High Tide Reports First Quarter 2026 Financial Results Featuring Record Revenue Exceeding $700 Million Annualized

Canna Cabana Remains the Largest Cannabis Retailer in Canada with 220 Current Locations

The Company Reiterates its Long-Term Goal to Exceed 350 Locations Across Canada

• The Company Generated $2.9 Million in Free Cash Flow During the Quarter, Marking Significant Improvements Year Over Year and Sequentially. Over the Past 12 Months, the Company Has Generated $16.8 Million in Free Cash Flow
• Canadian Cabana Club Members Now Exceed 2.58 Million, Up 47% Year Over Year, Marking the Fastest Pace in 10 Quarters and Remains the Largest Cannabis Loyalty Program Globally
• ELITE Members in Canada Have Surpassed 162,000, Up 100% Year Over Year
• High Tide Remains the Highest Revenue Generating Cannabis Company Reporting in Canadian Dollars,¹ and Continues to Hold a Leading 12% Share of the Cannabis Retail Market Across the Five Provinces in Which the Company Has a Presence, Up from 11% in the Same Period Last Year²
• Despite the Volume of Biomass Still in Portugal Waiting to be Released, Remexian Pharma GmbH Was Able to Significantly Increase its Market Share of German Imports From 6.5% for the Three Months Ended September 2025 to 10.3% for the Three Months Ended December 2025³

CALGARY, AB, March 17, 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 first fiscal quarter of 2026 ended January 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 January 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. 

"We delivered another quarter of solid results, highlighted by record revenue, record gross profit, and positive free cash flow. Our innovative discount club model, built around customer loyalty, continues to be the backbone of our success. Cabana Club membership keeps growing rapidly, and our stores continue to outperform peers, while our core bricks-and-mortar segment achieved its fifth consecutive quarter of sequential gross margin improvement." 

"Internationally, our German business is gaining strong momentum. The first full fiscal quarter following our acquisition of Remexian exceeded our expectations, and since quarter-end we have seen further improvements in both revenue and margins. As we begin to realize success in Germany, we are also exploring additional international opportunities, including the United Kingdom, where we are engaging with major industry participants with the goal of entering the market through a potential M&A transaction within the next 12 months." 

"In the United States, our e-commerce businesses are beginning to show encouraging signs of recovery, with sequential revenue growth for the first time in two years. More importantly, we are positioning ourselves for what we believe could become a meaningful opportunity as regulations evolve around Medicare and Medicaid coverage for CBD products." 

"With strong momentum in Canada, expanding international opportunities, and improving prospects in the United States, the future for High Tide is bright and increasingly global. I want to thank our entire team for their outstanding execution and dedication."

— Raj Grover, Founder and Chief Executive Officer of High Tide

First Fiscal Quarter 2026 – Financial Highlights:

• Revenue was a record $178.3 million for the three months ended January 31, 2026 compared to $142.5 million during the same period last year, an increase of 25% year over year, representing the fastest growth rate in 10 quarters. Revenue was up 9% sequentially during the the three months ended January 31, 2026. This was the third consecutive quarter marking a new all-time high in revenue.
• Gross profit was a record $44.4 million for the three months ended January 31, 2026, up 25% year over year and up 4% sequentially.
• Gross margin was 25% for the three months ended January 31, 2026, which was consistent year over year and compared to 26% sequentially. The margins in the Company's core bricks-and-mortar segment, which generated 84% of its revenue, increased sequentially for the fifth consecutive quarter, reaching 28%. As previously communicated, gross margins in its medical cannabis distribution segment were impacted by older biomass in Portugal which is being liquidated at prices lower than usual given their limited time to expiry. The Company expects to see improvements in gross margins in this segment starting in the second fiscal quarter of 2026, as biomass procured from Canada at best in class terms begins flowing through the supply chain and showing up in financial results.
• Adjusted EBITDA was $11.5 million in the three months ended January 31, 2026 representing the second-highest quarter ever, and compared to $7.1 million year over year, marking the fastest growth rate in eight quarters, and $12.4 million sequentially.  
• The Company generated $2.9 million in free cash flow in the three months ended January 31, 2026, representing a significant improvement from $(1.9) million year over year, and $1.3 million sequentially. During the past four quarters, the Company has generated $16.8 million in free cash flow.   
• General and administration expenses represented 4.1% of revenue in the three months ended January 31, 2026, which improved from 4.6% during the previous year, and 4.3% sequentially, and was the lowest level in six quarters.
• Salaries, wages, and benefits represented 11.8% of revenue in the three months ended January 31, 2026, which improved from 12.3% year over year and compared to 11.5% sequentially.  
• During the first fiscal quarter, the Company generated a net loss of $0.4 million, which represented meaningful improvements from a net loss of $2.7 million year over year and a net loss of $46.7 million sequentially, which was impacted by non-cash impairment expenses and charges related to changes in derivative liabilities.
• Cash and cash equivalents, including restricted cash, as at January 31, 2026 totaled $46.4 million, which compared to $33.3 million in the prior year, and $47.9 million sequentially.

First Fiscal Quarter 2026 – Retail Highlights:

• Canadian Cabana Club membership has surpassed 2.58 million, an increase of 47% year over year, the fastest pace of growth in ten quarters, and remains the largest cannabis loyalty program globally. The Company has also exceeded 162,000 ELITE members in Canada, an increase of 100% year over year.
• Global Cabana Club membership, including Canada, has surpassed 6.65 million, up 17% year over year. This includes over 171,000 ELITE members, which grew by 100% year over year.
• The average Canna Cabana store generated 1.9x revenue versus peers.⁴
• Same-store sales were up 0.5% year over year in the first fiscal quarter of 2026, and down 1.3% sequentially on a daily basis. The Company notes that sales were negatively impacted by extremely harsh weather conditions in Ontario during January. Since the launch of its discount club model in October 2021, same store sales at Canna Cabana are up 149% while the average operator has experienced flat sales.⁵  
• Canna Cabana reached a 12% market share, up from 11% in the previous year.⁶
• Canna Cabana had a shrink rate of 0.3% during the three months ended January 31, 2026.
• Excluding stores open less than six months, annualized retail sales per square foot were $1,728 across the Canna Cabana store network during the first fiscal quarter of 2026, which was 4% lower year over year and 3% sequentially, having been impacted by harsh weather in Ontario. This was higher than many best-in-class international retailers.

First Fiscal Quarter 2026 – Operational Highlights (November 1, 2025 – January 31, 2026):

• The Company opened seven new Canna Cabana locations across Alberta and Ontario—Scarborough, Kitchener, Nepean, London, Brampton, and two locations in Calgary—bringing the total Canna Cabana store count to 218 locations across Canada as at the end of the quarter.
• The Company welcomed the Alberta Gaming and Liquor Commission's decision to loosen restrictions on advertising and promotional relationships between licensed retailers and licensed producers.
• The Company has begun exploring pathways for its U.S. CBD brands, NuLeaf Naturals and FAB CBD, to participate in and capitalize on recently announced U.S. federal initiatives, including the anticipated launch of a Medicare pilot program that would allow eligible seniors to receive CBD products at no cost up to US$500 annually. The Company believes these developments may represent a meaningful growth opportunity for its U.S. CBD platforms and is evaluating strategic initiatives aligned with the emerging federal framework.
• The Company joined the National Compassionate Care Council in the United States, better positioning it to help shape relevant federal and state level legislative and regulatory reforms related to medical cannabis.
• The Company notes that its e-commerce segment is showing signs of stabilization, with revenue up 5% sequentially,  marking the first sequential quarterly improvement in two years, with the Adjusted EBITDA loss also improving by $0.2 million.

Subsequent Events (February 1, 2026 - Present): 

• The Company opened two new Canna Cabana locations in Ontario—Scarborough and Sarnia—bringing the total Canna Cabana store count to 220 locations across Canada.
• The Company announced the appointment of Kathleen Skerrett and Menashe Kestenbaum as directors of the Company, and the appointment of David Wallach and Filip Ernest as members of the Company's Advisory Board.

First Fiscal Quarter 2026 – Medical Cannabis Update

• The first fiscal quarter of 2026 marked High Tide's first full quarter operating in the medical cannabis sector following its acquisition of a majority stake in Remexian. 
• The segment generated revenue of $25.0 million during the first fiscal quarter of 2026, marking an improvement versus $9.8 million in revenue for the two months for which the segment contributed to financial results during the fourth fiscal quarter of 2025. The Company notes that the segment has shown continued growth subsequent to the end of the first fiscal quarter. In February, Remexian sold 2.6 tonnes of medical cannabis, generating revenue of €7.5 million (C$12 million) with a preliminary gross margin of 20%.
• Total industry imports of medical cannabis into Germany reached 201 tonnes in 2025, a 176% increase compared to 73 tonnes in the prior year.⁷ 
• Canada was the leading country of origin, accounting for 93 tonnes, nearly 50% of total German imports. Portugal ranked second at 55 tonnes, which frequently serves as an intermediary supplier of Canadian medical cannabis products.⁸
• Despite the volume of biomass still in Portugal waiting to be released, Remexian was able to significantly increase its market share of German imports from 6.5% for the three months ended September 2025 to 10.3% for the three months ended December 2025.⁹
• More than 1 in 7 German pharmacies now offer cannabis for medical use, reflecting continued market expansion.¹⁰

Selected financial information for the Three Months Ended January 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 220 current operating locations. The Company anticipates that it will advance toward its long-term goal of surpassing 350 locations nationwide by opening another 20-30 locations in calendar 2026, mostly through organic growth, while also evaluating supplemental M&A opportunities of varying sizes.

The Company continues to expand its white label cannabis product portfolio under its flagship Queen of Bud and Cabana Cannabis Co. brands, reaching 35 SKUs across the Canna Cabana store network as at the end of the first fiscal quarter. The Company is also developing several new offerings to further grow its white label portfolio. Currently, white label cannabis SKUs represent approximately 1.6% of the Company's total bricks-and-mortar cannabis sales. Over the long term, the Company anticipates significant growth in its white label portfolio and expects sales of its higher-margin white label brands to reach approximately 20% of total sales.

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 2.58 million members in Canada, which is up 47% in the past year. Over the long term the Company anticipates exceeding 3 million Cabana Club members in Canada. Globally, the Company has now surpassed 6.65 million Cabana Club members. ELITE, the paid membership tier now exceeds 162,000 members in Canada—after growing by 100% year over year—and 171,000 worldwide, with additional members being onboarded daily. The Company's long term goal is to have 1 million ELITE members within the Cabana Club. ELITE members tend to shop more frequently and in larger quantities than base tier members.

United States

Consistent with its prior disclosure, the Company has been evaluating various alternatives regarding its e-commerce division, which currently represents 2% of its consolidated revenue. The Company is pleased to report that its e-commerce businesses are beginning to show encouraging signs of recovery sequentially, with revenue increasing and improvements across the business.

On December 18, 2025, U.S. President Donald Trump signed an Executive Order advancing the rescheduling of cannabis and announced that the Centers for Medicare & Medicaid Services is expected to launch a pilot program allowing seniors who are Medicare beneficiaries to receive CBD products at no cost up to US$500 per year. In response, the Company, and its leading U.S. hemp-derived CBD subsidiary, NuLeaf Naturals, have become founding members of the U.S. National Compassionate Care Council, which aims to play a significant role in bridging the nexus between patients, researchers and policy makers.

Europe

As noted previously, gross margins in the medical cannabis distribution segment were impacted by the liquidation of older biomass in Portugal at below-average prices due to limited time to expiry. Nonetheless, in the first fiscal quarter of 2026, Remexian generated $25 million in revenue, which is nearly 70% higher than the pace of the prior quarter. And in February 2026, distribution from Remexian was 2.6 tonnes, and represented the highest revenue generating month—with revenue surpassing $12 million—since the Company acquired a majority stake in Remexian in September 2025. The Company expects gross margin improvement beginning in the second quarter of 2026, as Canadian biomass procured at best-in-class terms begins flowing through the supply chain.

Given the Company's intention to expand into other European countries, it continues to deepen its understanding of the United Kingdom market and its key players, and anticipates entering the market within the next 12 months through a merger or acquisition.

Free Cash Flow 

The Company continues to gain strong traction in its strategic objective of procuring additional supply for Remexian and remains optimistic that sales will accelerate in the coming quarters, supported by continued momentum in the established German medical cannabis market, and growing interest from other emerging international markets.

The Company highlights the significantly increased level of revenue at Remexian since its acquisition in September 2025. The Company is pleased with the segment's growth trajectory and expects Remexian's operations to continue to expand. The Company notes that there is a meaningful delay between paying deposits to suppliers, and when the Company receives cash from its customers in Germany. As such, the Company is evaluating its working capital needs to fund this profitable growth.

ATM PROGRAM QUARTERLY UPDATE

The Company has not issued equity via an ATM Program for the last four fiscal quarters.

During the three months ended January 31, 2025, the Company issued an aggregate of 11,600 Common Shares over the Nasdaq or TSXV, for aggregate gross proceeds of $52. Pursuant to the 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 the year ended October 31, 2025.

This ATM Program was effective until July 24, 2025, when the Canadian Shelf Prospectus was withdrawn in order to file a new base shelf prospectus.

On August 11, 2025, the Company filed a final short form base shelf prospectus in all Canadian provinces and territories and a corresponding shelf registration statement with the U.S. Securities and Exchange Commission. The Company's current ATM Program allows the Company to issue up to $100,000 (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.

As at the date the financial statements were authorized for issue, no securities had been issued under the shelf and no at-the-market distribution agreement or prospectus supplement had been entered into.

WEBCAST LINK FOR TIDE EARNINGS EVENT

The Company will host a webcast and conference call to discuss it