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Red or black: A roundup of cannabis financial news

Published on March 27, 2026 by Pat Bulmer

Photo: Contributed

Cannabis financial news: Pure Sunfarms’ BC greenhouse opens; SNDL registers sales records; Canna Cabana loyalty hits 2.5M stoners

New greenhouse goes online

The 550,000-square-foot expansion of a greenhouse in Delta, BC, is now producing cannabis for Village Farms.

The additional growing area will add 15 tonnes of production capacity this year, the company said in a financial report.

“Once completed and operating at full capacity, the expansion is expected to yield an incremental 40 tonnes of annualized cannabis production, expanding capacity by approximately 33%,” the fourth-quarter and year-end report said.

Village Farms, owner of Pure Sunfarms and other brands, announced last August it was adding the growing space to its Delta 2 greenhouse.

The $10-million expansion came in on time and under budget, the report said. The project was to be funded with cash on hand.

“The completion of the Delta 2 greenhouse conversion will result in 2.2 million sq. ft. of operational cannabis production, increasing production square footage by approximately 33 percent,” the report said.

The company also has 2.6 million square feet of growing space in its Delta 1 greenhouse.

For the last quarter, Village Farms reported its net Canadian sales were up, export sales increased 384% and key financial categories were up.

The company was navigating some rocky terrain in the past year, said CEO Michael DeGiglio.

“Demand for our products continues to significantly outpace our current production capacity, and temporary supply constraints coupled with rapidly evolving global regulatory frameworks has created near-term variability in performance as we balance the complex needs of our diverse customer base.”

Its smaller US operation reported slight declines in some categories, but the numbers generally stayed on the plus side.

Village Farms’ Leli Holland subsidiary opened for business last year: “Our first Netherlands facility continues to operate at full capacity … We are in the process of scaling our local operating team there to support our Phase II facility in Groningen, which remains on track for its first grow rooms to be planted at the end of Q1 with the full facility completed and planted by the end of Q2.

“Once fully ramped, we anticipate annual production capacity of approximately 10 tonnes in the Netherlands,” said DeGiglio.

Overall, the company ended 2025 with $86 million in cash. The company completed $6.7 million worth of share repurchases in the quarter, the report said.

Sales records at SNDL stores

Sales hit a new record for SNDL’s retail cannabis stores in 2025, the Edmonton-based company said in a financial report.

SNDL owns the Value Buds, Spiritleaf and Cost Cannabis banners. Most of the Spiritleaf stores are franchised.

“Net revenue for cannabis retail reached a new full-year record as our Value Buds banner continued to gain market share. Same-store sales grew +3.9% for the full year, although declined by (0.7)% in the fourth quarter of 2025 driven by a market slow-down,” the report said.

One financial category, operating income, was confused by the conversion of some Spiritleaf stores to Value Buds, the report said.

SNDL is adding to its retail lineup: “Subsequent to year-end, the company completed the acquisition and integration of five Cost Cannabis stores located in Alberta and Saskatchewan from 1CM.”

The company is waiting for regulatory approval to buy 27 additional stores in Ontario, a development that caught the attention of New York law firm Pomerantz LLP in January. The lawyers said they were investigating whether disgruntled shareholders might have a legal case, as the delayed sale caused share prices to drop.

SNDL’s cannabis operations reported a new full-year net revenue record. “This expansion is mainly driven by edibles, following Indiva’s acquisition in the fourth quarter of 2024, as well as international sales growing from $3.6 million in 2024 to $12.6 million in 2025.”

A write-off of the company’s idle Stellarton, N.S., facility impacted the numbers, the report said.

The company is just as big in the liquor business, owning retailers Ace Liquor, Wine and Beyond and Liquor Depot.

“2025 represents another step forward in financial performance and strategic focus for SNDL,” the report said. “We are pleased to report new records across our income statement and free cash flow, while continuing to transform our business to support long-term, sustainable, and profitable growth,” said CEO Zach George.

Other report highlights:

— Net revenue for the fourth quarter of 2025 was $252.5 million, and $946.4 million for the year, representing decrease of 2% and growth of 2.8%, respectively, compared to the previous year. The full-year total represents a record for the corporation, driven by growth of +11.4% in the cannabis retail and growing businesses.

— Gross profit reached new heights, at $70.2 million in the fourth quarter and $258.6 million for the year, representing growth of 2.1% and 7.6%.

— Cash flow was $11.7 million in the fourth quarter and $33.9 million for the year.

— “Capital expenditures increased from $8.6 million in 2024 to $12.8 million in 2025, including $4.0 million in the fourth quarter. The majority of these investments were directed toward new store openings across our cannabis and liquor retail segments.”

— Corporate restructuring is saving $20 million a year.

— The company has $252 million of “unrestricted cash” and no debt as of Dec. 31.

SNDL’s cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, Versus, Grasslands, Vacay, Pearls by Grön, No Future and Bhang Chocolate.

Loyalty program hits 2.5M members

The world’s largest consumer cannabis loyalty program now has more than 2.5 million members.

Cabana Club is offered through Canna Cabana brick-and-mortar and online stores.

“Canadian Cabana Club membership has surpassed 2.58 million, an increase of 47% year over year,” parent company High Tide said in a quarterly financial report. “Global Cabana Club membership, including Canada, has surpassed 6.65 million, up 17% year over year.”

Its elite program has 162,000 members and Canada and 171,000 worldwide. Cabana Club is free to join. The elite program, offering more deals and discounts, costs $35 a year and is not available in BC, Quebec, the Atlantic provinces or the north.

Same-store sales were up over the same quarter a year ago, but down slightly from the previous quarter, the report said. Harsh January weather in Ontario was blamed.

Canna Cabana reached a 12% market share, up from 11% in the previous year, the company said. High Tide just opened its 220th Canna Cabana store — in Sarnia, Ont. The company’s long-term goal is to have 350 stores, the report said.

“We delivered another quarter of solid results, highlighted by record revenue, record gross profit, and positive free cash flow,” said CEO Raj Grover. “Cabana Club membership keeps growing rapidly, and our stores continue to outperform peers.

“Internationally, our German business is gaining strong momentum. The first full fiscal quarter following our acquisition of Remexian exceeded our expectations, and since quarter-end we have seen further improvements in both revenue and margins.

“We are also exploring additional international opportunities, including the United Kingdom, where we are engaging with major industry participants with the goal of entering the market through a potential M&A (merger and acquisition) transaction within the next 12 months.

“In the United States, our e-commerce businesses are beginning to show encouraging signs of recovery,” the CEO said.

For the quarter ending Jan. 31:

— Revenue was a record $178.3 million compared to $142.5 million during the same period last year.

— Gross profit was a record $44.4 million, up 25% year over year.

— Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $11.5 million, representing the second-highest quarter ever.

— The company generated $2.9 million in free cash flow.

— Net loss was $0.4 million, which which was an improvement over the net loss of $2.7 million last year and $46.7 million in the previous quarter.

— Cash and cash equivalents totalled $46.4 million, compared to $33.3 million a year ago.