SNDL Reports Q4 and FY 2025 Financial Results

EDMONTON – SNDL Inc. disclosed its fourth-quarter and full-year 2025 earnings for the period ended December 31, 2025, illustrating a clear divergence in performance across its two main retail pillars: sustained progress and margin expansion in Cannabis operations that more than compensated for softness in the liquor business.

Net revenue for Q4 came in at C$252.5 million, a 2% decline from the same period in 2024. For the full year, however, revenue climbed 2.8% to a record C$946.4 million. The Cannabis division drove that annual gain, with combined Cannabis retail and operations revenue rising 11.4% to C$406.8 million. Cannabis retail revenue alone increased 6% to C$330.2 million, while Cannabis operations revenue jumped 32.1% to C$144.7 million.

Gross profit also set records. The fourth-quarter figure reached C$70.2 million, up 2.1%, while the full-year total hit C$258.6 million, a 7.6% increase. Gross margin expanded to 27.8% in the quarter and 27.3% for the year, each marking a new high.

Adjusted operating income swung to break-even for the full year, the first time in company history, compared with a C$86.1 million loss in 2024. In the fourth quarter, that measure rose to C$12.8 million. Free cash flow doubled to C$18 million for the year and stood at C$10.2 million for the quarter. The balance sheet showed C$252.2 million in unrestricted cash and no debt at year-end.

CEO Zach George said in the release that the results reflect steady progress. “2025 represents another step forward in financial performance and strategic focus for SNDL. We are pleased to report new records across our income statement and free cash flow, while continuing to transform our business to support long-term, sustainable, and profitable growth,” he noted, pointing to efficiency gains, new store openings and integration work from the earlier Indiva acquisition as factors.

Cannabis retail same-store sales rose 3.9% for the year but fell 0.7% in the fourth quarter amid broader market softness. The segment added market share through Value Buds conversions and new locations. Cannabis operations benefited from stronger edible sales and international revenue that climbed from C$3.6 million to C$12.6 million.

The company also detailed ongoing moves: completion of five Cost Cannabis store acquisitions in January 2026, share repurchases totaling 4.3 million shares in recent months, and the final phase of a corporate restructuring expected to deliver more than C$20 million in annualized savings. Capital spending rose to C$12.8 million for the year, focused on store growth.

These numbers show SNDL making measurable headway on profitability targets in a sector that has tested operators with pricing pressure and uneven demand. The Cannabis side delivered consistent expansion and margin lift that more than offset softness elsewhere, while the cash position and debt-free status leave room for measured steps ahead. Full-year records arrived without fanfare, but they mark clear operational discipline at a time when many peers continue to navigate flat or contracting conditions.