Sndl Inc. Reports Strong Cannabis Revenue Growth

Sndl Inc. ( (SNDL) ) has released its Q1 earnings. Here is a breakdown of the information Sndl Inc. presented to its investors.

Sndl Inc. is a company operating in the cannabis and liquor retail sectors, known for its vertical integration strategy that enhances its operational efficiency. In its latest earnings report, Sndl Inc. highlighted a robust revenue growth driven primarily by its cannabis operations, marking the thirteenth consecutive quarter of expansion. The company also reported improvements in gross margin, attributed to productivity initiatives and synergies from the Indiva acquisition.

The first quarter results for 2025 showed a net revenue of $205 million, reflecting a 3.6% year-over-year increase. The cannabis operations segment was a standout performer, with a significant 53% year-over-year growth in net revenue, while the liquor retail segment also saw a positive increase of 8.7% year-over-year. The company’s gross profit and gross margin improved, with the latter reaching 27.6%, supported by better cash generation and operational improvements.

Despite a challenging environment, Sndl Inc. managed to achieve a notable increase in adjusted operating income within its cannabis operations, which soared by 110% year-over-year. This was complemented by a substantial improvement in free cash flow, which increased by 83% year-over-year, indicating better working capital management.

Looking ahead, Sndl Inc. remains focused on leveraging its vertical integration strategy to drive further growth and enhance profitability. The management is optimistic about maintaining the momentum in its cannabis operations while continuing to optimize its liquor retail segment.