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SNDL
(NASDAQ:SNDL)
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Rating:54Neutral
Price Target:
$1.50
▲(11.11% Upside)
Action:Reiterated
Date:07/29/26
The score is held back primarily by weak technicals (price below all major moving averages) and an uneven operating profile (revenue contraction and still-negative net margin despite improved EBITDA and positive cash flow). Offsetting factors include a relatively strong balance sheet/low leverage and a mixed-but-improving earnings-call outlook supported by liquidity, buybacks, and targeted profit initiatives, though near-term margin pressure remains a key risk.
Positive Factors
Strong liquidity and low leverage
SNDL’s substantial liquidity and debt-free position provide financial flexibility to fund operations, pursue strategic opportunities, and absorb volatility in cannabis and liquor markets. This conservative capital structure reduces financing pressure while management executes its broader restructuring and profitability plans.
Negative Factors
Persistent revenue contraction
Sustained top-line contraction indicates that SNDL has not yet established durable demand growth across its operating segments. Lower revenue reduces operating leverage, limits the ability to absorb fixed costs, and makes future profitability dependent on execution rather than broad-based expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and low leverage
SNDL’s substantial liquidity and debt-free position provide financial flexibility to fund operations, pursue strategic opportunities, and absorb volatility in cannabis and liquor markets. This conservative capital structure reduces financing pressure while management executes its broader restructuring and profitability plans.
Read all positive factors
SNDL (SNDL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$315.03M
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-0.88%
EPS Growth76.93%
CountryUS
Employees2,751
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)-0.10
Shares Outstanding246,120,850
10 Day Avg. Volume1,413,754
30 Day Avg. Volume1,370,782
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.53
Price to Sales (P/S)0.62
P/FCF Ratio10.12
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit1.31
Enterprise Value/Ebitda8.56
Forecast
1Y Price Target
$3.50Price Target Upside159.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.09
Revenue Forecast (FY)$909.34M
SNDL Business Overview & Revenue Model
Company Description
SNDL Inc. is a Canadian firm engaged in the cultivation, distribution, and sale of cannabis products across the country. Its operations are organized into two distinct segments: Cannabis Operations and Retail Operations. Through its Cannabis Opera...
How the Company Makes Money
SNDL primarily makes money through a mix of (1) cannabis retail sales and (2) cannabis product sales. Cannabis retail revenue is generated when SNDL sells cannabis products and accessories directly to consumers through its retail store network; th...
SNDL Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Neutral
The quarter presented a mixed picture: operational performance was challenged with declines in revenue, gross profit and segment-level profitability (notably in cannabis operations and liquor retail), driven by market softness and production ramp inefficiencies (Jeeter). Offsetting these headwinds, SNDL entered transformational capital and strategic positions — strong liquidity (CAD 183.2M), zero debt, accelerated share repurchases (~7% reduction in shares outstanding), deployment of profit enhancement initiatives (>CAD 20M expected), modest improvement in free cash flow, and the completion of a major parallel restructuring milestone that opens access to a sizeable U.S. medical cannabis platform with material upside. Given substantial near-term operational challenges balanced against meaningful balance sheet strength and strategic optionality, the call’s tone is cautiously constructive but mixed.Positive Updates
Strong Balance Sheet and Liquidity
Unrestricted cash of CAD 183.2 million and no outstanding debt as of June 30, 2026, providing flexibility to pursue strategic investments, acquisitions, and return of capital.
Negative Updates
Revenue Decline
Consolidated net revenue declined 3.7% year-over-year to CAD 235.8 million (a CAD 9.0 million decrease), driven by market headwinds across both liquor and cannabis segments.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Balance Sheet and Liquidity
Unrestricted cash of CAD 183.2 million and no outstanding debt as of June 30, 2026, providing flexibility to pursue strategic investments, acquisitions, and return of capital.
Read all positive updates
Company Guidance
SNDL guided that it expects to generate positive free cash flow for the full year (Q2 free cash flow was negative $6.7M, an improvement of $1.2M year‑over‑year and pre‑cash flow improved 15.2% y/y from negative $7.9M to negative $6.7M), and reiterated that profit‑enhancement initiatives are expected to drive more than $20M of incremental operating income, mostly over the remainder of the year; management also said the parallel restructuring should close in the coming months (subject to legal, regulatory, accounting and NASDAQ approvals), delivering a near‑term annualized revenue run‑rate of roughly $150M and the potential to exceed CAD 1 billion in annual revenue longer term, while noting some near‑term cost headwinds from the Jeeter production ramp (which drove ~80–90% of the cannabis operations gross‑margin shortfall) may persist; liquidity and capital‑return levers remain strong with $183.2M of unrestricted cash, no outstanding debt as of June 30, 2026, a cannabis‑related investment carrying value of $415.2M, and continued share repurchases (11.7M shares repurchased in Q2 for $23.3M; >29M shares repurchased since Q4‑2024, ~7% reduction in shares outstanding).SNDL Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 928.39M | 946.40M | 920.45M | 909.01M | 712.20M | 56.13M |
| Gross Profit | 243.57M | 258.65M | 240.33M | 190.41M | 140.38M | -9.00M |
| EBITDA | 37.40M | 48.02M | -41.20M | -99.15M | -326.55M | -223.76M |
| Net Income | -21.68M | -15.77M | -94.80M | -172.66M | -335.11M | -226.98M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.34B | 1.35B | 1.47B | 1.56B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 186.57M | 273.17M | 248.89M | 201.64M | 311.76M | 649.03M |
| Total Debt | 166.38M | 170.10M | 152.27M | 167.03M | 169.83M | 33.47M |
| Total Liabilities | 220.24M | 234.96M | 215.89M | 243.82M | 231.69M | 98.13M |
| Stockholders Equity | 1.06B | 1.10B | 1.13B | 1.21B | 1.31B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 50.61M | 58.11M | 43.90M | -24.58M | -17.57M | -159.23M |
| Operating Cash Flow | 64.18M | 70.92M | 54.91M | -16.65M | -6.71M | -155.44M |
| Investing Cash Flow | -4.26M | 17.45M | 17.76M | -24.82M | -230.16M | -496.28M |
| Financing Cash Flow | -72.79M | -54.49M | -49.36M | -43.08M | -41.79M | 1.15B |
SNDL Technical Analysis
Neutral
1.35
Price Trends
1.32
Negative
1.33
Negative
1.41
Negative
Market Momentum
-0.02
Negative
51.06
Neutral
88.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDL, the sentiment is Neutral. The current price of 1.35 is above the 20-day moving average (MA) of 1.26, above the 50-day MA of 1.32, and below the 200-day MA of 1.41, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 88.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNDL.
SNDL Risk Analysis
SNDL disclosed 78 risk factors in its most recent earnings report. SNDL reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SNDL Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $325.28M | 13.97 | 7.56% | ― | -23.88% | 115.43% | |
65 Neutral | $1.30B | 27.15 | 11.93% | 0.49% | 20.10% | -3.19% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
54 Neutral | $315.03M | -18.92 | -1.99% | ― | -0.88% | 76.93% | |
44 Neutral | $78.55M | -2.27 | 453.73% | ― | -24.69% | 16.08% | |
41 Neutral | $190.78K | >-0.01 | -20.47% | ― | -27.44% | 99.95% | |
40 Underperform | $1.26M | -0.01 | -314.86% | ― | -66.96% | 99.54% |
* Consumer Defensive Sector Average
SNDL
SNDL
1.28
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SNDL Corporate Events
SNDL Schedules Q3 2026 Earnings Release and Investor Call for October 27
Oct 14, 2026
On October 14, 2026, SNDL Inc. announced that it will release its financial results for the third quarter ended September 30, 2026 before markets open on Tuesday, October 27, 2026. Following the earnings announcement, the company plans to host a c...
SNDL Announces Immediate Resignation of Director Carlo Cannell
Oct 6, 2026
On October 6, 2026, SNDL Inc. announced that director Carlo Cannell resigned from the company’s Board of Directors with immediate effect, with the board publicly thanking him for his contributions. The departure marks a change in board compo...
SNDL Sets October 15 Virtual Meeting and Seeks Approval for Share Consolidation
Sep 8, 2026
SNDL Inc. has filed a Form 6-K for September 2026, confirming the inclusion of its September 3, 2026 Notice of Meeting and Information Circular into existing equity compensation registration statements. The filing, signed on September 8, 2026 by G...
SNDL Completes EU-GMP Audit at Atholville Facility, Advancing Global Medical Cannabis Strategy
Aug 4, 2026
On August 4, 2026, SNDL announced it had successfully completed a European Union Good Manufacturing Practice audit at its Atholville, New Brunswick cultivation facility, a key step toward supplying regulated international medical cannabis markets....
SNDL Posts Q2 Loss but Boosts Buybacks and Advances Parallel Restructuring
Jul 28, 2026
SNDL reported second-quarter 2026 results on July 28, 2026, showing net revenue of C$235.8 million, down 3.7% year over year, and gross profit of C$56.3 million, a 16.6% decline amid market headwinds in both liquor and cannabis. The company posted...
SNDL Files July Form 6-K With Q2 2026 Interim Financials
Jul 28, 2026
SNDL Inc. has filed its Form 6-K for July 2026, incorporating its latest interim financial disclosures into existing U.S. registration statements used for equity-based compensation plans. The filing, signed on July 27, 2026 by Chief Financial Offi...
SNDL Completes Parallel Asset Deal, Advances U.S. Medical Cannabis Strategy
Jul 27, 2026
On July 27, 2026, SNDL announced it has completed the acquisition of certain assets of Surterra Holdings Inc. and affiliates, collectively known as Parallel, a U.S. vertically integrated cannabis operator in Florida, Texas and Massachusetts. The d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.