Q3 2026 High Tide Inc Earnings Call

September 15, 2026

Speaker #1: Welcome to your conference call. Please continue to stand by your conference. We'll begin in approximately 5 minutes.

Operator 2: Welcome to your conference call. Please continue to stand by. Your conference will begin in approximately 5 minutes. Good morning. My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to High Tide Inc.'s Q3 2026 unaudited financial and operational 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. Instructions will be provided at the time for you to queue up for the question and answer session. I will now turn the call over to your host. Please proceed.

Speaker #2: Good morning. My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to High Tide Inc.'s third fiscal quarter 2026 audited financial and operational results conference call.

Operator: Good morning. My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to High Tide Inc.'s Q3 2026 unaudited financial and operational 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. Instructions will be provided at the time for you to queue up for the question and answer session. I will now turn the call over to your host. Please proceed.

Speaker #2: On line 7, please unmute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. Instructions will be provided at the time for you to queue up for the question-and-answer session.

Speaker #2: I'll now turn the call over to your host. Please proceed.

Speaker #3: Thank you, operator. Good morning, everyone, and welcome to High Tide Inc.'s quarterly earnings call. Joining me on the call today are Mr. Raj Grover, President and Chief Executive Officer, and Mr. Mike Mahajan, Chief Financial Officer.

Carter Brownlee: Thank you, operator. Good morning, everyone, and welcome to High Tide'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 14 September 2026, the company released financial and operational results for the fiscal quarter that ended 31 July 2026. Before we begin, please let me remind you that during the course of this conference call, High Tide'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, and 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.

[Company Representative] (High Tide): Thank you, operator. Good morning, everyone, and welcome to High Tide'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 14 September 2026, the company released financial and operational results for the fiscal quarter that ended 31 July 2026. Before we begin, please let me remind you that during the course of this conference call, High Tide'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, and 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.

Speaker #3: On September 14, 2026, the company released financial and operational results for the fiscal quarter that ended July 31, 2026. Before we begin, please let me remind you that during the course of this conference call, High Tide's management may make statements, including with respect to management's expectations or estimates of future performance.

Speaker #3: 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, and estimates and projections as of the date here.

Speaker #3: 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 14, 2026, our latest annual information form, and our latest management discussion and analysis each filed with Securities Regulatory Authorities at CedarPlus.ca or on EDGAR at www.sec.gov/edgar, or on the company's website at www.hightideinc.com.

Carter Brownlee: For more information on the company's risks and uncertainties related to forward-looking statements, please refer to the company's press release dated 14 September 2026, our latest annual information form, and our latest management discussion and analysis, each filed with securities regulatory authorities at sedarplus.ca or on EDGAR at www.sec.gov/edgar or on the company's website at www.hightideinc.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.

[Company Representative] (High Tide): For more information on the company's risks and uncertainties related to forward-looking statements, please refer to the company's press release dated 14 September 2026, our latest annual information form, and our latest management discussion and analysis, each filed with securities regulatory authorities at sedarplus.ca or on EDGAR at www.sec.gov/edgar or on the company's website at www.hightideinc.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.

Speaker #3: And which I 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 here, we cannot be certain that the actual results will be consistent with the forward-looking statements in the future.

Speaker #3: 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.

Speaker #3: For any reconciliation of non-IFRS measures measured and discussed, please consult our latest management discussion and analysis filed on CedarPlus and EDGAR. It is now my pleasure to introduce Mr. Raj Grover, President and Chief Executive Officer of High Tide.

Carter Brownlee: For any reconciliation of non-IFRS measures measured and discussed, please consult our latest management discussion and analysis filed on SEDAR+ and EDGAR. It is now my pleasure to introduce Mr. Raj Grover, President and Chief Executive Officer of High Tide. Thank you, Mr. Grover. You may begin.

[Company Representative] (High Tide): For any reconciliation of non-IFRS measures measured and discussed, please consult our latest management discussion and analysis filed on SEDAR+ and EDGAR. It is now my pleasure to introduce Mr. Raj Grover, President and Chief Executive Officer of High Tide. Thank you, Mr. Grover. You may begin.

Speaker #3: Thank you, Mr. Grover. You may begin.

Speaker #4: Thank you, Carter, and good morning, everyone. Welcome to High Tide Inc.'s financial results conference call for the third fiscal quarter that ended July 31, 2026.

Raj Grover: Thank you, Carter, and good morning, everyone. Welcome to High Tide Inc.'s Financial Results Conference Call for the Q3 that ended 31 July 2026, which I am extremely proud to say was the best quarter in our company's history. In fact, our financial performance was so strong, we felt it necessary to release guidance one business day after the quarter ended, with even the low end of our initial forecast exceeding even the most aggressive analyst estimates. Yesterday, we released our full results, which were closer to the high end of the guidance ranges we provided and included many other new positive highlights. Investors can see from these results that not only are we growing our top line, but this growth is now clearly showing up in our bottom line. Specifically, compared to Q2, our gross profit dollars grew 2.5 times faster than our operating expenses.

Speaker #4: Which I'm extremely proud to say was the best quarter in our company's history. In fact, our financial performance was so strong, we felt it necessary to release guidance one business day after the quarter ended, with even the low end of our initial forecast exceeding even the most aggressive analyst estimates.

Speaker #4: Yesterday, we released our full results, which were closer to the high end of the guidance ranges we provided and included many other new, positive highlights.

Speaker #4: Investors can see from these results that not only are we growing our top line, but this growth is now clearly showing up in our bottom line.

Speaker #4: Specifically, compared to Q2, our gross profit dollars grew 2.5 times faster than our As a result, 60% of the increase in gross margin flowed down to operating income, which was up 43% sequentially and 133% year over year.

Raj Grover: As a result, 60% of the increase in gross margin flowed down to operating income, which was up 43% sequentially and 133% year-over-year. The operating income we generated in Q3 of CAD 8.7 million was more than we generated during the first two quarters of the fiscal year combined. Talk about positive momentum. This growth continued all the way to the bottom of the income statement. We generated record net income of CAD 12.7 million this quarter. Even excluding the fair value change in derivative liability, which helped us this quarter, adjusted net income was CAD 2.2 million, up 186% sequentially and 157% year-over-year. More and more is showing up in the bottom line, which is what we want to see and what we have been promising our investors. This progress didn't just happen because we pulled the switch in Q3.

Speaker #4: The operating income we generated in Q3 of $8.7 million was more than we generated during the first two quarters of the fiscal year combined.

Speaker #4: Talk about positive momentum. This growth could continued all the way to the bottom of the income statement. We generated record net income of $12.7 million this quarter.

Speaker #4: Even excluding the fair value change in derivative liability, which helped us this quarter, adjusted net income was $2.2 million up 186% sequentially and 157% year over year.

Speaker #4: More and more is showing up in the bottom line, which is what we want to see, and what we have been promising our investors.

Speaker #4: This progress didn't just happen because we pulled the switch in Q3. It is the result of what we've been doing for years. It is the result of the hard work we have been putting in quarter after quarter and year after year I'll point to three things specifically.

Raj Grover: It is a result of what we've been doing for years. It is a result of the hard work we have been putting in quarter after quarter and year after year. I'll point to three things specifically. First, owning the customer. With 2.73 million loyal members of Cabana Club across the country, we are up over 11 times from when we launched the discount club model in October 2021. Second, growing revenue. From CAD 8 million of sales per our first annual report in 2018 to an annual run rate of approximately CAD 800 million today. Third, finding ways to increase the profitability of our sales and having very tight cost controls as evidenced by us setting an all-time low this quarter in both trailing G&A as a percentage of revenue and trailing salaries and wages as a percentage of revenue.

Speaker #4: First, owning the customer. With 2.73 million loyal members of Cabana Club across the country, we are up over 11 times from when we launched the discount club model in October 2021.

Speaker #4: Second, growing revenue. From $8 million of sales per our first annual report in 2018 to an annual run rate of approximately $800 million today.

Speaker #4: And third, finding ways to increase the profitability of our sales and having very tight cost controls as evidenced by us setting an all-time low this quarter in both trailing GNA as a percentage of revenue and trailing salaries and wages as a percentage of revenue.

Speaker #4: We are a product of our environment regarding the competitive dynamics within the Canadian cannabis market. All we can do is try to be proactive and make bold, yet calculated, moves to try to stay ahead of the curve.

Raj Grover: We are a product of our environment regarding the competitive dynamics within the Canadian cannabis market. All we can do is try to be proactive and make bold yet calculated moves to try to stay ahead of the curve. Others can struggle to play copycat and try to catch up from behind, but our amazing team is always plotting our next big move and exploiting our competitive advantages in new ways. Particularly after our Q3 results, I believe that investors can see where this ship is heading. Similarly, we can't always control what the capital markets are doing. All we can do is run our operations tightly and make sure we are disciplined in terms of capital deployment to maximize value for our shareholders. Again, I think the data shows that we are succeeding.

Speaker #4: Others can struggle to play copycat and try to catch up from behind, but our amazing team is always plotting our next big move and exploiting our competitive advantages in new ways.

Speaker #4: Particularly, after our Q3 results, I believe that investors can see where this ship is heading. Similarly, we can't always control what the capital markets are doing.

Speaker #4: All we can do is run our operations tightly and make sure we are disciplined in terms of capital deployment to maximize value for our shareholders.

Speaker #4: And again, I think the data shows that we are succeeding. Even adjusting for the portion of Remexian that we don't currently own, our revenue grew 2.5 times faster than our share count over the past year and adjusted EBITDA grew 3.9 times faster.

Raj Grover: Even adjusting for the portion of Remexian that we don't currently own, our revenue grew 2.5 times faster than our share count over the past year, and adjusted EBITDA grew 3.9 times faster. While I don't think we are getting much credit for the improvement in per-share metrics in the marketplace, I believe it's just a matter of time, especially if our net income continues to ramp as I expect it will. Trading at an EV to EBITDA multiple of 5.4 times the EBITDA we just reported annualized, we see the current setup as more of an opportunity than a risk. We've always been prudent in managing our affairs and operations to insulate us from being reliant on our share price for survival. That is why we are still here while so many of our peers have disappeared over the years.

Speaker #4: While I don't think we are getting much credit for the improvement in per-share metrics in the marketplace, I believe it's just a matter of time—especially if our net income continues to ramp, as I expect it will.

Speaker #4: Trading at an EV to EBITDA multiple of 5.4 times the EBITDA we just reported annualized we see the current setup as more of an opportunity than a risk.

Speaker #4: We've always been prudent in managing our affairs and operations to insulate us from being reliant on our share price for survival. That is why we are still here while so many of our peers have disappeared over the years.

Speaker #4: We have demonstrated for a few years now that we can increase our store count and grow our business organically, including investing in working capital, all from our internally generated free cash flow and not relying on external equity injections.

Raj Grover: We have demonstrated for a few years now that we can increase our store count and grow our business organically, including investing in working capital, all from our internally generated free cash flow, and not rely on external equity injections. This was apparent again this quarter. Driven by CAD 7 million of free cash flow in Q3, which was our second highest level in nine quarters, our cash balance increased by CAD 10.6 million during the quarter. Similarly, we have managed our balance sheet extremely carefully. We have no meaningful debt maturities for three years, and we still have CAD 25 million available to be drawn on our revolver with Bank of Montreal. The way we see it, we have no issues regarding fueling our operations or addressing debt that would have to require raising equity near these levels.

Speaker #4: This was apparent again this quarter. Driven by $7 million of free cash flow in Q3, which was our second highest level in nine quarters, our cash balance increased by 10.6 million dollars during the quarter.

Speaker #4: Similarly, we have managed our balance sheet extremely carefully. We have no meaningful debt maturities for three years and we still have $25 million available to be drawn on our revolver with Bank of Montreal.

Speaker #4: So the way we see it, we have no issues regarding fueling our operations or addressing debt that would have to require raising equity near these levels.

Speaker #4: We have built something truly special and totally unique at High Tide—a global leader in cannabis. In Canada, we have the preeminent model and brand with 232 stores, and revenue on an annual run rate of approximately $650 million.

Raj Grover: We have built something truly special and totally unique at High Tide, a global leader in cannabis. In Canada, we have the preeminent model and brand with 232 stores and revenue on an annual run rate of approximately CAD 650 million. In Germany, our volumes are still ramping, and we continue to set new records a year into our transaction. Two engines of growth, both running with power, making High Tide the undisputed leader in the two largest federally regulated cannabis markets on Earth. While we are continuing to eye other markets and evaluate partners, we are prioritizing discipline in our approach. We won't feel compelled to make a deal just to say we did, or to meet a date on a calendar.

Speaker #4: In Germany, our volumes are still ramping and we continue to set new records a year into our transaction. Two engines of growth both running with power making High Tide the undisputed leader in the two largest federally regulated cannabis markets on earth.

Speaker #4: While we are continuing to eye other markets and evaluate partners, we are prioritizing discipline in our approach. We won't feel compelled to make a deal just to say we did or to meet a date on a calendar.

Speaker #4: There are multiple conversations currently ongoing with players of different sizes, but we won't pull the trigger until we are sure that it's the right opportunity, at the right time, and at the right price for our shareholders.

Raj Grover: There are multiple conversations currently ongoing with players of different sizes, but we won't pull the trigger until we are sure that it's the right opportunity at the right time and right price for our shareholders. Having already demonstrated how our procurement prowess can directly drive market leadership in a short amount of time in Germany, we are seeing prudent operators recognize the value and wisdom in wanting to partner with High Tide rather than compete with us. With 118 stores we are still planning to add in Canada, and Germany scaling so impressively, we have a lot of future growth lined up based on what we already have in hand, so we don't feel the itch to rush into the next transaction too quickly. While we are evaluating opportunities and are engaged in negotiations and market due diligence every day, the strength of our current business positions us well.

Speaker #4: Having already demonstrated how our procurement prowess can directly drive market leadership in a short amount of time in Germany, we are seeing prudent operators recognize the value and wisdom in wanting to partner with High Tide rather than compete with us.

Speaker #4: With 118 stores, we are still planning to add in Canada and Germany scaling so impressively we have a lot of future growth lined up based on what we already have in hand, so we don't feel the itch to rush into the next transaction too quickly.

Speaker #4: While we are evaluating opportunities and are engaged in negotiations and market due diligence every day, the strength of our current business positions us well.

Speaker #4: We aren't desperate to make a risky move and just hope it works. As highlighted in our press release, Q3 was a milestone quarter, with almost every key consolidated metric hitting a new all-time high.

Raj Grover: We aren't desperate to make a risky move and just hope it works. As highlighted in our press release, Q3 was a milestone quarter with almost every key consolidated metric hitting a new all-time high. Specifically, revenue of CAD 199 million was an all-time high and up 33% year over year, representing the fastest growth rate in 13 quarters. Each of our bricks and mortar and medical cannabis distribution segments posted new records. Gross profit was a record CAD 52.7 million, up 32% year over year. Each of our bricks and mortar and medical cannabis distribution segments posted new records. Adjusted EBITDA of CAD 16.2 million was an all-time high and up 52% year over year. Each of our bricks and mortar and medical cannabis distribution segments posted new records, while our consolidated adjusted EBITDA margin of 8.2% marked the highest level in 12 quarters.

Speaker #4: Specifically, revenue of $199 million was an all-time high and up 33% year over year, representing the fastest growth rate in 13 quarters. Each of our bricks-and-mortar and medical cannabis distribution segments posted new records.

Speaker #4: Gross profit was a record $52.7 million up 32% year over year. Each of our bricks and mortar and medical cannabis distribution segments posted new records.

Speaker #4: Adjusted EBITDA of $16.2 million was an all-time high and up 52% year over year. Each of our bricks-and-mortar and medical cannabis distribution segments posted new records, while our consolidated adjusted EBITDA margin of 8.2% marked the highest level in 12 quarters.

Speaker #4: Income from operations was a record $8.7 million and up 133% year over year. Each of our bricks and mortar and medical cannabis distribution segments posted new records.

Raj Grover: Income from operations was a record CAD 8.7 million and up 133% year over year. Each of our bricks and mortar and medical cannabis distribution segments posted new records. Cash flow from operations before changes in non-cash working capital was a record CAD 11.9 million and up 44% year over year. I'll now give an overview of our two segments, following which Mayank will dive deeper into the financials. In Canada, Canna Cabana continues to lead the way, fueled by the continued expansion of our loyalty program, the Cabana Club. We are now at 2.73 million Cabana Club members across Canada, up 27% year over year. We continue to move forward towards a long-term goal of 3 million members in Canada. ELITE also continued to post gains, up 62% over the past year and now exceeding 186,000 members that pay us CAD 35 a year to shop in our stores.

Speaker #4: Cash flow from operations before changes in non-cash working capital was a record $11.9 million, up 44% year over year. I'll now give an overview of our two segments, following which Mayank will dive deeper into the financials.

Speaker #4: In Canada, Canacabana continues to lead the way fueled by the continued expansion of our loyalty program, the Cabana Club. We are now at $2.73 million Cabana Club members across Canada up 27% year over year.

Speaker #4: We continue to move forward towards a long-term goal of $3 million members in Canada. Elite also continue to post gains up 62% over the past year and now exceeding $186,000 members that pay us $35 a year to shop in our stores.

Speaker #4: They say imitation is the highest form of flattery and we are definitely seeing that in the Canadian cannabis landscape. Competitors are seemingly panicking and increasingly starting to copy pieces of our model which is created tighter conditions in many areas.

Raj Grover: They say imitation is the highest form of flattery, and we are definitely seeing that in the Canadian cannabis landscape. Competitors are seemingly panicking and increasingly starting to copy pieces of our model, which has created tighter conditions in many areas. We are the originators of the discount club model that continues to take market share, and we have scale. Accordingly, we believe we will come out of this period even stronger. But with the disruptions in the market, smaller operators are likely to suffer and possibly be wiped out. At the same time, even without illicit operators, the number of stores in key markets such as Ontario and Alberta have increased by 5% over the past 12 months, reversing the trends of flattening or retrenching that we were seeing a year or so ago. Meanwhile, consumers are being tighter with their wallets given macroeconomic uncertainty and creeping inflation.

Speaker #4: We are the originators of the discount club model that continues to take market share and we have scale. Accordingly, we believe we will come out of this period even stronger.

Speaker #4: But with the disruptions in the market, smaller operators are likely to suffer and possibly we wiped out. At the same time, even without illicit operators, the number of stores in key markets such as Ontario and Alberta have increased by 5% over the past 12 months reversing the trends of flattening or retrenching that we were seeing a year or so ago.

Speaker #4: Meanwhile, consumers are being tighter with their wallets given macroeconomic uncertainty and creeping inflation. Putting all this together, it isn't easy times out there which we have seen translate to negative same-store sales among our public and private peers.

Raj Grover: Putting all this together, it is not easy times out there, which we have seen translate to negative same-store sales among our public and private peers. While we see a few more months of touch and go conditions ahead, we were pleased to see our same-store sales be consistent with the prior year for the full quarter, and that June and July each posted gains. The key is we are not losing any customers. On a same-store basis, our transaction count was up 1.1%, which is being offset by slightly thinner baskets as well as some price compression at the wholesale level. Customers are continuing to see us as their go-to destination for cannabis. Again, we are a product of our environment, and all we can do is aim to outperform the market, and our longer-term trend of outperformance is clear.

Speaker #4: While we see a few more months of touch and go conditions ahead, we were pleased to see our same-store sales be consistent with the prior year for the full quarter and that June and July each posted gains.

Speaker #4: The key is we are not losing any customers. On a same-store basis, our transaction count was up 1.1% which is being offset by slightly thinner baskets as well as some price compression at the wholesale level.

Speaker #4: Customers are continuing to see us as their go-to destination for cannabis. Again, we are a product of our environment and all we can do is aim to outperform the market and our longer-term trend of outperformance is clear.

Speaker #4: Chaining our monthly same-store sales increases since October 2021, Canacabana was up 171% to June 2026. In contrast, as the increase in total sales in the five provinces where we operate has not kept pace with the increase in the number of stores, the average operator has experienced a 1% sales decline during this period.

Raj Grover: Chaining our monthly same-store sales increases since October 2021, Canna Cabana was up 171% to June 2026. In contrast, as the increase in total sales in the five provinces where we operate has not kept pace with the increase in the number of stores, the average operator has experienced a 1% sales decline during this period. Excluding British Columbia, where we have been at the regulatory cap of 8 stores for years, our market share within the other four provinces where we operate was 14% during May and June, which was up versus 13% a year ago. Looking ahead, we see a 15% market share as a milestone, not a ceiling. Excluding stores open less than 6 months, which are still ramping up, our annualized revenue per square foot in Q3 was CAD 1,721, once again above many leading blue-chip retailers.

Speaker #4: Excluding British Columbia, where we have been at the regulatory cap of eight stores for years, our market share within the other four provinces where we operate was 14% during May and June, which was up versus 13% a year ago.

Speaker #4: Looking ahead, we see a 15% market share as a milestone, not a ceiling. Excluding stores opened less than six months which are still ramping up, our annualized revenue per square foot in Q3 was $1,721 once again above many leading blue-chip retailers.

Speaker #4: In June, the average Canacabana store was on an annual revenue run rate I'm going to stop here. In June, the average Canacabana store was on an annual revenue run rate of $2.6 million of product sales which was $1.8 times our peer average at $1.4 million.

Raj Grover: In June, the average Canna Cabana store was on an annual revenue run rate I am going to stop here. In June, the average Canna Cabana store was on an annual revenue run rate of CAD 2.6 million of product sales, which was 1.8 times our peer average at CAD 1.4 million. In Ontario, the largest province and our focus for future growth, our outperformance was even more pronounced. Excluding stores open less than 6 months, which are still ramping up, our average Ontario store was on a CAD 2.8 million annual run rate, which was 2.4 times our peers at CAD 1.2 million. For the 12 months ended June 2026, total industry sales in the five provinces where we operate were up 3% year over year. In contrast, total Canna Cabana sales were up 10% during this period.

Speaker #4: In Ontario, the largest province and our focus for future growth, our outperformance was even more pronounced. Excluding stores opened less than six months which are still ramping up, our average Ontario store was on a $2.8 million annual run rate which was $2.4 times our peers at $1.2 million.

Speaker #4: For the 12 months ended June 2026, total industry sales in the five provinces where we operate were up 3% year over year. In contrast, total Canacabana sales were up 10% during this period.

Speaker #4: With 14 already completed, we believe we can achieve our goal of adding 20 Cabanas during this calendar year and reiterate our long-term target to reach $350 locations across the country.

Raj Grover: With 14 already completed, we believe we can achieve our goal of adding 20 Canna Cabanas during this calendar year and reiterate our long-term target to reach 350 locations across the country. This growth, combined with Remexian's current trajectory, makes us more confident than ever that we will breach the CAD 1 billion revenue mark in the not-too-distant future. Speaking of Remexian, let us turn to Germany, where we demonstrated significant strength and growth in Q3. Remexian sold 10.2 tons of medical cannabis in this quarter, up 35% sequentially and 165% higher than the pace Remexian was on when the transaction closed a year ago. Remexian's financial metrics also posted impressive growth, driven by the increased volumes. Revenue of CAD 38.2 million was up 21% sequentially, but with cost controls and operating leverage, adjusted EBITDA grew almost twice as fast, up 38% sequentially to CAD 4.4 million, representing a record 12% adjusted EBITDA margin.

Speaker #4: This growth, combined with Remexian's current trajectory, makes us more confident than ever that we will breach the $1 billion revenue mark in the not-too-distant future.

Speaker #4: Speaking of Remexian, let's turn to Germany where we demonstrated significant strength and growth in Q3. Remexian sold 10.2 tons of medical cannabis in this quarter up 35% sequentially and 165% higher than the pace Remexian was on when the transaction closed a year ago.

Speaker #4: Remexian's financial metrics also posted impressive growth driven by the increased volumes. Revenue of $38.2 million was up 21% sequentially but with cost controls and operating leverage adjusted EBITDA grew almost twice as fast up 38% sequentially to $4.4 million representing a record 12% adjusted EBITDA margin.

Speaker #4: Looking at the broader German market, we see incredible appetite for medical cannabis. And Canadian medical cannabis products in particular. According to data from Statistics Canada, the value of medical cannabis exported from Canada to Germany reached a record level of $49.4 million in July.

Raj Grover: Looking at the broader German market, we see incredible appetite for medical cannabis, and Canadian medical cannabis products in particular. According to data from Statistics Canada, the value of medical cannabis exported from Canada to Germany reached a record level of CAD 49.4 million in July. Looking at the 3-month average, we are now at a CAD 517 million annual run rate, up 62% versus a year ago. For us, this shows that we have even more room to continue ramping volumes up to a higher absolute tonnage level given our superb team on the ground in Germany and unparalleled ability to procure cannabis at best-in-class terms, given our scale and free agent status. However, with the market growing so quickly, it may be challenging to ramp our market share as fast as we had previously thought.

Speaker #4: Looking at the three-month average, we are now at a $517 million annual run rate up 62% versus a year ago. For us, this shows that we have even more room to continue ramping volumes up to a higher absolute tonnage level given our superb team on the ground in Germany and unparalleled ability to procure cannabis at best-in-class terms given our scale and free agent status.

Speaker #4: However, with the market growing so quickly, it may be challenging to ramp our market share as fast as we had previously thought. On that front, I note that BPharm significantly restated industry imports for the March quarter which translated to Remexian having a market share of 10.5%.

Raj Grover: On that front, I know that BfArM significantly restated industry imports for the March quarter, which translated to Remexian having a market share of 10.5%. While Remexian has experienced impressive growth since March, it will be interesting to see where the industry was for the 3 months ended June and where our market share shakes out. In conclusion, Q3 was once again the best quarter in our company's history, with new all-time records set across the board. With CAD 25 million of dry powder available for growth from our revolver with Bank of Montreal, we have the resources to keep growing without relying on external equity. I am so grateful to each and every one of our team members globally.

Speaker #4: While Remexian has experienced impressive growth since March, it will be interesting to see where the industry was for the three months ended June and where our market share shakes out.

Speaker #4: In conclusion, Q3 was once again the best quarter in our company's history with new all-time records set across the board. With 25 million dollars of dry powder available for growth from our revolver with Bank of Montreal, we had the resources to keep growing without relying on external equity.

Speaker #4: I am so grateful to each and every one of our team members globally. They are working hand in hand, hustling and executing every day and I'm so proud of all the efforts, energy, and dedication that they bring to High Tide quarter after quarter.

Raj Grover: They are working hand in hand, hustling and executing every day, and I am so proud of all the efforts, energy, and dedication that they bring to High Tide quarter after quarter. Without our superb team, we would have not come this far, and I am confident that they will take us to even newer heights in the years ahead. With that, I will turn it over to Mayank for his comments and a deeper dive into the numbers.

Speaker #4: Without our superb team, we would have not come this far and I'm confident that they will take us to even newer heights in the years ahead.

Speaker #4: With that, I'll turn it over to Mayank for his comments and a deeper dive into the numbers.

Speaker #2: Thank you guys. And hello everyone. In Q3, High Tide said multiple new financial records again. Across essentially all key metrics. Let's take a deeper dive into the numbers.

Mayank Mahajan: Thank you, Raj, and hello, everyone. In Q3, High Tide set multiple new financial records again across essentially all key metrics. Let's take a deeper dive into the numbers. Revenue for Q3 was once again a new all-time high at CAD 198.8 million, up 33% year over year, the fastest pace of growth in 13 quarters, and up 11% sequentially. This was the fifth consecutive quarter marking a new all-time high in revenue. While our medical cannabis distribution segment posted a 21% sequential increase, our brick-and-mortar segment also grew a very impressive 9% sequentially. Consolidated gross margins were 27% in Q3, which was consistent with the prior year and sequentially. Our two operating segments posted gross margins which were fairly similar. Our bricks and mortar segment held steady at 27%, while our medical cannabis distribution segment generated 26%.

Speaker #2: Revenue for Q3 was once again a new all-time high at $198.8 million. Up 33% year over year. The fastest pace of growth in 13 quarters.

Speaker #2: And up 11% sequentially. This was the fifth consecutive quarter marking a new all-time high in revenue. While our medical cannabis distribution segment posted a 21% sequential increase our brick-and-mortar segment also grew a very impressive 9% sequentially.

Speaker #2: Consolidated gross margins were 27% in Q3 which was consistent with the prior year and sequentially. Our two operating segments posted gross margins which are which were fairly similar.

Speaker #2: Our brick-and-mortar segment held steady at 27% while our medical cannabis distribution segment generated 26%. Once again, we had the line on expenses in Q3.

Mayank Mahajan: Once again, we had the line on expenses in Q3, showing the power of operating leverage by allowing the extra revenue to flow down to the bottom line. Salaries and wages represented 11.4% of revenue in Q3, marking meaningful improvements versus 12.2% a year ago, and 11.9% sequentially. In fact, this was the lowest level in 12 quarters. It was the exact same thing regarding general and administrative expenses this quarter. G&A represented just 3.9% of revenue, marking the lowest level in eight quarters. This metric was 4.4% a year ago and 4% sequentially. Adjusted EBITDA was CAD 16.2 million for the quarter. This was up a very impressive 52% year over year, and 17% sequentially. While the addition of Remexian obviously helped, I note that our core brick-and-mortar segment also grew adjusted EBITDA 11% year over year. At 8.2%, our consolidated adjusted EBITDA margin was at a 12-quarter high.

Speaker #2: Showing the power of operating leverage by allowing the extra revenue to flow down to the bottom line. Salaries and wages represented 11.4% of revenue in Q3.

Speaker #2: Marking meaningful improvements versus 12.2% a year ago and 11.9% sequentially. In fact, this was the lowest level in 12 quarters. It was the exact same thing regarding general and administrative expenses this quarter.

Speaker #2: G&A represented just 3.9% of revenue, marking the lowest level in eight quarters. This metric was 4.4% a year ago and 4% sequentially. Adjusted EBITDA was $16.2 million for the quarter.

Speaker #2: This was up a very impressive 52% year over year and 17% sequentially. While the addition of Remexian obviously helped, I note that our core brick-and-mortar segment also grew adjusted EBITDA 11% year over year.

Speaker #2: At 8.2% our consolidated adjusted EBITDA margin was at a 12-quarter high. We are demonstrating a rare ability to increase profitability while growing the company at such speed.

Mayank Mahajan: We are demonstrating a real ability to increase profitability while growing the company at such a speed. High Tide generated CAD 7 million of free cash flow in Q3. While this was the highest level in four quarters, I believe it is even more impressive when you look at the components. Specifically, our cash flow from operations before changes in non-cash working capital. I believe that is the best single indicator of the ability of our operations to regularly generate cash. At CAD 11.9 million in Q3, it has never been higher. We invested CAD 1.8 million in working capital in the quarter, which represented only 9% of the sequential increase in revenue. So again, while we may have to continue investing in working capital going forward, we see it as a small price to pay for the growth we are experiencing.

Speaker #2: High Tide generated $7 million of free cash flow in Q3. While this was the highest level in four quarters, I believe it is even more impressive when you look at the components.

Speaker #2: Specifically, our cash flow from operations before changes in non-cash working capital. I believe that is the best single indicator of the ability of our operations to regularly generate cash.

Speaker #2: And at 11.9 million dollars in Q3, it has never been higher. We invested 1.8 million dollars in working capital in the quarter. Which represented only 9% of the sequential increase in revenue.

Speaker #2: So again, while we may have to continue investing in working capital going forward, we see it as a small price to pay for the growth we are experiencing.

Speaker #2: And we are well positioned to be able to finance it ourselves. Over the past 12 months, we generated 12.8 million dollars of free cash flow.

Mayank Mahajan: We are well-positioned to be able to finance it ourselves. Over the past 12 months, we generated CAD 12.8 million of free cash flow. Net income was a record CAD 12.7 million in Q3. Even excluding the benefit of non-cash derivative changes, we generated adjusted net income of CAD 2.2 million, up 186% sequentially and 157% year over year. We believe this will continue to be positive going forward. We continue to have a strong balance sheet. As of today, at the High Tide level, total debt stands at CAD 60 million, and have not yet drawn on our CAD 25 million Bank of Montreal debt facility, which provides a great resource to fuel more growth ahead. In closing, Q3 was a breakout quarter for High Tide, with records across the board.

Speaker #2: Net income was a record $12.7 million in Q3. Even excluding the benefit of non-cash derivative changes, we generated adjusted net income of $2.2 million.

Speaker #2: Up 186% sequentially and 157% year over year. We believe this will continue to be positive going forward. We continue to have a strong balance sheet.

Speaker #2: As of today, at the High Tide level, total debt stands at 60 million dollars. And have not yet drawn on our 25 million dollars Bank of Montreal debt facility.

Speaker #2: Which provides a great resource to fuel more growth ahead. In closing, Q3 was a breakout quarter for High Tide. With records across the board.

Speaker #2: Every month that goes by, we continue to cement our leadership in the two largest federally regulated cannabis markets on earth. And increasingly translate that into profits for our shareholders.

Mayank Mahajan: Every month that goes by, we continue to cement our leadership in the two largest federally regulated cannabis markets on Earth, and increasingly translate that into profits for our shareholders. Thanks to our amazing team, without whom none of this would be possible. With that, I will now turn the call over to the operator to open the line for the question-and-answer session. Thank you.

Speaker #2: Thanks to our amazing team, without whom none of this would be possible. With that, I will now turn the call over to the operator to open the line for the question-and-answer session.

Speaker #2: Thank you.

Speaker #3: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star, followed by the one on your telephone keypad.

Operator 2: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the 1 on your telephone keypad. You will hear a prompt that your hand has been raised. Should you wish to cancel your request, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. Your first question comes from the line of Neal Gilmer from Haywood Securities. Please go ahead.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the 1 on your telephone keypad. You will hear a prompt that your hand has been raised. Should you wish to cancel your request, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. Your first question comes from the line of Neal Gilmer from Haywood Securities. Please go ahead.

Speaker #3: You will hear a prompt at your hand has been raised. And should you wish to cancel your request, please press star, followed by the two.

Speaker #3: If you're using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. Thank you. And your first question comes on the line of Neil Gilmer from Hayward Securities.

Speaker #3: Please go ahead.

Speaker #1: Yeah, thanks very much. Congrats on a good quarter here. Raj, I wonder if we could start and chat about Germany a little bit. Obviously, it was a great quarter.

Neal Gilmer: Yeah. Thanks very much. Congrats on a good quarter here. Raj, I wonder if we could start and chat on Germany a little bit. Obviously, it was a great quarter for the Q3 numbers. If we go back to last year, you had Q4 was when you closed the transaction, but it was also impacted by the import quota in Germany. I am wondering what your thoughts are as far as potential impacts that we may have going forward. Last year then it sort of carried forward. Once they increased the quota, then they had to clear through some inventory at some lower margin rates. Just wondering what you are sort of seeing as we get into sort of a similar time frame where we had those impacts last year.

Speaker #1: For the Q3 numbers, if we go back to last year, you had Q4 was when you closed the transaction, but it was also impacted by the import quota in Germany.

Speaker #1: I'm wondering what your thoughts are as far as potential impacts that we may have going forward. And last year, then it sort of carried forward once they increased the quota, then had to clear through some inventory at some lower margin rates.

Speaker #1: So just wondering what you're sort of seeing as we get into sort of a similar timeframe where we had those impacts last year.

Speaker #2: Good morning, Neil. Thank you so much for your question. So yeah, look, the German market is absolutely on fire. And the demand for Canadian cannabis is tremendous there.

Raj Grover: Good morning, Neal. Thank you so much for your question. So yeah, look, the German market is absolutely on fire, and the demand for Canadian cannabis is tremendous there. Canadian medical cannabis exports to Germany, Neal, are now approaching almost a CAD 600 million run rate, and July was up 150% year over year. Our results are obviously clearly showing that Remexian is participating in that growth, and I am really looking forward to seeing what our June quarter market share looks like when that industry data comes out. Again, very bullish on Germany. We actually believe that Remexian will now reach a higher steady state volume level than we were originally expecting on tonnage.

Speaker #2: So Canadian medical cannabis exports to Germany, Neil, have are now approaching almost a 600 million dollar run rate. And July was up 150% year over year.

Speaker #2: So, you know, our result our results are obviously clearly showing that Remexian is participating in that growth. And I'm really looking forward to seeing what our June quarter market share looks like when that industry data comes out.

Speaker #2: So again, very, very bullish on Germany. We actually believe that Remexian will now reach a higher steady state volume level than we were originally expecting on tonnage.

Speaker #2: And that is what the financial opportunity for us is, right? With the overall market expanding so quickly, I think we can gain share it may take a little bit longer given how much the market has grown.

Raj Grover: That is what the financial opportunity for us is, right? With the overall market expanding so quickly, I think we can gain share. It may take a little bit longer given how much the market has grown, but I think we can gain further share in the German market. On your question on the import quotas, that happens practically every single year. It happened last year as well. Everyone faced the music for about 4 to 6 weeks, and then we got the approvals for additional quota. It is expected, it is actually anticipated to go down the same way this year, but we are not concerned. Sales are looking really strong. We are very much in line with what we did in Q2, Q3, and I was not quite honestly expecting that we will be here so quickly, 11 months or 12 months after the transaction closes. No, things are looking great.

Speaker #2: But I think we can gain further share in the German market. On your question on the import quotas, that happens practically every single year.

Speaker #2: It happened last year as well. Everyone faced the music for about 46 weeks. And then we got the approvals for additional quota. It's expected it's actually anticipated to go down the same way this year, but we're not concerned.

Speaker #2: Sales are looking really strong. You know, we're very much in line with what we did in Q2, Q3. And I wasn't quite honestly expecting that we'll be here so quickly.

Speaker #2: 11 months or 12 months after the transaction closes. So no, things are looking great. Import quota can become a short-term issue, but it's definitely not a long-term issue.

Raj Grover: Import quota can become a short-term issue, but it is definitely not a long-term issue.

Speaker #1: Yeah, no, no, the market looks like it's doing quite well over there. On the gross margin over on the medical cannabis distribution, sort of consistent between Q2 and Q3.

Neal Gilmer: Yeah. The market looks like it is doing quite well over there. On the gross margin over on the medical cannabis distribution, sort of consistent between Q2 and Q3. Is this sort of the normalized level that you expected, aside from any disruptions, going forward?

Speaker #1: Is this sort of like the normalized level that you sort of expected aside from any disruptions? Going forward?

Speaker #2: Yeah, look, the gross margins have has also surprised me on how quickly we've been able to ramp up. Like I've been saying it from the very beginning, Neil, that we have something very special in our hand here in Canada, right?

Raj Grover: Yeah, look, the gross margins has also surprised me on how quickly we have been able to ramp up. I have been saying it from the very beginning, Neil, that we have something very special in our hand here in Canada, right? Outside of the governments, being the largest federally legal buyer here in Canada. We are procuring biomass at unbelievably attractive price points, and despite the price compression that is taking on in Germany and has been happening for quite some time, it is not touching us. We are actually raising our gross margin profiles. So Q2, as you know, was 27%, which jumped from 12%, 13% the quarter before in Q1. Now we are at 26%. I think we can maintain this margin trajectory or be very much in the high or mid-20s going forward. So I am not concerned about where gross margin will land in the future.

Speaker #2: Being the largest outside of the governments, being the largest legal federally federally legal buyer here in Canada, you know, we're procuring biomass at unbelievably attractive price points.

Speaker #2: And despite the price compression that's taking place in Germany and has been happening for quite some time, it's not touching us. We're actually raising our gross margin profiles.

Speaker #2: So Q2, as you know, was 27%, which jumped from 12, 13%, the quota before in Q1. Now we're at 26%. I think we can maintain this margin trajectory or be very much in the, you know, high or mid-20s going forward.

Speaker #2: So I am not concerned about where gross margin will land in the future. I'm actually very, very happy where it's sitting right now.

Raj Grover: I am actually very happy where it is sitting right now.

Speaker #1: Yep, great. Well, last one for me, in your prepared remarks, I sort of took away the impression that expanding into the UK or other international markets, maybe pricing is becoming a bit of an issue.

Neal Gilmer: Well, last one from me. In your prepared remarks, I took away the impression that expanding into the UK or other international markets, maybe pricing is becoming a bit of an issue. You talked about making sure you are doing the right thing for shareholders, which obviously is the best thing, but what are you seeing there in that landscape as far as potential acquisitions or entry into some of the other international markets?

Speaker #1: You talked about making sure you're doing the right thing for shareholders, which obviously is the best thing. But what are you sort of seeing there in that landscape as far as potential, you know, acquisitions or entry into some of the other international markets?

Speaker #2: Yeah, absolutely. Look, UK is a very exciting one. So UK is a smaller market than Germany, but it's growing significantly faster. And I've been meeting operators of absolutely all sizes, across the supply chain to build a thorough understanding of the market.

Raj Grover: Yeah, absolutely. Look, UK is a very exciting one. UK is a smaller market than Germany, but it is growing significantly faster. I have been meeting operators of absolutely all sizes across the supply chain to build a thorough understanding of the market. We have been doing it for almost 5, 6 months now, and we are evaluating different ways in what gives us confidence that we will be able to identify the best opportunity for our shareholders. But, Neil, you can clearly see how much growth we have had in Canada. We can still build about 118 stores in Canada alone. That gets us to our 350-store mark. So we have absolutely no pressure to do a deal. With so much runway in Canada and Germany, we do not want to rush into the UK or any other market at any cost. We will take our time.

Speaker #2: We've been doing it for almost five, six months now. And we're evaluating different ways in, you know, what gives us confidence that we'll be able to identify the best opportunity for our shareholders.

Speaker #2: But, you know, Neil, you can clearly see how much growth we have ahead in Canada. We can still build about 118 stores in Canada alone that gets us to our 350-store mark.

Speaker #2: So we have absolutely no pressure to do a deal. With so much runway in Canada and Germany, we don't want to rush into the UK or any other market at any cost.

Speaker #2: We'll take our time. But I can tell you, you can also happen at any time. So stay tuned. But we're being patient because, you know, we're busy.

Raj Grover: But I can tell you, it can also happen at any time, so stay tuned. But we are being patient because we are busy. We have got a ton of growth ahead of us.

Speaker #2: We've got a ton of growth ahead of us.

Speaker #1: That's great. Appreciate your color there, Raj. I'll pass the line.

Neal Gilmer: That is great. Appreciate your color there, Raj. I will pass the line.

Speaker #3: Thank you. And your next question comes from the line of Bill Kirk from Roth Capital Partners. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Bill Kirk from ROTH Capital Partners. Please go ahead.

Operator: Thank you. Your next question comes from the line of Bill Kirk from ROTH Capital Partners. Please go ahead.

Speaker #2: Hey, good afternoon, everybody. My first question is a little bit more hypothetical. I guess with purely looking to buy Aurora, with a goal to maybe use Aurora's supply to help meet their international demand, how do you think a potential tie-up between those two would impact the German marketplace?

Bill Kirk: Hey, good afternoon, everybody. My first question is a little bit more hypothetical. I guess with Curaleaf looking to buy Aurora, with a goal to maybe use Aurora's supply to help meet their international demand, how do you think a potential tie-up between those two would impact the German marketplace and/or impact your vision of using Canadian supply to feed your international operation?

Speaker #2: And/or impact your vision of using Canadian supply to feed your international operation?

Speaker #4: Good morning, Bill. Thank you so much for your question. So look, it's a little sensitive. And for that reason, I don't want to take any sides at all, given the obvious sensitivities here, right?

Raj Grover: Good morning, Bill. Thank you so much for your question. Look, it is a little sensitive, and for that reason, I do not want to take any sides at all, given the obvious sensitivities here, right? That said, should that transaction proceed, I would view it as effectively one competitor leaving the marketplace, right? Aurora is no joke. They are a serious competitor in the medical field. I think if they leave, it would be very good for Remexian, or it would be good for Remexian. Again, as we do not have any grow facilities, we are much better positioned, I believe, than anybody else as free agents to work with all LPs regarding exporting, as we do not compete with them at all. Things are looking pretty good from that element, and if Aurora gets out of the race, I am not the one complaining.

Speaker #4: But that said, you know, should that transaction proceed, I would view it as effectively one competitor leaving the marketplace, right? Aurora is no joke.

Speaker #4: They're a serious competitor in the medical field. And I think if they leave, it'd be very good for Remexian. It would be good for Remexian.

Speaker #4: Again, as we don't have any growth facilities, we are much better positioned I believe than anybody else as free agents to work with all LPs regarding exporting, as we don't compete with them at all.

Speaker #4: So, you know, things are looking pretty good from that element. And if Aurora gets out of the race, I am not the one complaining.

Speaker #2: Got it. And then if I can switch to Canada, June and July were a return to positive same-store sales. But it seems like there's a little bit more stress, or at least, you know, potential stress on consumers right now.

Bill Kirk: Got it. If I can switch to Canada, June and July were a return to positive same-store sales. It seems like there is a little bit more stress, or at least potential stress on consumers right now. Maybe what are you seeing in terms of consumer habits recently, and how does August look for same-store sales in Canada?

Speaker #2: So, maybe, what are you seeing in terms of consumer habits recently? And how does August look for same-store sales in Canada?

Speaker #4: Yeah, absolutely. Look, you know, the Canadian market is definitely going through some ups and downs right now. You can see the news every single day, just like I can—what's happening with the trade war.

Raj Grover: Yeah, absolutely. Look, the Canadian market is definitely going through some ups and downs right now. You can see the news every single day just like I can. What's happening with the trade war, it's not getting easier, it's getting tougher. We've got absolute data to examine that none of our customers are leaving us. This is why we put the transaction numbers along with the same-store sales numbers. We were actually up 1.1% on the transactions, Bill. That has continued in August, and that has actually continued quarter to date. The landscape is very much where it was in Q2, Q3, right? It's not changed much. What we're seeing is we're getting more and more transactions coming in, which means our customers are not leaving us, which is the best news.

Speaker #4: It's not getting easier. It's getting tougher. We've got absolute data to examine that none of our customers are leaving us. This is why we put the transaction numbers along with the same-store sales numbers.

Speaker #4: We were actually up 1.1% on the transactions bill. And that is continued in August. And that is actually continued quarter to date. But the landscape is very much where it was in Q2, Q3, right?

Speaker #4: It's not changed much. What we're seeing is we're getting more and more transactions coming in. And which means our customers are not leaving us, which is the best news.

Speaker #4: If we can keep our customers as soon as they have more money in their pockets, I know they're going to spend more. But they're definitely building thinner baskets bill, right?

Raj Grover: If we can keep our customers, as soon as they have more money in their pockets, I know they're going to spend more, but they're definitely building thinner baskets, Bill. Right. So they are going for ounce bags instead of going for 3.5 grams. They're buying slightly less per visit, but this is purely resembling the inflationary pressures we're feeling and the job stress that's very real in the Canadian market. Once again, I'd like to emphasize, Bill, that our transactions are actually up in August and our transactions are actually up quarter to date, which means we're taking more and more share of this legal cannabis market in Canada.

Speaker #4: So they are going for ounce bags instead of going for three and a half grams. They're buying slightly less per visit. But this is purely resembling the inflationary pressures we're feeling.

Speaker #4: And the job stress, that's very real in the Canadian market. Once again, I'd like to emphasize, Bill, that our transactions are actually up in August, and our transactions are actually up quarter to date, which means we're taking more and more share of this legal cannabis market in Canada.

Speaker #2: Thank you, Raj. That's perfect. I'll pass it along.

Bill Kirk: Thank you, Raj. That's perfect. I'll pass it along.

Speaker #3: Thank you. And your next question. Comes from the line of Frederico Gomez from ATB Cormac. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Frederico Gomes from ATB Cormark. Please go ahead.

Operator: Thank you. Your next question comes from the line of Frederico Gomes from ATB Cormark. Please go ahead.

Speaker #5: Yeah, thanks. Good morning. Thanks for taking my questions. Congrats on the great quarter here. Just going back to Germany—Raj, you know, very strong growth there in terms of volumes.

Frederico Gomes: Yeah, thanks. Good morning. Thanks for taking my question. Congrats on the great quarter here. Just going back to Germany, Raj. Very strong growth there in terms of volumes. Are there any capacity constraints in terms of your ability to keep growing at that same pace and distribute product in Germany?

Speaker #5: Are there any capacity constraints in terms of your ability to keep growing at that same pace and distribute product in Germany?

Speaker #4: Good morning, Fred. Thank you so much for your question. So, look, I think we have lots and lots of room. We're not exhausted yet.

Raj Grover: Good morning, Fred. Thank you so much for your question. Look, I think we have lots and lots of room. We are not exhausted yet. Remexian is absolutely firing on all cylinders. As you can see, every single quarter since the acquisition, the tonnage has moved up exponentially. We have gone up from even 7.6 tons in Q2 to 10.2 tons in Q3. Again, far exceeding our expectations, but it is not stopping. We are in a really good place right now. We are in the middle of Q4, and nothing has changed in that regard. In terms of the healthy profile that we are seeing there, I can tell you that I am waiting very excitedly for the numbers to come out in June for the June quarter, to see where our market share stands, because we believe we are taking so much market share in Germany, and we are doing some great business there.

Speaker #4: You know, Remexian is absolutely firing on all cylinders, as you can see. Every single quarter since the acquisition, the tonnage has moved up exponentially.

Speaker #4: We've gone up from even, you know, 7.6 tons in Q2 to 10.2 tons in Q3—again, far exceeding our expectations. But it's not stopping.

Speaker #4: We're in a really good place right now. We're in the middle of Q4. And nothing has changed in that regard. In terms of the healthy profile that we're seeing there, I'm I can't tell you that I'm waiting very excitedly for the numbers to come out in June, for the June quarter.

Speaker #4: To see where our market share stands, because we believe we're taking so much market share in Germany and we're doing some great business there.

Speaker #4: It's absolutely continuing. I think we continue our march towards that 15–20% market share in the long term in Germany, which is exponential for any operator.

Raj Grover: It is absolutely continuing. I think we continue our march towards that 15% to 20% market share in the long term in Germany, which is exponential for any operator.

Speaker #5: Thank you. And then, second question—just going back to Canada. You mentioned some of the, I guess, headwinds impacting the market, and same-store sales growth was flat this quarter.

Frederico Gomes: Thank you. Second question, just going back to Canada. You mentioned some of the, I guess, some of the headwinds impacting the market and same-store sales growth was flat this quarter. You mentioned that you saw an increase in number of stores in Alberta and Ontario year over year. Do you think that is going to continue? We are going to keep seeing number of stores growing in those two markets? Do you think that the market could go back to, I guess, a contraction in terms of number of stores given the current headwinds?

Speaker #5: You mentioned that you saw an increasing number of stores in Alberta and Ontario year over year. Do you think that that's going to continue?

Speaker #5: Going to keep seeing a number of stores growing in those two markets? Or, you know, do you think that the market could go back to, I guess, a contraction in terms of number of stores given the current headwinds?

Speaker #4: Yeah, I think the latter. I think the market could go back to contraction again. Like, again, you know, you can't control the new participants that are going to come into the race.

Raj Grover: Yeah, I think the latter. I think the market could go back to contraction again. Again, you cannot control the new participants that are going to come into the race, that are probably not so attuned to the public markets and cannabis and everything else that is going on. So that happens from time to time. We continue to grow. Some other chains are also growing, so that continues to increase store count. But I think even the way I am looking at the market, if this trend continues, I am more in the market for acquisitions than organic growth. Although organic growth has been the beacon at High Tide, that is how we are leading the country. That is the best type of growth we can provide to our shareholders, returning the best type of value. But I think, in the quarters ahead, you could start seeing some declines again.

Speaker #4: There are probably not so attuned to the public markets in cannabis and everything else that's going on. So that happens from time to time.

Speaker #4: We continue to grow. Some other chains are also growing. So that continues to increase store count. But I think, you know, even the way I'm looking at the market, if this trend continues, I'm more in the market for acquisitions than organic growth.

Speaker #4: Although organic growth has been the beacon at High Tide, that's what's leading the company. That's the best type of growth we can provide to our shareholders.

Speaker #4: You know, returning the best type of value. But I think in the quarters ahead, you could start seeing some declines again. I was a little bit surprised, actually, to see that the overall store count has gone up 5% in the last 12 months.

Raj Grover: I was a little bit surprised actually, to see that the overall store count has gone up 5% in the last 12 months.

Speaker #5: Thank you very much.

Frederico Gomes: Thank you very much.

Speaker #3: Thank you. And your next question, comes from the line of Luke Kannan from Kaneko Genuity. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Luke Kanan from Canaccord Genuity. Please go ahead.

Operator: Thank you. Your next question comes from the line of Luke Hannan from Canaccord Genuity. Please go ahead.

Speaker #6: Thanks, good afternoon, everyone. I wanted to start with Remexian and specifically since you guys have acquired it. You've been pretty active in factoring the receivables that look like it's attributable to Remexian.

Luke Kanan: Thanks. Good afternoon, everyone. I wanted to start with Remexian and specifically since you guys have acquired it, you have been pretty active in factoring the receivables that look like it is attributable to Remexian. I just wanted to check and see, I guess first of all, what is the rationale for this? Then secondly, is this something the previous owners did? Do you expect to continue at the same pace going forward? Thanks.

Luke Hannan: Thanks. Good afternoon, everyone. I wanted to start with Remexian and specifically since you guys have acquired it, you have been pretty active in factoring the receivables that look like it is attributable to Remexian. I just wanted to check and see, I guess first of all, what is the rationale for this? Then secondly, is this something the previous owners did? Do you expect to continue at the same pace going forward? Thanks.

Speaker #6: So, I just wanted to check and see—I guess, first of all, what's the rationale for this? And then, secondly, is this something the previous owners did?

Speaker #6: Do you expect to continue at the same pace going forward? Thanks.

Speaker #4: Hi, Luke. Thanks for your question. So yes, I absolutely see our factoring relationships continuing in Germany. First of all, you know, we're getting a bit of this special treatment factoring.

Raj Grover: Hi, Luke. Thanks for your question. Yes, I absolutely see our factoring relationships continue in Germany. First of all, we are getting a bit of this special treatment factoring. When we hear the word factoring in North America, we start thinking 17% to 20% interest rates. That is absolutely not the case in Germany. We are getting factoring done for sub 9%, and it is working out really well. The receiving parties, which are the pharmacies in Germany, are really credit worthy, and there is absolutely no issue at all. We believe that we can actually continue to increase that factoring spend or continuing to dabble into it, because we are actually very uniquely positioned in that regard. That is because of the former relationships of Remexian and its sister company prior to us getting this transaction done. We are absolutely taking advantage of it.

Speaker #4: When we hear the word factoring in North America, you know, we start thinking 17 to 20% interest rates. That's absolutely not the case in Germany.

Speaker #4: We're getting factoring done for sub 9%. And it's working out really, really well. The receiving parties, which are the pharmacies in Germany, are really creditworthy.

Speaker #4: And there's absolutely no issue at all. So we believe that we can actually continue to increase that factoring spend. Or continuing to dabble into it, because we're actually very uniquely positioned in that regard.

Speaker #4: And that's because of the former relationships of Remexian and its sister company, prior to us getting this transaction done. And we are absolutely taking advantage of it.

Speaker #4: And we are seeing we are not seeing it slow down. And we're not having any issues at all regarding creditworthiness of the operators that are buying cannabis from us.

Raj Grover: We are not seeing it slow down, and we are not having any issues at all regarding credit worthiness of the operators that are buying cannabis from us.

Speaker #6: Got it, thanks. And then for my follow-up here—if we switch over to the Canadian business, it's pretty impressive that despite everything that's going on in the Canadian market, you guys are still able to deliver operating leverage.

Luke Kanan: Got it. Thanks. For my follow-up here, if we switch over to the Canadian business, it is pretty impressive that despite everything that is going on in the Canadian market, you guys still are able to deliver operating leverage. If we look at the individual line items, obviously this quarter, salaries, wages, and benefits was where you found the most leverage. I am curious to know, I guess this is a two-part question. First is, do we expect that to continue going forward, where most of the operating leverage that you are going to be generating is on salaries, wages, and benefits? Then secondly, what exactly is it that is driving that?

Luke Hannan: Got it. Thanks. For my follow-up here, if we switch over to the Canadian business, it is pretty impressive that despite everything that is going on in the Canadian market, you guys still are able to deliver operating leverage. If we look at the individual line items, obviously this quarter, salaries, wages, and benefits was where you found the most leverage. I am curious to know, I guess this is a two-part question. First is, do we expect that to continue going forward, where most of the operating leverage that you are going to be generating is on salaries, wages, and benefits? Then secondly, what exactly is it that is driving that?

Speaker #6: If we look at the individual line items, obviously this quarter, salaries, wages, and benefits was where you found the most leverage. I'm curious to know, I guess this is a two-part question.

Speaker #6: First, do we expect that to continue going forward, where most of the operating leverage you're going to be generating is on salaries, wages, and benefits?

Speaker #6: And then secondly, what exactly is it that's driving that? I'm trying to think of, you know, each incremental store that you add, it's mostly just going to be the in-store labor component of that.

Luke Kanan: I'm trying to think of each incremental store that you add, it's mostly just going to be the in-store labor component of that. Then that's going to be supported by, we'll say, the other support staff or district managers, that sort of thing. Is that the reason why you're able to get leverage, or is there something else that you guys are doing there? Thanks.

Luke Hannan: I'm trying to think of each incremental store that you add, it's mostly just going to be the in-store labor component of that. Then that's going to be supported by, we'll say, the other support staff or district managers, that sort of thing. Is that the reason why you're able to get leverage, or is there something else that you guys are doing there? Thanks.

Speaker #6: And then it's that's going to be supported by, we'll say, the other support staff or district managers that sort of thing. Is that the reason why you're able to get leverage, or is there something else that you guys are doing there?

Speaker #6: Thanks.

Speaker #4: There's a lot there, Luke. And, you know, I won't share all of my secret sauce, but I will tell you this—that, you know, this was the lowest trailing G&A and lowest trailing salaries and wages line we've ever reported, right?

Raj Grover: There's a lot there, Luke, and I won't share all of my secret sauce, but I will tell you this, that this was the lowest trailing G&A and lowest trailing salaries and wages line we've ever reported. This is music to my ears, and this is not the work that we've just done in Q3 or Q2. This is an accumulation of our strategy right since the beginning. We run a very tight show at High Tide. We count every dollar at High Tide, whether that's G&A spend or salaries and wages line. We built a massive scale here in Canada. We have 232 stores now, and you're absolutely right. We don't need that many more district managers, and we don't need that many more regional managers. It's mainly the labor that's running the stores.

Speaker #4: So this is music to my ears. And this is not, you know, the work that we've just done in Q3 or Q2. This is an accumulation of our strategy, right since the beginning.

Speaker #4: We run a very tight show at high tide. We count every dollar at high tide, whether that's GNA spend or salaries and wages line.

Speaker #4: But again, you know, we've built at massive scale here in Canada. We have 232 stores now. And you're absolutely right, we don't need that many more district managers.

Speaker #4: And we don't need that many more regional managers. It's mainly the labor that's running the stores. But, you know, we're also finding a lot more other efficiencies, which we've always been on top of.

Raj Grover: We're also finding a lot more other efficiencies, which we've always been on top of. When you combine all of these initiatives, you could see, again, trailing G&A, lowest ever, trailing salaries and wages, lowest ever. I won't say that it continues to eternity, but I think we'll keep our show pretty tight, as we've always done, Luke.

Speaker #4: And when you combine all of these initiatives, you know, you could see again, you know, trailing GNA lowest ever, trailing salaries and wages lowest ever.

Speaker #4: And I won't say that it continues to eternity, but I think we're going to keep our show pretty tight, as we've always done, Luke.

Speaker #6: Got it. Thanks so much.

Luke Kanan: Got it. Thanks so much.

Luke Hannan: Got it. Thanks so much.

Speaker #3: Thank you. And your next question comes from the line of Derek Lessarda from TDCowen. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Derek Assaro from TD Cowen. Please go ahead.

Operator: Thank you. Your next question comes from the line of Derek Assaro from TD Cowen. Please go ahead.

Speaker #7: Yeah, good afternoon, Raj, and again, I'd like to echo the congrats on the quarter. I just wanted to hit on your free cash flow—obviously very strong despite the working capital usage for Remexian.

Derek Assaro: Yeah, good afternoon, Raj. Again, echo the congrats on the quarter. I just wanted to hit on your free cash flow. Obviously very strong despite the working capital usage for Remexian. I guess I just wanted to get a sense of how should we be thinking about your normalized consolidated cash conversion. Then given your new credit capacity and your stronger earnings base, how are you ranking the use of that incremental cash amongst your various initiatives, whether it be organic store openings or acquisition, debt reduction, et cetera?

[Analyst] (TD Cowen): Yeah, good afternoon, Raj. Again, echo the congrats on the quarter. I just wanted to hit on your free cash flow. Obviously very strong despite the working capital usage for Remexian. I guess I just wanted to get a sense of how should we be thinking about your normalized consolidated cash conversion. Then given your new credit capacity and your stronger earnings base, how are you ranking the use of that incremental cash amongst your various initiatives, whether it be organic store openings or acquisition, debt reduction, et cetera?

Speaker #7: So I guess I just wanted to get a sense of how should we be thinking about your normalized consolidated cash conversion? And then with given your new credit capacity, y, and your stronger earnings base, how are you ranking the use of that incremental cash amongst, you know, your various initiatives, whether it be organic store openings, or acquisitions, debt reduction, et cetera?

Speaker #4: Yeah. So, like, I'll take the second part of the question first, and then I'll pass it over to Mayank on the first part. So, look, we've got a lot of uses for cash, mainly Derek, you know that we build all of our stores organically with our own internally generated cash flows, trailing cash flows are over $12 million, this quarter alone we reported $7 million.

Raj Grover: Yeah. I will take the second part of the question first, and then I will pass it over to Mayank on the first part. Look, we have got a lot of uses for cash, mainly, Derek, you know that we build all of our stores organically with our own internally generated cash flows. Trailing cash flows are over CAD 12 million. This quarter alone, we reported CAD 7 million. Even if we build 30 stores a year, that is eating up around CAD 9, CAD 10 million in cash flow. Remexian is absolutely exploding, so we also need to fund that growth. That is where mainly our cash components are going right now, and I am very happy with that allocation. Regarding the first part of your question, I will pass it over to Mayank.

Speaker #4: Even if we build 30 stores a year, that's eating up around, if we build 30 stores a year, that's eating up around 9, 10 million dollars in cash flow.

Speaker #4: Remexian is absolutely exploding. So we also need to fund that growth. So that is where mainly our cash components are going right now. And I'm very happy with that allocation.

Speaker #4: Regarding your the first part of your question, I'll pass it over to Mayank.

Speaker #7: Thanks, Raj. And Derek, on your first question, how we are seeing the outlook of the cash flow, free cash flow. As Raj mentioned before, cash flow can change significantly up and down, considering the business we are in.

Mayank Mahajan: Thanks, Raj. Derek, on your first question, how we are seeing the outlook of the cash flow, free cash flow. As Raj mentioned before, cash flow can change significantly up and down considering the business we are in. We are very opportunistic, as you know, and we are very disciplined at the same time too. We will keep running our show tight. We will keep delivering the great numbers. As the opportunity grow, we will capture that opportunity.

Speaker #7: And we are very opportunistic. As you know, and we are very disciplined at the same time too. So we will keep running our show tight.

Speaker #7: We will keep, you know, delivering the great numbers. And as the opportunity grow, we will capture that opportunity.

Speaker #6: Okay. That's helpful. And then just maybe one last one on Remexian. Obviously, still expecting or you still see a path of margin expansion. Just maybe remind us, and particularly, I guess, as the Canadian sourcing increases and the platform scales, can you just maybe remind us about what you're thinking about in terms of the longer-term margin opportunity?

Derek Assaro: Okay. That's helpful. Just maybe one last one on Remexian. Obviously still expecting, or you still see a path of margin expansion. Just maybe remind us, particularly as I guess, as the Canadian sourcing increases and the platform scales, can you just maybe remind us about what you're thinking about in terms of the longer-term margin opportunity and what proportion of the volume is now sourced from Canada?

[Analyst] (TD Cowen): Okay. That's helpful. Just maybe one last one on Remexian. Obviously still expecting, or you still see a path of margin expansion. Just maybe remind us, particularly as I guess, as the Canadian sourcing increases and the platform scales, can you just maybe remind us about what you're thinking about in terms of the longer-term margin opportunity and what proportion of the volume is now sourced from Canada?

Speaker #6: And what proportion of the volume is now sourced from Canada?

Speaker #4: Yeah, absolutely, Derek. So there's still plenty of room there. We are nowhere near finished leveraging our Canadian LP relationships to bring high-quality cannabis to Germany on best-in-class terms.

Raj Grover: Yeah, absolutely, Derek. So there's still plenty of room there. We are nowhere near finished leveraging our Canadian LP relationships to bring high-quality cannabis to Germany on best-in-class terms. I've been saying this since we purchased Remexian, and even before that. With medical volumes rising rapidly in Germany, we're consistently onboarding new producers to meet that demand. Gross margins were 27% in Q2, 26% this quarter, so fairly consistent. Even though price compression is inevitable, our unique procurement capabilities that we have here in Canada are going to provide and partially offset that. I think we'll settle in the mid to high 20s over the long term, Derek, and I couldn't be more happier with that because for a distribution business, if we are talking about mid to high 20s, we're looking pretty good with the way our tonnage continues to go up.

Speaker #4: I've been saying this since we purchased Remexian and even before that. And, you know, with medical volumes rising rapidly in Germany, we're consistently onboarding new producers to meet that demand.

Speaker #4: And gross margins were, you know, 27 percent in Q2, 26 percent this quarter, so fairly consistent. And even though price compression is inevitable, our unique procurement capabilities that we have here in Canada, you know, are going to provide and partially offset that.

Speaker #4: So I think we'll settle in the mid to high 20s over the long term. Derek, and I couldn't be more happier with that. Because for a distribution business, if we are talking about mid to high 20s, we're looking pretty good with the way our tonnage continues to go up.

Speaker #7: Absolutely. Thanks, guys.

Derek Assaro: Absolutely. Thanks, guys.

[Analyst] (TD Cowen): Absolutely. Thanks, guys.

Speaker #3: Thank you. And your next question comes from the line of Pat Mackin from Borough Capital. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Pat McCann from B. Brad Capital. Please go ahead.

Operator: Thank you. Your next question comes from the line of Pat McCann from D. Boral Capital. Please go ahead.

Speaker #8: Good evening. Thanks for taking my questions, gentlemen. And congrats on the quarter. I was wondering about the positive growth there. June and July, if you could talk about what was driving the inflection.

Pat McCann: Hey, thanks for taking my questions, gentlemen, and congrats on the quarter. I was wondering about same-store sales and the positive growth there, June and July. If you could talk about what was driving the inflection. Could you talk about what is behind those numbers in terms of customer traffic, basket assortment, ELITE penetration? What is behind that positive uptick?

Speaker #8: Could you talk about what's kind of behind those numbers in terms of, you know, traffic, customer traffic, basket, assortment, elite penetration? What's kind of what's behind that positive uptick?

Speaker #4: Good morning, and thanks for your question, Matt. So it's all of the above. It's absolutely all of the above, but most importantly, it's our dominant discount club model that we launched in October of 2021.

Raj Grover: Good morning, and thanks for your question, Matt. It is all of the above. It is absolutely all of the above, but most importantly, it is our dominant discount club model that we launched in October 2021. Today our brand is the talk of the town. Our brand numbers are so strong, they are twice as much stronger than our next competitor. One of the competitors in public markets, our main competitor, reported a very large negative same-store sales number. That is absolutely not the case with us. Again, we are not just fighting the battle on price. We have a loyalty moat. We have multiple moats that are part of our business now. We have 2.7 million members of the Cabana Club. We have 186,000 ELITE members that pay us CAD 35 a year to shop in our stores. So, once they become paid members, they become even more loyal.

Speaker #4: And today, our brand is the talk of the town. Our brand numbers are so strong, they're twice as much stronger than our next competitor.

Speaker #4: You know, one of the competitors in public markets, our main competitor, reported a very large negative same-store sales number. That is absolutely not the case with us.

Speaker #4: Again, you know, we're not just fighting the battle on price. We are fighting we have a loyalty moat. We have multiple moats that are part of our business now.

Speaker #4: We have 2.7 million members of the Cabana Club. We have 186,000 elite members that pay us $35 a year to shop in our stores.

Speaker #4: So, you know, once they become paid members, they become even more loyal. So our loyalty loop is extremely strong. That's what I'd put first.

Raj Grover: Our loyalty loop is extremely strong. That is what I put first. We do not sacrifice on location quality, Matt. We are always ahead on locations. We talk about location, location all the time. I keep saying whether it is food or clothing or cannabis, that equation does not change, so let us not get it wrong. I think when you put all of this together with increasing amount of other elements like white label initiatives that we are bringing in, we are able to maintain a much decent same-store sales trajectory than anybody else in the country.

Speaker #4: We don't sacrifice on location quality, Matt. We're always ahead on locations. We talk about location, location, location all the time. I keep saying, whether it's food or clothing or cannabis, that equation does not change.

Speaker #4: So let's not get it wrong. And I think when you put all of this together, with increasing amount of other elements like white label initiatives, that we're bringing in, we're able to maintain a much decent same-store sales trajectory than anybody else in the country.

Speaker #8: Excellent. And then just as a follow-up to that, could you talk about when customers convert to elite? You know, what data you're seeing in terms of, you know, measurable differences in their behavior, in their shopping behavior in terms of, you know, increasing their spend, the frequency, you know, anything that you can share in terms of how the customer dynamics change when someone goes from the free to the paid elite status on your membership?

Pat McCann: Excellent. Just as a follow-up to that, could you talk about when customers convert to ELITE, what data you are seeing in terms of measurable differences in their behavior, in their shopping behavior, in terms of increasing their spend, the frequency, anything that you can share in terms of how the customer dynamics change when someone goes from the free to the paid ELITE status on your membership?

Speaker #4: Well, yeah, absolutely. So, look, because they're more loyal, they made a commitment to the program, and they're part of our ecosystem, they definitely we see them definitely building higher baskets.

Raj Grover: Well, yeah, absolutely. So look, because they are more loyal, they made a commitment to the program, and they are part of our ecosystem, we see them definitely building higher baskets, and they also shop more often with us. So if you combine those two elements, you have more sales and more juice coming out of them.

Speaker #4: And they also shop more often with us. So if you combine those two elements, you've got more sales and more juice coming out of them.

Speaker #8: Excellent. That's all I had. Thanks so much.

Pat McCann: Excellent. That is all I had. Thanks so much.

Speaker #3: Thank you. That answered question and answered session. I will now turn the call back to the management for any closing remarks.

Operator 2: Thank you. That ends our question and answer session. I will now turn the call back to the management for any closing remarks.

Operator: Thank you. That ends our question and answer session. I will now turn the call back to the management for any closing remarks.

Speaker #1: Thank you, operator. And thank you to everyone for your interest in continued support for High Tide. We are so proud of this record-breaking quarter, and we remain very excited for High Tide's global prospects ahead.

Raj Grover: Thank you, operator, and thank you to everyone for your interest and continued support for High Tide. We are so proud of this record-breaking quarter, and we remain very excited for High Tide's global prospects ahead. With that, I will ask the operator to close the line. Have a great day, everyone.

Speaker #1: With that, I will ask the operator to close the line. Have a great day, everyone.

Operator 2: This concludes today's call. Thank you for participating. You may all disconnect.

Operator: This concludes today's call. Thank you for participating. You may all disconnect.