SNDL Reports Fourth Quarter and Full Year 2025 Financial and Operational Results

Executive Summary

• SNDL reported record full‑year net revenue of C$946.4 M (+2.8% YoY) and a new quarterly record of C$252.5 M, driven by an 11.4% increase in its combined cannabis business.
• Gross profit reached C$258.6 M for the year (+7.6% YoY) with gross margin improving to 27.3% (up 1.2 pp). Adjusted operating income broke even for the full year at C$0.1 M and was positive in Q4 at C$12.8 M (ex‑restructuring).
• Free cash flow turned positive, reaching C$18.0 M for the year (up 102% YoY) and C$10.2 M in Q4; cash balance rose to C$252.2 M with zero debt.

Key Details

• Revenue & Profitability
• Q4 2025 net revenue: C$252.5 M (‑2.0% QoQ, +2.8% YoY).
• FY 2025 net revenue: C$946.4 M (+2.8% YoY).
• Gross profit Q4: C$70.2 M (+2.1% QoQ); FY: C$258.6 M (+7.6% YoY).

• Gross margin Q4: 27.8% (↑1.1 pp); FY: 27.3% (↑1.2 pp).

• Operating Income

• Q4 operating income: C$11.8 M; FY operating loss: –C$6.3 M.

• Adjusted operating income (ex‑restructuring) Q4: C$12.8 M; FY break‑even at C$0.1 M.

• Cash Flow

• Positive cash flow from operations: Q4 C$11.7 M; FY C$33.9 M.

• Free cash flow: Q4 C$10.2 M; FY C$18.0 M (↑102% YoY).

• Segment Highlights

• Cannabis Retail: Net revenue FY C$330.2 M (+6.0% YoY); same‑store sales +3.9% YoY. Completed acquisition of five Cost Cannabis stores in Alberta & Saskatchewan on Jan 6 2026.
• Cannabis Operations: Net revenue FY C$144.7 M (+32.1% YoY), driven by edibles and international sales (C$12.6 M vs C$3.6 M prior).

• Liquor Retail: Net revenue FY C$539.6 M (‑2.8% YoY); opened two new Wine & Beyond stores in Regina and Calgary during Q4.

• Capital Allocation

• Share repurchase program renewed; total shares repurchased since Q4 2024: 15.1 M.

• Repurchased 136,362 shares (avg US$1.64) in Q4 2025 and an additional 4.15 M shares (avg US$1.56) Jan‑Mar 2026.

• Strategic Initiatives

• SunStream restructuring nearing completion; limited requirements remain.
• Capital expenditures rose to C$12.8 M FY (up from C$8.6 M in 2024), primarily for new store openings.

• Third phase of corporate restructuring on track for Q2 2026, with >C$20 M annualized savings already realized.

• Balance Sheet

• Unrestricted cash & marketable securities: C$649.9 M; no debt as of Dec 31 2025.

• Equity‑accounted investments valued at C$397.6 M (including C$385.5 M in SunStream).

• Forward‑Looking Statements

• Management expects continued capital deployment into organic growth and selective inorganic opportunities throughout 2026, leveraging the strong cash position and ongoing restructuring savings.

Notable Quotes

“2025 represents another step forward in financial performance and strategic focus for SNDL… we are strengthening our performance culture and organizational capabilities, providing a solid foundation as we continue to raise the bar toward our vision of becoming a global leader in our industry.” – Zach George, CEO

All figures are presented in millions of Canadian dollars unless otherwise noted.