💸 The Tape

High Tide Keeps Rolling with Record Revenue, Strategic Moves, and a Global Loyalty Push

For High Tide Inc. (Nasdaq: HITI), the first quarter of 2025 was like a well-balanced strain of cannabis—strong in some areas, mellow in others, and carefully cultivated for long-term effects. The retail-forward cannabis giant reported record revenue of $142.5 million, marking an 11% year-over-year increase, proving once again that the cannabis industry isn’t just blowing smoke.

But before investors start throwing a celebration party (perhaps with CBD-infused snacks), there are a few nuances to consider. Gross profit landed at $35.4 million, holding steady like a well-practiced yoga pose, while the gross margin dipped slightly to 25%. This was partly due to High Tide’s calculated decision to trim e-commerce margins in the short term—a move that should pay off in the quarters ahead as volume ramps up.

The EBITDA Elephant in the Room

CEO Raj Grover didn’t shy away from addressing the company’s 32% year-over-year EBITDA decline, which settled at $7.1 million. But, in classic High Tide fashion, there’s a plan. The company is aggressively expanding its brick-and-mortar footprint, adding new stores at a pace that’s temporarily impacting earnings but positioning the brand for market dominance.

Grover’s philosophy? Short-term EBITDA pain for long-term gain. And let’s not forget, this marks High Tide’s 20th consecutive quarter of positive adjusted EBITDA—not an easy feat in an industry that often feels like a financial rollercoaster.

Cabana Club: The VIP Lounge of Cannabis Retail

One of the company’s crown jewels, the Cabana Club loyalty program, is growing at a clip that would make even the most aggressive tech startups jealous. Canadian membership has swelled to 1.76 million, and global expansion is underway. The paid ELITE membership tier is also breaking records, now boasting 81,000 members—a group that, notably, shops more frequently and in larger quantities.

For High Tide, loyalty isn’t just a buzzword; it’s a revenue machine. The company is so bullish on its trajectory that it upped its long-term target to 2.5 million Canadian members, from an already ambitious 2 million.

The German Play & International Ambitions

Across the pond, High Tide set its sights on the German medical cannabis market with a planned €4.8 million acquisition of Purecan GmbH. However, due diligence has led to a strategic pivot—rather than diving in headfirst, the company is exploring alternative arrangements to solidify its German foothold. With Canada supplying half of Germany’s medical cannabis imports, High Tide is well-positioned to capitalize on Europe’s green rush.

The Big Picture: Cash Flow, Debt, and Expansion

Despite some short-term fluctuations in free cash flow (down $1.9 million this quarter due to working capital investments), High Tide remains confident it will be free cash flow positive for the full year. The company still boasts $33.3 million in cash, a low debt-to-EBITDA ratio of 0.8x, and no major debt maturities looming.

And with a goal of hitting 300 retail locations across Canada while continuing its global expansion, High Tide isn’t just riding the industry’s momentum—it’s creating its own waves.

📈 Dog Walkers.

Maryland Is Giving Their Front Line Workers Protections They Deserve

What’s Going On Here: Maryland is lighting the way—metaphorically, of course—for its fire and rescue workers with a bill that ensures off-duty medical cannabis use won’t cost them their jobs. The Senate approved the measure 36-8, pushing it to the House, where a companion bill awaits its turn. The legislation makes it clear: if firefighters are registered medical marijuana patients, a positive THC test can’t be used as grounds for discipline or termination. However, employers can still enforce zero-tolerance policies for on-the-job impairment—because nobody wants a fire truck driven under the influence. It’s a common-sense update that lets first responders prioritize both duty and well-being.

Why Should You Care: Its about damn time certain professions who are under ungodly amounts of stress from time to time are able to use cannabis off the clock if they chose. Congrats Maryland you did the right thing.

atai Reports

Whats Going On Here: atai Life Sciences is kicking off 2025 with a fortified cash runway, thanks to a recent capital raise that extends its operational funding into 2027—well beyond the anticipated Phase 2 readouts for its core mental health programs, VLS-01 and EMP-01, in early 2026. CEO Srinivas Rao remains laser-focused on pushing these trials forward, while also eyeing key milestones like Beckley Psytech’s BPL-003 results for treatment-resistant depression and RL-007’s cognitive impairment study in mid-2025. Financially, atai’s cash reserves stand at $72.3 million, and while net losses widened, the company is strategically balancing investments with efficiency to drive long-term growth.

Why Should You Care: Someone is going to win the psychedelics arms race and atai has quite the promising pipeline and is cashed up. Christian will be joining us on the livestream Wednesday @ 4pm.

🗞️ The News

📺 YouTube

Cannabis Industry: A Red-Hot Start to the Week | Trade to Black

What we will cover:

✅ Shadd Dales and Anthony Varrell will dive into major developments in the cannabis industry. Joining us will be Peter Sack, Managing Director from Chicago Atlantic (NASDAQ: $REFI), who will discuss the latest earnings his company recently reported. Chicago Atlantic posted some notable numbers in their most recent earnings, including a total loan principal outstanding of $410.2 million across 30 portfolio companies and a portfolio weighted average yield to maturity of 17.2% as of December 31, 2024 .

Peter will also share his insights on the latest developments involving Innovative Industrial Properties (NYSE: IIPR) and the Pharmacann story. Pharmacann, one of IIPR’s key tenants, has defaulted on rent for nine out of eleven leases, amounting to $2.7 million in March alone. This includes properties across states like New York, Illinois, and Pennsylvania. We’ll discuss the broader impact on the cannabis industry, and what this means for the overall industry.

Plus, Shadd and Anthony will highlight news from last week involving a recent disclosure by SNDL Inc. (NASDAQ: SNDL) regarding its acquisition of 5.4% of High Tide’s (NASDAQ: HITI) common shares. High Tide’s CEO, Raj Grover, acknowledged the filing, stating that the company’s board will monitor the situation to safeguard shareholder value. While the reason behind SNDL’s investment is still unclear, some speculate it could be a move toward potential M&A discussions. Given SNDL’s track record in cannabis acquisitions—such as its purchase of The Valens Company—the possibility of a deal remains open.