SNDL Reports Second Quarter 2025 Financial and Operational Results The Company Delivers Positive Operating Income EDMONTON, AB

SNDL Reports Second Quarter

2025 Financial and Operational Results

The Company Delivers Positive

EDMONTON, AB, July 31, 2025 /CNW/ - SNDL Inc. (NASDAQ:

SNDL) (CSE: SNDL) ("SNDL" or the "Company") reported its financial and operational results for the second quarter

ended June 30, 2025. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated.

SNDL has also posted a supplemental investor presentation

on its website, found at https://sndl.com.

The Company will hold a conference call and webcast

presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Thursday, July 31, 2025. The conference call details can be found below.

MANAGEMENT HIGHLIGHTS

"Achieving positive quarterly operating income

and net earnings across both metrics for the first time in the Company's history during Q2 2025 marks a pivotal milestone and underscores

the effectiveness of our strategic improvement agenda.

We experienced growth across all operating segments

during the quarter, led by a Cannabis business that expanded at almost three times the rate of the Canadian recreational market, and a

Liquor Retail segment that is successfully adapting to shifting consumer preferences. Notably, our Liquor Retail segment delivered same-store

sales growth of 2.7% and higher net revenue despite running with five fewer stores compared to the same period last year.

Our operational rigor and focus on execution have

driven significant gross margin expansion across all business units, while disciplined cost management contributed to a $5 million absolute

reduction in G&A costs (including share-based compensation) year-over-year.

This strong performance gives us the confidence to

continue investing in our business and people, affirming that we are on the path to delivering sustainable, long-term value to our shareholders."

said Zach George, Chief Executive Officer of SNDL.

Delivering consistent financial performance improvements

and reliability is core to our mission at SNDL, as we remain focused on long-term value creation and the execution of our strategic roadmap.

In this context, during the second quarter of 2025 we advanced several strategic initiatives, including:

"Unlike many of its peers, SNDL's strong balance

sheet provides a strategic advantage as we continue to build a resilient and growth-oriented business. With no debt and $208.2 million

in unrestricted cash as of June 30, 2025, we are well-positioned to pursue a range of high-return organic and inorganic growth opportunities.

In addition, the SNDL team is now proudly serving patients in the UK and the EU through the export of both branded finished goods and

wholesale flower, and awaits the resolution of litigation in the United States in order to complete SunStream restructurings that will

provide shareholders with exposure to dynamic medical markets including Florida and Texas.

We are encouraged by the momentum we've built and

energized by the progress we are making. Our team remains highly focused and motivated to navigate the challenges of a dynamic industry

in pursuit of our ambition to become a global cannabis leader." concluded Zach George.

TOTAL COMPANY HIGHLIGHTS

BUSINESS SEGMENT HIGHLIGHTS

SNDL operates and reports its business through four

segments: Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments. Additionally, a consolidated total for Cannabis is presented,

encompassing the combined results of the two Cannabis segments, along with the revenue elimination associated with the Cannabis Operations

sales to the provincial boards that are expected to be subsequently repurchased by the Company's licensed retail subsidiaries for resale.

Corporate and Shared Service expenses are reported as "Corporate".

SNDL is Canada's largest private sector liquor

retailer, operating at July 30, 2025 in 165 locations, predominantly in Alberta, under its three retail banners: "Wine

and Beyond" (13), "Liquor Depot" (19), and "Ace Liquor" (133).

SNDL is one of Canada's largest private-sector

cannabis retailer, operating at July 30, 2025 in 184 locations under its three retail banners: "Value Buds" (123), and "Spiritleaf"

(61, of which 4 are corporate stores and 57 are franchise stores). The Company's Cannabis Retail strategy is based on several pillars,

including the quality of its store locations, its range of products, and the unique experiences provided to customers. Using data and

insights from a large volume of monthly transactions enables SNDL to leverage technology and analytics to inform and improve its retail

SNDL has a diverse brand portfolio from value to premium,

emphasizing premium inhalable formats and a full suite of 2.0 products. With enhanced procurement capabilities and plans to continue evolving

toward a cost-effective cultivation and manufacturing operation, the Cannabis Operations segment is a key enabler of SNDL's vertical integration

This press release is intended to be read in conjunction

with the Company's condensed consolidated interim financial statements and the notes thereto for the three months ended June 30, 2025,

and the accompanying Management's Discussion and Analysis. These documents are available under the Company's profile on SEDAR+ at www.sedarplus.ca

and EDGAR at www.sec.gov/edgar.shtml.

The Company will hold a conference call and webcast

presentation at 10:00 a.m. EDT (8:00 a.m. MDT) on Thursday, July 31, 2025.

To access the live webcast of the call, please visit the following link:

A replay of the webcast will be available at https://sndl.com/financials/quarterly-results/default.aspx

SNDL Inc. (NASDAQ: SNDL, CSE: SNDL), through its wholly

owned subsidiaries, is one of the largest vertically integrated cannabis companies and the largest private-sector liquor and cannabis

retailer in Canada, with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf and Superette.

With products available in licensed cannabis retail locations nationally, SNDL's consumer-facing cannabis brands include Top Leaf,

Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Grasslands, Vacay, Pearls by Gr n, No Future and Bhang Chocolate. SNDL's

investment portfolio seeks to deploy strategic capital through direct and indirect investments and partnerships throughout the North American

cannabis industry. For more information, please visit www.sndl.com

Forward-Looking Information Cautionary Statement

This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities

law ("forward-looking statements"), including, but not limited to, statements regarding the Company's operational goals and

plans, the anticipated impact of the Company's strategic steps on long-term success and shareholder value, the anticipated impact of the

Company's intentions and strategy with respect to the Rise Rewards loyalty program and retail operations, SNDL's plan to expand the program

to additional retail banners, the anticipated benefit of the Company's strong balance sheet, the Company's strategy with respect to its

operating segments, expectations with respect to the Parallel restructuring process, expectations with respect to the Board's strategic

review process, the Company's margin improvement initiatives, the Company's ability to achieve long-term, sustainable profitability, growth

and efficiencies, the Company's long-term strategic plan, the benefits of the Company's Investment Segment portfolio, the Company's retail

strategy, expectations with respect to the Company's Cannabis Operations segment, , performance of the Company's investments, including

through the SunStream joint venture, the timing and completion of the restructurings of with Parallel and Skymint, the timing and closing

of the transaction to acquire assets from 1CM, repurchases under the Share Repurchase Program and the anticipated benefits thereof, and

any other potential forms of shareholder value creation. Forward-looking statements are frequently characterized by words such as "aim",

"anticipate", "assume", "believe", "contemplate", "continue", "could", "due",

"estimate", "expect", "goal", "intend", "may", "objective", "plan",

"predict", "potential", "positioned", "pioneer", "seek", "should", "target",

"will", "would", and other similar expressions that are predictions of or indicate future events and future trends,

or the negative of these terms or other comparable terminology. These forward-looking statements are based on current expectations, estimates,

forecasts and projections about the Company's business and the industry in which it operates and management's beliefs and assumptions

and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that

are in some cases beyond its control. Forward-looking statements are based on the opinions and estimates of management at the date

the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual

events or results to differ materially from those projected in the forward-looking statements. Please see "Risk Factors" in

the Company's Annual Information Form dated March 18, 2025, and the risk factors included in our other public disclosure documents

for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information.