted EBITDA grew 3.9x faster than its average basic share count.
• Cash flow from operations before changes in non-cash working capital was a record $11.9 million for the three months ended July 31, 2026, up 44% compared to last year and 36% sequentially.
• The Company generated $7.0 million in free cash flow in the three months ended July 31, 2026. Free cash flow was up 373% versus $1.5 million sequentially. Free cash flow compared to $7.7 million in the prior year despite $4.2 million in additional investments in working capital to support the growth of the business.
• General and administration expenses represented 3.9% of revenue in the three months ended July 31, 2026, which improved from 4.4% during the previous year, and 4.0% sequentially, and was the lowest level in eight quarters.
• Salaries, wages, and benefits represented 11.4% of revenue in the three months ended July 31, 2026, which improved from 12.2% during the previous year, and 11.9% sequentially, and was the lowest level in 12 quarters.
• Income from operations was a record $8.7 million in the three months ended July 31, 2026. This was up 133% compared to last year, and 43% sequentially. 
• During the third fiscal quarter, the Company generated record net income of $12.7 million, which represented significant improvements from net income of $0.8 million a year ago, and modestly positive net income sequentially. Adjusted for changes in non-cash derivative liability and long-term contract asset, net income was $2.2 million, which compared to $0.9 million a year ago, and $0.8 million sequentially.
• Cash and cash equivalents, including restricted cash, as at July 31, 2026 totaled $47.1 million, which compared to $63.8 million in the prior year, and $36.5 million sequentially.

Third Fiscal Quarter 2026 – Retail Highlights:

• Canna Cabana remains the largest cannabis retail chain in Canada with 232 operating locations. Excluding British Columbia, Canna Cabana's market share was 14%, up from 13% in the previous year.²
• Canadian Cabana Club membership has surpassed 2.73 million, an increase of 27% compared to last year, and 3% sequentially. Cabana Club remains the largest cannabis loyalty program globally. The Company has also exceeded 186,000 ELITE members in Canada, an increase of 62% from the previous year and 4% sequentially.
• The average Canna Cabana store generated 1.8x revenue versus peers.³
• Same-store sales for the entirety of the third fiscal quarter of 2026 were consistent with the prior year; however, comparative sales showed positive growth in each of the months of June 2026 and July 2026 versus the prior year. The Company notes that, in terms of transaction count, on a same-store basis, Canna Cabana posted a 1.1% gain during the third fiscal quarter. Since the launch of its discount club model in October 2021, same store sales at Canna Cabana are up 171% while the average operator has experienced a 1% decline in sales.⁴
• For the 12 months ended June 2026, total industry sales in the five provinces where the Company operates were up 3% year over year.⁵ In contrast, total Canna Cabana sales were up 10% during this period.
• Canna Cabana had a shrink rate of 0.2% during the three months ended July 31, 2026, which was consistent with the three months ended April 30, 2026, and July 31, 2025.
• Excluding stores open less than six months which are still ramping up, annualized retail sales per square foot were $1,721 across the Canna Cabana store network during the third fiscal quarter of 2026, which was higher than many best-in-class international retailers.

Third Fiscal Quarter 2026 – Medical Cannabis Update

• During the third fiscal quarter of 2026, Remexian distributed a record 10.2 tonnes of medical cannabis into the German market, marking the highest quarterly distribution volume in the company's history. Volumes increased 62% compared to the previous year and 35% sequentially.
• The segment generated record revenue of $38.2 million during the third fiscal quarter of 2026, compared to $31.6 million during the second fiscal quarter of 2026.
• During the third fiscal quarter of 2026, Remexian generated gross margin of 26%.

Third Fiscal Quarter 2026 – Operational Highlights (May 1, 2026 – July 31, 2026): 

• The Company opened new Canna Cabana locations in Toronto, Welland, Ottawa and Calgary.
• The Company closed the acquisition of four additional stores in Ontario—Bowmanville, Oshawa, Courtice and Kingston—through the acquisition of 100% of the equity interests of J. Supply Holdings Inc., operating as Northern Helm.
• Certain officers, directors, and consultants, led by the Company's President and Chief Executive Officer, in the aggregate, acquired 90,882 common shares in the capital of High Tide on the open market between May 6, 2026, and May 8, 2026, at an average price of $3.39 per Common Share.

Subsequent Events (August 1, 2026 – Present):

• The Company closed its previously announced senior secured credit facilities with Bank of Montreal in the aggregate principal amount of $40 million.
• The Company announced the voting results from its annual general and special meeting of shareholders of the Company held on August 11, 2026, where each nominee listed in the Company's management information circular dated June 29, 2026, was elected as a director of the Company, and where the Company's revised Shareholder Rights Plan was approved.
• The Company announced the opening of three new Canna Cabana locations across Lindsay, Orléans, and Regina, bringing the Canadian Canna Cabana store count to 232, including 105 in Ontario and 14 in Saskatchewan.

Selected financial information for the three and nine months ended, July 31, 2026:

(Expressed in thousands of Canadian Dollars)

The reconciling items between net earnings, EBITDA, and Adjusted EBITDA are as follows:

OUTLOOK

Bricks-and-Mortar Retail

High Tide's wholly owned subsidiary, Canna Cabana, is the largest cannabis retail chain in Canada with 232 locations. Canna Cabana also owns and operates a location in Berlin, Germany, selling consumption accessories. As previously communicated, the Company reiterates its long-term goal of surpassing 350 locations across Canada and opening over 20 locations in calendar 2026, mostly through organic growth, while also evaluating supplemental M&A opportunities of varying sizes.

White Label Initiatives

The Company continues to expand its white label cannabis product portfolio under its flagship Queen of Bud and Cabana Cannabis Co. brands, increasing from 41 to 48 SKUs sequentially. The Company is also developing several new offerings to further grow its white label portfolio. Currently, white label cannabis SKUs represent approximately 1.9% of the Company's total bricks-and-mortar cannabis sales. Over the long term, the Company anticipates significant growth in its white label portfolio.

Cabana Club & ELITE

The Company's Cabana Club and ELITE loyalty programs, which remain the largest such cannabis loyalty programs in the world, continue to expand at a rapid pace across Canada. Cabana Club membership has now surpassed 2.73 million members in Canada, which is up 27% in the past year. Over the long term the Company anticipates exceeding 3 million Cabana Club members in Canada. ELITE, the paid membership tier now exceeds 186,000 members in Canada—after growing by 62% compared to last year—with additional members being onboarded daily.

Europe

High Tide's German medical cannabis subsidiary, Remexian Pharma GmbH, has continued to gain momentum since the Company's acquisition of a majority stake, with market share increasing from 6.5% to 10.5% in the first six months post transaction. The Company notes that while industry data isn't available, Remexian's shipments have increased 44% since the three months ended March 31, 2026. Management is encouraged by this strong and increasingly bullish trajectory and believes the Company is well positioned to sustain, and potentially grow, its share of the German medical cannabis market, supported by its unmatched Canadian supply relationships and the continued growth of Germany's medical cannabis sector. The record tonnage distributed by Remexian during the third fiscal quarter provides further evidence of this positive momentum and, assuming the current regulatory framework remains materially unchanged, could be indicative of the scale and growth potential of the business in the quarters ahead. The Company continues to assess potential opportunities in other European jurisdictions, and is committed to being strategic on any entry with the aim of maximizing shareholder value.

United States

The Company's conviction in the long-term opportunity for its U.S. hemp-derived CBD subsidiaries continues to be reinforced by an evolving federal policy environment. Consistent with the rationale behind becoming founding members of the U.S. National Compassionate Care Council, the Company and its subsidiary, NuLeaf Naturals, remain focused on helping to shape thoughtful federal and state medical cannabis policy while supporting efforts to expand patient access to cannabinoid therapies.

Federal reform in the U.S. has continued to accelerate. On April 23, 2026, the U.S. Department of Justice and Drug Enforcement Administration (DEA) moved FDA-approved cannabis drug products and cannabis subject to a state medical marijuana license from Schedule I to Schedule III of the Controlled Substances Act, the most significant shift in U.S. federal cannabis regulation in decades. Building on that order, the DEA conducted an administrative hearing between June 29 and July 15, 2026, to consider the broader rescheduling of cannabis from Schedule I to Schedule III.

The Company believes that broader rescheduling, if ultimately implemented, could have significant implications for the U.S. cannabis industry, including t