SNDL Inc. Q1 Revenue Drops 4.4% to $195.9M, Operating Loss Narrows
SNDL Inc.’s liquor retail division revenue declined 4.9% to $104.1 million and cannabis operations netted $91.8 million, with combined segment losses widening to $3.2 million and $5.8 million, respectively. Q1 net revenue fell 4.4% to $195.9 million, gross profit dropped 6.8% to $52.8 million, while operating loss narrowed to $9.1 million and cash exceeded $213 million.
1. Q1 Financial Results
SNDL Inc. reported net revenue of $195.9 million for the quarter ended March 31, 2026, down 4.4% year-over-year. Gross profit declined 6.8% to $52.8 million, while operating loss improved to $9.1 million from $12.1 million a year earlier. Operating cash flow was negative $26.7 million and free cash flow was negative $7.6 million.
2. Segment Performance Breakdown
The liquor retail division, the largest contributor, generated $104.1 million in revenue, down 4.9%, with same-store sales falling 6.1% and an operating loss of $3.2 million. Cannabis operations produced $91.8 million in net revenue, down 3.8%, with retail revenue of $77.3 million and same-store sales down 2.5%, resulting in a $5.8 million operating loss.
3. Balance Sheet Strength and Outlook
SNDL ended the quarter with over $213 million in unrestricted cash and no debt, underscoring a solid liquidity position. Management is adjusting its commercial execution and cost structure in response to market softness and expects conditions to improve in the second half of 2026, with disciplined capital allocation to support growth opportunities.