On July 31, 2025, SNDL Inc. reported its financial and operational results for the second quarter ended June 30, 2025, achieving positive operating income and net earnings for the first time in the company's history. Consolidated net revenue increased 7.3% year-over-year to $244.8 million.
Gross profit surged 16.2% to $67.6 million, with gross margin improving by 2.1 percentage points to 27.6%. The company reported an operating income of $5.0 million and net earnings of $2.9 million, reflecting the effectiveness of its strategic improvement agenda and disciplined cost management.
All operating segments contributed to growth, with the Cannabis business expanding at nearly three times the rate of the Canadian recreational market. Cannabis Retail net revenue grew 11% to $84.4 million, and Cannabis Operations net revenue increased 43.5% to $35.8 million.
Despite negative free cash flow of $(7.9) million due to working capital investments for international growth, seasonal payments, and capital expenditures, SNDL maintains a strong balance sheet with no debt and $208.2 million in unrestricted cash as of June 30, 2025.
SNDL is actively serving patients in the UK and EU through the export of branded finished goods and wholesale flower, and awaits resolution of U.S. litigation to complete SunStream restructurings. The company's management expressed confidence in delivering sustainable, long-term value to shareholders.
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