SNDL Inc. (NASDAQ:SNDL) reported fourth-quarter revenue of $252.5 million on Thursday, falling short of analyst expectations of $257.55 million and marking a 2.0% decline from the same period a year earlier.
Despite the revenue miss, the company’s shares rose 4.55% in premarket trading as investors focused on the company’s record profitability and strong cash flow performance.
The Canadian cannabis and liquor retailer generated full-year revenue of $946.4 million, up 2.8% year-over-year and the highest annual figure in the company’s history, supported by 11.4% growth in its combined cannabis segment.
Gross profit reached $70.2 million in the fourth quarter, representing a 2.1% increase from the prior year, while full-year gross profit climbed 7.6% to $258.6 million.
Gross margins improved to 27.8% during the quarter and 27.3% for the full year, both marking record levels for the company.
Operating income totaled $11.8 million in the fourth quarter, while the full-year operating result was a loss of $6.3 million, representing a significant improvement compared with the previous year.
Adjusted operating income reached $12.8 million in the quarter and broke even at $0.1 million for the full year, marking the first time the company achieved annual break-even adjusted operating income.
“2025 represents another step forward in financial performance and strategic focus for SNDL,” said Zach George, Chief Executive Officer. “We are pleased to report new records across our income statement and free cash flow, while continuing to transform our business to support long-term, sustainable, and profitable growth.”
Free cash flow totaled $10.2 million in the fourth quarter and $18.0 million for the full year, more than double the level recorded in the previous year. The company ended the period with $252.2 million in unrestricted cash and no outstanding debt.
Between December 2025 and March 9, 2026, SNDL also repurchased 4.3 million common shares for cancellation.