Sundial Growers Stock Earnings Reports

SNDL reported Q3 2025 results highlighted by record free cash flow of $16.7 million and, for the first time, positive cumulative free cash flow of $7.7 million year-to-date. Consolidated net revenue was $244 million, up 3.1% year-over-year, driven by strong performance in the Cannabis segments (Cannabis Retail and Cannabis Operations), while Liquor Retail faced modest headwinds with a 3.6% revenue decline. Cannabis Retail achieved record revenue ($85.0M), record gross profit and operating income driven by same-store sales growth (3.6%), margin expansion and SG&A efficiencies. Cannabis Operations grew revenue 50% to $37.4M, helped by edibles (Indiva acquisition) and increasing international sales ($4.2M), but Q3 results were masked by $3.9M inventory write-offs and a $2.7M fixed-asset impairment tied to an idle facility. Reported operating loss of $11.0M was largely due to $11.9M in unfavorable noncash items (inventory and fixed-asset impairments and a $6.8M increase in share-based compensation liability after a 121% share price rise). Adjusted operating loss improved materially (adjusted operating income loss of $9.5M, a 42.7% improvement year-over-year). Key strategic priorities remain growth (store expansions and international ramp-up—Atholville cultivation), profitability (margin expansion, G&A reductions, data licensing revenue), and people (talent development and recruitment efficiencies). The company has no debt and over $240M in unrestricted cash. Pending regulatory review in Ontario delays closing of the 32-store 1CM acquisition; SunStream restructuring litigation remains ongoing.