SNDL Reports Q1 2025 Earnings

LOS ANGELES- SNDL Inc. announced its financial and operational results for the first quarter ended March 31, 2025. The company reported net revenue of CAD $204.9 million, a 3.6% increase compared to the same period in 2024. This growth was primarily driven by a 16.8% year-over-year increase in its combined cannabis business, encompassing both retail and operations segments.

In the cannabis retail segment, net revenue rose by 8.7% to CAD $77.5 million, supported by a 5.2% increase in same-store sales and contributions from new store openings. The cannabis operations segment experienced a 53.2% increase in net revenue, reaching CAD $34.3 million, attributed to increased provincial board distribution and the acquisition of Indiva in late 2024.

Despite these gains, the company reported an operating loss of CAD $12.1 million for the quarter, influenced by a CAD $4.5 million loss from its SunStream portfolio due to a negative valuation adjustment and CAD $3.0 million in restructuring charges. However, free cash flow improved to negative CAD $1.1 million, an 83% improvement from the same quarter in 2024.

SNDL’s Board of Directors has initiated a formal strategic review to evaluate the company’s exposure to U.S. multi-state licensed cannabis enterprises and its current exchange listing status. This decision follows inbound interest from multiple cannabis operators in both Canada and the U.S. expressing interest in potential acquisitions or asset-level transactions.

As of March 31, 2025, SNDL held CAD $220.9 million in unrestricted cash and cash equivalents. The company repurchased approximately 5.76 million shares of its common stock during the quarter at an average price of USD $1.79 per share.

SNDL’s first-quarter results indicate growth in its cannabis segments and a strategic reassessment of its operations and market positioning. The outcomes of the ongoing strategic review may influence the company’s future direction in the evolving cannabis industry.