EDMONTON, Alberta, March 12, 2026 (GLOBE NEWSWIRE) -- SNDL Inc. (NASDAQ: SNDL, CSE: SNDL) ("SNDL" or the "Company") reported its financial and operational results for the full year and fourth quarter ended December 31, 2025. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated.
SNDL has also posted a supplemental investor presentation on its website, found at https://sndl.com.
The Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Thursday, March 12, 2026. The conference call details can be found below.
MANAGEMENT HIGHLIGHTS
-- Net revenue for the fourth quarter of 2025 was $252.5 million, and $946.4
million for the full year of 2025, representing decrease of (2.0)% and
growth of +2.8%, respectively, when compared to the same periods of the
previous year. The full year represents a new record for the corporation,
driven by strong growth from our combined Cannabis business of +11.4%.
-- Gross profit also reached new records, with $70.2 million in the fourth
quarter of 2025, and $258.6 million for the full year, representing
growth of +2.1% and +7.6%, respectively, when compared to the same
periods of the previous year.
-- Gross margin (1) of 27.8% in the fourth quarter of 2025 and 27.3% for the
full year are also new records, representing improvements of +1.1 and
+1.2 percentage points, respectively, when compared to the same periods
of the previous year.
-- Operating Income of $11.8 million for the fourth quarter of 2025 and
$(6.3) million for the full year also represent new records, driven by
gross margin progression and SG&A efficiency improvements. Excluding
restructuring-related charges, Adjusted Operating Income totaled $12.8
million in the fourth quarter of 2025 and, for the first time in the
Company's history, reached break-even for the full year at $0.1 million.
-- Cash flow was positive by $11.7 million in the fourth quarter of 2025 and
$33.9 million for the full year, driven by contributions from operating
activities. The full year also benefited from interest payments and
proceeds from investments.
-- Free cash flow (1) was positive in the fourth quarter of 2025 at $10.2
million and for the full year at $18.0 million, with full-year results
more than doubling the prior year's record and reflecting continued
operating momentum.
"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," said Zach George, Chief Executive Officer of SNDL. "We are strengthening our performance culture and organizational capabilities, providing a solid foundation as we continue to raise the bar toward our vision of becoming a global leader in our industry."
Beyond our financial results, during the fourth quarter of 2025 and through the first months of 2026 to date, we continued to advance several key initiatives that further strengthen our foundation for long-term success and shareholder value creation, including:
-- SunStream restructuring progress: As U.S. cannabis rescheduling gains
momentum, the restructuring of the Parallel and Skymint investments
continues to advance toward completion, with only a limited number of
remaining requirements outstanding.
-- Strategic organic investments: Capital expenditures increased from $8.6
million in 2024 to $12.8 million in 2025, including $4.0 million in the
fourth quarter. The majority of these investments were directed toward
new store openings across our Cannabis and Liquor Retail segments.
-- Acquisition of 1CM retail stores: On January 6, 2026, SNDL announced the
completion of the acquisition of five Cost Cannabis retail stores located
in Alberta and Saskatchewan from 1CM Inc. ("1CM"). We continue to support
the regulatory approval process in Ontario for the remaining 27 stores.
-- Share buybacks: Between December 2025 and March 9, 2026, the Company
repurchased 4.3 million common shares for cancellation, bringing the
total numbers of shares repurchased since the fourth quarter of 2024 to
15.1 million.
-- Progress towards simplification & focus: With more than $20 million in
annualized savings delivered to date, the completion of the third and
final phase of the corporate restructuring program, announced in mid-2024
and expected to conclude in the second quarter of 2026, positions the
Company to exceed the program's targeted savings. In addition, we are
days away from completing full ERP consolidation, which will further
enhance operational visibility and process efficiency.
With $252.2 million of unrestricted cash and no debt as of December 31, 2025, and exposure across the Canadian, U.S., and European markets, we are uniquely positioned to deploy capital into both organic and inorganic opportunities to further enhance our portfolio and accelerate growth. Disciplined capital allocation remains a key priority for our management team in 2026, alongside continued execution on efficiency initiatives and profitability-enhancing actions.
TOTAL COMPANY HIGHLIGHTS
Three months ended December 31 Year ended December 31
($000s) 2025 2024 % Change 2025 2024 % Change
------------ -------- ------- -------- ------- -------- --------
IFRS
Financial
Measures
------------
Net revenue 252,499 257,679 -2.0% 946,401 920,448 2.8%
Gross profit 70,229 68,799 2.1% 258,648 240,331 7.6%
Operating
income
(loss) 11,751 (76,089) 115.4% (6,349) (103,811) 93.9%
Change in
cash and
cash
equivalents 11,662 (44,617) 126.1% 33,884 23,318 45.3%
Non-IFRS
Financial
Measures
(1)
------------
Gross margin 27.8% 26.7% 1.1 pp 27.3% 26.1% 1.2 pp
Adjusted
operating
income
(loss) 12,801 (60,472) 121.2% 88 (86,144) 100.1%
Free cash
flow 10,218 11,625 -12.1% 17,951 8,872 102.3%
(1) Gross Margin is a supplementary financial measure calculated by dividing Gross Profit by Net Revenue. Adjusted operating income (loss) and Free Cash Flow are specified financial measures that do not have a standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures reported by other companies. See "Non-IFRS Measures" section below for further information.
BUSINESS SEGMENT HIGHLIGHTS
SNDL operates and reports its business through four segments: Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments. Additionally, a consolidated total for Cannabis is presented, encompassing the combined results of the two Cannabis segments, along with the revenue elimination associated with the Cannabis Operations sales to the provincial boards that are expected to be subsequently repurchased by the Company's licensed retail subsidiaries for resale. Corporate and Shared Service expenses are reported as "Corporate".
Three months ended December
31 Year ended December 31
($000s) 2025 2024 % Change 2025 2024 % Change
--------------- -------- ------- -------- ------- -------- --------
Net Revenue
---------------
Cannabis
Retail 83,282 83,170 0.1% 330,242 311,689 6.0%
Cannabis
Operations 37,112 37,092 0.1% 144,656 109,470 32.1%
Intersegment
Eliminations (16,738) (16,663) -0.5% (68,129) (55,970) -21.7%
---------------- ------- ------- -------- ------- -------- --------
Total Cannabis 103,656 103,599 0.1% 406,769 365,189 11.4%
Liquor Retail 148,843 154,080 -3.4% 539,632 555,259 -2.8%
Investments -- -- 0.0% -- -- 0.0%
---------------- ------- ------- -------- ------- -------- --------
Total 252,499 257,679 -2.0% 946,401 920,448 2.8%
Operating
Income
---------------
Cannabis
Retail 8,003 (8,997) 189.0% 30,332 (1,742) 1841.2%
Cannabis
Operations 1,874 4,391 -57.3% (1,754) 2,663 -165.9%
---------------- ------- ------- -------- ------- -------- --------
Total Cannabis 9,877 (4,606) 314.4% 28,578 921 3002.9%
Liquor Retail 12,240 12,325 -0.7% 36,516 34,781 5.0%
Investments 2,434 (63,724) 103.8% 4,209 (50,013) 108.4%
Corporate (12,800) (20,084) 36.3% (75,652) (89,500) 15.5%
---------------- ------- ------- -------- ------- -------- --------
Total 11,751 (76,089) 115.4% (6,349) (103,811) 93.9%
Adjusted
Operating
Income
---------------
Cannabis
Retail 8,003 6,003 33.3% 30,332 13,258 128.8%
Cannabis
Operations 2,154 4,439 -51.5% 2,454 3,091 -20.6%
---------------- ------- ------- -------- ------- -------- --------
Total Cannabis 10,157 10,442 -2.7% 32,786 16,349 100.5%
Liquor Retail 12,240 12,325 -0.7% 36,516 34,781 5.0%
Investments 2,434 (63,724) 103.8% 4,209 (50,013) 108.4% Corporate (12,030) (19,515) 38.4% (73,423) (87,261) 15.9% ---------------- ------- ------- -------- ------- -------- -------- Total 12,801 (60,472) 121.2% 88 (86,144) 100.1%
Liquor Retail
SNDL is Canada's largest private sector liquor retailer, operating at March 11, 2026 in 167 locations, predominantly in Alberta, under its three retail banners: "Wine and Beyond" (15), "Liquor Depot" (19), and "Ace Liquor" (133).
Three months ended December 31 Year ended December 31
($000s) 2025 2024 % Change 2025 2024 % Change
---------- -------- ------- -------- ------- ------- --------
Net revenue 148,843 154,080 -3.4% 539,632 555,259 -2.8%
Gross
profit 38,658 38,236 1.1% 139,651 139,706 0.0%
Gross
margin 26.0% 24.8% 1.2 pp 25.9% 25.2% 0.7 pp
Operating
income 12,240 12,325 -0.7% 36,516 34,781 5.0%
Adjusted
operating
income 12,240 12,325 -0.7% 36,516 34,781 5.0%
-- Net revenue for Liquor Retail continued to decline in the fourth quarter
of 2025, as market demand softness persisted and impacted same-store
sales (2), which decreased by -4.0% in the fourth quarter and -2.3% for
the full year. During the fourth quarter of 2025 two new Wine & Beyond
stores were opened in Regina (SK) and Calgary $(AB)$ as part of the plan to
expand our successful W&B format. (2) Same-store sales is a specified
financial measure that does not have a standardized meaning prescribed by
IFRS and therefore may not be comparable to similar measures used by
other companies. See "Non-IFRS Measures" section below for further
information.
-- Operating Income remained virtually flat despite revenue declines, driven
by pricing and mix management strategies that supported Gross Margin
improvement, including the expansion of private label offerings at
accretive margins, as well as cost optimization and in-store productivity
initiatives.
Cannabis Retail
SNDL is one of Canada's largest private-sector cannabis retailer, operating at March 11, 2026 in 192 locations under its three retail banners: "Value Buds" (127), "Spiritleaf" (60, of which 4 are corporate stores and 56 are franchise stores), and "Cost Cannabis" (5). The Company's Cannabis Retail strategy is based on several pillars, including the quality of its store locations, its range of products, and the unique experiences provided to customers. Using data and insights from a large volume of monthly transactions enables SNDL to leverage technology and analytics to inform and improve its retail strategy.
Three months ended December 31 Year ended December 31
($000s) 2025 2024 % Change 2025 2024 % Change
---------- ------- ------ -------- ------- ------- --------
Net revenue 83,282 83,170 0.1% 330,242 311,689 6.0%
Gross
profit 22,079 20,490 7.8% 86,053 78,827 9.2%
Gross
margin 26.5% 24.6% 1.9 pp 26.1% 25.3% 0.8 pp
Operating
income 8,003 (8,997) 189.0% 30,332 (1,742) 1841.2%
Adjusted
operating
income 8,003 6,003 33.3% 30,332 13,258 128.8%
-- Net revenue for Cannabis Retail reached a new full-year record as our
Value Buds banner continued to gain market share. Same-store sales grew
+3.9% for the full year, although declined by (0.7)% in the fourth
quarter of 2025 driven by a market slow-down. Subsequent to year-end, the
Company completed the acquisition and integration of five "Cost Cannabis"
stores located in Alberta and Saskatchewan from 1CM.
-- Operating Income shows strong growth in both the fourth quarter of 2025
and full year, supported by continuous gross margin expansion, including
the achievement of a new full-year record, and improved SG&A cost
efficiencies. The year-on-year comparison is impacted by a $15 million
Spiritleaf intangible asset impairment recorded in the fourth quarter of
2024, related to the conversion of several Spiritleaf stores to Value
Buds. Adjusted Operating Income excludes this Spiritleaf intangible
impairment and more clearly reflects the normalized improvement in the
segment's underlying operating profitability.
Cannabis Operations
SNDL has a diverse brand portfolio from value to premium, emphasizing premium inhalable formats and a full suite of 2.0 products. With enhanced procurement capabilities and plans to continue evolving toward a cost-effective cultivation and manufacturing operation, the Cannabis Operations segment is a key enabler of SNDL's vertical integration strategy.
Three months ended December 31 Year ended December 31
($000s) 2025 2024 % Change 2025 2024 % Change
---------- ------- ------ -------- ------- ------- --------
Net revenue 37,112 37,092 0.1% 144,656 109,470 32.1%
Gross
profit 9,492 10,073 -5.8% 32,944 21,798 51.1%
Gross
margin 25.6% 27.2% -1.6 pp 22.8% 19.9% 2.9 pp
Operating
income
(loss) 1,874 4,391 -57.3% (1,754) 2,663 -165.9%
Adjusted
operating
income
(loss) 2,154 4,439 -51.5% 2,454 3,091 -20.6%
-- Cannabis Operations reported a new full-year Net Revenue record. This
expansion is mainly driven by edibles, following Indiva's acquisition in
the fourth quarter of 2024, as well as international sales growing from
$3.6 million in 2024 to $12.6 million in 2025.
-- While the segment achieved a new full-year Gross Margin record, results
were impacted in the third quarter of 2025 by inventory write-offs and
valuation adjustments related to the cultivation ramp-up, and the
fixed-asset write-off of the idle Stellarton facility, as well as by
restructuring charges related to the Indiva integration mostly during the
first quarter of 2025.
Investments
-- As of December 31, 2025, the Company has deployed capital to a portfolio
of cannabis-related investments with a carrying value of $397.6 million,
including $385.5 million to SunStream Bancorp Inc. ("SunStream"). This
carrying value was reduced by $5.6 million during the fourth quarter of
2025, primarily due to a decrease in the USD to CAD exchange rate from
1.3921 on September 30, 2025 to 1.3706 on December 31, 2025.
-- The previously disclosed restructuring process relating to Skymint
continues. SNDL is awaiting an update from the Michigan Supreme Court
expected in Q3 2026, which is expected to determine whether the court
will accept the case for further review. Timing and outcomes remain
uncertain and subject to court process and other factors.
-- The previously disclosed restructuring process relating to Parallel
continues. On February 4, 2025, the Florida Department of Health approved
the transfer of Parallel's license, representing an important milestone
in completing Parallel's restructuring process. In December 2025, a
settlement was reached resolving the final remaining litigation, and SNDL
currently expects the strict foreclosure process to close in Q3 2026,
subject to completion of remaining steps, satisfaction of applicable
conditions, and any required approvals.
-- SunStream continues to hold exposure to The Cannabist Company Holdings
Inc. ("Cannabist") through the senior secured notes, with an aggregate
position of approximately $35 million and estimated NAV of $28.3 million.
Forecasted liquidity challenges have led Cannabist to pursue asset
divestitures. Based on scenarios reviewed by Cannabist's advisors, SNDL
believes there is a pathway to full recovery of the senior secured notes
relative to current NAV estimates, although outcomes remain subject to
execution risk and other uncertainties.
-- The investment portfolio generated a positive operating income of $2.4
million in the fourth quarter of 2025 and $4.2 million in the full year,
primarily driven by interests earned from our cash accounts.
-- On December 18, 2025, U.S. President Donald Trump issued an executive
order directing the Department of Justice to expedite the process to
reclassify cannabis from Schedule I to Schedule III under the Controlled
Substances Act. The order did not itself reclassify cannabis but instead
directed regulators to finalize an ongoing rulemaking process. If
finalized, while not constituting federal legalization, reclassification
is expected to improve tax exposure for companies operating in the U.S.
through the elimination of Section 280E, expand medical research and
regulatory clarity, and incrementally enhance access to capital. These
developments would meaningfully improve industry economics and
investability.
Equity Position
-- $649.9 million of unrestricted cash, marketable securities and
investments, including investments in equity-accounted investees, and no
outstanding debt at December 31, 2025, resulting in a net book value of
$1.1 billion.
-- The board of directors of the Company has approved the renewal of its
Share Repurchase Program upon the expiry of its share repurchase program
on November 20, 2025.
-- For the three months ended December 31, 2025, the Company purchased for
cancellation 136,362 common shares at a weighted average price, excluding
commissions, of US$1.64 per share. Subsequent to year-end, between
January 1, 2026 and March 9, 2026 the Company purchased and cancelled an
additional 4,153,358 common shares at a weighted average price, excluding
commissions, of US$1.56 per share. SNDL will continue to evaluate
opportunities to utilize the program to the extent that management
believes it is in the best interest of SNDL's shareholders. As a reminder,
since the fourth quarter of 2024 the Company has repurchased 15,055,627
common shares for cancellation.
This press release is intended to be read in conjunction with the Company's consolidated financial statements and the notes thereto for the years ended December 31, 2025 and 2024, and the accompanying Management's Discussion and Analysis. These documents are available under the Company's profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.shtml.
CONFERENCE CALL
The Company will hold a conference call and webcast presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Thursday, March 12, 2026.
WEBCAST ACCESS
To access the live webcast of the call, please visit the following link:
https://edge.media-server.com/mmc/p/aps8jm4e
REPLAY
A replay of the webcast will be available at https://sndl.com/financials/quarterly-results/default.aspx
ABOUT SNDL INC.
SNDL Inc. (NASDAQ: SNDL, CSE: SNDL), through its wholly owned subsidiaries, is one of the largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis retailer in Canada, with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf and Cost Cannabis. With products available in licensed cannabis retail locations nationally, SNDL's consumer-facing cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Grasslands, Vacay, Pearls by Grön, No Future and Bhang Chocolate. SNDL's investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American cannabis industry. For more information, please visit www.sndl.com
For more information:
Tomas Bottger
SNDL Inc.
O: 1.587.327.2017
E: investors@sndl.com
Forward-Looking Information Cautionary Statement
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"), including, but not limited to, statements regarding the Company's operational goals, plans and key priorities, the Company's ability to deploy capital and the expected benefits thereof, the growth opportunities available to SNDL and the expected benefits thereof, expectations with respect to the 1CM transaction, including the satisfaction of certain regulatory approvals, the progress of the Sunstream restructurings, expectations with respect to the Skymint and Parallel restructuring processes, SNDL's corporate restructuring program, including the timing to conclude the restructuring and expected benefits thereof, the expected benefits of the ERP consolidation, SNDL's ability to recover the senior secured notes held in Cannabist, the potential impact of reclassifying cannabis from Schedule I to Schedule III under the Controlled Substances Act, the Company's retail strategy, and any other potential forms of shareholder value creation. Forward-looking statements are frequently characterized by words such as "aim", "anticipate", "assume", "believe", "contemplate", "continue", "could", "due", "estimate", "expect", "goal", "intend", "may", "objective", "plan", "predict", "potential", "positioned", "pioneer", "seek", "should", "target", "will", "would", and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the Company's business and the industry in which it operates and management's beliefs and assumptions and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond its control. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Please see "Risk Factors" in the Company's Annual Information Form dated March 11, 2026, and the risk factors included in our other public disclosure documents for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Condensed Consolidated Statement of Loss and Comprehensive
Loss
(Expressed in thousands of Canadian dollars, except
per share amounts)
Year ended
December 31
2025 2024
------------------------------------------ -------- ---------
Net revenue 946,401 920,448
Cost of sales 687,753 680,117
------------------------------------------- ------- --------
Gross profit 258,648 240,331
Investment income 7,814 15,551
Share of loss of equity-accounted investees (3,605) (65,459)
General and administrative 182,162 187,243
Sales and marketing 14,565 12,004
Depreciation and amortization 51,948 54,250
Share-based compensation 13,905 20,037
Restructuring costs 3,337 2,667
Asset impairment, net 2,618 17,317
Research and development 489 346
Loss on disposition of assets 182 370
------------------------------------------- ------- --------
Operating loss (6,349) (103,811)
Other expenses, net (9,425) (1,798)
------------------------------------------- ------- --------
Loss before income tax (15,774) (105,609)
Income tax recovery -- 9,405
------------------------------------------- ------- --------
Net loss (15,774) (96,204)
Equity-accounted investees - share of other
comprehensive (loss) income (19,233) 31,489
Investments at fair value through other
comprehensive income ("FVOCI") - change in
fair value 5,358 1,864
------------------------------------------- ------- --------
Comprehensive loss (29,649) (62,851)
Net loss attributable to:
Owners of the Company (15,774) (94,796)
Non-controlling interest -- (1,408)
------------------------------------------- ------- --------
(15,774) (96,204)
Comprehensive loss attributable to:
Owners of the Company (29,649) (61,443)
Non-controlling interest -- (1,408)
------------------------------------------- ------- --------
(29,649) (62,851)
Net loss per common share attributable to
owners of the Company
Basic and diluted $ (0.06) $ (0.36)
------------------------------------------- ------- --------
Condensed Consolidated Statement of Financial Position
(Expressed in thousands of Canadian dollars)
As at December 31, 2025 December 31, 2024
----------------------------- ------------------ -----------------
Assets
Current assets
Cash and cash equivalents 252,243 218,359
Restricted cash 20,081 19,815
Marketable securities 84 139
Accounts receivable 27,643 28,118
Biological assets 3,120 1,187
Inventory 126,877 127,919
Prepaid expenses and
deposits 15,566 16,860
Investments 484 27,560
Assets held for sale 746 19,051
Net investment in subleases 2,775 2,832
------------------------------ ----------------- -----------------
449,619 461,840
Non-current assets
Long-term deposits and
receivables 4,526 3,679
Right of use assets 138,353 115,435
Property, plant and
equipment 151,900 145,810
Net investment in subleases 11,643 15,354
Intangible assets 58,520 61,325
Investments 11,574 8,427
Equity-accounted investees 385,534 413,124
Goodwill 124,248 124,248
------------------------------ ----------------- -----------------
Total assets 1,335,917 1,349,242
------------------------------ ----------------- -----------------
Liabilities
Current liabilities
Accounts payable and
accrued liabilities 56,747 56,275
Lease liabilities 35,462 34,256
Derivative warrants -- 26
------------------------------ ----------------- -----------------
92,209 90,557
Non-current liabilities
Lease liabilities 134,471 118,017
Other liabilities 8,041 7,312
------------------------------ ----------------- -----------------
Total liabilities 234,721 215,886
------------------------------ ----------------- -----------------
Shareholders' equity
Share capital 2,310,398 2,346,728
Warrants 306 667
Contributed surplus 54,038 57,156
Accumulated deficit (1,302,441) (1,323,965)
Accumulated other
comprehensive income
("AOCI") 38,895 52,770
------------------------------ ----------------- -----------------
Total shareholders' equity 1,101,196 1,133,356
------------------------------ ----------------- -----------------
Total liabilities and
shareholders' equity 1,335,917 1,349,242
------------------------------ ----------------- -----------------
Condensed Consolidated Statement of Cash Flows
(Expressed in thousands of Canadian dollars)
Year ended
December 31
2025 2024
-------------------------------------------- -------- -------
Cash provided by (used in):
Operating activities
Net loss for the period (15,774) (96,204)
Adjustments for:
Income tax recovery -- (9,405)
Interest and fee income (7,436) (15,637)
Change in fair value of biological assets (2,322) 675
Change in fair value of inventory sold 1,252 (1,567)
Share-based compensation 13,905 20,037
Depreciation and amortization 56,271 56,711
Loss on disposition of assets 182 370
Inventory impairment and obsolescence 2,671 3,707
Finance costs, net 6,693 7,161
Change in estimate of fair value of
derivative warrants (26) (4,374)
Unrealized foreign exchange loss 614 108
Transaction costs -- 164
Bargain purchase gain -- (5,456)
Asset impairment, net 2,618 17,317
Share of loss of equity-accounted
investees 3,605 65,459
Unrealized (gain) loss on marketable
securities (378) 86
Additions to marketable securities 433 --
Income distributions from equity-accounted
investees 68 10,715
Interest received 7,109 12,494
Change in non-cash working capital 1,432 (7,447)
---------------------------------------------- ------- -------
Net cash provided by operating activities 70,917 54,914
---------------------------------------------- ------- -------
Investing activities
Additions to property, plant and equipment (12,811) (8,615)
Additions to intangible assets -- (2,404)
Additions to investments (16,414) (36,155)
Principal payments from investments 27,488 13,538
Proceeds from disposal of investments 18,090 --
Capital refunds from equity-accounted
investees -- 168
Capital distributions from equity-accounted
investees 4,684 89,758
Proceeds from disposal of property, plant
and equipment 813 734
Acquisitions, net of cash acquired (3,000) (39,644)
Change in non-cash working capital (1,396) 383
---------------------------------------------- ------- -------
Net cash provided by investing activities 17,454 17,763
---------------------------------------------- ------- -------
Financing activities
Change in restricted cash (267) 76
Payments on lease liabilities, net (39,245) (36,952)
Repurchase of common shares (15,348) (13,219)
Proceeds from issuance of shares, net of
costs -- (59)
Issuance of common shares by subsidiaries -- 174
Change in non-cash working capital 373 621
---------------------------------------------- ------- -------
Net cash used in financing activities (54,487) (49,359)
---------------------------------------------- ------- -------
Change in cash and cash equivalents 33,884 23,318
Cash and cash equivalents, beginning of period 218,359 195,041
---------------------------------------------- ------- -------
Cash and cash equivalents, end of period 252,243 218,359
---------------------------------------------- ------- -------
NON-IFRS MEASURES
Certain specified financial measures in this news release are non-IFRS measures. These terms are not defined by IFRS and, therefore, may not be comparable to similar measures reported by other companies. These non-IFRS financial measures should not be considered in isolation or as an alternative for or superior to measures of performance prepared in accordance with IFRS. These measures are presented and described in order to provide shareholders and potential investors with additional measures in understanding the Company's operating results in the same manner as the management team.
ADJUSTED OPERATING INCOME (LOSS)
Adjusted operating income (loss) is a non-IFRS financial measure which the Company uses to evaluate its operating performance in a similar manner to its management team. The Company defines adjusted operating income (loss) as operating income (loss) less restructuring costs (recovery), goodwill and intangible asset impairments and asset impairments triggered by restructuring activities.
The following tables reconcile adjusted to un-adjusted operating income (loss) for the periods noted.
Cannabis Cannabis Cannabis Liquor
($000s) Retail Operations Total Retail Investments Corporate Total
---------------- --------- ---------- -------- ------ ----------- --------- ------
Three months ended December 31, 2025
------------------------------------------------------------------------------------------
Operating income
(loss) 8,003 1,874 9,877 12,240 2,434 (12,800) 11,751
Adjustments:
Restructuring
costs -- 280 280 -- -- 770 1,050
Impairments
triggered by
restructuring -- -- -- -- -- -- --
---------------- -------- ---------- -------- ------ ----------- --------- ------
Adjusted
operating income
(loss) 8,003 2,154 10,157 12,240 2,434 (12,030) 12,801
----------------- -------- ---------- -------- ------ ----------- --------- ------
Cannabis Cannabis Cannabis Liquor
($000s) Retail Operations Total Retail Investments Corporate Total
---------------- --------- ---------- -------- ------ ----------- --------- ------
Year ended December 31, 2025
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Operating income
(loss) 30,332 (1,754) 28,578 36,516 4,209 (75,652) (6,349)
Adjustments:
Restructuring
costs -- 1,108 1,108 -- -- 2,229 3,337
Impairments
triggered by
restructuring -- 3,100 3,100 -- -- -- 3,100
----------------- -------- ---------- -------- ------ ----------- --------- ------
Adjusted
operating income
(loss) 30,332 2,454 32,786 36,516 4,209 (73,423) 88
----------------- -------- ---------- -------- ------ ----------- --------- ------
Cannabis Cannabis Cannabis Liquor
($000s) Retail Operations Total Retail Investments Corporate Total
---------------- --------- ---------- -------- ------ ----------- --------- -------
Three months ended December 31, 2024
----------------------------------------------------------------------------------------------
Operating income
(loss) (8,997) 4,391 (4,606) 12,325 (63,724) (20,084) (76,089)
Adjustments:
Restructuring
costs
(recovery) -- 48 48 -- -- 569 617
Goodwill and
intangible
asset
impairments 15,000 -- 15,000 -- -- -- 15,000
Adjusted
operating income
(loss) 6,003 4,439 10,442 12,325 (63,724) (19,515) (60,472)
----------------- -------- ---------- -------- ------ ----------- --------- -------
Cannabis Cannabis Cannabis Liquor
($000s) Retail Operations Total Retail Investments Corporate Total
---------------- --------- ---------- -------- ------ ----------- --------- --------
Year ended December 31, 2024
----------------------------------------------------------------------------------------------
Operating income
(loss) (1,742) 2,663 921 34,781 (50,013) (89,500) (103,811)
Adjustments:
Restructuring
costs -- 428 428 -- -- 2,239 2,667
Goodwill and
intangible
asset
impairments 15,000 -- 15,000 -- -- -- 15,000
Adjusted
operating income
(loss) 13,258 3,091 16,349 34,781 (50,013) (87,261) (86,144)
----------------- -------- ---------- -------- ------ ----------- --------- --------
GROSS MARGIN
Gross margin is a supplementary financial measure calculated as gross profit divided by net revenue for the periods presented. This measure evaluates the underlying profitability of our operations and provides useful information about the Company's ability to price products effectively, manage input costs, drive operating efficiencies, and compare results across periods and business segments
FREE CASH FLOW
Free cash flow is a non-IFRS financial measure which the Company uses to evaluate its financial performance, providing information which management believes to be useful in understanding and evaluating the Company's ability to generate positive cash flows as it removes cash used for non-operational items. The Company defines free cash flow as the total change in cash and cash equivalents less cash used for common share repurchases, dividends (if any), changes to debt instruments, changes to long-term investments, net cash used for acquisitions plus cash provided by dispositions (if any).
The following table reconciles free cash flow to change in cash and cash equivalents for the periods noted.
Three months ended Year ended
December 31 December 31
($000s) 2025 2024 2025 2024
----------------- ------- -------- ------- -------
Change in cash and
cash equivalents 11,662 (44,617) 33,884 23,318
Adjustments:
Repurchase of
common shares 314 13,219 15,348 13,219
Changes to
long-term
investments (3,758) 5,033 (34,281) (67,309)
Acquisitions,
net of cash
acquired 2,000 37,990 3,000 39,644
------------------- ------ -------- ------- -------
Free cash flow 10,218 11,625 17,951 8,872
------------------- ------ -------- ------- -------
SAME STORE SALES
Same store sales is a non-IFRS financial measure which the Company uses to evaluate its financial performance in its retail segments. Same store sales provides information which management believes to be useful to investors, analysts and others in understanding and evaluating the Company's sales trends excluding the effect of the opening and closure of stores.
Same store sales refers to the revenue generated by the Company's existing retail locations during the current and prior comparison periods.
ADJUSTED EBITDA
Adjusted EBITDA is a non-IFRS financial measure which the Company uses to evaluate its operating performance. Adjusted EBITDA provides information to investors, analysts, and others to aid in understanding and evaluating the Company's operating results. The Company defines adjusted EBITDA as net earnings (loss) before inventory and biological assets fair value and impairment adjustments, share of (gain) loss of equity-accounted investees, depreciation and amortization, share-based compensation expense, restructuring costs, asset impairment, gain or loss on disposal of property, other expenses, net, income tax expense (recovery) and excluding non-recurring items including enterprise resource planning ("ERP") implementation costs and litigation settlements, net of recoveries.
Three months ended Year ended
December 31 December 31
($000s) 2025 2024 2025 2024
-------------------- ------- -------- ------- -------
Net earnings (loss) 9,367 (67,249) (15,774) (96,204)
Adjustments:
Inventory and
biological assets
fair value and
impairment
adjustments 184 (179) 1,601 2,615
Share of (gain)
loss of
equity-accounted
investees (782) 66,458 3,605 65,459
Depreciation and
amortization 12,872 13,199 51,948 54,250
Share-based
compensation (1,285) 4,609 13,905 20,037
Restructuring costs 1,050 617 3,337 2,667
Asset impairment (353) 15,000 2,618 17,317
Loss (gain) on
disposition of
PP&E 236 (71) 182 370
Other expenses, net 2,384 (2,282) 9,425 1,798
Income tax recovery -- (6,558) -- (9,405)
Non-recurring items 75 181 (621) 882
---------------------- ------ -------- ------- -------
Adjusted EBITDA 23,748 23,725 70,226 59,786
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