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• Net Revenue (Q4 2024): $257.7 million, a 3.7% increase year-over-year.

• Net Revenue (Full Year 2024): $920 million, representing 1.3% growth compared to the prior year.

• Gross Profit (Q4 2024): $68.8 million, a 20% increase year-over-year.

• Gross Margin (Q4 2024): 26.7%, a 360 basis points improvement.

• Gross Margin (Full Year 2024): 26.1%, a 520 basis points improvement compared to 2023.

• Free Cash Flow (Q4 2024): $11.6 million, positive for the quarter.

• Free Cash Flow (Full Year 2024): $8.9 million, exceeding guidance and a $70 million improvement compared to 2023.

• Net Income (Q4 2024): Negative $67.2 million, primarily due to a noncash fair value adjustment.

• Cannabis Segment Revenue Growth (Q4 2024): 16.5%, including contributions from the Indiva acquisition.

• Liquor Segment Revenue Decline (Q4 2024): 3.4% compared to Q4 2023.

• Cannabis Retail Net Revenue (Q4 2024): $83.2 million, a 10.7% increase year-over-year.

• Same-Store Sales Growth (Cannabis Retail Q4 2024): 6.3%.

• Cash Position (End of 2024): $218 million in unrestricted cash with zero outstanding debt.

• Warning! GuruFocus has detected 2 Warning Sign with SNDL.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SNDL Inc (NASDAQ:SNDL) reported record full-year net revenue, gross profit, and gross margin, along with positive cash flow and free cash flow.

• The Cannabis segment showed strong momentum with steady revenue gains for the 12th consecutive quarter, growing well ahead of market averages.

• SNDL Inc (NASDAQ:SNDL) achieved all-time high gross profit and gross margin for both the full year and the fourth quarter, driven by productivity and cost optimization initiatives.

• The company achieved positive free cash flow for the first time, exceeding their guidance with a positive $9 million.

• Strategic acquisitions, such as Indiva, positioned SNDL Inc (NASDAQ:SNDL) as the largest manufacturer of infused edibles in Canada, enhancing long-term growth potential.

Negative Points

• The Liquor segment experienced a revenue decline due to a market slowdown, impacting overall consolidated results.

• A $65.7 million noncash negative fair value adjustment to the SunStream investment affected adjusted operating income.

• The Liquor Retail segment faced continuous market headwinds, resulting in a 3.4% revenue decline compared to the previous year.

• The company reported a negative Q4 net income of $67.2 million, primarily driven by the SunStream fair value adjustment.

• SNDL Inc (NASDAQ:SNDL) anticipates flat revenue growth for the Liquor segment in 2025, reflecting ongoing market challenges.