High Tide Inc. welcomed the U.S. Executive Order that rescheduled cannabis from Schedule I to Schedule III, a move that removes a major federal barrier for the company’s U.S. operations and opens a new revenue stream for its hemp‑derived CBD brands, NuLeaf Naturals and FAB CBD.
The order, signed on December 18, 2025, is expected to ease research restrictions and allow cannabis businesses to deduct expenses on federal taxes, potentially improving profit margins. In addition, the Centers for Medicare & Medicaid Services announced a pilot program that will allow certain Medicare beneficiaries to receive CBD treatments at no cost, creating a new market for High Tide’s U.S. CBD products.
High Tide’s Q3 2025 results, released on September 16, 2025, showed a 14% year‑over‑year revenue increase to $149.7 million and a turnaround to a net income of $832,000 after a $2.8 million loss in Q2. The growth was driven by an 18% rise in the bricks‑and‑mortar segment and a 7.4% same‑store sales lift, underscoring the strength of the company’s discount‑club retail model.
Gross profit margin held steady at 27% year‑over‑year, and adjusted EBITDA reached a record $10.6 million, reflecting disciplined cost management amid higher sales. The company’s CEO, Raj Grover, highlighted the regulatory shift as “one of the most consequential steps forward in U.S. federal cannabis reform in more than 50 years” and noted that the company is developing Medicare‑aligned product categories to capture the new reimbursement opportunity.
With the executive order and Medicare pilot in place, High Tide is positioned to expand its U.S. presence through licensing of its Canna Cabana retail brand and to leverage its four‑million‑customer database. The company’s market share in Canada remains strong at 12%, and the U.S. expansion is expected to accelerate growth and improve profitability in the coming quarters.
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