High Tide Inc. (HITI): Business Model Canvas [Jan-2025 Mise à jour]

High Tide Inc. (HITI) apparaît comme une centrale dynamique dans le paysage de la vente au détail de cannabis, naviguant stratégiquement sur le terrain complexe des marchés de cannabis récréatif avec un modèle commercial innovant qui mélange de manière transparente la vente au détail de brique et de mortier, les plates-formes de commerce électronique de pointe, et un écosystème de produit diversifié. En tirant parti d'une approche sophistiquée qui englobe plusieurs sources de revenus et canaux d'engagement client, High Tide s'est positionné comme un acteur transformateur dans l'industrie du cannabis en évolution rapide, offrant aux consommateurs une expérience d'achat inégalée qui combine la commodité, l'accessibilité et les solutions de cannabis complètes sur les marchés canadiens de Canadien .

High Tide Inc. (HITI) - Modèle commercial: partenariats clés

Partenariats stratégiques avec les détaillants et dispensaires de cannabis

High Tide Inc. opère dans plusieurs marques de vente au détail, notamment Canna Cabana, avec 88 magasins de détail sous licence de cannabis à travers le Canada au T3 2023. Les partenariats stratégiques incluent:

Type de partenaire	Nombre de partenariats	Portée géographique
Détaillants canadiens de cannabis	88 magasins agréés	Alberta, Ontario, Saskatchewan
Dispensaires indépendants	15 accords de collaboration	Provinces multiples

Collaborations avec les fabricants et marques de produits de cannabis

High Tide maintient des partenariats avec plusieurs fabricants de produits de cannabis:

• Top 10 producteurs de cannabis agréés au Canada
• Partenariats de marque exclusive avec 7 fabricants de produits de cannabis
• Des gammes de produits propriétaires dans plusieurs catégories de cannabis

Accords de distribution en gros

Catégorie des fournisseurs	Total des fournisseurs	Volume de distribution annuel
Fournisseurs de cannabis agréés	22 fournisseurs actifs	Environ 5 000 kg par an
Canaux de distribution en gros	3 réseaux de distribution primaires	Couvrant 6 provinces canadiennes

Partenariats technologiques

Tide High Tipe des collaborations technologiques pour améliorer les capacités de vente au détail et de commerce électronique:

• 3 partenaires technologiques de la plate-forme de commerce électronique
• 2 fournisseurs de logiciels de gestion de la vente au détail
• Intégration de paiement numérique avec 4 plateformes de traitement de paiement

High Tide Inc. (HITI) - Modèle commercial: activités clés

Opérations de vente au détail de cannabis

Au quatrième trimestre 2023, High Tide exploite 156 magasins de cannabis au détail dans plusieurs provinces canadiennes, avec la rupture provinciale suivante:

Province	Nombre de magasins
Alberta	86
Ontario	47
Saskatchewan	23

Gestion de la plate-forme de commerce électronique

High Tide gère plusieurs plateformes en ligne, notamment:

• Plateforme de commerce électronique de cabana cannabis
• Marketplace en ligne de GrassCity.com
• Service d'abonnement quotidien du High Club

Développement de la marque de vente au détail

Les principales marques de vente au détail gérées par High Tide:

• Canna Cabana
• Meta Cannabis Supply Co.
• Cartel de fumée

Source des produits et gestion des stocks

Métrique	Valeur
Total des SKU gérés	1,200+
Rétallage des stocks annuels	4.2x

Marketing numérique et acquisition de clients

Mesures de marketing numérique pour 2023:

• Dépenses totales de marketing numérique: 2,7 millions de dollars
• Base de clientèle en ligne: 350 000+
• Coût moyen d'acquisition du client: 22,50 $

High Tide Inc. (HITI) - Modèle commercial: Ressources clés

Réseau étendu de magasins de vente au détail de cannabis

Depuis le quatrième trimestre 2023, High Tide Inc. exploite 159 magasins de cannabis au détail à travers le Canada, avec la rupture géographique suivante:

Province	Nombre de magasins
Alberta	86
Ontario	40
Saskatchewan	19
Colombie-Britannique	14

Forte infrastructure de commerce électronique

Les plates-formes numériques de High Tide comprennent:

• Plateforme de commerce électronique de cabana cannabis
• Service d'abonnement en ligne quotidien en ligne
• Grasscity.com Market en ligne mondial

Plateformes technologiques propriétaires

Les investissements technologiques comprennent:

• Système consolidé de points de vente sur le réseau de vente au détail
• Logiciel avancé de gestion des stocks
• Technologie de gestion de la relation client (CRM)

Équipe de gestion expérimentée

Exécutif	Position	Années dans l'industrie du cannabis
Raj Grover	Président & PDG	8
David Kemper	Directeur financier	6

Portfolio de marque robuste

High Tide gère plusieurs marques de cannabis et de style de vie, notamment:

• Canna Cabana (marque de vente au détail)
• Cartel de fumée
• Club quotidien
• Herbe

Revenu total pour l'exercice 2023: 134,7 millions de dollars CAD

High Tide Inc. (HITI) - Modèle d'entreprise: propositions de valeur

Diverses offres de produits de cannabis pour les consommateurs récréatifs

High Tide Inc. propose plus de 1 300 produits de cannabis uniques sur plusieurs marques au deuxième trimestre 2023. Les catégories de produits incluent:

• Fleur de cannabis séché
• Articulations pré-roulées
• Le cannabis se concentre
• Comestibles
• Produits de vape

Catégorie de produits	Fourchette de prix moyenne	Part de marché
Fleur séchée	8,50 $ - 15 $ par gramme	42%
Pré-roll	6 $ - 12 $ par unité	22%
Concentrés	25 $ - 60 $ par gramme	18%

Expérience de magasinage omnicanal pratique

High Tide exploite 119 magasins de cannabis au détail à travers le Canada en janvier 2024, avec 47 plateformes en ligne supplémentaires.

Canal de vente	Nombre de plateformes	Volume de transaction annuel
Magasins de vente au détail physique	119	1,2 million de transactions
Plateformes en ligne	47	385 000 transactions

Prix ​​compétitifs et accessibilité des produits

Les prix moyens entre les gammes de produits varient de 8,50 $ à 60 $, avec des remises compétitives et des programmes de fidélité.

• Valeur de transaction client moyenne: 42,75 $
• Adhésion au programme de fidélité: 215 000 membres actifs
• Remise moyenne offerte: 12-18%

Plates-formes numériques conviviales

Métriques d'engagement numérique pour les plates-formes en ligne de High Tide:

Métrique de la plate-forme numérique	Performance de 2023
Téléchargements d'applications mobiles	87,500
Visiteurs mensuels du site Web	425,000
Durée moyenne de la session	7,2 minutes

Solutions complètes de vente au détail de cannabis

High Tide fournit des solutions de vente au détail de cannabis de bout en bout, notamment:

• Systèmes de point de vente
• Gestion des stocks
• Gestion de la relation client
• Suivi de la conformité

Solution de vente au détail	Nombre de clients	Revenus annuels
Solutions de technologie de vente au détail	87 clients du dispensaire	3,2 millions de dollars

High Tide Inc. (HITI) - Modèle d'entreprise: relations clients

Engagement client numérique via des plateformes en ligne

High Tide Inc. exploite plusieurs plateformes numériques avec les mesures d'engagement suivantes:

Plate-forme	Utilisateurs actifs mensuels	Pourcentage de vente en ligne
Canna Cabana E-Commerce	78,500	24.3%
Grasscity.com	62,300	18.7%

Programme de fidélité pour les clients réguliers

Le programme de fidélité de High Tide comprend:

• Système de points de récompense avec un taux de rétention de la clientèle de 3,5%
• Valeur à vie moyenne du client de 425 $
• 25% des clients inscrits au programme de fidélité

Recommandations de produits personnalisés

Détails de l'algorithme de recommandation:

• Personnalisation basée sur l'apprentissage automatique
• Taux de conversion de 37% à partir de recommandations personnalisées
• Augmentation moyenne de la valeur de la panier: 28,50 $

Support client et ressources éducatives

Canal de support	Temps de réponse	Taux de satisfaction client
Chat en direct	12 minutes	87%
Assistance par e-mail	24 heures	79%

Les médias sociaux et l'interaction communautaire

Métriques d'engagement des médias sociaux:

• Followers Instagram: 45 600
• Twitter abonnés: 22 300
• Taux d'engagement moyen des médias sociaux: 4,2%
• Interactions de contenu généré par l'utilisateur: 3 750 mois

High Tide Inc. (HITI) - Modèle commercial: canaux

Magasins de cannabis de vente au détail de marque

Au quatrième trimestre 2023, High Tide exploite 130 magasins de cannabis de vente au détail à travers le Canada.

Région	Nombre de magasins
Alberta	86
Ontario	32
Saskatchewan	12

Site Web de commerce électronique en ligne

La plate-forme en ligne de High Tide, Cabana, a généré 15,2 millions de dollars de revenus en 2023.

• Visiteurs de site Web mensuels moyens: 250 000
• Taux de conversion des transactions en ligne: 3,7%

Application mobile

Les téléchargements de l'application mobile Cabana ont atteint 75 000 en décembre 2023.

Plate-forme	Télécharger des statistiques
ios	42,000
Androïde	33,000

Marchés de cannabis tiers

High Tide s'associe à 22 plateformes de marché de cannabis externe.

• Revenu total du marché tiers: 3,8 millions de dollars en 2023
• Taux de commission moyen: 12-15%

Canaux de marketing numérique

Dépenses de marketing numérique en 2023: 1,2 million de dollars

Canal	Dépenses marketing
Réseaux sociaux	$450,000
Publicités Google	$350,000
Marketing d'affiliation	$250,000
E-mail marketing	$150,000

High Tide Inc. (HITI) - Modèle d'entreprise: segments de clientèle

Consommateurs de cannabis récréatif

High Tide Inc. cible les consommateurs de cannabis récréatifs avec les caractéristiques du marché suivantes:

Segment démographique	Taille du marché	Dépenses moyennes
18-34 groupes d'âge	42% du marché du cannabis	75 $ - 120 $ par mois
Consommateurs masculins	58% des utilisateurs récréatifs	95 $ dépenses mensuelles moyennes

Marché du cannabis à usage adulte

High Tide se concentre sur le marché du cannabis à usage adulte avec un ciblage spécifique:

• Valeur marchande de l'adulte canadien: 4,4 milliards de dollars en 2023
• Croissance du marché projetée: 12,5% par an
• Price d'âge des consommateurs primaires: 21 à 45 ans

Jeune démographie urbaine

Analyse du segment des consommateurs urbains:

Caractéristique du marché urbain	Pourcentage
Consommateurs de cannabis urbain	67% du marché total
Taux d'engagement numérique	82% des jeunes consommateurs urbains

Utilisateurs de cannabis expérimentés

Caractéristiques des consommateurs de cannabis expérimentés:

• Fréquence d'achat fréquente: 2 à 4 fois par mois
• Dépenses mensuelles moyennes: 150 $ - 250 $
• Préférence pour les gammes de produits premium

Consommateurs de santé et de bien-être

Segment de consommation de cannabis axé sur la santé:

Catégorie de bien-être	Part de marché	Intérêt des consommateurs
Produits CBD	24% du marché du cannabis	Soulagement du stress et relaxation
Utilisateurs de cannabis médical	18% du total des consommateurs	Gestion de la douleur et thérapie alternative

High Tide Inc. (HITI) - Modèle d'entreprise: Structure des coûts

Dépenses opérationnelles des magasins de détail

Au troisième trimestre 2023, High Tide Inc. a déclaré des dépenses opérationnelles totales de 16,7 millions de dollars. Répartition des coûts liés au magasin:

Catégorie de dépenses	Coût annuel ($)
Loyer et services publics	4,200,000
Salaire du personnel	5,600,000
Entretien des magasins	1,300,000

Coûts d'approvisionnement des stocks

Frais d'approvisionnement des stocks pour 2023:

• Coût total de l'achat d'inventaire: 22,3 millions de dollars
• Inventaire des produits du cannabis: 14,5 millions de dollars
• Inventaire des accessoires: 7,8 millions de dollars

Technologie et maintenance des plateformes

Frais d'infrastructure technologique:

Dépenses technologiques	Coût annuel ($)
Plate-forme de commerce électronique	1,100,000
Infrastructure informatique	850,000
Licence de logiciel	450,000

Marketing et acquisition de clients

Dépenses de marketing pour 2023:

• Budget marketing total: 3,6 millions de dollars
• Publicité numérique: 1,8 million de dollars
• Campagnes de médias sociaux: 650 000 $
• Programmes de fidélisation de la clientèle: 400 000 $

Frais de conformité réglementaire

Coûts liés à la conformité en 2023:

Catégorie de conformité	Coût annuel ($)
Conseil juridique	750,000
Frais de licence	500,000
Représentation réglementaire	250,000

High Tide Inc. (HITI) - Modèle commercial: Strots de revenus

Ventes de vente au détail de produits de cannabis

Pour le troisième trimestre 2023, High Tide a déclaré des revenus de vente au détail de cannabis de 31,8 millions de dollars. La société exploite 124 magasins de cannabis au détail au Canada en novembre 2023.

Canal de vente au détail	Nombre de magasins	Revenus (T1 2023)
Magasins de cabana canna	124	31,8 millions de dollars

Transactions de plate-forme de commerce électronique

Cabana Marketplace a généré 4,1 millions de dollars de revenus au cours du troisième trimestre 2023, représentant une plate-forme de vente en ligne pour le cannabis et les accessoires.

Revenus de distribution de gros

Les revenus de distribution de cannabis en gros pour le troisième trimestre 2023 étaient de 5,2 millions de dollars, avec une distribution dans plusieurs provinces canadiennes.

Province	Distribution de gros
Alberta	Région de distribution primaire
Ontario	Marché en expansion

Ventes de produits de marque

High Tide possède plusieurs marques de cannabis générant des revenus:

• Palmetto cannabis
• Rad
• Étranger amical

Marchandise liée au cannabis auxiliaire

Les ventes de marchandises via Canna Cabana et les plateformes en ligne ont généré environ 2,5 millions de dollars au troisième trimestre 2023.

Catégorie de marchandises	Contribution des revenus
Accessoires fumeurs	1,2 million de dollars
Produits de style de vie du cannabis	1,3 million de dollars

High Tide Inc. (HITI) - Canvas Business Model: Value Propositions

You're looking at the core differentiators High Tide Inc. is using to capture and hold market position, especially as the industry matures. It's all about volume, loyalty, and strategic expansion right now.

The foundation of the retail value proposition is built around accessible and affordable cannabis products driven by the discount club model. This strategy directly targets the price-sensitive consumer base, which is a significant portion of the market.

• The discount club model, which started rolling out in late 2021, is based on the membership concept, similar to Costco.
• Since the discount club launch to June 2025, same-store sales at Canna Cabana are up 137%, while the average operator has seen a 2% decline in the same period.

High Tide Inc. maintains a dominant position in the Canadian retail landscape through its Canna Cabana banner. This scale provides procurement advantages and brand recognition.

Metric	Value as of Late 2025	Context
Market Share (in operating provinces)	12%	Across the five Canadian provinces where Canna Cabana has a presence, as of the quarter ended July 2025.
Canadian Store Count (Canna Cabana)	207 to 210 locations	Reported as 207 in Q3 2025, and 210 as of October 2025.
Annualized Retail Sales Per Square Foot (Q3 2025)	$1,735	Higher than best-in-class retailers like Wal-Mart and Target.

The high-value loyalty program, Cabana Club, is central to locking in customers and driving frequency. The tiered structure, featuring a paid ELITE tier, creates a clear path for customer monetization and retention.

Here's the quick math on the loyalty program growth as of the third fiscal quarter of 2025 ended July 31, 2025:

• Canadian Cabana Club membership surpassed 2.15 million, an increase of 39% year over year.
• Canadian ELITE paid membership exceeded 115,000, marking a 102% increase year over year. As of October 2025, the total was stated as 120,000 ELITE paid members.
• Global Cabana Club membership surpassed 6.15 million.
• The program now drives >90% of in-store sales.

High Tide Inc. offers a one-stop-shop experience by integrating its physical retail footprint with a global e-commerce presence. This omnichannel approach allows them to capture consumer spend across different channels.

• The core bricks-and-mortar segment generated revenue of $135.7 million in Q1 2025 and $120.051 million in retail cannabis and CBD product revenues in Q2 2025.
• The company operates multiple global e-commerce platforms offering accessories and hemp-derived CBD products.

The company secured an early mover advantage in the German medical cannabis market by acquiring a majority stake in Remexian Pharma GmbH in August 2025. This positions High Tide Inc. to capitalize on Europe's largest medical cannabis market.

Remexian Acquisition Stake	51%
Preliminary Purchase Price for 51% Stake	€27.2 million
Remexian Annualized Revenue (as of 6 months ended March 2025)	€70 million
Remexian Adjusted EBITDA (as of 6 months ended March 2025)	€15 million
Remexian Q2 2025 Flower Sales	7 tonnes

The first public North American cannabis company to open a shop in Germany, High Tide Inc. opened a Canna Cabana store in Berlin following the Remexian acquisition.

High Tide Inc. (HITI) - Canvas Business Model: Customer Relationships

You're looking at how High Tide Inc. (HITI) keeps its customers coming back, which is really the engine behind their retail success. Their approach is heavily focused on data capture through loyalty tiers.

High-retention, data-driven relationship via the Cabana Club loyalty program

The Cabana Club is the core of High Tide Inc. (HITI)'s customer retention strategy. This program is designed to capture consumer data to drive repeat business. As of late 2025, the program has scaled significantly, making it a massive data asset.

• Canadian Cabana Club membership reached 2.2 million members as of October 21, 2025.
• Purchases by these members drive over 90% of in-store sales across the Canna Cabana retail network.
• The program's growth has been substantial, showing an 800% increase in membership since its launch in October 2021.
• The Canadian retail segment holds a 12% market share in the five provinces where High Tide Inc. (HITI) operates, as of the quarter ending July 2025.

The relationship is clearly transactional but highly incentivized, turning casual buyers into known entities for High Tide Inc. (HITI).

Dedicated ELITE paid membership tier for enhanced benefits and higher spend

The ELITE tier is the premium layer of the discount club model, designed to capture the highest-value customers. These members are expected to shop more frequently and spend more per visit than base members.

• Worldwide ELITE paid membership surpassed 120,000 members as of October 21, 2025.
• In the second fiscal quarter of 2025, the Canadian ELITE membership count exceeded 97,000.
• This tier has shown rapid onboarding, with the pace of adding paid members setting new records.

This paid tier directly translates loyalty into a recurring revenue stream for High Tide Inc. (HITI).

Self-service and personalized recommendations through the Canna Cabana store model

The Canna Cabana store model itself supports a self-service experience, which is then layered with data-driven personalization. The physical layout is designed to be shoppable, supporting this model.

Metric	Value as of Late 2025	Context
Total Canna Cabana Locations (Canada)	218	As of December 5, 2025, with new openings in Calgary, London, and Brampton.
Annualized Retail Sales Per Square Foot (Q2 2025)	$1,648	Across the Canna Cabana store network for the second fiscal quarter of 2025.
Same-Store Sales Growth (Q3 2025 Preliminary)	7.4%	Reached a two-year high in preliminary guidance for Q3 2025.

Digital engagement via global e-commerce platforms and social media

High Tide Inc. (HITI) extends the club relationship beyond the physical store. The Cabana Club model was expanded across all global e-commerce businesses in late 2024, creating a unified digital touchpoint.

• The e-commerce segment accounted for 5% of High Tide Inc. (HITI)'s total revenue in the first fiscal quarter of 2025.
• The company operates multiple global e-commerce platforms offering accessories and hemp-derived CBD products.
• The company is recognized as Canada's most recognizable cannabis retailer, indicating strong brand awareness likely fueled by digital channels.

Standardized, high-quality in-store customer service across all 218 locations

Consistency is key when operating a large chain, ensuring the value proposition holds up whether you are in Alberta or Ontario. The service standard is applied across the entire physical footprint.

The Canna Cabana brand operates 218 locations across British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario as of December 2025. The company reported a shrink rate of just 0.3% during the three months ended April 30, 2025, suggesting strong operational control and inventory management, which supports a high-quality, reliable customer experience.

High Tide Inc. (HITI) - Canvas Business Model: Channels

You're looking at how High Tide Inc. gets its products and services into the hands of customers across its diverse operations. This is where the rubber meets the road for their revenue generation, spanning physical retail, digital storefronts, and specialized B2B pharmaceutical distribution. Honestly, the channel strategy is a mix of high-volume, low-margin retail and high-value, specialized wholesale.

The primary channel remains the physical footprint. High Tide Inc. is pushing hard on organic growth here, aiming to solidify its market position before the end of 2025. This physical presence is heavily supported by the loyalty program, which drives the majority of in-store transactions.

Here are the key channels High Tide Inc. uses to reach its customers:

• The Canna Cabana bricks-and-mortar retail stores, which total 218 locations across Canada as of December 5, 2025.
• Global e-commerce platforms for accessories and CBD, including Grasscity.com, which are now integrated with the loyalty program.
• The medical cannabis distribution network in Germany, established through the acquisition of Remexian Pharma GmbH.
• The Cabanalytics Business Data and Insights platform, which sells B2B data and insights.
• Direct-to-consumer sales driven by the Cabana Club app and website ecosystem.

The retail channel is the engine, but the digital and wholesale channels are crucial for diversification. Let's break down the numbers associated with these paths to market.

218 Canna Cabana Bricks-and-Mortar Retail Stores (Primary Channel)

The Canna Cabana chain is the backbone of High Tide Inc.'s business. As of December 5, 2025, the total store count reached 218 locations across Canada. This network is concentrated in key provinces, with 91 stores in Alberta and 94 stores in Ontario. The company remains on track to finish toward the higher end of its stated 20-30 new-store target for the 2025 calendar year. The long-term ambition is to grow this physical footprint to 350 stores across Canada. The retail segment generated a record $135.7 million in revenue in the first fiscal quarter of 2025.

Global E-commerce Platforms for Accessories and CBD

High Tide Inc. operates several e-commerce platforms, including Grasscity.com, Smoke Cartel, Daily High Club, and DankStop in the United States, alongside international CBD platforms like Blessed CBD. The Cabana Club loyalty program has been taken global across these ancillary e-commerce platforms. For the three months ended January 31, 2025 (Q1 2025), revenue from the e-commerce segment was $6.74 million, a decrease from $12.367 million in Q1 2024. This meant e-commerce represented 5% of High Tide's total business in Q1 2025, down from 10% in Q1 2024.

Medical Cannabis Distribution Network in Germany via Remexian Pharma

High Tide Inc. entered the German medical cannabis market by acquiring a 51% stake in Remexian Pharma GmbH. The preliminary estimated purchase price for this majority stake was €27.2 million (or $31.7 million). This move is expected to add approximately C$100 million in topline revenue annually to High Tide Inc.'s financials. Remexian is a significant player, having distributed 7 tonnes of medical cannabis flower in Q2 2025, which accounted for 16% of the total 43 tonnes imported into Germany that quarter. For the six months ended March 2025, Remexian reported annualized revenue of €70 million and Adjusted EBITDA of €15 million.

Cabanalytics Business Data and Insights Platform for B2B Data Sales

The Cabanalytics Business Data and Insights platform is a dedicated revenue stream for B2B data sales. For the second fiscal quarter of 2025, ending April 30, 2025, revenue from the platform, advertising, and other sources reached an all-time record of $11.3 million. This figure marked a 26% year-over-year increase from $9.0 million in the same period last year. For the full fiscal year ending October 31, 2024, the platform generated $36 million in revenue.

Direct-to-Consumer Sales via the Cabana Club App and Website

The Cabana Club loyalty program is integral to driving direct-to-consumer sales through the app and website. As of October 2025, Cabana Club membership has grown by 800% since its launch in October 2021, reaching 2.2 million members globally. Purchases made by these members account for over 90% of in-store sales across the Canna Cabana retail network. By the end of Q1 2025, Canadian membership alone exceeded 1.76 million, and by April 30, 2025, it reached 1.9 million. The company has since raised its target for Cabana Club members to 3 million.

Here's a quick look at the scale across the key channels as of the latest reported periods in 2025:

Channel Component	Metric/Value	Period/Date Reference
Canna Cabana Retail Stores (Total)	218 locations	December 5, 2025
Canadian Cabana Club Members	1.9 million	April 30, 2025
Global Cabana Club Members	2.2 million	October 2025
Cabana Club Member Share of In-Store Sales	Over 90%	October 2025
Remexian Pharma (Germany) Q2 2025 Distribution	7 tonnes of flower (16% of total imports)	Q2 2025
Cabanalytics Revenue	$11.3 million	Q2 2025 (3 months ended April 30, 2025)
E-commerce Revenue	$6.74 million	Q1 2025 (3 months ended January 31, 2025)

High Tide Inc. (HITI) - Canvas Business Model: Customer Segments

You're analyzing High Tide Inc. (HITI) as of late 2025, and the customer base is clearly segmented across retail, loyalty, and international/e-commerce fronts. Here's the breakdown of the numbers driving each group.

Canadian Adult-Use Cannabis Consumers (Mass Market)

This segment forms the core of High Tide Inc.'s revenue, driven by the Canna Cabana retail network. The company operates 210 Canna Cabana locations as of October 2025, having grown from 207 stores in Q3 2025. This network captures a 12% market share across the five provinces where High Tide Inc. has a presence. For the 12 months ending July 2025, national retail cannabis sales reached $5.5B. High Tide Inc.'s core bricks-and-mortar segment saw its revenue increase by 18% year-over-year in the third fiscal quarter of 2025. Daily same-store sales growth in Q2 2025 was 6.2% year-over-year, accelerating to 7.4% in Q3 2025.

The scale of this segment is reflected in the latest reported revenue for Q3 2025, which hit a record $149.7 million, up 14% year-over-year. The annualized revenue run rate is approximately $600 million.

High-Value ELITE Paid Loyalty Members (over 120,000 members)

The paid tier of the Cabana Club loyalty program targets the most engaged consumers. As of the October 21, 2025 update, High Tide Inc. reports that ELITE paid members total 120,000. This is a significant jump from the 97,000 Canadian ELITE members reported at the end of Q2 2025. The overall Cabana Club membership in Canada has surpassed 2 million members as of July 2025, with a long-term target to exceed 3 million members in Canada. This loyalty program is critical, as it drives >90% of in-store sales.

Global Cannabis Accessory and Hemp-Derived CBD Buyers (e-commerce)

This segment spans High Tide Inc.'s international and online accessory businesses, including platforms like Grasscity and NuLeaf Naturals. In Q1 2025, e-commerce represented 5% of High Tide Inc.'s total business. The revenue from this segment was CA$6.74 million in Q1 2025, which was a year-over-year decrease from CA$12.367 million. The online sales contributed to a $2.2 million loss in that quarter. Globally, the total Cabana Club membership, which includes e-commerce users, reached 6.15 million in Q3 2025, up from 5.87 million in Q2 2025.

German Medical Cannabis Patients and Wholesale Pharmacies

High Tide Inc. is actively targeting the German medical market. The company established a presence through the strategic acquisition of a 51% stake in Remexian, positioning itself as a major player in Germany's medical cannabis market based on market share. This follows earlier exploration into the market, including reassessing an approximately €4.8 Million transaction for Purecan GmbH in Q1 2025.

Price-sensitive consumers seeking value through the discount club model

This segment is targeted by the discount club model, which started in October 2021. The effectiveness of this model for price-sensitive buyers is clear when comparing High Tide Inc. to the broader market. From the model's launch through March 2025, Canna Cabana same store sales increased by 132%, while the average operator saw a 10% decline. Looking at a longer period, same store sales rose 142% from October 2021 to December 2024, contrasting with a 4% decline experienced by average operators.

The loyalty program structure supporting this segment is detailed below:

Metric	Value (Latest Available)	Reporting Period Context
Canna Cabana Locations	210	October 2025
Canadian Cabana Club Members	>2.15 million	Q3 2025
Canadian ELITE Members	120,000	October 2025
Canna Cabana Market Share (5 Provinces)	12%	Q3 2025
Q3 2025 Bricks-and-Mortar Revenue YoY Growth	18%	Q3 2025

• E-commerce gross margins were proactively lowered to offer unbeatable prices.
• The discount club model differentiates High Tide Inc. from competitors.
• The core bricks-and-mortar segment generates 97% of High Tide Inc.'s revenue.

High Tide Inc. (HITI) - Canvas Business Model: Cost Structure

The Cost Structure for High Tide Inc. is heavily weighted toward the direct costs of its high-volume, discount-focused retail operation and the fixed/semi-fixed costs associated with its physical footprint.

High cost of goods sold (COGS) due to retail focus and discount pricing model

The discount model pressures gross margins. For the three months ended July 31, 2025 (Q3 2025), the consolidated gross profit margin was 27%, up from 26% sequentially. The bricks-and-mortar segment margins, which generate 97% of revenue, rose sequentially for the third straight quarter, tying their all-time high. This compares to a 26% gross profit margin in Q2 2025 and 25% in Q1 2025. For the full fiscal year 2024, the consolidated gross margin was 27%.

Significant store operating expenses (rent, utilities, salaries) for 218 locations

Operating expenses are driven by the physical network. High Tide Inc. operates a substantial number of stores, with the latest reported count reaching 210 Canna Cabana locations across Canada as of late September 2025. The company's plan is to add 20-30 new locations annually in 2025. Salaries, wages, and benefits are a major component of operating costs, representing 12.2% of revenue for the three months ended July 31, 2025. This is slightly improved from 12.7% in Q2 2025 and 12.3% in Q1 2025. For the full fiscal year 2024, salaries and wages were 12.5% of revenue.

The scale of these operating costs relative to revenue can be seen in the table below, comparing key overhead line items:

Expense Category	Period Ending July 31, 2025 (Q3 2025)	Period Ending April 30, 2025 (Q2 2025)	Fiscal Year Ended Oct 31, 2024 (FY 2024)
Salaries, Wages, and Benefits (% of Revenue)	12.2%	12.7%	12.5%
General and Administration (% of Revenue)	4.4%	4.2%	4.2%

New store development and capital expenditure for organic expansion

Expansion is largely self-funded, which is a key cost management strategy. High Tide Inc. added 29 new stores during fiscal year 2024. The company stated it anticipates lower capital expenditure (CapEx) requirements for new investments like the German expansion, with the majority of new store development continuing to be funded through cash flow from existing locations. The plan for calendar 2025 is to add another 20 to 30 locations. The store count reached 207 by July 31, 2025, and then 210 by late September 2025.

Marketing and loyalty program costs to maintain >2.15 million members

The loyalty program is integral to driving sales, which implies significant associated costs for discounts and program management. The Cabana Club loyalty program in Canada reached 2.15 million members as of the quarter ending July 31, 2025. This is up 39% year over year. The paid ELITE tier in Canada reached 115,000 members, up 102% year over year. These members are critical, driving over 90% of in-store sales.

The scale of the loyalty program's impact is clear:

• Canadian Cabana Club Members (Q3 2025): 2.15 million
• Canadian ELITE Members (Q3 2025): 115,000
• In-store Sales Driven by Members: Over 90%
• Canadian Cabana Club Members (Q2 2025): 1.9 million

General and administration (G&A) expenses, which were 4.2% of revenue in 2024

The company demonstrated cost efficiency in its overhead structure. General and administration expenses were 4.2% of revenue for the full fiscal year ended October 31, 2024, an improvement from 5.5% the prior year. For the most recent quarter, Q3 2025, G&A was 4.4% of revenue. This compares to 4.2% in Q2 2025 and 4.6% in Q1 2025.

High Tide Inc. (HITI) - Canvas Business Model: Revenue Streams

You're looking at how High Tide Inc. (HITI) actually brings in the money, and honestly, it's still heavily weighted toward the physical stores. The core of the business is the retail footprint, which is why you see the brick-and-mortar segment driving the bulk of the top line.

Bricks-and-Mortar Retail Sales account for approximately 95% of High Tide Inc. (HITI)'s total revenue. This segment, primarily through the Canna Cabana brand, is the engine. For instance, in the second fiscal quarter of 2025, retail cannabis and CBD product revenues hit $120.051 million (CAD). The momentum continued into the third quarter, which was the best quarter in High Tide Inc. (HITI)'s history.

The overall financial performance for Q3 2025 was a record, with total revenue reaching $149.7 million (CAD) for the three months ended July 31, 2025. This represented a 14% increase year-over-year. The bricks-and-mortar segment itself was a key driver, showing an 18% year-over-year revenue increase in that same quarter.

Here's a quick look at how the revenue streams broke down during the second fiscal quarter of 2025, which gives you a good sense of the mix, even if Q3 was stronger overall:

Revenue Source	Q2 2025 Revenue (CAD)	Year-over-Year Change
Retail Cannabis and CBD Products	$120.051 million	11% increase
Consumption Accessories (E-commerce)	$6.415 million	12% decrease
Ancillary (Data, Ads, Licensing, Rental)	$11.338 million	26% increase

The E-commerce sales of consumption accessories and CBD products, while growing slower and even declining year-over-year in some segments, still contribute. For example, revenue from consumption accessories specifically was $6.415 million (CAD) in Q2 2025. This channel is being strategically integrated with the loyalty program to boost volume, even if margins were proactively lowered in the e-commerce segment during Q1 2025.

A growing, high-margin component is the recurring revenue from the loyalty program. The ELITE paid membership fees represent a predictable income stream. As of the latest reports near the end of 2025, this tier has grown to exceed 120,000 members globally. This is a significant jump, as the Canadian ELITE membership alone surpassed 97,000 members as of the Q2 2025 report.

The Ancillary revenue from Cabanalytics, advertising, and licensing provides a valuable diversification. This stream hit a record of $11.3 million (CAD) in Q1 2025. By Q2 2025, this segment grew further to $11.338 million (CAD), showing a 26% increase year-over-year.

To summarize the key revenue drivers and their associated metrics:

• Bricks-and-Mortar Revenue Share: Approximately 95% of total revenue.
• Record Q3 2025 Total Revenue: $149.7 million (CAD).
• ELITE Paid Membership: Over 120,000 members.
• Q1 2025 Ancillary Revenue: $11.3 million.
• Q2 2025 Retail Revenue: $120.051 million (CAD).

Finance: draft 13-week cash view by Friday.