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SNDL Misses Q1 Revenue Estimate as Liquor and Cannabis Sales Weaken

Leaders point to cost cuts to set up a second-half rebound in 2026.

Overview

  • SNDL, which reported results Wednesday, posted $195.9 million in revenue versus roughly $210 million expected and an in-line net loss of $0.04 per share.
  • Following Wednesday’s report, shares fell about 10% to $1.32 as investors reacted to softer sales in core businesses.
  • Liquor revenue slipped 4.9% to $104.1 million and cannabis revenue fell 14.2% to $29.4 million, with total gross profit down 6.8% to $52.8 million.
  • Management cited weak consumer demand in both categories and a working-capital misstep in cannabis that it says is now fixed, while noting international cannabis sales rose 94% year over year.
  • The company ended the quarter with $213.4 million in unrestricted cash and no debt, launched a profit program targeting over $20 million in 2026, prioritized share buybacks, and set near-term moves including a Q2 rollout of its Rise Rewards at Wine and Beyond, a Jeter brand build, and progress on a Parallel foreclosure.