On May 1, 2025, SNDL Inc. reported its financial and operational results for the first quarter ended March 31, 2025. The company achieved a record gross margin of 27.6%, a 2.2 percentage point increase year-over-year, driven by robust growth in its Cannabis segments.
Consolidated net revenue reached $204.9 million, up 3.6% from Q1 2024, with Cannabis Operations revenue surging 53.2% to $34.3 million and Cannabis Retail revenue growing 8.7% to $77.5 million. Free cash flow improved significantly, reaching $(1.1) million, an 83% improvement year-over-year, despite seasonal impacts.
SNDL's Board of Directors initiated a formal strategic review to evaluate the company's exposure to U.S. multi-state licensed cannabis enterprises and its current exchange listing status. This review aims to align SNDL's long-term growth strategy with its public market platform, potentially allowing for active management of a broader North American cannabis platform.
The company maintained a strong balance sheet with $220.9 million in unrestricted cash as of March 31, 2025. Additionally, SNDL announced an agreement to acquire 32 cannabis retail stores from 1CM Inc. for $32.2 million on April 9, 2025, and launched its Rise Rewards loyalty program on April 22, 2025.
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