Shares of Canadian cannabis producers fell in the premarket on Tuesday after their Alberta-based peer SNDL (SNDL) reported its Q3 2025 results, indicating a contraction in its Liquor Retail segment.
While SNDL has lost ~13%, its domestic rivals, including Tilray (TLRY), Aurora Cannabis (ACB), Organigram Global (OGI), Canopy Growth (CGC), and Cronos (CRON), are also among the decliners.
For the quarter ending Sept. 30, SNDL (SNDL) recorded C$244.2M in revenue with ~3% YoY growth as its Cannabis Retail and Cannabis Operations added C$85.0M and C$37.4M to the topline with ~8% YoY and ~49% YoY growth, respectively.
However, its Liquor Retail unit, which operates 165 stores, mostly in Alberta, contracted ~4% YoY with C$139.4M in net revenue driven by a ~3% drop in same-store sales amid continuing softness in market demand.
Meanwhile, SNDL’s operating loss slipped ~40% YoY to C$11.1M as its investment portfolio generated C$1.5M of positive operating income during the quarter, even as the company’s gross margins held steady at 26%.
Thanks mainly to a decline in working capital, SNDL recorded C$16.7M in free cash flow, implying ~81% YoY growth and C$7.7M YTD despite C$5.2M in capital investments spent on new Liquor and Cannabis Retail stores set to open in Q4.
“Reaching a new record for quarterly free cash flow and, for the first time in our history, achieving positive cumulative free cash flow for the first nine months of the year underscores the strength of our ongoing operational and profitability improvements,” CEO Zach George remarked.