SNDL (SNDL) Q4 2025 earnings summary

Executive summary

• Achieved record full-year net revenue of $946.4M (+2.8% YoY), record gross profit of $258.6M (+7.6% YoY), and record free cash flow of $18.0M, more than doubling year-over-year, driven by operational efficiencies and Indiva acquisition synergies.

• Maintained positive momentum and market share gains in both retail and operations segments, despite market slowdowns in the second half.

• Achieved positive full-year adjusted operating income for the first time, supported by financial discipline and restructuring.

• Ended 2025 with no debt and over $252M in unrestricted cash, supporting disciplined capital deployment and share buybacks.

• Strategic focus on operational efficiency, restructuring, and capital deployment for long-term growth.

Financial highlights

• Full-year net revenue was $946M (+2.8% YoY); Q4 net revenue was $252M (-2% YoY) due to market contractions, offset by market share gains.

• Full-year gross profit was $259M (+7.6% YoY); Q4 gross profit was $70.2M (+2.1% YoY); gross margin for the year was 27.3% (+1.2pp YoY), Q4 gross margin 27.8% (+1.1pp YoY).

• Adjusted operating income for the year was $86.2M, a 100% increase YoY; Q4 adjusted operating income was $12.8M, up 121% YoY.

• Free cash flow for the year was $18.0M, more than doubling YoY; Q4 free cash flow was $10.2M.

• Net loss for the year was $(15.8)M, a significant improvement from $(96.2)M in 2024.

Outlook and guidance

• Committed to sustaining profitability and free cash flow growth, with ongoing focus on efficiency, productivity, and capital deployment.

• Targeting to become a top 5 licensed producer by the end of 2025 and prioritizing international growth.

• Anticipates industry consolidation and regulatory developments, including U.S. cannabis rescheduling.