EDMONTON, Alberta, Nov. 04, 2025 (GLOBE NEWSWIRE) -- SNDL Inc. (NASDAQ: SNDL, CSE: SNDL) ("SNDL" or the "Company") reported its financial and operational results for the third quarter ended September 30, 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 Tuesday, November 4, 2025. The conference call details can be found below.
MANAGEMENT HIGHLIGHTS
-- Net revenue: In the third quarter of 2025, net revenue totaled $244.2
million, reflecting a growth rate of +3.1% compared to the same period in
the previous year. This increase was primarily driven by strong growth of
+13.5% in our combined Cannabis business, partly offset by Liquor retail
segment decline.
-- Gross profit: Gross profit for the third quarter of 2025 reached $64.2
million, representing a +1.9% increase compared to the same period in the
prior year.
-- Gross margin (1): The gross margin in the third quarter of 2025 was 26.3%,
reflecting a year-over-year decrease of -0.3 percentage points. Strong
margin expansion in Liquor Retail (+0.8pp) and Cannabis Retail segments
(+0.9pp) was more than offset by non-cash inventory adjustments in the
Cannabis Operations segment, which had a -10.4pp impact to segment margin
and -1.6pp to consolidated margin.
-- Operating Income: The Company reported an operating loss of $(11.1)
million in the third quarter of 2025. This result was impacted by a
$(6.8) million non-cash increase in share-based compensation liability
reflected in the Corporate segment, due to the mark-to-market impact of
the Company's 121% share price increase during the quarter, a $(3.9)
million non-cash inventory-related adjustments within Cannabis Operations,
and a $(1.6) million net fixed asset write-off, mostly related to the
idle Stellarton facility. It also includes a $(1.5) million restructuring
charge, resulting in an adjusted operating loss of $(9.5) million. Both
reported and adjusted operating loss exclude a $5.3 million realized gain
from the partial sale of some of our equity investments.
-- Cash flow: Cash flow was $32.4 million during the third quarter of 2025,
primarily driven by $15.1 million in proceeds from the disposal of
certain equity investments, and a $14.3 million reduction in working
capital following seasonal increases in the first half of the year.
-- Free cash flow (1): Free cash flow in the third quarter of 2025 reached a
record $16.7 million, primarily driven by a reduction in working capital.
This result reflects $5.2 million CAPEX investments ahead of new Liquor
and Cannabis Retail store openings scheduled for the fourth quarter. The
income statement also contributed to the record free cash flow, as the
operating loss was largely attributable to non-cash items. Note that
proceeds of $15.1 million from the disposal of certain equity investments
are not included in the free cash flow for the quarter.
"Reaching a new record for quarterly free cash flow and, for the first time in our history, achieving positive cumulative free cash flow for the first nine months of the year underscores the strength of our ongoing operational and profitability improvements," said Zach George, Chief Executive Officer of SNDL. "We are delivering these results while continuing to grow our Cannabis business well ahead of market and industry peers and accelerating the pace of organic growth investments.
Unlike many players in the industry, SNDL reports its financial performance using rigorous, unadjusted KPIs. Leadership in our industry begins with financial integrity and transparency, principles we owe to our shareholders and ourselves.
Our relentless focus on growth and value creation is reflected not only in our financial progress but also in the strategic decisions that position SNDL for long-term success."
The Company's strong balance sheet, with no debt and $240.6 million in unrestricted cash as of September 30, 2025, provides a strategic advantage as we continue building a resilient, growth-oriented, and profitable business. This financial strength enables us to pursue several high-return organic and inorganic opportunities without issuing equity or incurring high interest debt. Examples of these opportunities include:
-- Acquisition of 1CM Retail Stores: SNDL previously announced an
arrangement agreement to acquire 32 cannabis retail stores from 1CM Inc.
("1CM") for a total cash consideration of $32.2 million. We continue to
support the regulatory review process in Ontario, the final step before
closing the transaction.
-- Strategic Organic Investments: Targeted CAPEX and working capital
investments in support of five additional Cannabis store openings and two
new Wine & Beyond stores expected during the fourth quarter.
-- Atholville Facility Ramp: Completion of the capacity ramp-up of our
Atholville cultivation facility, which combined with strong commercial
relationships, enabled us to achieve $4.2 million in international sales
during the third quarter.
-- Equity Monetization: Partial sale of SNDL's equity position in High Tide
Inc. ("High Tide"), realizing a gain of $5.3 million during the third
quarter.
-- SunStream Restructuring Process: The Company continues to work toward the
resolution of on-going litigation required to complete SunStream Bancorp
Inc. ("SunStream") restructurings. Once completed, these restructurings
are expected to provide shareholders with exposure to dynamic medical
cannabis markets including Florida and Texas.
"In a rapidly evolving market, our agility and resilience remain key strengths as we pursue our ambition to become a global cannabis leader. Our team is the foundation of our success, and we are confident in our ability to deliver on our goals." concluded Zach George.
TOTAL COMPANY HIGHLIGHTS
Three months ended September 30 Nine months ended September 30
($000s) 2025 2024 % Change 2025 2024 % Change
------------ -------- ------- -------- ------- ------- --------
IFRS
Financial
Measures
------------
Net revenue 244,219 236,892 3.1% 693,902 662,769 4.7%
Gross profit 64,177 62,968 1.9% 188,419 171,532 9.8%
Operating
income
(loss) (11,050) (18,511) 40.3% (18,100) (27,722) 34.7%
Change in
cash and
cash
equivalents 32,357 80,042 -59.6% 22,222 67,935 -67.3%
Non-IFRS
Financial
Measures(1)
------------
Gross margin 26.3% 26.6% -0.3 pp 27.2% 25.9% 1.3 pp
Adjusted
operating
income
(loss) (9,512) (16,593) 42.7% (12,713) (25,672) 50%
Free cash
flow 16,692 9,236 80.7% 7,733 (2,753) 381%
(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 September Nine months ended September
30 30
($000s) 2025 2024 % Change 2025 2024 % Change
------------- -------- ------- -------- ------- ------- --------
Net Revenue
-------------
Cannabis
Retail 85,021 81,144 4.8% 246,960 228,519 8.1%
Cannabis
Operations 37,389 25,007 49.5% 107,544 72,378 48.6%
Intersegment
Eliminations (17,579) (13,824) -27.2% (51,391) (39,307) -30.7%
-------------- ------- ------- -------- ------- ------- --------
Total Cannabis 104,831 92,327 13.5% 303,113 261,590 15.9%
Liquor Retail 139,388 144,565 -3.6% 390,789 401,179 -2.6%
Investments -- -- 0.0% -- -- 0.0%
-------------- ------- ------- -------- ------- ------- --------
Total 244,219 236,892 3.1% 693,902 662,769 4.7%
Operating
Income
-------------
Cannabis
Retail 9,105 4,395 107.2% 22,329 7,255 207.8%
Cannabis
Operations (5,434) (703) -673.0% (3,628) (1,728) -110.0%
-------------- ------- ------- -------- ------- ------- --------
Total Cannabis 3,671 3,692 -0.6% 18,701 5,527 238.4%
Liquor Retail 11,222 11,795 -4.9% 24,276 22,456 8.1%
Investments 1,543 (7,824) 119.7% 1,775 13,711 -87.1%
Corporate (27,486) (26,174) -5.0% (62,852) (69,416) 9.5% -------------- ------- ------- -------- ------- ------- -------- Total (11,050) (18,511) 40.3% (18,100) (27,722) 34.7% Adjusted Operating Income ------------- Cannabis Retail 9,105 4,395 107.2% 22,329 7,255 207.8% Cannabis Operations (4,772) (578) -725.6% 300 (1,348) 122.3% -------------- ------- ------- -------- ------- ------- -------- Total Cannabis 4,333 3,817 13.5% 22,629 5,907 283.1% Liquor Retail 11,222 11,795 -4.9% 24,276 22,456 8.1% Investments 1,543 (7,824) 119.7% 1,775 13,711 -87.1% Corporate (26,610) (24,381) -9.1% (61,393) (67,746) 9.4% -------------- ------- ------- -------- ------- ------- -------- Total (9,512) (16,593) 42.7% (12,713) (25,672) 50.5%
Liquor Retail
SNDL is Canada's largest private sector liquor retailer, operating at November 3, 2025 in 165 locations, predominantly in Alberta, under its three retail banners: "Wine and Beyond" (13), "Liquor Depot" (19), and "Ace Liquor" (133).
Three months ended September 30 Nine months ended September 30
($000s) 2025 2024 % Change 2025 2024 % Change
---------- -------- ------- -------- ------- ------- --------
Net revenue 139,388 144,565 -3.6% 390,789 401,179 -2.6%
Gross
profit 36,704 36,951 -0.7% 100,993 101,470 -0.5%
Gross
margin 26.3% 25.6% 0.8 pp 25.8% 25.3% 0.6 pp
Operating
income 11,222 11,795 -4.9% 24,276 22,456 8.1%
Adjusted
operating
income 11,222 11,795 -4.9% 24,276 22,456 8.1%
-- Net revenue for Liquor Retail declined in the third quarter of 2025,
driven by continued softness in market demand. Same-store sales (2)
decreased by -2.6% due to industry-wide volume declines primarily
affecting our convenience banners (Ace Liquor and Liquor Depot). In
contrast, our Wine & Beyond banner demonstrates resilience, achieving
same store sales growth of 2.9% during the quarter.
(2) Same store sales is a specified financial measure that does not have a standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures used by other companies. See "Non-IFRS Financial Measures" section below for further information.
-- During the third quarter of 2025, the gross margin for Liquor Retail
continued to improve compared to the previous year, marking another
record high for the segment. Operating Income showed a slight decline, as
the benefits of gross margin expansion and further SG&A cost efficiencies
were more than offset by the lapping of a $1.2 million favorable fixed
asset revaluation recorded in the same period last year.
Cannabis Retail
SNDL is one of Canada's largest private-sector cannabis retailer, operating at November 3, 2025 in 186 locations under its two retail banners: "Value Buds" (125), and "Spiritleaf" (61, of which 4 are corporate stores and 57 are franchise stores). 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 September 30 Nine months ended September 30
($000s) 2025 2024 % Change 2025 2024 % Change
---------- ------- ------ -------- ------- ------- --------
Net revenue 85,021 81,144 4.8% 246,960 228,519 8.1%
Gross
profit 22,465 20,710 8.5% 63,974 58,337 9.7%
Gross
margin 26.4% 25.5% 0.9 pp 25.9% 25.5% 0.4 pp
Operating
income 9,105 4,395 107.2% 22,329 7,255 207.8%
Adjusted
operating
income 9,105 4,395 107.2% 22,329 7,255 207.8%
-- The Cannabis Retail segment achieved three new quarterly records: Net
Revenue, Gross Profit and Operating Income.
-- Year-over-year Net Revenue growth in the third quarter was supported by a
3.6% increase in same-store sales. The slowdown in revenue growth
compared to previous quarters was primarily due to the lapping of heavier
promotional periods during the second half of 2024. This reduction in
promotional intensity was the main driver of gross margin improvement.
-- Operating Income experienced substantial growth, driven by higher revenue
and gross margin, as well as productivity initiatives lowering SG&A.
Additionally, in the third quarter of 2025 there was a $1.0 million
reversal of fixed asset impairments recorded several years ago,
reflecting continued improvement in store performance.
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 September 30 Nine months ended September 30
($000s) 2025 2024 % Change 2025 2024 % Change
---------- ------- ------ -------- ------- ------ --------
Net revenue 37,389 25,007 49.5% 107,544 72,378 48.6%
Gross
profit 5,008 5,307 -5.6% 23,452 11,725 100.0%
Gross
margin 13.4% 21.2% -7.8 pp 21.8% 16.2% 5.6 pp
Operating
income
(loss) (5,434) (703) -673.0% (3,628) (1,728) -110.0%
Adjusted
operating
income
(loss) (4,772) (578) -725.6% 300 (1,348) 122.3%
-- Cannabis Operations continued to deliver significant revenue growth in
the third quarter of 2025, reaching a new net revenue record for the
segment.
-- Growth was driven by edibles, following Indiva's acquisition in the
fourth quarter of 2024, as well as accelerating international sales,
which reached $4.2 million during the quarter.
-- Gross profit and Operating Income were impacted by inventory write-offs
and valuation adjustments, primarily related to the cultivation ramp-up,
and the fixed asset write-off of the idle Stellarton facility.
Investments
-- As of September 30, 2025, the Company has deployed capital to a portfolio
of cannabis-related investments with a carrying value of $410.8 million,
including $391.1 million to SunStream. This carrying value increased by
$4.7 million during the third quarter of 2025, primarily due to an
increase in the USD to CAD exchange rate from 1.3643 on June 30, 2025 to
1.3921 on September 30, 2025.
-- During the third quarter of 2025, the investment portfolio generated a
positive operating income of $1.5 million, primarily driven by interests
earned from our cash accounts.
-- In the third quarter of 2025, the Company sold 2,929,371 common shares of
High Tide, reducing its holdings to 3,693,274 shares as of September 30,
2025, representing 4.2% ownership. In October 2025, the Company disposed
of an additional 599,758 common shares, bringing its total position down
to 3,093,516 shares by November 3, 2025, or 3.6% ownership. To date,
these dispositions have resulted in a realized gain of $6.3 million,
comprising $5.3 million recognized in the third quarter and the remaining
$1.0 million in October 2025. The Company recorded these gains as part of
other comprehensive income, below the Net Income/(Loss) line.
Equity Position
-- $651.5 million of unrestricted cash, marketable securities and
investments, including investments in equity-accounted investees, and no
outstanding debt at September 30, 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 current share repurchase
program on November 20, 2025. The Share Repurchase Program remains
subject to the filing of the required notice with, and acceptance by, the
Canadian Securities Exchange.
-- For the three months ended September 30, 2025, the Company purchased and
cancelled 1,800 common shares at a weighted average price of US$1.21 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 repurchased 10,765,907 common shares for cancellation.
This press release is intended to be read in conjunction with the Company's condensed consolidated interim financial statements and the notes thereto for the three and nine months ended September 30, 2025, 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 Tuesday, November 4, 2025.
WEBCAST ACCESS
To access the live webcast of the call, please visit the following link:
https://edge.media-server.com/mmc/p/gutfgczk
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 and Spiritleaf. 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 and plans, the benefits of SNDL's financial reporting compared to industry peers, the Company's ability to achieve long-term, sustainable profitability, growth, success and efficiencies, the anticipated benefit of the Company's strong balance sheet, the growth opportunities available to SNDL and the expected benefits thereof, the timing and closing of the transaction to acquire assets from 1CM, the expected benefits of the Sunstream restructurings, the treatment of Cannabis Operations sales to the provincial boards, the Company's retail strategy, expectations with respect to the Company's Cannabis Operations segment, 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 18, 2025, 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 Interim Statement of Loss and
Comprehensive Loss
(Expressed in thousands of Canadian dollars, except
per share amounts)
Three months ended Nine months ended
September 30 September 30
2025 2024 2025 2024
----------------- -------- -------- -------- --------
Net revenue 244,219 236,892 693,902 662,769
Cost of sales 180,042 173,924 505,483 491,237
------------------ ------- ------- ------- -------
Gross profit 64,177 62,968 188,419 171,532
Investment income 1,777 5,577 6,162 12,817
Share of (loss)
profit of
equity-accounted
investees (234) (13,401) (4,387) 999
General and
administrative 45,967 49,980 137,702 142,711
Sales and
marketing 3,617 2,813 10,768 8,850
Depreciation and
amortization 12,928 13,389 39,076 41,051
Share-based
compensation 10,883 5,702 15,190 15,428
Restructuring
costs 1,134 1,918 2,287 2,050
Asset impairment
(recovery), net 2,051 (258) 2,971 2,317
Research and
development 156 76 354 222
Loss (gain) on
disposition of
assets 34 35 (54) 441
------------------ ------- ------- ------- -------
Operating loss (11,050) (18,511) (18,100) (27,722)
Other (expenses)
income, net (2,269) 609 (7,041) (4,080)
------------------ ------- ------- ------- -------
Loss before income
tax (13,319) (17,902) (25,141) (31,802)
Income tax
(expense)
recovery -- (1,434) -- 2,847
------------------ ------- ------- ------- -------
Net loss (13,319) (19,336) (25,141) (28,955)
Equity-accounted
investees - share
of other
comprehensive
income (loss) 7,709 (4,802) (13,250) 9,532
Investments at
fair value
through other
comprehensive
income ("FVOCI")
- change in fair
value 12,940 -- 9,754 --
------------------ ------- ------- ------- -------
Comprehensive
income (loss) 7,330 (24,138) (28,637) (19,423)
Net loss
attributable to:
Owners of the
Company (13,319) (19,328) (25,141) (27,654)
Non-controlling
interest -- (8) -- (1,301)
------------------ ------- ------- ------- -------
(13,319) (19,336) (25,141) (28,955)
Comprehensive
income (loss)
attributable to:
Owners of the
Company 7,330 (24,130) (28,637) (18,122)
Non-controlling
interest -- (8) -- (1,301)
------------------ ------- ------- ------- -------
7,330 (24,138) (28,637) (19,423)
Net loss per
common share
attributable to
owners of the
Company
Basic and
diluted $ (0.05) $ (0.07) $ (0.10) $ (0.10)
------------------ ------- ------- ------- -------
Condensed Consolidated Interim Statement of Financial
Position
(Expressed in thousands of Canadian dollars)
As at September 30, 2025 December 31, 2024
---------------------------- ------------------- -----------------
Assets
Current assets
Cash and cash equivalents 240,581 218,359
Restricted cash 19,798 19,815
Marketable securities 139 139
Accounts receivable 26,299 28,118
Biological assets 3,507 1,187
Inventory 125,334 127,919
Prepaid expenses and
deposits 12,580 16,860
Investments 595 27,560
Assets held for sale 746 19,051
Net investment in
subleases 2,754 2,832
----------------------------- ------------------ -----------------
432,333 461,840
Non-current assets
Long-term deposits and
receivables 4,460 3,679
Right of use assets 122,701 115,435
Property, plant and
equipment 152,510 145,810
Net investment in
subleases 12,350 15,354
Intangible assets 59,224 61,325
Investments 19,089 8,427
Equity-accounted investees 391,146 413,124
Goodwill 124,248 124,248
----------------------------- ------------------ -----------------
Total assets 1,318,061 1,349,242
----------------------------- ------------------ -----------------
Liabilities
Current liabilities
Accounts payable and
accrued liabilities 50,652 56,275
Lease liabilities 35,158 34,256
Derivative warrants -- 26
----------------------------- ------------------ -----------------
85,810 90,557
Non-current liabilities
Lease liabilities 119,971 118,017
Other liabilities 12,989 7,312
----------------------------- ------------------ -----------------
Total liabilities 218,770 215,886
----------------------------- ------------------ -----------------
Shareholders' equity
Share capital 2,295,625 2,346,728
Warrants 667 667
Contributed surplus 66,435 57,156
Accumulated deficit (1,312,710) (1,323,965)
Accumulated other
comprehensive income
("AOCI") 49,274 52,770
----------------------------- ------------------ -----------------
Total shareholders' equity 1,099,291 1,133,356
----------------------------- ------------------ -----------------
Total liabilities and
shareholders' equity 1,318,061 1,349,242
----------------------------- ------------------ -----------------
Condensed Consolidated Interim Statement of Cash Flows
(Expressed in thousands of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
2025 2024 2025 2024
---------------------- -------- -------- ------- -------
Cash provided by (used
in):
Operating activities
Net loss for the
period (13,319) (19,336) (25,141) (28,955)
Adjustments for:
Income tax expense
(recovery) -- 1,434 -- (2,847)
Interest and fee
income (1,675) (5,577) (5,849) (12,886)
Change in fair
value of
biological assets (784) 167 (2,559) (401)
Change in fair
value of inventory
sold 1,313 -- 1,313 --
Share-based
compensation 10,883 5,702 15,190 15,428
Depreciation and
amortization 13,972 13,970 42,108 42,679
Loss (gain) on
disposition of
assets 34 35 (54) 441
Inventory
impairment and
obsolescence 1,833 413 2,663 3,395
Finance costs, net 1,812 1,740 5,149 5,522
Change in estimate
of fair value of
derivative
warrants (1) (3,848) (26) (4,348)
Unrealized foreign
exchange (gain)
loss (153) 80 40 235
Transaction costs -- -- -- 164
Asset impairment
(recovery), net 2,051 (258) 2,971 2,317
Share of loss
(profit) of
equity-accounted
investees 234 13,401 4,387 (999)
Unrealized (gain)
loss on marketable
securities (102) -- (313) 69
Additions to
marketable
securities -- (327) 313 (327)
Income distributions
from
equity-accounted
investees -- 10,715 68 10,715
Interest received 1,409 4,496 5,628 10,317
Change in non-cash
working capital 14,194 (13) (282) (9,722)
------------------------ ------- -------- ------- -------
Net cash provided by
operating activities 31,701 22,794 45,606 30,797
------------------------ ------- -------- ------- -------
Investing activities
Additions to
property, plant and
equipment (5,185) (1,706) (8,853) (5,306)
Additions to
intangible assets -- (2,421) -- (2,421)
Additions to
investments -- (29,066) (16,414) (29,966)
Principal payments
from investments 129 10,114 27,293 12,382
Proceeds from
disposal of
investments 15,058 -- 15,058 --
Capital refunds from
equity-accounted
investees -- -- -- 168
Capital distributions
from
equity-accounted
investees 481 89,758 4,273 89,758
Proceeds from
disposal of
property, plant and
equipment -- -- 166 126
Acquisitions, net of
cash acquired -- -- (1,000) (1,654)
Change in non-cash
working capital 39 (191) 10 379
------------------------ ------- -------- ------- -------
Net cash provided by
investing activities 10,522 66,488 20,533 63,466
------------------------ ------- -------- ------- -------
Financing activities
Change in restricted
cash -- (243) -- (324)
Payments on lease
liabilities, net (9,920) (9,780) (29,217) (27,002)
Repurchase of common
shares (3) -- (15,034) --
Proceeds from
issuance of shares,
net of costs -- -- -- (57)
Issuance of common
shares by
subsidiaries -- -- -- 174
Change in non-cash
working capital 57 783 334 881
------------------------ ------- -------- ------- -------
Net cash used in
financing activities (9,866) (9,240) (43,917) (26,328)
------------------------ ------- -------- ------- -------
Change in cash and cash
equivalents 32,357 80,042 22,222 67,935
Cash and cash
equivalents, beginning
of period 208,224 182,934 218,359 195,041
------------------------ ------- -------- ------- -------
Cash and cash
equivalents, end of
period 240,581 262,976 240,581 262,976
------------------------ ------- -------- ------- -------
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 September 30, 2025
------------------------------------------------------------------------------------------
Operating
income (loss) 9,105 (5,434) 3,671 11,222 1,543 (27,486) (11,050)
Adjustments:
Restructuring
costs -- 258 258 -- -- 876 1,134
Impairments
triggered by
restructuring -- 404 404 -- -- -- 404
--------------- -------- ---------- -------- ------ ----------- --------- -------
Adjusted
operating
income (loss) 9,105 (4,772) 4,333 11,222 1,543 (26,610) (9,512)
--------------- -------- ---------- -------- ------ ----------- --------- -------
Cannabis Cannabis Cannabis Liquor
($000s) Retail Operations Total Retail Investments Corporate Total
-------------- --------- ---------- -------- ------ ----------- --------- -------
Nine months ended September 30, 2025
------------------------------------------------------------------------------------------
Operating
income (loss) 22,329 (3,628) 18,701 24,276 1,775 (62,852) (18,100)
Adjustments:
Restructuring
costs -- 828 828 -- -- 1,459 2,287
Impairments
triggered by
restructuring -- 3,100 3,100 -- -- -- 3,100
--------------- -------- ---------- -------- ------ ----------- --------- -------
Adjusted
operating
income (loss) 22,329 300 22,629 24,276 1,775 (61,393) (12,713)
--------------- -------- ---------- -------- ------ ----------- --------- -------
Cannabis Cannabis Cannabis Liquor
($000s) Retail Operations Total Retail Investments Corporate Total
-------------- --------- ---------- -------- ------ ----------- --------- -------
Three months ended September 30, 2024
-------------------------------------------------------------------------------------------
Operating
income (loss) 4,395 (703) 3,692 11,795 (7,824) (26,174) (18,511)
Adjustments:
Restructuring
costs -- 125 125 -- -- 1,793 1,918
Adjusted
operating
income (loss) 4,395 (578) 3,817 11,795 (7,824) (24,381) (16,593)
--------------- -------- ---------- -------- ------ ----------- --------- -------
Cannabis Cannabis Cannabis Liquor
($000s) Retail Operations Total Retail Investments Corporate Total
-------------- --------- ---------- -------- ------ ----------- --------- -------
Nine months ended September 30, 2024
------------------------------------------------------------------------------------------
Operating
income (loss) 7,255 (1,728) 5,527 22,456 13,711 (69,416) (27,722)
Adjustments:
Restructuring
costs -- 380 380 -- -- 1,670 2,050
Adjusted
operating
income (loss) 7,255 (1,348) 5,907 22,456 13,711 (67,746) (25,672)
--------------- -------- ---------- -------- ------ ----------- --------- -------
GROSS MARGIN
Gross margin is a supplementary financial measure calculated by dividing gross profit by net revenue for the periods noted.
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 Nine months ended
September 30 September 30
($000s) 2025 2024 2025 2024
----------------- -------- -------- ------- -------
Change in cash and
cash equivalents 32,357 80,042 22,222 67,935
Adjustments:
Repurchase of
common shares 3 -- 15,034 --
Changes to
long-term
investments (15,668) (70,806) (30,523) (72,342)
Acquisitions,
net of cash
acquired -- -- 1,000 1,654
------------------- ------- -------- ------- -------
Free cash flow 16,692 9,236 7,733 (2,753)
------------------- ------- -------- ------- -------
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.
(END) Dow Jones Newswires
November 04, 2025 07:00 ET (12:00 GMT)