Education
About Us
Working with TipRanks
Follow Us
Sndl Inc. (SNDL)
NASDAQ:SNDL
Top Page
SNDL
(NASDAQ:SNDL)
Select Model
Select Model
Rating:59Neutral
Price Target:
$1.50
▼(-36.44% Downside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by improving financial performance (stronger cash generation and a supportive balance sheet) and a generally positive earnings call focused on margin gains and efficiency initiatives. Offsetting these are still-incomplete profitability, weak-to-neutral technical trend signals, and limited valuation support due to negative earnings and no dividend.
Positive Factors
Strong revenue growth
Sustained, large top-line expansion indicates the company is gaining market share and scaling its operations in cannabis. Durable revenue growth improves operating leverage potential, supports investment in distribution and retail expansion, and underpins long-term recovery of margins.
Very strong liquidity and no debt
A cash-rich, debt-free balance sheet provides structural flexibility to fund organic growth, M&A, and capex without refinancing risk. This resilience supports multi-quarter execution on retail expansion and cultivation investments despite cyclical cannabis demand.
Improving free cash flow generation
Consistent and improving free cash flow signals operational improvements and better working-capital management. Durable FCF reduces reliance on equity or debt raises, enables reinvestment into high-return initiatives, and supports shareholder returns over quarters.
Negative Factors
Ongoing profitability shortfall
Persistently negative net income and operating margins indicate structural cost or mix issues that could erode returns over time. Without sustained margin improvement, revenue growth alone may not translate into shareholder value or long-term ROE recovery.
Earnings volatility from noncash adjustments
Large, recurring noncash items (inventory write‑downs, share‑based compensation changes) create volatility in reported results and can mask underlying operating trends. This complicates performance assessment and may affect investor confidence and management incentive stability.
Underperformance in Liquor Retail segment
A declining complementary segment reduces diversification benefits and can drag consolidated revenue and margins. Structural weakness in Liquor Retail increases reliance on cannabis growth to drive consolidated profitability and raises execution risk for multi-channel strategies.
SNDL (SNDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$349.92M
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)16.3
Beta (1Y)0.70
Revenue Growth1.76%
EPS Growth18.31%
CountryUS
Employees2,604
SectorConsumer Defensive
Sector Strength42
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.03
Shares Outstanding259,200,000
10 Day Avg. Volume1,466,204
30 Day Avg. Volume1,108,455
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.53
Price to Sales (P/S)0.63
P/FCF Ratio9.53
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda8.72
Forecast
1Y Price Target
$4.75Price Target Upside101.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.01
Revenue Forecast (FY)$984.14M
SNDL Business Overview & Revenue Model
Company DescriptionSNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Cannabis Operations and Retail Operations segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use markets; and private sale of recreational cannabis through corporate owned and franchised retail cannabis stores. The company also produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.
How the Company Makes MoneySNDL generates revenue primarily through the sale of cannabis products, including both wholesale to other retailers and direct-to-consumer sales through its own retail stores. The company benefits from a diversified portfolio of product offerings, which helps to appeal to a broad customer base. Additionally, SNDL has engaged in strategic partnerships and acquisitions to enhance its market presence and expand its product lines. The company also explores opportunities in ancillary services and products related to the cannabis industry, which can provide additional revenue streams.
SNDL Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial progress story: multiple record metrics (net revenue, gross profit, adjusted operating income milestones, and materially improved free cash flow) combined with strong balance sheet metrics (no debt, >$250M cash) and margin gains across retail segments. Those positives are tempered by near-term top-line softness (Q4 revenue declines), retail market saturation and consolidation, volatility and margin pressure in Cannabis Operations, and uncertainty tied to U.S. asset resolutions. On balance, the highlights—particularly margin expansion, cash generation, cost savings and a strong balance sheet—outweigh the lowlights.Q4-2025 Updates
Positive Updates
Record Full-Year Financial Performance
Full-year 2025 net revenue of $946,000,000 (+2.8% YoY); gross profit growth of 7.6% YoY; gross margin expansion of ~120 basis points year-over-year. Adjusted operating income reached breakeven for the first time in company history and free cash flow more than doubled to $18,000,000.
Quarterly Profitability and Margin Improvement
Q4 2025 net revenue of $252,000,000 (Q4 revenue -2% YoY) delivered record quarterly gross profit of $70,200,000 (+$1.4M, +2.1% YoY) and a record quarterly gross margin of 27.8% (+110 bps). Q4 adjusted operating income reached $12,800,000 (record) and free cash flow in the quarter exceeded $10,000,000.
Cannabis Retail: Strong Revenue and Margin Expansion
Cannabis Retail achieved a full-year revenue record of $330,000,000 (+6% YoY) with 3.9% same-store sales growth. Gross profit was a record $86,100,000 and gross margin expanded to 26.1% (+80 bps YoY). Operating income for the segment exceeded $30,000,000, more than doubling versus 2024; Q4 operating income rose 33% YoY to $8,000,000.
Cannabis Operations: Meaningful Top-Line Growth (FY)
Cannabis Operations delivered record full-year net revenue of $144,700,000 (+32% YoY) and record gross profit of $32,900,000 with a gross margin of 22.8%. Growth was driven by acquisitions and international sales expansion, positioning the segment for future scale and margin improvement opportunities.
Liquor Segment Margin Gains and Market Share
Despite market-driven revenue declines, Liquor achieved Q4 gross profit of $38,700,000 and a full-year gross margin record of 25.9%. Margin expansion of ~120 bps in Q4 and ~70 bps for the full year supported a full-year operating income increase of $1,700,000 (+5% YoY). Retail segments each gained ~20 basis points of market share year-over-year.
Very Strong Balance Sheet and Capital Deployment
No debt and over $250,000,000 in unrestricted cash at year-end 2025. Company repurchased 15,100,000 shares since 2024 (4,300,000 in last 90 days). Capital expenditures increased nearly 50% YoY, mainly for new store openings. Corporate restructuring program has surpassed the committed $20,000,000 in annualized savings. ERP consolidation near completion to drive further efficiencies.
Negative Updates
Quarterly Revenue Pressure and Market Slowdown
Q4 net revenue declined 2% YoY to $252,000,000, driven by market contractions in both liquor and cannabis retail (cannabis experienced a market decline in Q4). Management attributes softness to market saturation, promotional lapping, and lower traffic in late 2025 (notably November–December).
Liquor Revenue Declines and Ongoing Category Weakness
Liquor net revenue declined ~2.8% for the full year and approximately 3% in both Q4 and FY rounded figures. Management expects the liquor market to remain under pressure with anticipated low-to-mid single digit declines over the next several quarters, despite margin and private-label gains in select banners.
Cannabis Operations Volatility and Margin Pressure
Cannabis Operations showed top-line growth for the year but experienced volatility in 2025: gross profit, gross margin and adjusted operating income declined versus the prior year in certain periods due to ramp-up costs at the affordable cultivation facility and under-absorbed overhead investments, resulting in modest declines in adjusted operating income (segment adjusted OI $2,500,000 declined YoY).
Free Cash Flow Timing and Investment-Related Drag in Q4
Although full-year free cash flow doubled, Q4 free cash flow was slightly lower versus prior year due to working capital build for the holiday season and higher capital expenditures and inventory to support new store openings, indicating near-term FCF volatility tied to growth investments.
U.S. Asset Uncertainty and Prolonged Legal/Restructuring Processes
Significant U.S. exposures (Parallel in foreclosure in Florida; SkyMint in receivership in Michigan) have been subject to multi-year, unpredictable state-level processes. Management notes a path to resolution (expected Q2 / post-Q2) but the delays and uncertainty have been frustrating and leave outcomes and recoveries uncertain until legally resolved.
Retail Saturation and Consolidation Headwinds
Management cited retail door saturation (notably in Alberta and increasingly Ontario), declining traffic and pricing pressure as some independents close or fail to renew rents. The shift toward consolidation and more disciplined pricing among remaining operators is weighing on top-line growth across the market.
Company Guidance
The company provided timing- and metric-driven guidance and near-term expectations: operationally it expects to complete ERP consolidation “days away,” finish the third and final phase of its corporate restructuring (which has already exceeded the committed $20.0M in annualized savings) and to report on the remaining One Centimeters Ontario store approvals by Q2; EU GMP certification is expected “sometime over the summer,” and the Parallel foreclosure is likely to be resolved in Q2 or shortly thereafter. Management reiterated a strong, flexible balance sheet (no debt and >$250.0M unrestricted cash at year-end 2025), continued use of its share repurchase program (15.1M shares repurchased since 2024, including 4.3M in the last 90 days), and disciplined capital deployment (capex up ~50% vs. 2024 to support new store openings — three cannabis and two Wine and Beyond/One and Beyond in Q4 — with a double‑digit pipeline under review). They reiterated seasonality in free cash flow (Q4 FCF >$10.0M; FY FCF $18.0M, more than double 2024), and signaled expectations for continued market headwinds (liquor declines of low‑ to mid‑single digits near term) but opportunity for consolidation and M&A while maintaining targets for growth and profitability (FY net revenue $946.0M, +2.8%; cannabis segments +11% vs. liquor -2.8%; FY gross margin +120 bps; Q4 net revenue $252.0M, -2% YoY; Q4 gross profit $70.2M, +2.1%; Q4 gross margin 27.8%, +110 bps; Q4 adjusted operating income ≈$13.0M).SNDL Financial Statement Overview
Summary
Financials show a credible recovery: positive operating and free cash flow and a relatively solid balance sheet with modest leverage. However, profitability is still not consistently positive (operating profit slightly negative; small net loss) and revenue growth is limited, so the turnaround is not yet fully durable.Income Statement
Profitability is improving meaningfully, but still not consistently positive. In 2025 (annual), revenue was essentially flat to slightly down (-2.3%), yet margins strengthened sharply versus 2024, with EBITDA turning positive (~5.0% margin) and losses narrowing to a small net loss (~-1.7% margin). However, operating profit remains slightly negative and gross margin fell versus 2024, indicating the turnaround is still sensitive to cost/price and mix. Overall: clear progress from deep losses in 2021–2023, but not yet a durable earnings profile.44
Neutral
Balance Sheet
The balance sheet looks relatively solid with modest leverage: debt-to-equity is low (~0.15 in 2025) and equity remains large (~$1.10B), providing financial flexibility. Total debt has been stable-to-slightly higher versus 2024, but still manageable versus the asset base. The main weakness is returns: equity profitability remains negative (still a small loss in 2025), which limits the balance sheet’s ability to compound value unless profitability becomes consistently positive.72
Positive
Cash Flow
Cash generation improved materially. In 2025 (annual), operating cash flow (~$74M) and free cash flow (~$62M) were solidly positive and higher than 2024, marking a major step up from negative cash flow in 2021–2023. Cash flow also appears reasonably supported by reported earnings quality metrics, but a key risk is sustainability: profits are still slightly negative, and cash flow can be more volatile if working capital or one-time items reverse.68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 929.36M | 920.45M | 909.01M | 712.20M | 56.13M |
| Gross Profit | 202.98M | 240.33M | 190.41M | 140.38M | -9.00M |
| EBITDA | 46.67M | -41.20M | -99.15M | -326.55M | -223.76M |
| Net Income | -15.49M | -94.80M | -172.66M | -335.11M | -226.98M |
Balance Sheet | |||||
| Total Assets | 1.34B | 1.35B | 1.47B | 1.56B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 273.17M | 248.89M | 201.64M | 311.76M | 649.03M |
| Total Debt | 170.10M | 152.27M | 167.03M | 169.83M | 33.47M |
| Total Liabilities | 234.96M | 215.89M | 243.82M | 231.69M | 98.13M |
| Stockholders Equity | 1.10B | 1.13B | 1.21B | 1.31B | 1.33B |
Cash Flow | |||||
| Free Cash Flow | 61.66M | 43.90M | -24.58M | -17.57M | -159.23M |
| Operating Cash Flow | 74.24M | 54.91M | -16.65M | -6.71M | -155.44M |
| Investing Cash Flow | 12.54M | 17.76M | -24.82M | -230.16M | -496.28M |
| Financing Cash Flow | -53.24M | -49.36M | -43.08M | -41.79M | 1.15B |
SNDL Technical Analysis
Negative
2.36
Price Trends
1.55
Negative
1.69
Negative
1.82
Negative
Market Momentum
-0.04
Positive
33.70
Neutral
19.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDL, the sentiment is Negative. The current price of 2.36 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.55, and above the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.70 is Neutral, neither overbought nor oversold. The STOCH value of 19.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNDL.
SNDL Risk Analysis
SNDL disclosed 78 risk factors in its most recent earnings report. SNDL reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SNDL Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $349.92M | 16.27 | -1.45% | ― | 1.76% | 18.31% | |
52 Neutral | C$255.76M | 44.94 | -7.78% | ― | 23.87% | -19.57% | |
50 Neutral | $723.51M | -3.44 | -114.12% | ― | 2.31% | -726.28% | |
48 Neutral | $7.14M | -10.73 | -40.66% | ― | -1.50% | 80.17% | |
40 Underperform | $3.25M | -0.89 | -93.87% | ― | -0.74% | 81.49% |
* Consumer Defensive Sector Average
SNDL
SNDL
1.35
-0.23
-14.56%
TSE:ACB
Aurora Cannabis
4.51
-1.88
-29.42%
YCBD
cbdMD
0.68
-1.49
-68.66%
TLRY
Tilray
6.21
-0.29
-4.46%
IMCC
IM Cannabis Corp
0.62
-1.17
-65.42%
SNDL Corporate Events
SNDL Sets March 12 Release Date for Q4 and Full-Year 2025 Results
Feb 19, 2026
On February 19, 2026, SNDL Inc. said it will publish its fourth quarter and full-year 2025 financial results, covering the period ended December 31, 2025, before markets open on March 12, 2026. The company will follow the release with a conference call and webcast at 10:00 a.m. EDT the same day, signaling upcoming visibility into recent operating performance for investors in the cannabis and liquor retail space.
The most recent analyst rating on (SNDL) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.
SNDL Closes First Phase of 1CM Retail Deal With Purchase of Five Cannabis Stores
Jan 7, 2026
On January 7, 2026, SNDL Inc. announced it had completed the acquisition of five cannabis retail stores in Alberta and Saskatchewan from 1CM Inc., marking the first closing under an amended and restated arrangement agreement signed on December 15, 2025. This transaction advances SNDL’s retail expansion strategy and reinforces its position as a leading Canadian cannabis and liquor retailer, with a second and final closing for an additional 27 Ontario cannabis stores expected in the first half of 2026 pending regulatory approvals, which could further strengthen its national footprint and competitive scale in the cannabis retail market.
The most recent analyst rating on (SNDL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.
SNDL Inc. Amends Agreement to Acquire Cannabis Retail Stores
Dec 15, 2025
On December 15, 2025, SNDL Inc. and 1CM Inc. announced an amended and restated arrangement agreement for SNDL to acquire 32 cannabis retail stores in Ontario, Alberta, and Saskatchewan for $32.2 million. The transaction will occur in two stages due to provincial regulatory approvals, with the first closing expected in January 2026 for stores in Alberta and Saskatchewan, and the second closing for Ontario stores by May 31, 2026. This strategic acquisition aims to expand SNDL’s retail footprint and strengthen its market position in the Canadian cannabis industry, while 1CM plans to use the proceeds for transaction costs and working capital, with potential future returns to shareholders.
The most recent analyst rating on (SNDL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on SNDL stock, see the SNDL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.