SNDL Reports Third Quarter 2025 Financial and Operational Results

EDMONTON, Alberta, Nov. 04, 2025 (GLOBE NEWSWIRE) -- SNDL Inc. (NASDAQ: SNDL, CSE: SNDL) (“SNDL” or the “Company”) reported its financial and operational results for the third quarter ended September 30, 2025. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated. SNDL has also posted a supplemental investor presentation on its website, found at https://sndl.com. The Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Tuesday, November 4, 2025. The conference call details can be found below. MANAGEMENT HIGHLIGHTS Net revenue: In the third quarter of 2025, net revenue totaled $244.2 million, reflecting a growth rate of +3.1% compared to the same period in the previous year. This increase was primarily driven by strong growth of +13.5% in our combined Cannabis business, partly offset by Liquor retail segment decline. Gross profit: Gross profit for the third quarter of 2025 reached $64.2 million, representing a +1.9% increase compared to the same period in the prior year. Gross margin (1): The gross margin in the third quarter of 2025 was 26.3%, reflecting a year-over-year decrease of -0.3 percentage points. Strong margin expansion in Liquor Retail (+0.8pp) and Cannabis Retail segments (+0.9pp) was more than offset by non-cash inventory adjustments in the Cannabis Operations segment, which had a -10.4pp impact to segment margin and -1.6pp to consolidated margin. Operating Income: The Company reported an operating loss of $(11.1) million in the third quarter of 2025. This result was impacted by a $(6.8) million non-cash increase in share-based compensation liability reflected in the Corporate segment, due to the mark-to-market impact of the Company’s 121% share price increase during the quarter, a $(3.9) million non-cash inventory-related adjustments within Cannabis Operations, and a $(1.6) million net fixed asset write-off, mostly related to the idle Stellarton facility. It also includes a $(1.5) million restructuring charge, resulting in an adjusted operating loss of $(9.5) million. Both reported and adjusted operating loss exclude a $5.3 million realized gain from the partial sale of some of our equity investments. Cash flow: Cash flow was $32.4 million during the third quarter of 2025, primarily driven by $15.1 million in proceeds from the disposal of certain equity investments, and a $14.3 million reduction in working capital following seasonal increases in the first half of the year. Free cash flow (1): Free cash flow in the third quarter of 2025 reached a record $16.7 million, primarily driven by a reduction in working capital. This result reflects $5.2 million CAPEX investments ahead of new Liquor and Cannabis Retail store openings scheduled for the fourth quarter. The income statement also contributed to the record free cash flow, as the operating loss was largely attributable to non-cash items. Note that proceeds of $15.1 million from the disposal of certain equity investments are not included in the free cash flow for the quarter. "Reaching a new record for quarterly free cash flow and, for the first time in our history, achieving positive cumulative free cash flow for the first nine months of the year underscores the strength of our ongoing operational and profitability improvements,” said Zach George, Chief Executive Officer of SNDL. “We are delivering these results while continuing to grow our Cannabis business well ahead of market and industry peers and accelerating the pace of organic growth investments. Unlike many players in the industry, SNDL reports its financial performance using rigorous, unadjusted KPIs. Leadership in our industry begins with financial integrity and transparency, principles we owe to our shareholders and ourselves. Our relentless focus on growth and value creation is reflected not only in our financial progress but also in the strategic decisions that position SNDL for long-term success.” The Company’s strong balance sheet, with no debt and $240.6 million in unrestricted cash as of September 30, 2025, provides a strategic advantage as we continue building a resilient, growth-oriented, and profitable business. This financial strength enables us to pursue several high-return organic and inorganic opportunities without issuing equity or incurring high interest debt. Examples of these opportunities include: Acquisition of 1CM Retail Stores: SNDL previously announced an arrangement agreement to acquire 32 cannabis retail stores from 1CM Inc. (“1CM”) for a total cash consideration of $32.2 million. We continue to support the regulatory review process in Ontario, the final step before closing the transaction. Strategic Organic Investments: Targeted CAPEX and working capital investments in support of five additional Cannabis store openings and two new Wine & Beyond stores expected during the fourth quarter. Atholville Facility Ramp: Completion of the capacity ramp-up of our Atholville cultivation facility, which combined with strong commercial relationships, enabled us to achieve $4.2 million in international sales during the third quarter. Equity Monetization: Partial sale of SNDL’s equity position in High Tide Inc. (“High Tide”), realizing a gain of $5.3 million during the third quarter. SunStream Restructuring Process: The Company continues to work toward the resolution of on-going litigation required to complete SunStream Bancorp Inc. (“SunStream”) restructurings. Once completed, these restructurings are expected to provide shareholders with exposure to dynamic medical cannabis markets including Florida and Texas. “In a rapidly evolving market, our agility and resilience remain key strengths as we pursue our ambition to become a global cannabis leader. Our team is the foundation of our success, and we are confident in our ability to deliver on our goals.” concluded Zach George. TOTAL COMPANY HIGHLIGHTS   Three months ended September 30   Nine months ended September 30   ($000s) 2025   2024   % Change   2025   2024   % Change   IFRS Financial Measures                         Net revenue   244,219     236,892     3.1 %   693,902     662,769     4.7 % Gross profit   64,177     62,968     1.9 %   188,419     171,532     9.8 % Operating income (loss)   (11,050 )   (18,511 )   40.3 %   (18,100 )   (27,722 )   34.7 % Change in cash and cash equivalents   32,357     80,042     -59.6 %   22,222     67,935     -67.3 %                           Non-IFRS Financial Measures(1)                         Gross margin   26.3 %   26.6 %   -0.3 pp   27.2 %   25.9 %   1.3 pp Adjusted operating income (loss)   (9,512 )   (16,593 )   42.7 %   (12,713 )   (25,672 )   50 % Free cash flow   16,692     9,236     80.7 %   7,733     (2,753 )   381 % (1)   Gross Margin is a supplementary financial measure calculated by dividing Gross Profit by Net Revenue. Adjusted operating income (loss) and Free Cash Flow are specified financial measures that do not have a standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures reported by other companies. See “Non-IFRS Measures” section below for further information. BUSINESS SEGMENT HIGHLIGHTS SNDL operates and reports its business through four segments: Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments. Additionally, a consolidated total for Cannabis is presented, encompassing the combined results of the two Cannabis segments, along with the revenue elimination associated with the Cannabis Operations sales to the provincial boards that are expected to be subsequently repurchased by the Company’s licensed retail subsidiaries for resale. Corporate and Shared Service expenses are reported as “Corporate”.   Three months ended September 30   Nine months ended September 30   ($000s) 2025   2024   % Change   2025   2024   % Change   Net Revenue                         Cannabis Retail   85,021     81,144     4.8 %   246,960     228,519     8.1 % Cannabis Operations   37,389     25,007     49.5 %   107,544     72,378     48.6 % Intersegment Eliminations   (17,579 )   (13,824 )   -27.2 %   (51,391 )   (39,307 )   -30.7 % Total Cannabis   104,831     92,327     13.5 %   303,113     261,590     15.9 % Liquor Retail   139,388     144,565     -3.6 %   390,789     401,179     -2.6 % Investments   —     —     0.0 %   —     —     0.0 % Total   244,219     236,892     3.1 %   693,902     662,769     4.7 %                           Operating Income                         Cannabis Retail   9,105     4,395     107.2 %   22,329     7,255     207.8 % Cannabis Operations   (5,434 )   (703 )   -673.0 %   (3,628 )   (1,728 )   -110.0 % Total Cannabis   3,671     3,692     -0.6 %   18,701     5,527     238.4 % Liquor Retail   11,222     11,795     -4.9 %   24,276     22,456     8.1 % Investments   1,543     (7,824 )   119.7 %   1,775     13,711     -87.1 % Corporate   (27,486 )   (26,174 )   -5.0 %   (62,852 )   (69,416 )   9.5 % Total   (11,050 )   (18,511 )   40.3 %   (18,100 )   (27,722 )   34.7 %                           Adjusted Operating Income                         Cannabis Retail   9,105     4,395     107.2 %   22,329     7,255     207.8 % Cannabis Operations   (4,772 )   (578 )   -725.6 %   300     (1,348 )   122.3 % Total Cannabis   4,333     3,817     13.5 %   22,629     5,907     283.1 % Liquor Retail   11,222     11,795     -4.9 %   24,276     22,456     8.1 % Investments   1,543     (7,824 )   119.7 %   1,775     13,711     -87.1 % Corporate   (26,610 )   (24,381 )   -9.1 %   (61,393 )   (67,746 )   9.4 % Total   (9,512 )   (16,593 )   42.7 %   (12,713 )   (25,672 )   50.5 % Liquor Retail SNDL is Canada's largest private sector liquor retailer, operating at November 3, 2025 in 165 locations, predominantly in Alberta, under its three retail banners: “Wine and Beyond” (13), “Liquor Depot” (19), and “Ace Liquor” (133).   Three months ended September 30   Nine months ended September 30   ($000s) 2025   2024   % Change   2025   2024   % Change   Net revenue   139,388     144,565     -3.6 %   390,789     401,179     -2.6 % Gross profit   36,704     36,951     -0.7 %   100,993     101,470     -0.5 % Gross margin   26.3 %   25.6 %   0.8 pp   25.8 %   25.3 %   0.6 pp Operating income   11,222     11,795     -4.9 %   24,276     22,456     8.1 % Adjusted operating income   11,222     11,795     -4.9 %   24,276     22,456     8.1 %                                       Net revenue for Liquor Retail declined in the third quarter of 2025, driven by continued softness in market demand. Same-store sales (2) decreased by -2.6% due to industry-wide volume declines primarily affecting our convenience banners (Ace Liquor and Liquor Depot). In contrast, our Wine & Beyond banner demonstrates resilience, achieving same store sales growth of 2.9% during the quarter. (2)   Same store sales is a specified financial measure that does not have a standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures used by other companies. See “Non-IFRS Financial Measures” section below for further information. During the third quarter of 2025, the gross margin for Liquor Retail continued to improve compared to the previous year, marking another record high for the segment. Operating Income showed a slight decline, as the benefits of gross margin expansion and further SG&A cost efficiencies were more than offset by the lapping of a $1.2 million favorable fixed asset revaluation recorded in the same period last year. Cannabis Retail SNDL is one of Canada’s largest private-sector cannabis retailer, operating at November 3, 2025 in 186 locations under its two retail banners: “Value Buds” (125), and “Spiritleaf” (61, of which 4 are corporate stores and 57 are franchise stores). The Company’s Cannabis Retail strategy is based on several pillars, including the quality of its store locations, its range of products, and the unique experiences provided to customers. Using data and insights from a large volume of monthly transactions enables SNDL to leverage technology and analytics to inform and improve its retail strategy.   Three months ended September 30   Nine months ended September 30   ($000s) 2025   2024   % Change   2025   2024   % Change   Net revenue   85,021     81,144     4.8 %   246,960     228,519     8.1 % Gross profit   22,465     20,710     8.5 %   63,974     58,337     9.7 % Gross margin   26.4 %   25.5 %   0.9 pp   25.9 %   25.5 %   0.4 pp Operating income   9,105     4,395     107.2 %   22,329     7,255     207.8 % Adjusted operating income   9,105     4,395     107.2 %   22,329     7,255     207.8 %                                       The Cannabis Retail segment achieved three new quarterly records: Net Revenue, Gross Profit and Operating Income. Year-over-year Net Revenue growth in the third quarter was supported by a 3.6% increase in same-store sales. The slowdown in revenue growth compared to previous quarters was primarily due to the lapping of heavier promotional periods during the second half of 2024. This reduction in promotional intensity was the main driver of gross margin improvement. Operating Income experienced substantial growth, driven by higher revenue and gross margin, as well as productivity initiatives lowering SG&A. Additionally, in the third quarter of 2025 there was a $1.0 million reversal of fixed asset impairments recorded several years ago, reflecting continued improvement in store performance. Cannabis Operations SNDL has a diverse brand portfolio from value to premium, emphasizing premium inhalable formats and a full suite of 2.0 products. With enhanced procurement capabilities and plans to continue evolving toward a cost-effective cultivation and manufacturing operation, the Cannabis Operations segment is a key enabler of SNDL’s vertical integration strategy.   Three months ended September 30   Nine months ended September 30   ($000s) 2025   2024   % Change   2025   2024   % Change   Net revenue   37,389     25,007     49.5 %   107,544     72,378     48.6 % Gross profit   5,008     5,307     -5.6 %   23,452     11,725     100.0 % Gross margin   13.4 %   21.2 %   -7.8 pp   21.8 %   16.2 %   5.6 pp Operating income (loss)   (5,434 )   (703 )   -673.0 %   (3,628 )   (1,728 )   -110.0 % Adjusted operating income (loss)   (4,772 )   (578 )   -725.6 %   300     (1,348 )   122.3 %                                       Cannabis Operations continued to deliver significant revenue growth in the third quarter of 2025, reaching a new net revenue record for the segment. Growth was driven by edibles, following Indiva’s acquisition in the fourth quarter of 2024, as well as accelerating international sales, which reached $4.2 million during the quarter. Gross profit and Operating Income were impacted by inventory write-offs and valuation adjustments, primarily related to the cultivation ramp-up, and the fixed asset write-off of the idle Stellarton facility. Investments As of September 30, 2025, the Company has deployed capital to a portfolio of cannabis-related investments with a carrying value of $410.8 million, including $391.1 million to SunStream. This carrying value increased by $4.7 million during the third quarter of 2025, primarily due to an increase in the USD to CAD exchange rate from 1.3643 on June 30, 2025 to 1.3921 on September 30, 2025. During the third quarter of 2025, the investment portfolio generated a positive operating income of $1.5 million, primarily driven by interests earned from our cash accounts. In the third quarter of 2025, the Company sold 2,929,371 common shares of High Tide, reducing its holdings to 3,693,274 shares as of September 30, 2025, representing 4.2% ownership. In October 2025, the Company disposed of an additional 599,758 common shares, bringing its total position down to 3,093,516 shares by November 3, 2025, or 3.6% ownership. To date, these dispositions have resulted in a realized gain of $6.3 million, comprising $5.3 million recognized in the third quarter and the remaining $1.0 million in October 2025. The Company recorded these gains as part of other comprehensive income, below the Net Income/(Loss) line. Equity Position $651.5 million of unrestricted cash, marketable securities and investments, including investments in equity-accounted investees, and no outstanding debt at September 30, 2025, resulting in a net book value of $1.1 billion. The board of directors of the Company has approved the renewal of its Share Repurchase Program upon the expiry of its current share repurchase program on November 20, 2025. The Share Repurchase Program remains subject to the filing of the required notice with, and acceptance by, the Canadian Securities Exchange. For the three months ended September 30, 2025, the Company purchased and cancelled 1,800 common shares at a weighted average price of US$1.21 per share. SNDL will continue to evaluate opportunities to utilize the program to the extent that management believes it is in the best interest of SNDL’s shareholders. As a reminder, since the fourth quarter of 2024 the Company repurchased 10,765,907 common shares for cancellation. This press release is intended to be read in conjunction with the Company’s condensed consolidated interim financial statements and the notes thereto for the three and nine months ended September 30, 2025, and the accompanying Management’s Discussion and Analysis. These documents are available under the Company’s profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.shtml.  CONFERENCECALL   The Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Tuesday, November 4, 2025. WEBCAST ACCESS To access the live webcast of the call, please visit the following link: https://edge.media-server.com/mmc/p/gutfgczk REPLAY A replay of the webcast will be available at https://sndl.com/financials/quarterly-results/default.aspx ABOUT SNDL INC.  SNDL Inc. (NASDAQ: SNDL, CSE: SNDL), through its wholly owned subsidiaries, is one of the largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis retailer in Canada, with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds and Spiritleaf. With products available in licensed cannabis retail locations nationally, SNDL’s consumer-facing cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Grasslands, Vacay, Pearls by Grön, No Future and Bhang Chocolate. SNDL's investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American cannabis industry. For more information, please visit www.sndl.com  For more information:  Tomas Bottger SNDL Inc.  O: 1.587.327.2017  E: [email protected] Forward-Looking Information Cautionary Statement     This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"), including, but not limited to, statements regarding the Company’s operational goals and plans, the benefits of SNDL’s financial reporting compared to industry peers, the Company’s ability to achieve long-term, sustainable profitability, growth, success and efficiencies, the anticipated benefit of the Company’s strong balance sheet, the growth opportunities available to SNDL and the expected benefits thereof, the timing and closing of the transaction to acquire assets from 1CM, the expected benefits of the Sunstream restructurings, the treatment of Cannabis Operations sales to the provincial boards, the Company’s retail strategy, expectations with respect to the Company’s Cannabis Operations segment, and any other potential forms of shareholder value creation. Forward-looking statements are frequently characterized by words such as “aim”, “anticipate”, “assume”, “believe”, “contemplate”, “continue”, “could”, “due”, “estimate”, “expect”, “goal”, “intend”, “may”, “objective”, “plan”, “predict”, “potential”, “positioned”, “pioneer”, “seek”, “should”, “target”, “will”, “would”, and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the Company’s business and the industry in which it operates and management’s beliefs and assumptions and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond its control. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Please see “Risk Factors” in the Company’s Annual Information Form dated March 18, 2025, and the risk factors included in our other public disclosure documents for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.      Condensed Consolidated Interim Statement of Loss and Comprehensive Loss (Expressed in thousands of Canadian dollars, except per share amounts)       Three months ended September 30     Nine months ended September 30       2025     2024     2025     2024   Net revenue     244,219       236,892       693,902       662,769   Cost of sales     180,042       173,924       505,483       491,237   Gross profit     64,177       62,968       188,419       171,532                             Investment income     1,777       5,577       6,162       12,817   Share of (loss) profit of equity-accounted investees     (234 )     (13,401 )     (4,387 )     999                             General and administrative     45,967       49,980       137,702       142,711   Sales and marketing     3,617       2,813       10,768       8,850   Depreciation and amortization     12,928       13,389       39,076       41,051   Share-based compensation     10,883       5,702       15,190       15,428   Restructuring costs     1,134       1,918       2,287       2,050   Asset impairment (recovery), net     2,051       (258 )     2,971       2,317   Research and development     156       76       354       222   Loss (gain) on disposition of assets     34       35       (54 )     441   Operating loss     (11,050 )     (18,511 )     (18,100 )     (27,722 )                           Other (expenses) income, net     (2,269 )     609       (7,041 )     (4,080 ) Loss before income tax     (13,319 )     (17,902 )     (25,141 )     (31,802 ) Income tax (expense) recovery     —       (1,434 )     —       2,847   Net loss     (13,319 )     (19,336 )     (25,141 )     (28,955 )                           Equity-accounted investees - share of other comprehensive income (loss)     7,709       (4,802 )     (13,250 )     9,532   Investments at fair value through other comprehensive income ("FVOCI") - change in fair value     12,940       —       9,754       —   Comprehensive income (loss)     7,330       (24,138 )     (28,637 )     (19,423 )                           Net loss attributable to:                         Owners of the Company     (13,319 )     (19,328 )     (25,141 )     (27,654 ) Non-controlling interest     —       (8 )     —       (1,301 )       (13,319 )     (19,336 )     (25,141 )     (28,955 ) Comprehensive income (loss) attributable to:                         Owners of the Company     7,330       (24,130 )     (28,637 )     (18,122 ) Non-controlling interest     —       (8 )     —       (1,301 )       7,330       (24,138 )     (28,637 )     (19,423 ) Net loss per common share attributable to owners of the Company                         Basic and diluted   $ (0.05 )   $ (0.07 )   $ (0.10 )   $ (0.10 )   Condensed Consolidated Interim Statement of Financial Position (Expressed in thousands of Canadian dollars)   As at September 30, 2025   December 31, 2024             Assets         Current assets         Cash and cash equivalents   240,581     218,359   Restricted cash   19,798     19,815   Marketable securities   139     139   Accounts receivable   26,299     28,118   Biological assets   3,507     1,187   Inventory   125,334     127,919   Prepaid expenses and deposits   12,580     16,860   Investments   595     27,560   Assets held for sale   746     19,051   Net investment in subleases   2,754     2,832       432,333     461,840   Non-current assets         Long-term deposits and receivables   4,460     3,679   Right of use assets   122,701     115,435   Property, plant and equipment   152,510     145,810   Net investment in subleases   12,350     15,354   Intangible assets   59,224     61,325   Investments   19,089     8,427   Equity-accounted investees   391,146     413,124   Goodwill   124,248     124,248   Total assets   1,318,061     1,349,242             Liabilities         Current liabilities         Accounts payable and accrued liabilities   50,652     56,275   Lease liabilities   35,158     34,256   Derivative warrants   —     26       85,810     90,557   Non-current liabilities         Lease liabilities   119,971     118,017   Other liabilities   12,989     7,312   Total liabilities   218,770     215,886             Shareholders’ equity         Share capital   2,295,625     2,346,728   Warrants   667     667   Contributed surplus   66,435     57,156   Accumulated deficit   (1,312,710 )   (1,323,965 ) Accumulated other comprehensive income ("AOCI")   49,274     52,770   Total shareholders’ equity   1,099,291     1,133,356   Total liabilities and shareholders’ equity   1,318,061     1,349,242     Condensed Consolidated Interim Statement of Cash Flows (Expressed in thousands of Canadian dollars)       Three months ended September 30     Nine months ended September 30       2025     2024     2025     2024   Cash provided by (used in):                         Operating activities                         Net loss for the period     (13,319 )     (19,336 )     (25,141 )     (28,955 ) Adjustments for:                         Income tax expense (recovery)     —       1,434       —       (2,847 ) Interest and fee income     (1,675 )     (5,577 )     (5,849 )     (12,886 ) Change in fair value of biological assets     (784 )     167       (2,559 )     (401 ) Change in fair value of inventory sold     1,313       —       1,313       —   Share-based compensation     10,883       5,702       15,190       15,428   Depreciation and amortization     13,972       13,970       42,108       42,679   Loss (gain) on disposition of assets     34       35       (54 )     441   Inventory impairment and obsolescence     1,833       413       2,663       3,395   Finance costs, net     1,812       1,740       5,149       5,522   Change in estimate of fair value of derivative warrants     (1 )     (3,848 )     (26 )     (4,348 ) Unrealized foreign exchange (gain) loss     (153 )     80       40       235   Transaction costs     —       —       —       164   Asset impairment (recovery), net     2,051       (258 )     2,971       2,317   Share of loss (profit) of equity-accounted investees     234       13,401       4,387       (999 ) Unrealized (gain) loss on marketable securities     (102 )     —       (313 )     69   Additions to marketable securities     —       (327 )     313       (327 ) Income distributions from equity-accounted investees     —       10,715       68       10,715   Interest received     1,409       4,496       5,628       10,317   Change in non-cash working capital     14,194       (13 )     (282 )     (9,722 ) Net cash provided by operating activities     31,701       22,794       45,606       30,797   Investing activities                         Additions to property, plant and equipment     (5,185 )     (1,706 )     (8,853 )     (5,306 ) Additions to intangible assets     —       (2,421 )     —       (2,421 ) Additions to investments     —       (29,066 )     (16,414 )     (29,966 ) Principal payments from investments     129       10,114       27,293       12,382   Proceeds from disposal of investments     15,058       —       15,058       —   Capital refunds from equity-accounted investees     —       —       —       168   Capital distributions from equity-accounted investees     481       89,758       4,273       89,758   Proceeds from disposal of property, plant and equipment     —       —       166       126   Acquisitions, net of cash acquired     —       —       (1,000 )     (1,654 ) Change in non-cash working capital     39       (191 )     10       379   Net cash provided by investing activities     10,522       66,488       20,533       63,466   Financing activities                         Change in restricted cash     —       (243 )     —       (324 ) Payments on lease liabilities, net     (9,920 )     (9,780 )     (29,217 )     (27,002 ) Repurchase of common shares     (3 )     —       (15,034 )     —   Proceeds from issuance of shares, net of costs     —       —       —       (57 ) Issuance of common shares by subsidiaries     —       —       —       174   Change in non-cash working capital     57       783       334       881   Net cash used in financing activities     (9,866 )     (9,240 )     (43,917 )     (26,328 ) Change in cash and cash equivalents     32,357       80,042       22,222       67,935   Cash and cash equivalents, beginning of period     208,224       182,934       218,359       195,041   Cash and cash equivalents, end of period     240,581       262,976       240,581       262,976   NON-IFRS MEASURES Certain specified financial measures in this news release are non-IFRS measures. These terms are not defined by IFRS and, therefore, may not be comparable to similar measures reported by other companies. These non-IFRS financial measures should not be considered in isolation or as an alternative for or superior to measures of performance prepared in accordance with IFRS. These measures are presented and described in order to provide shareholders and potential investors with additional measures in understanding the Company’s operating results in the same manner as the management team.   ADJUSTED OPERATING INCOME (LOSS) Adjusted operating income (loss) is a non-IFRS financial measure which the Company uses to evaluate its operating performance in a similar manner to its management team. The Company defines adjusted operating income (loss) as operating income (loss) less restructuring costs (recovery), goodwill and intangible asset impairments and asset impairments triggered by restructuring activities. The following tables reconcile adjusted to un-adjusted operating income (loss) for the periods noted. ($000s) Cannabis Retail   Cannabis Operations   Cannabis Total   Liquor Retail   Investments   Corporate   Total   Three months ended September 30, 2025   Operating income (loss)   9,105     (5,434 )   3,671     11,222     1,543     (27,486 )   (11,050 ) Adjustments:                             Restructuring costs   —     258     258     —     —     876     1,134   Impairments triggered by restructuring   —     404     404     —     —     —     404   Adjusted operating income (loss)   9,105     (4,772 )   4,333     11,222     1,543     (26,610 )   (9,512 ) ($000s) Cannabis Retail   Cannabis Operations   Cannabis Total   Liquor Retail   Investments   Corporate   Total   Nine months ended September 30, 2025   Operating income (loss)   22,329     (3,628 )   18,701     24,276     1,775     (62,852 )   (18,100 ) Adjustments:                             Restructuring costs   —     828     828     —     —     1,459     2,287   Impairments triggered by restructuring   —     3,100     3,100     —     —     —     3,100   Adjusted operating income (loss)   22,329     300     22,629     24,276     1,775     (61,393 )   (12,713 ) ($000s) Cannabis Retail   Cannabis Operations   Cannabis Total   Liquor Retail   Investments   Corporate   Total   Three months ended September 30, 2024   Operating income (loss)   4,395     (703 )   3,692     11,795     (7,824 )   (26,174 )   (18,511 ) Adjustments:                             Restructuring costs   —     125     125     —     —     1,793     1,918   Adjusted operating income (loss)   4,395     (578 )   3,817     11,795     (7,824 )   (24,381 )   (16,593 ) ($000s) Cannabis Retail   Cannabis Operations   Cannabis Total   Liquor Retail   Investments   Corporate   Total   Nine months ended September 30, 2024   Operating income (loss)   7,255     (1,728 )   5,527     22,456     13,711     (69,416 )   (27,722 ) Adjustments:                             Restructuring costs   —     380     380     —     —     1,670     2,050   Adjusted operating income (loss)   7,255     (1,348 )   5,907     22,456     13,711     (67,746 )   (25,672 ) GROSS MARGIN Gross margin is a supplementary financial measure calculated by dividing gross profit by net revenue for the periods noted. FREE CASH FLOW  Free cash flow is a non-IFRS financial measure which the Company uses to evaluate its financial performance, providing information which management believes to be useful in understanding and evaluating the Company’s ability to generate positive cash flows as it removes cash used for non-operational items. The Company defines free cash flow as the total change in cash and cash equivalents less cash used for common share repurchases, dividends (if any), changes to debt instruments, changes to long-term investments, net cash used for acquisitions plus cash provided by dispositions (if any). The following table reconciles free cash flow to change in cash and cash equivalents for the periods noted.     Three months ended September 30     Nine months ended September 30   ($000s)   2025     2024     2025     2024   Change in cash and cash equivalents     32,357       80,042       22,222       67,935   Adjustments:                         Repurchase of common shares     3       —       15,034       —   Changes to long-term investments     (15,668 )     (70,806 )     (30,523 )     (72,342 ) Acquisitions, net of cash acquired     —       —       1,000       1,654   Free cash flow     16,692       9,236       7,733       (2,753 ) SAME STORE SALES Same store sales is a non-IFRS financial measure which the Company uses to evaluate its financial performance in its retail segments. Same store sales provides information which management believes to be useful to investors, analysts and others in understanding and evaluating the Company’s sales trends excluding the effect of the opening and closure of stores. Same store sales refers to the revenue generated by the Company’s existing retail locations during the current and prior comparison periods.