SNDL Reports Third Quarter 2026 Financial and Operational Results

Zach George, Chief Executive Officer of SNDL

“Our third quarter results demonstrate improvement in SNDL’s underlying financial performance, including positive adjusted operating income and record quarterly free cash flow generation,”

Zach George, Chief Executive Officer of SNDL

“Cannabis Retail delivered record quarterly revenue and gross margin, Liquor Retail also reached a new record quarterly gross margin, and our Investments segment benefited from improved results from equity-accounted investees.”

Zach George, Chief Executive Officer of SNDL

“Cannabis Operations remained below expectations and recorded a non-cash impairment. While the quarter was impacted by inventory issues arising from the first half, we are taking decisive action to simplify the portfolio, reduce costs and concentrate resources on product categories where SNDL’s manufacturing capabilities, distribution reach and retail insights can support sustainable returns.”

Zach George, Chief Executive Officer of SNDL

“The benefits of the actions taken during the quarter are expected to begin contributing to results in the fourth quarter.”

Zach George, Chief Executive Officer of SNDL

“In addition to these immediate actions, the Company is initiating a strategic review of the Cannabis Operations segment to assess opportunities to improve its financial performance.”

Zach George, Chief Executive Officer of SNDL

“The review will consider a range of strategic and operational alternatives, from potential asset divestitures to larger productivity initiatives.”

Zach George, Chief Executive Officer of SNDL

“The completion of the restructuring of Surterra Holdings, Inc. (“Parallel”) in July of this year, which reduced its debt burden by approximately US$842 million, and the subsequent rights offering, which increased our indirect equity ownership from approximately 67% to 92%, represent important steps in resetting Parallel’s capital structure and providing liquidity to support inventory, product availability and critical supply-chain infrastructure.”

Zach George, Chief Executive Officer of SNDL

“SNDL-funded investments by SunStream Bancorp Inc. (“SunStream”) in a new cultivation facility in Gainesville, Florida, are expected to enhance Parallel’s cost structure.”

Zach George, Chief Executive Officer of SNDL

“We are excited by the opportunity presented by our investment in Parallel and are actively exploring the feasibility of transitioning our indirect economic exposure to direct ownership and consolidation of qualifying U.S. medical cannabis operations, subject to applicable legal, regulatory, accounting and Nasdaq requirements.”

Zach George, Chief Executive Officer of SNDL

“We are encouraged by the progress made toward resolving the regulatory matters involving the Alcohol and Gaming Commission of Ontario (“AGCO”), which we expect will provide greater clarity for the Ontario franchise retail operations and future development opportunities, as further detailed later in this document and in the Q3 2026 Earnings Call presentation.”

Zach George, Chief Executive Officer of SNDL

“Across SNDL, our priorities remain disciplined capital allocation, improved operating performance and long-term value creation for shareholders.”

Zach George, Chief Executive Officer of SNDL

“We have demonstrated that commitment through significant share repurchases, and we intend to remain aggressive when we believe the opportunity to acquire our shares represents an attractive use of capital.”

Zach George, Chief Executive Officer of SNDL

“The recently announced potential $50 million substantial issuer bid (“SIB”) is a further step toward accelerating capital returns and reducing our outstanding share count,”