Calgary (Patrika English News): SNDL Inc. (NASDAQ:SNDL) posted strong second-quarter 2025 results, with net sales of $244.8 million, up 7.3% year-over-year (YoY). The growth was fueled by a 17.4% jump in its cannabis BUSINESS and a return to growth in its liquor retail division.
The company reported operating income of $5.0 million, which included a $0.8 million restructuring charge. Adjusted operating income came in at $5.8 million. Gross profit rose 16.2% to $67.6 million, translating to a 27.6% gross margin.
Despite solid profitability, free cash flow was negative $7.9 million, primarily due to working capital investments and CAPEX. SNDL ended the quarter with no debt and $208.2 million in unrestricted cash.
Strategic Updates
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Entered a $32.2 million deal to acquire 32 cannabis outlets from 1CM Inc.
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Launched the Rise Rewards loyalty program to strengthen retail engagement
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Invested $9.5 million in CAPEX to support retail expansion
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Increased cannabis exports to the UK and EU
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Advanced its U.S. market strategy
CEO Commentary
CEO Zach George said Q2 marked the first time SNDL achieved positive operating income and net earnings. “These results highlight the impact of our strategic investments and disciplined approach,” he said.
SNDL remains listed among the Best Marijuana Stocks to Buy According to Analysts, supported by its strong cash position and expanding international footprint.