High Tide Inc.

Good morning. My name is Jenny, and I will be your conference operator today. At this time, I would like to welcome everyone to the high tide third quarter 2025 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, then the number two. Thank you. Mr. Brownlee, you may begin your conference.

Thank you, Jenny. Good morning, everyone, and welcome to High Tidings 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. Mike Mahajan, Chief Financial Officer. On September 15th, 2025, the company released unaudited financial and operational results for the fiscal quarter of the end of July 31st, 2025. Before we begin, please let me remind you that during the course of this conference call, High Tides Management may make statements including with respect to management's expectations or estimates of future performance. All such statements, other than statements of historical facts, constitute forward-looking information or forward-looking statements within the meaning of the applicable securities laws and are based on assumptions, expectations, estimates, and projections as of the date hereof. Specific forward-looking statements include, without limitation, all disclosures regarding future results of operations, economic conditions, and anticipated courses of action. For more information on the company's risks and uncertainties related to forward-looking statements, please refer to the company's press release dated September 15, 2025, our latest annual information form, and our latest management discussion and analysis, each filed with security regulatory authorities at cedarplus.ca or on edgar at sec.gov forward slash edgar or on the company's website at hightightinc.com and which are hereby incorporated by reference herein. Although these forward-looking statements reflect management's current beliefs and reasonable assumptions based on the currently available information to management as of the date hereof, we cannot be certain that the actual results will be consistent with the forward-looking statements in the future. There can be no assurance that actual outcomes will not differ materially from these results. Accordingly, we caution you not to place undue reliance upon such forward-looking results. For any reconciliation of non-IFRS measures measured and discussed, Please consult our latest management discussion and analysis filed on CDER Plus and EDGAR. It is now my pleasure to introduce Mr. Raj Grover, President and Chief Executive Officer of Hightide. Thank you, Mr. Grover. You may begin.

Thank you, Carter. And good morning, everyone. Welcome to Hightide Inc's Financial Results Conference Call for the third fiscal quarter ended July 31, 2025. I'll begin with some high-level comments on the quarter and our strategy before Mayank takes you through the details. I'm very proud to present what was truly the strongest quarter in Hightight's history. Driven by the continued strength of our bricks and mortar business, every major metric showed meaningful gains this quarter, with many setting new all-time records. To highlight just a few, revenue reached a record high, putting us essentially at a 600 million annual run rate. Bricks and mortar revenue was a record, up 18% year over year, representing the fastest pace of growth since we started disclosing the segment two years ago. Same-store sales growth accelerated to 7.4%, also our fastest pace in two years, extending our multi-year streak of outperformance versus peers. Since launching our innovative discount club model in October 2021, same-store sales at Canna Cabana have increased 137%, while the average operator has declined by 2%. Looking ahead into Q4, our same-store sales show no signs of slowing down. Canada Cabana's market share across our five operating provinces reached 12% during the first two months of the quarter, our highest level since the early days of legalization. Gross margin dollars climbed to a record $40.1 million, up 13% year-over-year. Gross margin percentage was 27%, supported by bricks-and-mortar gross margins, which rose sequentially for the third straight quarter, tying their all-time highs. Adjusted EBITDA was a record $10.6 million, up 11% year-over-year. Bricks and motor adjusted EBITDA was $12.7 million, an all-time high, up 42% year-over-year and the fastest pace of growth in six quarters. Bricks and motor adjusted EBITDA margin of 8.7% was up 1.4 percentage points year-over-year, reaching its highest level in two years. Income from operations reached a record $3.7 million, up 22% year-over-year, while net income turned positive at $832,000, a sharp turnaround from a $2.8 million net loss in Q2. Free cash flow of $7.7 million grew 148% year-over-year and reached the second highest level since we began disclosing this metric 11 quarters ago. We are now at 2.15 million Cabana Club members in Canada, up 39% year-over-year to a new record. Canadian Elite membership stands at 115,000 today, up 102% year-over-year and represented the fastest pace of onboarding since we launched the program in late November 2022. Now with 207 Cannacabana locations in Canada, the largest cannabis retail brand in the country, and still rapidly growing, there's no question that our bricks and mortar business is performing exceptionally. We are the envy of the industry, running full steam ahead, and with our recently closed acquisition of a majority interest in Remexion, we have added a tremendous German opportunity to our operations and growth prospects. This transaction reflects a disciplined shareholder first approach. intelligent, prudent, and designed to generate superior returns. Having tracked Germany's sizable and accelerating medical cannabis market for some time, we announced our intention to enter earlier this year. Since then, we've been approached by multiple potential partners eager to collaborate, but after carefully evaluating all opportunities, we chose Romexion for their scale, profitability, cultural alignment, and willingness to transact at a fair multiple that keeps all sides aligned and incentivized for future growth. Remexion is already a leader in Germany, importing cannabis from around the world and distributing to hundreds of pharmacies and wholesalers. For the six months ended March 2025, the company generated annualized revenue of 70 million euros and adjusted EBITDA of 15 million euros, numbers that immediately add meaningful heft to our already stellar business. Our stated German strategy is simple and our positioning is unmatched. Hightide has now sold more federally legal cannabis than any company on the planet, over $1.9 billion to date. Already being the largest customer of most licensed producers here in Canada, we plan to leverage these relationships and have them channel their German medical cannabis shipments to us and our network instead of smaller, lesser-known distributors in Germany. What started out as a theory has already gained more traction than we anticipated. The response from licensed producers has been overwhelming, with dozens already committing to ship through high tide, many on an exclusive basis. While suppliers pressed us on timing, we stressed that finding, negotiating, and executing the right transaction takes time. That day is now here. Our operations team is already in Germany working on integration and growth plans, and I'll be traveling from our head office in Calgary tomorrow to join them. With so many licensed producers already lined up to send their production through us, we felt we had sufficiently de-risked our business model, giving us the confidence to enter a larger transaction with a much bigger partner than initially considered. Remexion is a significant player and market leader, having sold 7 tons of cannabis in calendar Q2, representing 16% of all imports into Germany. This puts Hightide in a tremendous position in the two largest federally legal cannabis markets on earth. 12% market share in Canada, and now 16% in Germany. We always said we aim to be global leaders in cannabis, and here we are having executed on that plan without growing a single gram ourselves. Of course, while we welcome the Romexian team to the Hightide family, our goal is to grow our market share together in Germany. Hightide will leverage its existing relationships with licensed producers of all sizes to source large volumes of high-quality cannabis at best-in-class terms while Ramexian broadens its distribution capabilities to turn this supply into revenue. Looking ahead, the opportunity is enormous. Only one-third of Ramexian's supply is currently sourced from Canada, compared to 45% of total imports into Germany. Leveraging our LP relationships, we see a clear path to increasing Canadian sourcing to 50-60%, while continuing to build on Ramexian's strong global supply chain. At the same time, we are focused on curating the largest and most diverse menu of cannabis strains in Germany, further cementing our leadership in this market. Remexion also provides a platform for us to take our house of brands into other markets we are eyeing, such as the UK, Poland, Czechia, and Switzerland. Licensed producers want to be on our menu in Germany and leverage us to enter these other markets once they present sufficiently large commercial opportunities. Remexion has already imported medical cannabis from nine countries, and is authorized to import from 19. While medical cannabis is profitable today, our ultimate goal is clear, to be leaders in Germany's eventual adult use market, whenever and however it unfolds. With Ramexian's infrastructure and our early mover advantage, we're well positioned to seize that opportunity. But it's not enough to just identify a good partner and formulate a winning strategy. We were thoughtful in structuring the transaction to generate value for our current shareholders while offering meaningful upside for the remaining minority partners. I'm particularly proud of how we put this deal together. We acquired our initial 51% stake at just over 3.6 times annualized adjusted EBITDA, instantly accretive given our higher trading multiple. The remaining 49% can be acquired at a similar multiple in two years through our call option, locking in future accretion. Meanwhile, the Romexian team remains our boots on the ground and is heavily incentivized to grow the business alongside us. We were also very deliberate in how we structured the payment terms. While the largest component of the consideration was in shares, Romexian shareholders own less than 6% of our fully diluted shares outstanding. Especially considering the revenue and adjusted EBITDA they are contributing, we believe this is very reasonable. Just like our existing shareholders, our new partners are already nicely up on the value of their equity starting our long-term relationship on the right foot. The cash component paid to Remexian shareholders was approximately half of the net proceeds from the five-year financing we closed with Kronos in July, leaving the other half available to help grow the business. Finally, we view the debt from this transaction as very manageable. It is a five-year term where we pay interest only at 7% annually. The plan is to pay down the principal from our share of dividends declared by Remexian effectively allowing the acquisition to pay for itself over time. Including our share of Remexian's debt at closing, we calculate our gross debt to be just 1.5 times the latest adjusted EBITDA generated by high tide over the last four quarters, plus our share of Remexian's annualized adjusted EBITDA for six months ended March. We believe this is a very manageable level, still positioning us to take on more debt if and when needed. Speaking of our balance sheet, we were very pleased to have closed our $30 million junior subordinated loan with Kronos in July. Having one of the largest licensed producers recognize our leadership and execution on the retail side by investing directly in Hightide is a strong validation of our strategy. Our achievements have not gone unnoticed across Bay and Wall Street as well. Just last week, two new equity research analysts launched coverage of Hightide, highlighting our leadership position and bright future. our share price has also increased meaningfully since our last earnings call. While that is great to see, we still have many opportunities ahead of us for growth now that we are truly an international cannabis powerhouse. In conclusion, Q3 was the best quarter in Hightight's history. We set records on almost every key metric and generated nearly $8 million in free cash flow. Yet this is just the beginning as we ended the quarter with most growth rates at multi-quarter highs, And starting this month, we began adding Remexian's results to our financials. It took us nearly seven years since legalization to climb to 12% market share in the Canadian provinces where we operate. In Germany, we are starting with 16%, and we are excited about where we can take things together. It has been a very busy and fruitful summer for the Hightide team. Since our last conference call in June, we closed a $30 million financing with a strategic partner, finalized and executed our entry into the German medical cannabis market with a leading player and delivered superb results in our core operations for Q3. I want to sincerely thank the entire Hightight team. You all contributed to making this a game-changing few months for the company and setting us up for new heights ahead. With that, I'll turn it over to Mayank for his comments and a deeper dive into the numbers.