Core Viewpoint - SNDL Inc. is set to release its fourth quarter and full year 2025 financial results on March 12, 2026, before market opening [1] Company Overview - SNDL Inc. is one of the largest vertically integrated cannabis companies in Canada and the largest private-sector liquor and cannabis retailer [2] - The company operates retail banners including Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, and Spiritleaf [2] - SNDL's consumer-facing cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Grasslands, Vacay, Pearls by Grön, No Future, and Bhang Chocolate [2] - The company aims to deploy strategic capital through direct and indirect investments and partnerships in the North American cannabis industry [2]

Key Takeaways SNDL stock fell 31% in six months amid intense Canadian cannabis competition.SNDL's cannabis sales rose 16% in nine months; free cash flow turned positive for the first time.SNDL is expanding via 1CM store buys but lacks U.S. operations, limiting diversification.Shares of SNDL Inc. (SNDL) , one of the largest vertically integrated cannabis players in Canada, have been declining steadily over the past six months.This pullback does not stem from company-specific setbacks but rather from the inte ...

Industry Overview - The cannabis industry is undergoing significant changes with new laws and regulations that support its development [1][2] - Investors are focusing on companies that demonstrate strong performance or are working towards substantial goals, which can lead to profitability [1] Investment Opportunities - In 2026, there is anticipation for a new marijuana stock run, with potential breakout opportunities for various cannabis stocks [2][3] - It is crucial for investors to prepare for the volatility inherent in the cannabis sector [2] Key Companies to Watch - **Tilray Brands, Inc.**: Engages in the research, cultivation, processing, and distribution of medical cannabis products across multiple regions including Canada, the US, and Europe [4] - Recently appointed Romano Beverage to enhance distribution in Illinois, indicating a strategic move to accelerate growth [5][6] - **Cronos Group Inc.**: Focuses on the cultivation, production, distribution, and marketing of cannabis products internationally [8] - Launched its Lord Jones® premium cannabis brand in Israel, highlighting its strategy to penetrate key markets [9][10] - **SNDL Inc.**: Involved in the production and distribution of cannabis products for the adult-use market in Canada [10] - Announced a share repurchase program authorizing the repurchase of up to C$100 million of its outstanding common shares, indicating confidence in its stock value [12][13]

Group 1: Company Overview - SNDL Inc. operates in the Canadian adult-use cannabis market with a diversified business model that includes Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments, allowing it to balance performance across segments [1] - The company is involved in the production, distribution, and sale of cannabis products, providing exposure to multiple parts of the value chain [1] Group 2: Recent Acquisitions - On January 8, SNDL completed the acquisition of five 1CM cannabis retail locations in Alberta and Saskatchewan, marking the first closing under its amended agreement with 1CM Inc. [2] - This acquisition is part of a larger plan to add 27 Ontario-based stores, which are pending regulatory approvals [2] - An amended agreement with 1CM Inc. was announced on December 15, 2025, to acquire 32 cannabis retail stores for a total cash consideration of $32.2 million, structured into two closings to meet regulatory requirements [3] Group 3: Financial Performance - In Q3 2025, SNDL reported a record quarterly free cash flow of $16.7 million and a positive cumulative free cash flow of $7.7 million for the first nine months of the year [4] - Net revenue increased by 3.1% year over year to $244 million, driven by strength in the Cannabis segment, which helped offset challenges in the Liquor Retail business [4] - These results indicate improving cash generation and resilience despite broader market headwinds [4]

Core Insights - President Trump's executive order to reschedule cannabis to Schedule 3 is considered a significant shift in federal cannabis policy, potentially alleviating the burdensome tax regime affecting U.S. cannabis operators for decades [1][2]. Tax Implications - The executive order could lead to the elimination of Section 280E of the Internal Revenue Code, which currently taxes legal cannabis operators as if they were narcotics traffickers, preventing them from deducting any business expenses [2][3]. - Rescheduling cannabis to Schedule 3 would allow U.S. companies to deduct standard operating costs, significantly improving their financial health and cash flow [3]. Market Reaction - The cannabis industry is responding positively to the news, especially after a strong performance in 2025, where the AdvisorShares MSOS ETF outperformed the S&P 500 [4]. - Despite the optimistic outlook, the sector is still viewed as highly volatile, with many institutional investors remaining cautious due to past political inaction [4]. Remaining Challenges - Even with the potential rescheduling, U.S. cannabis companies still face hurdles, such as the inability to list on major exchanges like NASDAQ or NYSE, which is available to Canadian companies [5]. - The industry is also awaiting "safe harbor" provisions for banking, which remain unresolved [5]. Stock Performance - Recent performance data for cannabis stocks and ETFs shows varied results, with AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS) leading with a 68.55% increase over six months, while other companies like Tilray Brands Inc. (NASDAQ:TLRY) and Canopy Growth Corp. (NASDAQ:CGC) show mixed performance [7].

Industry Overview - The cannabis sector is experiencing growth despite historical volatility, with expectations for significant developments by 2026 that could benefit shareholders [1][2] - Recent legislative changes in the U.S., including the reversal of the 2018 farm bill and an executive order to reschedule cannabis, have sparked speculation about the future profitability for legal operators [2] Company Highlights - **Cronos Group Inc.**: Engages in the cultivation, production, distribution, and marketing of cannabis products internationally. Recently entered the Netherlands market by acquiring CanAdelaar B.V., the largest cannabis company in the Netherlands, which is seen as a strategic move to expand its footprint in Europe [3][4][5] - **Aurora Cannabis Inc.**: Focuses on the production and distribution of cannabis products. The company has made significant advancements in disease resistance research, moving from research to production trials of cultivars with verified PM2 resistance [6][7][8] - **SNDL Inc.**: Engages in the production and sale of cannabis products for the adult-use market in Canada. Recently received approval for a share repurchase program, allowing the company to repurchase up to C$100 million of its outstanding common shares [9][10]

Group 1 - SNDL Inc. has completed the acquisition of 5 cannabis retail stores located in Alberta and Saskatchewan from 1CM Inc. [1] - This transaction marks the first closing under the amended and restated arrangement agreement dated December 15, 2025, with a second closing anticipated in the first half of 2026 for 27 additional stores in Ontario, pending regulatory approvals [2] - SNDL is one of the largest vertically integrated cannabis companies in Canada and the largest private-sector liquor and cannabis retailer, with various retail banners and consumer-facing cannabis brands [3] Group 2 - 1CM Inc. operates as a retailer of cannabis and liquor in Canada, focusing on developing cash-flow positive locations and pursuing growth through organic development and mergers and acquisitions [4]

Group 1 - Pomerantz LLP is investigating claims on behalf of investors of SNDL Inc. regarding potential securities fraud or unlawful business practices by the company and its officers/directors [1] - On December 15, 2025, SNDL announced an amendment to its agreement to acquire 32 cannabis retail stores from 1CM, maintaining a total purchase price of $32.2 million in cash, but splitting the acquisition into two closings for regulatory approval [2] - Following the announcement of the amended acquisition agreement, SNDL's stock price fell by $0.29 per share, or 13.12%, closing at $1.92 per share on December 15, 2025 [3]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving SNDL Inc. and its officers or directors [1] Group 1: Company Developments - On December 15, 2025, SNDL announced an amendment to its agreement to acquire 32 cannabis retail stores from 1CM Inc., maintaining a total purchase price of $32.2 million in cash, but splitting the acquisition into two closings for regulatory approval [3] - Following the announcement of the amended agreement, SNDL's stock price decreased by $0.29 per share, or 13.12%, closing at $1.92 per share on the same day [3]

Core Viewpoint - President Donald Trump's executive order marks a significant shift in federal cannabis policy, directing federal agencies to loosen regulations on marijuana [1] Regulatory Changes - The order instructs U.S. Attorney General Pam Bondi to expedite the rescheduling of marijuana to Schedule III under the Controlled Substances Act, aligning it with common painkillers but not fully legalizing it [2] - Marijuana's current classification as a Schedule I substance has limited research opportunities, and reclassification aims to enhance studies on safety and effectiveness, particularly for vulnerable populations [4] Access to CBD Products - The order outlines steps to improve access to hemp-derived cannabinoid products, especially cannabidiol (CBD), which currently lacks a clear regulatory pathway through the FDA [5] - It directs the White House Deputy Chief of Staff to collaborate with Congress to expand access to full-spectrum CBD products while restricting those posing health risks [6] Political Reactions - Senate Minority Leader Chuck Schumer supports the order, viewing it as a positive step, but emphasizes the need for further decriminalization and easing banking regulations for the cannabis industry [7] - Conversely, some Republican senators, including Ted Budd, criticize the order as shortsighted and potentially harmful to youth [7][8] Market Reactions - Cannabis stocks initially surged following the announcement but retreated by the close, attributed to the lack of expected cannabis banking provisions in the order [9] - Despite the retreat, major cannabis stocks have seen significant gains throughout the month in anticipation of the executive order [11]