Sundial(US:SNDL)2025-11-03 23:10Financial Performance - Net revenue for Q3 2025 was CAD 244,219, an increase of 3% compared to CAD 236,892 in Q3 2024[6] - Gross profit for the nine months ended September 30, 2025, reached CAD 188,419, up from CAD 171,532 in the same period of 2024, reflecting a growth of 9.8%[6] - The company reported a net loss of CAD 25,141 for the nine months ended September 30, 2025, compared to a net loss of CAD 28,955 for the same period in 2024, indicating a reduction in losses by 13.5%[6] - For the nine months ended September 30, 2025, net revenue reached CAD 693,902, a significant increase from CAD 662,769 for the same period in 2024, representing a growth of approximately 4.2%[2] - The gross profit for the nine months ended September 30, 2025, was CAD 188,419, compared to CAD 171,532 in the previous year, indicating a year-over-year increase of about 9.8%[3] - The company reported an operating loss of CAD 18,100 for the nine months ended September 30, 2025, compared to a loss of CAD 27,722 for the same period in 2024, reflecting an improvement of approximately 34.3%[4] - The company reported a net loss attributable to owners of CAD 25.14 million for the nine months ended September 30, 2025, compared to a loss of CAD 27.65 million in the same period of 2024[87] Assets and Liabilities - Total assets decreased to CAD 1,318,061 as of September 30, 2025, down from CAD 1,349,242 at the end of 2024, a decline of 2.3%[4] - Cash and cash equivalents increased to CAD 240,581 as of September 30, 2025, compared to CAD 218,359 at the end of 2024, representing a growth of 10.2%[4] - Shareholders' equity decreased to CAD 1,099,291 as of September 30, 2025, down from CAD 1,133,356 at the end of 2024, a decline of 3%[4] - Cash and cash equivalents at the end of the period were CAD 240.58 million, a decrease of 8.5% from CAD 262.98 million at the end of September 2024[10] - The company recognized a liability of CAD 12.6 million for cash-settled Deferred Share Units (DSUs) as of September 30, 2025, compared to CAD 7.1 million at the end of 2024[80] - The balance of lease liabilities increased from CAD 152.273 million at December 31, 2024, to CAD 155.129 million by September 30, 2025[67] Inventory and Production - The company’s inventory decreased slightly to CAD 125,334 as of September 30, 2025, from CAD 127,919 at the end of 2024, a reduction of 2.1%[4] - Biological assets increased to CAD 3,507 as of September 30, 2025, up from CAD 1,187 at the end of 2024, with an estimated yield of 13,795 kilograms of dry cannabis[5] - During the nine months ended September 30, 2025, the company harvested 19,681 kilograms of dry cannabis, a substantial increase from 5,529 kilograms harvested in the same period of 2024[6] - The company recognized inventory write-downs of CAD 2.7 million for the nine months ended September 30, 2025, compared to CAD 3.4 million in the same period of 2024[7] Acquisitions and Investments - The company completed the acquisition of Indiva Limited for approximately CAD 21.1 million, which included the extinguishment of CAD 20.7 million in debt[24] - The fair value of identifiable net assets acquired from Indiva was CAD 26.51 million, resulting in a bargain purchase gain of CAD 5.46 million[27] - The Company entered into an agreement to acquire 32 cannabis retail stores for a total consideration of CAD 32.2 million, with a deposit of CAD 1 million held in escrow[96][97] - The acquisition of the 1CM stores is expected to close in the fourth quarter of 2025, pending regulatory approvals[99] - The Company acquired CAD 15.9 million in additional investments in listed common shares during the nine months ended September 30, 2025, and disposed of CAD 9.8 million for proceeds of CAD 15.1 million, realizing a gain of CAD 5.3 million[58] Operational Insights - SNDL's liquor retail operations are seasonal, with higher earnings typically reported in the third and fourth quarters due to consumer spending behavior[16] - The company has not observed significant seasonality in its cannabis operations, which continue to grow[16] - SNDL's investments segment includes capital deployment to opportunities in the cannabis sector and other investments[15] - The company is monitoring the impact of U.S. tariffs on imports, which may affect its financial performance, although no significant impact was noted for the nine months ended September 30, 2025[19] Shareholder Information - SNDL's common shares trade on the Nasdaq Capital Market and the Canadian Securities Exchange under the ticker symbol "SNDL"[17] - The total outstanding stock options decreased to 569,791 as of September 30, 2025, from 571,758 at the end of 2024, with a weighted average exercise price of CAD 12.43[76] - The company granted 4,082,665 Restricted Share Units (RSUs) during the nine months ended September 30, 2025, increasing the total outstanding RSUs to 13,021,475[78] - The weighted average exercise price of simple warrants outstanding as of September 30, 2025, was CAD 90.00, with a total of 21,440 warrants remaining[75] Other Financial Metrics - The company incurred restructuring costs of CAD 2,287 for the nine months ended September 30, 2025, compared to CAD 2,050 in the same period of 2024, an increase of 11.6%[6] - Investment income for the nine months ended September 30, 2025, was CAD 6,162, down from CAD 12,817 in the same period of 2024, a decrease of 52.1%[6] - The company recognized share-based compensation expense of CAD 15.190 million for the nine months ended September 30, 2025, compared to CAD 15.428 million for the same period in 2024[71] - The company’s cash provided by operating activities for the three months ended September 30, 2025, was CAD 14.29 million, compared to CAD 0.58 million in the same period of 2024[86] - The company’s interest income from investments at amortized cost for the nine months ended September 30, 2025, was CAD 1.41 million, down from CAD 2.74 million in 2024[84] - The company has contractual commitments totaling CAD 50,999 thousand, with CAD 50,652 thousand due within one year[93]