SNDL Inc. (NASDAQ: SNDL) reported fourth‑quarter and full‑year 2025 results on March 12, 2026. Quarterly revenue totaled $252.5 million, falling $5.4 million short of the $257.9 million consensus estimate, while earnings per share rose to $0.04, beating the $0.02 consensus by $0.02 or 100 %. Gross margin expanded to 27.8 % in the quarter and 27.3 % for the year, and free cash flow reached $10.2 million in Q4 and $18.0 million for the full year.
Revenue was down 2.0 % year‑over‑year, driven by a 4.5 % decline in the liquor‑retail segment, which accounted for roughly $148.8 million of the $252.5 million. The cannabis‑retail business, however, grew 11.4 % to $83.2 million, offsetting the decline in liquor sales and supporting the company’s overall margin expansion.
The EPS beat was largely a result of disciplined cost management and a favorable product mix. Operating expenses were held below the 2024 level, and the company’s focus on high‑margin cannabis products helped lift gross profit. The combination of lower costs and a stronger mix produced a 100 % surprise over analysts’ expectations.
Free cash flow growth reflects the company’s transition from a cash‑burning producer to a cash‑generating platform. The $10.2 million Q4 free cash flow represents a 20 % increase from the $8.4 million generated in Q4 2024, while the $18.0 million annual figure is the highest in the company’s history. The balance sheet remains strong, with no debt and over CAD 250 million in unrestricted cash as of December 31 2025.
Management maintained its guidance for the next quarter but signaled a modest EPS decline in Q1 2026, followed by a rebound in subsequent quarters. The company reiterated a full‑year 2026 revenue forecast of $724.05 million, down from the $946.4 million reported for 2025, reflecting a cautious outlook amid a slowing liquor‑retail market.
CEO Zach George said the company’s 2025 performance “underscores the effectiveness of our strategic initiatives and operational improvements” and highlighted the “best‑in‑class” balance sheet. Investors reacted positively to the earnings beat and margin expansion, viewing the results as evidence of the company’s growing profitability and operational discipline.
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