💸 The Tape

SNDL Inc. (NASDAQ: SNDL) reported Q2 2025 net revenue of C$244.8M, up 7.3% YoY, driven by a 17.4% surge in combined Cannabis revenues and a return to growth in Liquor Retail. Gross profit jumped 16.2% YoY to C$67.6M, pushing gross margin to a record 27.6% (+210 bps YoY).

For the first time in company history, SNDL posted positive quarterly operating income of C$5.0M (adjusted: C$5.8M), highlighting its margin expansion and disciplined cost controls. CEO Zach George called the result “a pivotal milestone,” underscoring the company’s ability to scale profitably across all segments.

Key Highlights:

• Cannabis Retail: Net revenue hit a record C$84.4M (+11% YoY), with same-store sales up 8.2%. Operating income more than doubled to C$8.1M.

• Cannabis Operations: Net revenue surged 43.5% YoY to C$35.8M; gross margin jumped to 25.8% (+1,310 bps YoY) on Indiva edibles integration and international sales growth.

• Liquor Retail: Net revenue up 1% YoY to C$141.9M, with same-store sales +2.7% despite five fewer stores; operating income rose 30.6% to C$11.1M.

• Investments: Portfolio carrying value C$406.1M, including C$384.2M in SunStream; Q2 operating income of C$1.8M. Increased stake in High Tide to 8.2% ownership.

• Balance Sheet: No debt, C$208.2M in unrestricted cash, total equity value C$1.1B. Ongoing 10% share buyback authorization.

Strategic Moves:

• Acquiring 32 cannabis retail stores from 1CM Inc. for C$32.2M (closing expected Q3 2025).

• Launched Rise Rewards loyalty program for Value Buds.

• Deployed C$9.5M CAPEX to expand Cannabis and Liquor retail footprints.

• Initiated a strategic review of U.S. cannabis exposure and exchange listings in anticipation of regulatory shifts.

Cash Flow:

• Free cash flow: C$(7.9)M, pressured by working capital investment for international growth and CAPEX.

• Net cash used in the quarter: C$(12.6)M.

Outlook:

SNDL expects FY 2025 Cannabis growth to continue outpacing the Canadian rec market and sees opportunity in international expansion (UK/EU medical exports, SunStream exposure to Florida and Texas). With a fortress balance sheet and no leverage, SNDL plans to pursue both organic and M&A growth.

📈 Dog Walkers

$MRMD ( ▲ 2.31% ) Gets Into PA Ahead Of Rec

What’s Going On Here: MariMed is planting its flag in Pennsylvania with a new deal that extends its award-winning brands into one of the country’s largest medical marijuana markets—and a likely future adult-use state. Under a four-year management services agreement, MariMed will take over day-to-day operations of TILT Holdings’ Standard Farms cultivation and processing facility in White Haven starting September 1, 2025.

Standard Farms will remain the permit holder, but MariMed will oversee everything from budgeting and compliance to bank accounts and quality programs while collecting a 12.5% cut of gross revenue. The agreement also includes a licensing deal to produce and distribute MariMed’s product portfolio across Pennsylvania’s medical market.

CEO Jon Levine framed the move as a key part of MariMed’s “Expand the Brand” strategy to push its consumer packaged goods footprint into high-growth markets. TILT CEO Tim Conder called the partnership a natural fit, saying Standard Farms’ existing trust with patients provides “the right launching pad” for MariMed. With Pennsylvania viewed as a top candidate for adult-use legalization, this deal looks like a well-timed stake in fertile ground.

$CXXIF ( ▲ 3.5% ) Performs Yet Again

What’s Going On Here: C21 Investments kicked off fiscal 2025 with a strong Q1, proving its Nevada retail engine can outpace a sluggish state market. Revenue hit $8.6 million, up 30% year-over-year and 6% sequentially, despite statewide cannabis sales dropping 14%. Same-store growth powered the quarter, with the flagship Sparks dispensary posting a 5% transaction bump and South Reno logging a massive 120% sales gain in its first full year.

Gross margin climbed to 35%, up 410 bps YoY, while operating income swung positive at $0.2 million—$1 million better than last year’s Q1. Adjusted EBITDA jumped 244% to $1.1 million, and free cash flow came in at $0.9 million despite $0.8 million in taxes and share buybacks.

CEO Sonny Newman credited “exceptional execution in a challenging market” and emphasized operational efficiency amid industry-wide price compression. The company is also making waves on the tax front, preparing to refile multiple years of federal returns to challenge 280E liabilities.

Bottom line: C21 is growing same-store sales while squeezing more margin out of every dollar—a rare combo in Nevada’s hypercompetitive market.

🗞️ The News

📺 YouTube

America Under Siege: The Synthetic Drug Bomb Devastating a Nation

What we will cover:

✅ Former DEA Special Operations Director and Acting Administrator Derek Maltz joins Shadd Dales on Trade To Black for an in-depth conversation on fentanyl, illegal cannabis grows, and the line between regulated and illicit markets.

We cover what’s happened over the past 8 years as fentanyl has devastated communities across the U.S., and how transnational criminal networks are adapting. Maltz shares what he’s personally witnessed on the front lines — including how illegal cannabis grows are increasingly linked to cartel operations, even in states with regulated programs.

We also review the growing divide between regulated cannabis and the illicit market, and why that difference matters more now than ever. From Homeland Security task forces to new strategies targeting global drug networks, Maltz outlines what coordinated enforcement could look like going forward.

With rescheduling on the table and the cannabis industry pushing toward federal reform, this is a grounded, timely conversation with someone who’s been inside the system and still works to protect public safety every day.