NASDAQ$SNDL

SNDL Inc · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

SNDL's financial and operational results for the third quarter ended September 30, 2025 were reported.

SNDL reported strong third-quarter results, achieving record free cash flow and significant growth in its Cannabis business, despite a decline in the Liquor retail segment. The company maintained a strong balance sheet with no debt and substantial unrestricted cash.

  • Net revenue increased by 3.1% year-over-year, reaching $244.2 million, primarily driven by a 13.5% growth in the combined Cannabis business.
  • The company achieved a record free cash flow of $16.7 million for the quarter, driven by a reduction in working capital.
  • Operating loss was $(11.1) million, impacted by non-cash share-based compensation, inventory adjustments, and fixed asset write-offs.
  • SNDL maintains a strong financial position with $240.6 million in unrestricted cash and no debt, enabling strategic organic and inorganic growth opportunities.

Headline financials

Total Revenue

$175M

Previous: $174M+1.0%
EPS (adj)

-$0.04

Previous: -$0.07+42.9%
Gross Margin

26.3%

No prior period
Adjusted Operating Income

-$6.83M

No prior period
Liquor Retail Gross Profit

$26.4M

No prior period
Liquor Retail Gross Margin

26.3%

No prior period
Liquor Retail Adjusted Operating Income

$8.06M

No prior period
Liquor Retail Same-Store Sales Growth

-2.6%

No prior period
Cannabis Retail Gross Profit

$16.1M

No prior period
Cannabis Retail Gross Margin

26.4%

No prior period
Cannabis Retail Adjusted Operating Income

$6.54M

No prior period
Cannabis Retail Same-Store Sales Growth

3.6%

No prior period
Cannabis Operations Gross Profit

$3.6M

No prior period
Cannabis Operations Gross Margin

13.4%

No prior period
Cannabis Operations Adjusted Operating Income

-$3.43M

No prior period
Total Cannabis Adjusted Operating Income

$3.11M

No prior period
Investments Operating Income

$1.54M

No prior period
Net Income

-$9.57M

Previous: -$14.2M+32.5%
Operating Income

-$7.94M

Previous: -$6.59M-20.4%
Gross Profit

$46.1M

Previous: $36.3M+26.8%

Revenue & EPS history

SNDL · Revenue · Quarterly

$175M

Q3 2025+1%vs Q3 2024
Beat estimate in 6 of 10 quarters(60%)
ActualEstimate

Revenue by segment

SNDL · $211M total across 3 segments · Q4 2026

  • Liquor retail
    $104M
  • Cannabis Retail
    $77.3M
  • Cannabis Operations
    $29.4M

Forward guidance

SNDL plans to continue its growth trajectory through strategic acquisitions, organic investments in new store openings, and facility ramp-ups, while leveraging its strong balance sheet to avoid issuing equity or incurring high-interest debt.

Tailwinds

  • Acquisition of 32 cannabis retail stores from 1CM Inc. for $32.2 million, pending regulatory review.
  • Targeted CAPEX and working capital investments for five new Cannabis store openings and two new Wine & Beyond stores in Q4.
  • Completion of capacity ramp-up at Atholville cultivation facility, contributing to international sales.
  • Partial sale of equity position in High Tide Inc., realizing a gain of $5.3 million in Q3.
  • Expected resolution of SunStream restructuring process to provide exposure to dynamic medical cannabis markets.

Headwinds

  • Continued softness in market demand affecting Liquor Retail net revenue.
  • Industry-wide volume declines impacting convenience banners (Ace Liquor and Liquor Depot).
  • Operating loss impacted by non-cash items such as share-based compensation and inventory adjustments.
  • Restructuring charges of $1.5 million incurred during the quarter.
  • Fixed asset write-off related to the idle Stellarton facility.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+0.4%

Avg return

Earnings day

-3.1%

Avg return

5 days after

-1.5%

Avg return

30 days after

44%

12 / 27 earnings

Positive

+57.6%

Q1 2020

Best reaction

-38.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.3%-3.4%-0.0%
Q3 2025-14.8%-18.7%-19.6%
Q2 2025+19.9%+15.3%+86.1%
Q1 2025-5.4%-12.1%-14.8%
Q4 2024+3.2%+1.9%-9.7%
Q3 2024-4.6%-8.3%-12.0%
Q2 2024-7.0%-8.6%-10.9%
Q1 2024-6.5%+6.5%-17.1%
Q4 2023+14.4%+28.8%+22.2%
Q3 2023+7.0%+3.5%+3.5%
Q2 2023-0.6%-1.9%-7.1%
Q1 2023-3.6%+4.1%-17.2%
Q4 2022-3.5%+3.5%+18.7%
Q3 2022+3.1%+0.0%-8.8%
Q2 2022+14.4%+7.2%-1.1%
Q1 2022+13.8%+8.3%-21.1%
Q4 2021+1.0%-3.8%-22.4%
Q3 2021+35.7%+23.2%-13.6%
Q2 2021-7.1%-11.6%-10.5%
Q1 2021-4.0%-3.4%+40.7%
Q4 2020-3.3%-13.9%-43.9%
Q3 2020-35.2%-40.2%+15.5%
Q2 2020-18.2%-22.2%-45.6%
Q1 2020+57.6%+43.2%+150.6%
Q4 2019-38.5%-54.7%-52.0%
Q3 2019-14.4%-26.2%-33.9%
Q2 2019+6.6%+0.6%-15.8%
Q4 2018
Q3 2018
Q2 2018
Q1 2018

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