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Jun 30
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SNDL Q2 2025 Earnings Report
Estimated Revenue:CA$317M
+36.8% YoY
Estimated EPS:-CA$0.0547
+0.2% YoY
Key Takeaways
SNDL Inc. delivered a strong performance in Q2 2025, with net revenue increasing by 7.3% year-over-year to $244.8 million, driven by significant growth in its Cannabis business and a return to growth in Liquor Retail. The company achieved positive operating income of $5.0 million and net earnings of $2.9 million, marking a pivotal milestone. Gross profit rose by 16.2% to $67.6 million, with gross margin improving to 27.6%.
Net revenue increased by 7.3% year-over-year to $244.8 million, primarily due to strong growth in the Cannabis business.
Achieved positive operating income of $5.0 million and net earnings of $2.9 million, a first in the Company's history.
Gross profit increased by 16.2% to $67.6 million, with gross margin improving by 2.1 percentage points to 27.6%.
Maintained a strong balance sheet with no debt and $208.2 million in unrestricted cash as of June 30, 2025.
SNDL
SNDL
SNDL Revenue by Segment
Revenue by Segment
Cannabis Retail Revenue
CapyFin.comCannabis Operations Revenue
CapyFin.comLiquor Retail Revenue
CapyFin.comTotal Cannabis Revenue
CapyFin.com Forward Guidance
SNDL is confident in its strategic direction and plans to continue investing in its business and people to deliver sustainable, long-term value. The company is focused on expanding its retail footprints, enhancing customer loyalty programs, and evaluating its U.S. cannabis exposure.
Positive Outlook
- Expected closure of the 1CM Inc. acquisition in Q3 2025, adding 32 cannabis retail stores.
- Launch of the Rise Rewards loyalty program for Value Buds customers, with plans for expansion across all retail banners.
- Approved investments of $9.5 million in CAPEX and working capital for organic expansion of Cannabis and Liquor retail footprints.
- Initiated a formal strategic review to align its platform with future regulatory and market opportunities in the U.S. cannabis industry.
- Strong balance sheet with no debt and $208.2 million in unrestricted cash to pursue growth opportunities.
Challenges Ahead
- Free cash flow was negative at $(7.9) million due to working capital investments for international growth, annual incentive payments, insurance premiums, and capital expenditures.
- Cash flow was negative by $(12.6) million, primarily driven by working capital and CAPEX investments, and additional net outflows related to long-term investments.
- The carrying value of the investment portfolio was reduced by $23.4 million due to a decrease in the USD to CAD exchange rate.
- The company did not complete any share repurchases during the second quarter of 2025.
- Awaits the resolution of litigation in the United States to complete SunStream restructurings.
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Key Statistics
Market Cap
$690M
P/E Ratio
-5.63
Sector
Process Industries
Industry
Agricultural Commodities Or Milling
52-Week High
$2.67
52-Week Low
$1.19
Gross Margin
27.6%
Adjusted Operating Income
$5.83M
Liquor Retail Gross Profit
$36.5M
Liquor Retail Gross Margin
25.7%
Liquor Retail Adjusted Operating Income
$11.1M