SNDL reported third quarter 2026 net revenue of $238.0 million, a 2.5% decrease year-over-year that fell short of analyst expectations. The company recorded an operating loss of $48.3 million, heavily impacted by a $52 million non-cash goodwill impairment charge in its Cannabis Operations segment. Despite the headline loss, the company achieved record quarterly free cash flow and returned to positive adjusted operating income, supported by margin expansion in its retail divisions.
Key Highlights
- Record quarterly free cash flow of $20.0 million, representing a 19.5% increase compared to the same period in 2025.
- Adjusted operating income reached $5.2 million, an improvement of $14.8 million year-over-year, excluding one-time impairment and restructuring costs.
- Cannabis Operations revenue declined 27.7% to $27.0 million as the company strategically exited unprofitable domestic dried flower categories to focus on higher-margin inhalables.
- Liquor Retail maintained dominant market positioning with 165 locations, achieving a record 27.0% quarterly gross margin despite a 6.0% decline in same-store sales.