High Tide Inc.

Good morning, my name is Konstantin and I will be a conference operator today. At this time, I would like to welcome everyone to Hightide Incorporated's 4th Fiscal Quarter 2025 Audits and Financial and Operational Results Conference Call. All lines have been placed to mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Instructions will be provided at that time for you to queue up for the question and answer session. I will now turn the call over to your host.

Thank you, Operator. Good morning, everyone. My name is Omar Khan. I'm the Chief Communications and Public Affairs Officer for Hightide Inc. Welcome to Hightide's quarterly earnings call. Joining me on the call today are Mr. Raj Grover, President and Chief Executive Officer, and Mr. Mayank Mahajan, Chief Financial Officer. On January 29, 2026, the company released financial and operational results for the fiscal year and quarter that ended October 31st, 2025. Before we begin, please let me remind you that during the course of this conference call, Hightide's 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 January 29, 2026. Our latest annual information form and our latest management discussion and analysis, each filed with securities regulatory authorities at sadarplus.ca or on EDGAR at www.sec.gov forward slash EDGAR or on the company's website, www.hightideinc.com. and which are hereby incorporated for 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 SEDAR Plus and EDGAR. It is now my pleasure to introduce Mr. Raj Grover, President and Chief Executive Officer of Hightide Inc. Thank you. Mr. Grover, you may begin.

Thank you, Omar, and good morning, everyone. Welcome to High Tidings Financial Results Conference Call for the fourth fiscal quarter that ended October 31st, 2025. I'll begin with some high-level comments about the quarter and our strategy before Mayank dives deeper into the financials. Looking at the numbers, what a way to cap off fiscal 2025. Last night, we reported stellar Q4 results featuring record revenue of $164 million and an annual revenue run rate exceeding $650 million, and record-adjusted EBITDA of $12.4 million. Once again, our core bricks-and-motor segment led the way. Same-store sales growth of 5.5% helped drive 15% growth in the segment year-over-year, and increased gross margins led to a record-adjusted EBITDA margin of 9.4%. Our bricks-and-motor adjusted EBITDA annual run rate now exceeds $56 million. Regarding footprint expansion, we added another 27 stores during calendar 2025, all organically. Once again, we met the higher end of the target we established at the start of the year to add 20 to 30 locations. Our goal for calendar 2026 is to add another 20 to 30 new stores. Clearly, we are not afraid of organic growth. While newer stores are taking longer to mature due to increased competition, given the strength of our brand and our commitment to only high quality locations, we believe organic growth provides excellent ROI for our shareholders. Our new store pipeline remains robust with 15 Tier 1 locations currently under development, particularly in Ontario, but we are also in talks with operators of various sizes regarding M&A possibilities. The other thing I would like to highlight is how for our second straight year, our impressive organic growth of store build-outs was financed entirely by our internally generated free cash flow. which totaled $12 million for the fiscal year, meeting our stated objective of remaining positive. Our retail KPIs remain truly impressive. Excluding stores open less than six months, which are still ramping up, our annualized revenue per square foot in Q4 was $1,775, once again, above many leading blue chip retailers. Much of this strength can be attributed to the strength of our Cabana Club loyalty program, which keeps expanding. We are now at 2.5 million members in Canada, up 45% year-over-year, growing at the fastest rate in four quarters. Recall that since our last conference call, we raised our long-term target to reach 3 million Cabana Club members nationwide. Our Canadian elite member count now sits at 151,000, up 107% year-over-year. Once again, our pace of onboarding new members was the fastest since we launched the elite tier in November 2022. October 2025 was the end of our fiscal year, and it also marked the four-year anniversary of the launch of our innovative discount club model, and the results have been nothing short of phenomenal. We outperform our peers month in and month out, and this delta has been compounding during this time. Chaining our monthly same-store sales increases, we are up 151% during this four-year period. In contrast, total sales in the five provinces where we operate are up only 23%, And with the increase in the number of stores, the average operator is down 14%. In October, the average Kanakabana store was on an annual revenue run rate of $2.6 million, which was 2.2 times our peer average at $1.2 million. In Ontario, the largest province and focus for future growth, our outperformance was even more pronounced. Excluding stores open less than six months, which are still ramping up, our average Ontario store was on a $3 million annual run rate, which was 2.6 times our peers at $1.1 million. This outperformance has led to increasing market share. For the fourth fiscal quarter of 2025, Kanakabana had a 12% market share in the five provinces where we operate, up from 11% a year ago. The world has changed so much since we held a 5% market share four years ago. And while our share has risen, our overall growth continues to outperform the market. For the 12 months ended October 31st, 2025, total industry sales in the five provinces where we operate were up 4% year over year. In contrast, total Canna Cabana sales were up 16% during this period. This underscores the strong degree to which customers see the value of our offering, and this outperformance is also being noticed by licensed producers, large and small. Media company Rebel and Thorn recently prepared a report highlighting retailer insights for the Canadian cannabis industry, which really showcases Kanakabana's strong positioning within it. The report found that Kanakabana leads the pack in consumer awareness with 29% awareness across the country, number one nationally, and in almost every province where we operate. Similar to our financial and operational metrics, Awareness among consumers of our brand has been climbing steadily for the past several years, while our main competitors, many of whom have went through CCAA proceedings and closed stores, have largely stagnated or declined on this metric. In terms of shopping frequency, the report found that 16% of all consumers nationally cited Canna Cabana as the store where they shop most often. Not only was this the highest level among our peers, we scored twice as high as the next closest brand. I'm even prouder at our outperformance when digging deeper into the data. When isolating only daily users of cannabis, our bread and butter customer, 49% of them named Canna Cabana as the location they shop most often at. Again, this was by far the highest among our peers and about twice the level of our next closest competitor. This is a customer group that moves the market, and they choose Canna Cabana by a wide margin. Thanks to the strength of our model, the real estate we have carefully selected and secured, and the operational excellence of our team, we are competing with brands, in many cases, much better capitalized than us, and we are winning. The macro picture of the industry also continues to improve in terms of our positioning and relative ability to service customers. The retail shakeout we have expected for some time is finally happening, with struggling competitors fading away rather than renew leases. For example, over the past 12 months, we've increased our Alberta store count by 10%, while at the same time, excluding us, the rest of the province has seen a 5% contraction in the number of stores. In Ontario, where our stores outperform peers by 2.6 times in terms of revenue, we have boosted our store count by 27% over the past 12 months, accounting for effectively all of the growth in the province as the rest of the industry combined has remained flat. We have 218 stores open across the country today, more than any other cannabis retail brand, and we reiterate our goal of exceeding 350 locations. So there is no doubt that it is full steam ahead in our base Canadian bricks and mortar business. Now I'd like to address our other operations. Q4 marks the first quarter with some contribution from Remexian following the acquisition of a majority stake in the company in September. We remain very excited regarding this transaction. You'll recall that we spent a considerable amount of time declaring our intention to enter the fast-growing German medical cannabis market, meeting many players, evaluating the suitability of each, performing due diligence on what is a fluid situation in many respects, negotiating a deal that makes sense for our shareholders, and securing the required financial outlay. In typical Hightight fashion, we got it done. We acquired 51% of Remexian, one of the largest, and in our opinion, the best medical cannabis importer and distributor in Germany, and we have a call option to acquire the remaining 49%. In less than two months, Remexian contributed almost $10 million of revenue to our results, an impressive feat considering the temporary dynamics. In particular, during our due diligence period in the summer, Romexion began experiencing delays in product releases from Portugal, where many German distributors first sent biomass to be processed. As a result, revenue and gross margins were below the run rates Romexion had previously generated. We expect this to continue for a few more months until the remaining biomass in Portugal, some of which is up to 10 months old, churns through the system. We definitely believe we are nearing the tail end of this legacy situation. While we view this is a short-term blip, we made note of this issue in our negotiations, as well as the possibility that the German government may enact a new law governing medical cannabis. As a result, we incorporated various protections for high-type shareholders, not the least of which is the acquisition multiple of just 3.6 times, very accretive for our shareholders and truly remarkable for a company exhibiting as much growth as Romexion. Our new partners truly appreciated that if Hightide owns 51% of the company, with all the benefits we can bring to the business, notably our relationships and experience in procurement, we can help meaningfully increase the value of the remaining 49% in the future. We also made sure to set the valuation multiple on the future EBITDA from now at 3.6 or 4 times, depending on the timing an option is triggered. As a result, we have already baked in the future accretion for our shareholders regarding when the second half of Remexian may be acquired. I'm very pleased with how the integration of Remexian has been going post-closing and for our growth prospects moving together going forward. Much of the rationale for the transaction was that given our track record, having sold $2.1 billion of cannabis to date, we have a unique ability to leverage top-tier relationships with licensed producers of various sizes to procure the best quality cannabis on best-in-class terms. I can say that operationally, this is already bearing fruit. We recently hosted the Romexian team to tour many licensed producer sites, and we have already signed agreements to acquire quality biomass from leading producers at prices meaningfully below what Romexian was able to procure on their own. The strategy is working, and it should become evident in our future results as the legacy biomass clears and this new lower cost product begins to cycle through the system. Regarding the situation in Portugal, one of the first things we started doing even before the transaction closed was to diversify our list of potential processing partners so that we are no longer as vulnerable regarding our supply chain. The encouraging news is that biomass has begun trickling out at a faster pace in recent months. In particular, we were encouraged by shipments in December, which resulted in our second best month in terms of tonnage sold. While we still have a meaningful amount of product stuck in Portugal, given our expectation that the speed of future shipments will accelerate, the fact that we have diversified our potential processing partners and our ability to earn higher gross margins given our relationships with licensed producers, we expect Remexian to be a large contributor to our financial profile in the quarters in the second half of the fiscal year. Further, while we are working on getting Rumexian running at full speed, we know that our European ambitions are not just limited to Germany. For example, the United Kingdom's medical cannabis market has been growing at an exponential pace, and we expect to make sales in that market in the second half of this year. Let's turn to the United States. Like most of the cannabis industry, we were very excited by U.S. President Donald Trump's executive order on December 18th advancing the rescheduling of cannabis. we've received inbounds from multiple large U.S. operators offering to explore the full range of how we can work together. While we caution that it is still early in our process, we are encouraged with what we see so far and for the prospects of being a meaningful player in the U.S. much sooner than we would have predicted a few months ago. One area regarding President Trump's announcements where we were among a handful of companies to potentially benefit was regarding the language surrounding CBD. We are anticipating the launch of a pilot program under Medicare where seniors would be eligible to get purchase for up to $500 of CBD products a year. If enacted, this has the potential to be a game changer for our two existing U.S. CBD brands, New Leaf Naturals and FabCBD. You'll recall that on our last quarterly update, we had disclosed our intention to explore a meaningful change in our U.S. e-commerce business, such as a joint venture, outright sale, etc., We are in talks with various parties regarding possible transactions. However, given this encouraging development and potential it can offer, we are slow playing entering into any such agreements until we get more information as to how things may actually play out in terms of new regulations and the ability to revitalize our e-commerce segment ourselves. In conclusion, I'm very happy with our Q4 results and fiscal 2025 as a whole. We added 27 stores while the rest of the landscape was shrinking, set revenue records to now exceed a $650 million run rate, set another adjusted EBITDA record, and still generated meaningful free cash flow. None of this could have been done without our amazing team that works hard day in, day out to make this all happen. I'd like to share a tidbit that many investors may not be familiar with, which I believe really illustrates the strength of our team and the can-do attitude we all have as high-tiders. In October, there was a government employee strike in British Columbia, which crippled the ability of cannabis stores to get product to serve customers across the province. The result was devastating for retail sales, with total industry sales down 55% in BC versus September, even after benefiting from an extra day. In contrast, our team was able to work the supply chain, leverage our long-standing relationships, and find ways to keep product on the shelf. As a result, our BC stores were down only 5% sequentially in October. While the specific example of outperformance was an isolated incident, it helped showcase our superior team's ability to navigate crisis and outperform. And I'm sure our customers appreciated it, which should lead to increasing loyalty in the quarters ahead. With that, I'll turn it over to Mayank for his comments and a deeper dive into the numbers.