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SNDL Inc.

Management’s Discussion and Analysis

For the year ended December 31, 2024

Management’s Discussion and Analysis

This Management’s Discussion and Analysis (“MD&A”) of the financial condition and performance of SNDL Inc. (“SNDL” or the “Company”) for the year ended December 31, 2024 is dated March 17, 2025. This MD&A should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the years ended December 31, 2024 and December 31, 2023 (the “Audited Financial Statements”) and the risks identified in the Company’s Annual Information Form dated March 17, 2025 (the “AIF”) and elsewhere in this MD&A. This MD&A has been prepared in accordance with National Instrument 51-102 – Continuous Disclosure Obligations and is presented in thousands of Canadian dollars, except where otherwise indicated.

MD&A – Table of Contents

COMPANY OVERVIEW

SNDL operates under four reportable segments:

The principal activities of the Company are (i) the retailing of wines, beers and spirits under the Wine and Beyond, Ace Liquor and Liquor Depot retail banners; (ii) the operation and support of corporate-owned and franchised retail cannabis stores in certain Canadian jurisdictions where the private sale of adult-use cannabis is permitted, under the Value Buds, Spiritleaf and Superette retail banners; (iii) the manufacturing of cannabis products providing proprietary cannabis processing services, the production, distribution and sale of cannabis in Canada and for export pursuant to the Cannabis Act (Canada) (the “Cannabis Act”) through an owned and licensed cannabis brand portfolio that includes Top Leaf, Contraband, Palmetto, Bon Jak, La Logue, Versus, Grasslands, Pearls by Grön, No Future and Bhang Chocolate; and (iv) the provision of financial services through the deployment of capital to direct and indirect investments and partnerships throughout the cannabis industry. The Cannabis Act regulates the production, distribution, and possession of cannabis for both medical and adult-use access in Canada.

The Company produces and markets cannabis products for the Canadian adult-use market and for the international medicinal market. SNDL’s operations cultivate cannabis using approximately 380,000 square feet of total space in Atholville, New Brunswick. SNDL’s extraction and manufacturing operations include approximately 84,506 square feet of total space in British Columbia and approximately 65,500 square feet of total space in Ontario.

SNDL and its subsidiaries operate solely in Canada. Through its joint venture, SunStream Bancorp Inc. (“SunStream”), the Company provides growth capital that pursues indirect investment and financial services opportunities in the cannabis sector, as well as other investment opportunities. The current investment portfolio of SunStream is comprised of secured debt, hybrid debt and derivative instruments issued by United States based cannabis businesses. The Company also makes strategic portfolio investments in debt and equity securities.

SNDL was incorporated under the Business Corporations Act (Alberta) (the “ABCA”) on August 19, 2006. The Company’s common shares are listed under the symbol “SNDL” on the Nasdaq Capital Market.

SNDL is headquartered in Calgary, Alberta, with operations in Edmonton, Alberta, Kelowna, British Columbia, Bolton, Ontario, London, Ontario, Toronto, Ontario and Atholville, New Brunswick, and corporate-owned and franchised retail liquor and cannabis stores in five provinces across Canada.

SNDL’s overall strategy is to build sustainable, long-term shareholder value by improving liquidity and cost of capital while optimizing the capacity and capabilities of its production facilities in the creation of a consumer-centric brand and product portfolio. SNDL’s retail operations will continue to build a Canadian retail liquor brand and a network of retail cannabis stores across Canadian jurisdictions where the private distribution of cannabis is legal. SNDL’s investment operations seek to deploy capital through direct and indirect investments and partnerships throughout the cannabis industry.

RECENT DEVELOPMENTS

Indiva

On July 5, 2024, the Company announced that it had entered into a purchase agreement (the “Bid Agreement”) with Indiva Limited (“Indiva”) and its direct and indirect subsidiaries (collectively with Indiva, the “Indiva Group”), pursuant to which the Company offered to purchase all of the issued and outstanding shares of Indiva and the business and assets of the Indiva Group (collectively, the “Indiva Assets”) (the “Indiva Transaction”) for consideration comprising of a credit bid of all of the indebtedness of the Indiva Group owing to the Company, the retention of certain liabilities of the Indiva Group, and cash payments sufficient to repay certain priority indebtedness of the Indiva Group and costs associated with the Indiva Group’s proceedings under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”).

The Bid Agreement was entered into in the context of the CCAA proceedings, as part of a sales process where the Indiva Assets were marketed to prospective purchasers (the “Sale Process”) and, accordingly, was subject to approval by the court overseeing the CCAA proceedings and to potential alternative bids submitted pursuant to the Sale Process. On August 29, 2024, the Company announced that its stalking horse bid pursuant to the Bid Agreement had been chosen as the successful bid for the Indiva Assets.

On November 4, 2024, the Company announced that it had successfully closed the Indiva Transaction for consideration of approximately $21.1 million, comprised of the cancellation of $20.7 million in total debt owing by Indiva to the Company and a cash payment of approximately $0.4 million. The Company recorded a bargain purchase gain of $5.5 million, representing the net assets acquired being higher than the consideration due to a higher book value of Indiva’s liquid assets at acquisition than the consideration, as well as a favorable fair value adjustment to property, plant and equipment (refer to note 5(d) in the Audited Financial Statements).

OTHER DEVELOPMENTS

Acquisition of Remaining Minority Interest IN Nova Cannabis

On October 21, 2024, the Company announced that it had completed the acquisition of all of the issued and outstanding common shares of Nova Cannabis Inc. (“Nova”) (“Nova Shares”) not already owned by the Company, representing approximately 35% of Nova Shares, by way of a statutory plan of arrangement under the ABCA for aggregate consideration of approximately $40 million (the “Nova Transaction”).

Pursuant to the Nova Transaction, each holder of Nova Shares (other than SNDL and its affiliates that hold Nova Shares) (“Nova Shareholders”) was entitled to receive $1.75 in cash for each Nova Share held (the “Cash Consideration”), provided that Nova Shareholders could elect to receive, in lieu of the Cash Consideration, 0.58 of a common share of SNDL (“SNDL Shares”) for each Nova Share held (the “Share Consideration” and, collectively with the Cash Consideration, the “Consideration”), subject to proration and a maximum of 50% of the aggregate Consideration being payable in SNDL Shares. Upon the closing of the Nova Transaction, an aggregate of 159,792 SNDL Shares were issued as Share Consideration to Nova Shareholders and an aggregate of $37.3 million was paid as Cash Consideration to validly electing Nova Shareholders.

On December 31, 2024, SNDL amalgamated with Nova pursuant to the provisions of the ABCA.

Overheads restructuring project and operational adjustments

On July 16, 2024, the Company announced a restructuring project aimed at reducing corporate overheads and improving the efficiency of its organizational structure to position the Company for future growth (the “Restructuring Project”). The Restructuring Project is expected to deliver over $20 million in annualized cost savings driven primarily by the optimization of corporate overhead spending, including the reduction in 106 full-time employees. The Restructuring Project will require a one-time investment of $11 million over 18 months.

As part of these operational adjustments, the Company consolidated its cannabis segments into a single unit under the leadership of Tyler Robson, President, Cannabis. This consolidation is intended to enhance efficiency, improve alignment

and improve process speed within the Company’s vertical model. The Company expects to achieve most of the anticipated annualized savings by mid-2025.

Lightbox acquisition and assignment

On March 28, 2023, the Company announced that it had entered into an agreement with Lightbox Enterprises Ltd. (“Lightbox”) pursuant to which, in connection with Lightbox’s proceedings under the Companies’ Creditors Arrangement Act (Canada), the Company (or its designee) would acquire the assets comprising four cannabis retail stores operating under the Dutch Love cannabis retail banner (the “Lightbox Transaction”). The Lightbox Transaction consideration was comprised of (i) approximately $1.7 million in cash, (ii) the cancellation of approximately $3.0 million of debt owing by Lightbox to the Company, and (iii) the issuance of 1.1 million SNDL common shares valued at $3.7 million.

On April 1, 2024, the Company announced that it had agreed to assign its rights to own or operate the four cannabis retail stores to Nova. On May 8, 2024, the Company completed the Lightbox Transaction and the assignment of its rights to own or operate the four cannabis retail stores to Nova.

share repurchase program

On November 14, 2024, the Company announced that the board of directors of the Company (the “Board”) approved a renewal of the share repurchase program upon its expiry on November 20, 2024. The share repurchase program authorizes the Company to repurchase up to $100 million of its outstanding common shares through open market purchases at prevailing market prices. SNDL may purchase up to a maximum of approximately 13.2 million common shares under the share repurchase program, representing approximately 5% of the issued and outstanding common shares as at the date of announcement, and will expire on November 20, 2025. The share repurchase program does not require the Company to purchase any minimum number of common shares and repurchases may be suspended or terminated at any time at the Company’s discretion. The actual number of common shares which may be purchased pursuant to the share repurchase program and the timing of any purchases will be determined by SNDL’s management and the Board. All common shares purchased pursuant to the share repurchase program will be returned to treasury for cancellation.

For the year ended December 31, 2024, the Company purchased and cancelled 5.0 million common shares at a weighted average price, excluding commissions, of $2.61 (US$1.84) per common share for a total cost of $13.2 million including commissions. From January 1, 2025 to March 17, 2025, the Company purchased and cancelled 5.8 million common shares at a weighted average price, excluding commissions, of $2.57 (US$1.79) per common share for a total cost of $15.0 million including commissions.

Refer to “Liquidity and Capital Resources – Equity” below for further details regarding common shares purchased and cancelled.

FINANCIAL HIGHLIGHTS

The following table summarizes selected financial information of the Company for the periods noted.

CONSOLIDATED RESULTS

General and administrative

General and administrative expenses for the three months ended December 31, 2024 were $44.5 million compared to $50.2 million for the three months ended December 31, 2023. The decrease of $5.7 million was mainly due to a decrease in office and general and professional fees, partially offset by increases in salaries and wages and consulting fees. Office and general decreased due to the initiatives aimed at reducing corporate overheads, professional fees decreased due to Nova no longer incurring standalone public company costs and consulting fees increased due to projects aimed at supporting corporate initiatives.

General and administrative expenses for the year ended December 31, 2024 were $187.2 million compared to $199.7 million for the year ended December 31, 2023. The decrease of $12.5 million was mainly due to decreases in office and general, professional fees and other expenses, partially offset by an increase in salaries and wages. Office and general decreased due to the initiatives aimed at reducing corporate overheads, professional fees decreased due to Nova no longer incurring standalone public company costs and other expenses decreased mainly due to decreases in expected credit losses, driven by initiatives focused on collectability as well as having more historical collection data providing better evidence for future collectability estimates.

Share-based compensation

Share-based compensation expense includes the expense related to the Company’s issuance of simple and performance warrants, stock options, restricted share units (“RSUs”) and deferred share units (“DSUs”) to employees, directors, and others at the discretion of the Board. DSUs are accounted for as a liability instrument and measured at fair value based on the market value of the Company’s common shares at each period end. Share-based compensation also includes the expense related to Nova’s issuance of RSUs and DSUs during the applicable period (which pre-dated the completion of the Nova Transaction).

Share-based compensation expense for the three months ended December 31, 2024 was $4.6 million compared to $3.9 million for the three months ended December 31, 2023. The increase of $0.7 million was due to an increase in RSU expense and an increase in DSU expense. The increase in RSU expense was due to the issuance of new RSUs, partially offset by the vesting of RSUs granted in prior years. The increase in DSU expense was mainly caused by the settlement of Nova DSUs in connection with acquiring the remaining non-controlling interest in Nova pursuant to the Nova Transaction.

Share-based compensation expense for the year ended December 31, 2024 was $20.0 million compared to $15.4 million for the year ended December 31, 2023. The increase of $4.6 million was due to an increase in RSU expense and DSU expense. The increase in RSU expense was due to the issuance of new RSUs, partially offset by the vesting of RSUs granted in prior years. The increase in DSU expense was caused by the change in fair value and the settlement of Nova DSUs in connection with acquiring the remaining non-controlling interest in Nova pursuant to the Nova Transaction. The year ended December 31, 2024 had an increase in fair value resulting from an increase in the Company’s share price compared to the prior year which had a decrease in fair value resulting from a decrease in the Company’s share price.

RESTRUCTURING costs

Restructuring costs for the three months ended December 31, 2024 were $0.6 million and relate to severance costs from workforce reductions, legal costs that relate directly to the restructuring, and salaries and wages of personnel focused on restructuring projects. Restructuring costs for the three months ended December 31, 2023 were $13.3 million and related to the closure of the Olds facility.

Restructuring costs for the year ended December 31, 2024 were $2.7 million and relate to severance costs from workforce reductions, legal costs that relate directly to the restructuring, and salaries and wages of personnel focused on restructuring projects. Restructuring costs for the year ended December 31, 2023 were $19.6 million and relate to

severance costs from workforce reductions, legal costs that relate directly to the restructuring and other costs related to the closure of the Olds facility.

Finance costs

Finance costs include accretion expense related to lease liabilities, finance income related to net investment in subleases, change in fair value of investments at fair value through profit or loss (“FVTPL”) and certain other expenses. Finance costs are reported within other expenses, net, as disclosed in note 31 in the Audited Financial Statements.

Finance costs for the three months ended December 31, 2024 were consistent with the three months ended December 31, 2023. The change in fair value of investments at FVTPL in the comparative period was partially offset by a decrease in other expenses caused by lease remeasurements and a decrease in accretion on lease liabilities.

Finance costs for the year ended December 31, 2024 were $7.2 million compared to $11.4 million for the year ended December 31, 2023. The decrease of $4.2 million was mainly due to decreases in the change in fair value of investments at FVTPL, other expenses primarily caused by lease remeasurements and accretion on lease liabilities.

Change in estimate of fair value of derivative warrants

Change in estimate of fair value of derivative warrants is reported within other expenses, net, as disclosed in note 31 in the Audited Financial Statements.

The change in estimate of fair value of derivative warrants for the three months ended December 31, 2024 was a recovery of $26.0 thousand compared to a recovery of $2.4 million for the three months ended December 31, 2023. The recovery in the current period is smaller due to the expiration of the new warrants during the year and relates to a decrease in fair value, mainly due to a decrease in the Company’s closing share price from US$2.06 on September 30, 2024 to US$1.79 on December 31, 2024. The recovery in the prior period relates to a decrease in fair value, mainly due to a decrease in the Company’s closing share price from US$1.90 on September 30, 2023, to US$1.64 on December 31, 2023.

The change in estimate of fair value of derivative warrants for the year ended December 31, 2024 was a recovery of $4.4 million compared to a recovery of $6.6 million for the year ended December 31, 2023. The recovery in the current period relates to the expiration of the 9.8 million new warrants that were issued in 2021 and a minimal decrease in fair value of the remaining warrants. The recovery in the prior period relates to a decrease in the fair value, mainly due to a decrease in the Company’s closing share price from US$2.09 on December 31, 2022, to US$1.64 on December 31, 2023.

Operating loss

Operating loss for the year ended December 31, 2024 was $103.8 million compared to $163.2 million for the year ended December 31, 2023. The decrease in operating loss of $59.4 million was primarily due to increases in gross profit ($49.9 million) and investment income ($10.3 million), decreased general and administrative expenses ($12.5 million), depreciation and amortization ($6.0 million), restructuring costs ($16.9 million) and asset impairment ($37.7 million), partially offset by decreased share of profit of equity-accounted investees ($72.2 million) and increased share-based compensation expense ($4.6 million).

Net loss from continuing operations

Net loss from continuing operations for the year ended December 31, 2024 was $96.2 million compared to $172.0 million for the year ended December 31, 2023. The decrease in net loss from continuing operations of $75.8 million was largely due to increases in gross profit ($49.9 million), investment income ($10.3 million) and income tax recovery ($9.4 million), decreased general and administrative expenses ($12.5 million), depreciation and amortization ($6.0 million), restructuring costs ($16.9 million), asset impairment ($37.7 million) and other expenses ($7.0 million), partially offset by decreased share of profit of equity-accounted investees ($72.2 million) and increased share-based compensation expense ($4.6 million).

OPERATING SEGMENTS

The Company’s reportable segments are organized by business line and are comprised of four reportable segments: liquor retail, cannabis retail, cannabis operations, and investments.

Liquor retail includes the sale of wines, beers and spirits through wholly owned liquor stores. Cannabis retail includes the private sale of adult-use cannabis products and accessories through corporate-owned and franchised retail cannabis stores. Cannabis operations include the cultivation, distribution and sale of cannabis for the adult-use and medical markets domestically and for export, and providing proprietary cannabis processing services, in addition to product development, manufacturing, and commercialization of cannabis consumer packaged goods. Investments include the deployment of capital to investment opportunities. Certain eliminations and overhead expenses not directly attributable to any operating segment are reported as “Corporate”.

LIQUOR RETAIL SEGMENT RESULTS

operating income (loss)

Net revenue for the three months ended December 31, 2024 was $154.1 million compared to $159.5 million for the three months ended December 31, 2023. The decrease of $5.4 million was due to a reduction in overall customer traffic, changing consumer preferences and retail network optimization.

Net revenue for the year ended December 31, 2024 was $555.3 million compared to $578.9 million for the year ended December 31, 2023. The decrease of $23.6 million was due to a reduction in overall customer traffic, changing consumer preferences and retail network optimization.

Cost of sales for liquor retail operations is comprised of the cost of wine, beer and spirits. Cost of sales for the three months ended December 31, 2024 was $115.8 million compared to $121.1 million for the three months ended December 31, 2023. The decrease of $5.3 million was due to an overall decrease in sales and shifting consumer preferences to value segments.

Cost of sales for the year ended December 31, 2024 was $415.6 million compared to $441.6 million for the year ended December 31, 2023. The decrease of $26.0 million was due to decreases in sales as noted above, offset by increased focus on private label products.

Gross profit for the three months ended December 31, 2024 was $38.2 million (24.8%) compared to $38.4 million (24.1%) for the three months ended December 31, 2023. The decrease of $0.2 million was partly due to the reduction in net revenue and cost of sales as noted above, partially offset by the introduction of new proprietary licensing arrangements and continued focus on private label portfolio.

Gross profit for the year ended December 31, 2024 was $139.7 million (25.2%) compared to $137.3 million (23.7%) for the year ended December 31, 2023. The increase of $2.4 million was due to the introduction of new proprietary licensing arrangements, focus on the private label portfolio and the factors contributing to the reduction to cost of sales noted above.

The decrease in sales and marketing for the three months ended December 31, 2024 and year ended December 31, 2024 were caused by the Canada Post strike preventing the distribution of flyers and other changes to marketing initiatives.

During the year ended December 31, 2024, the Company recorded impairment reversals to right of use assets of $0.5 million and property, plant and equipment of $1.6 million due to improved store level operating results. During the year ended December 31, 2023, the Company recorded impairments to right of use assets of $1.2 million and property, plant and equipment of $0.4 million due to underperforming operating results of certain stores.

At March 17, 2025, the Ace Liquor store count was 133, the Liquor Depot store count was 19 and the Wine and Beyond store count was 13.

CANNABIS RETAIL SEGMENT RESULTS

operating income (loss)

Net revenue for the three months ended December 31, 2024 was $83.2 million compared to $75.2 million for the three months ended December 31, 2023. The increase of $8.0 million is mainly attributable to an increase in same store sales and an increase in the number of stores, from both newly opened and acquired stores.

Same store sales are specified financial measures that do not have standardized meanings prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures used by other companies. Refer to the “Non-IFRS Financial Measures and Other Measures” section of this MD&A for further information.

Net revenue for the year ended December 31, 2024 was $311.7 million compared to $290.0 million for the year ended December 31, 2023. The increase of $21.7 million is mainly attributable to an increase in same store sales, an increase in the number of stores and proprietary licensing arrangements. Corporate store sales increased partly as a result of newly

opened and acquired stores and the increase in proprietary licensing arrangements was due to a variable services agreement.

Cost of sales for the three months ended December 31, 2024 was $62.7 million compared to $55.1 million for the three months ended December 31, 2023. The increase of $7.6 million was due to a corresponding increase in same store sales and newly opened and acquired stores.

Cost of sales for the year ended December 31, 2024 was $232.9 million compared to $216.3 million for the year ended December 31, 2023. The increase of $16.6 million was due to a corresponding increase in same store sales and newly opened and acquired stores.

Gross profit for the three months ended December 31, 2024 was $20.5 million (24.6%) compared to $20.0 million (26.7%) for the three months ended December 31, 2023. The increase of $0.5 million was due to increased corporate store sales. The decrease in gross margin was mainly due to a decrease in franchise revenue from the conversion of several franchises into corporate owned stores.

Gross profit for the year ended December 31, 2024 was $78.8 million (25.3%) compared to $73.7 million (25.4%) for the year ended December 31, 2023. The increase of $5.1 million was due to proprietary licensing arrangements which do not have an associated cost of sales and increased corporate store sales.

During the year ended December 31, 2024, the Company recorded net impairments to right of use assets of $1.6 million and property, plant and equipment of $1.4 million due to underperforming operating results of certain stores, and $15.0 million to intellectual property and rights pertaining to the Inner Spirit Holdings Ltd. (“Inner Spirit”) acquisition due to adverse market conditions and planned corporate Spiritleaf store rebranding. During the year ended December 31, 2023, the Company recorded impairments to right of use assets of $2.6 million and property, plant and equipment of $2.4 million due to underperforming operating results of certain stores.

At March 17, 2025, the Spiritleaf store count was 67 (8 corporate stores and 59 franchise stores), the Superette store count was 1 corporate store and the Value Buds store count was 117 corporate stores.

CANNABIS OPERATIONS SEGMENT RESULTS

operating income (loss)

The Company’s revenue comprises bulk and packaged sales under the Cannabis Act pursuant to its supply agreements with Canadian provincial boards, other licensed producers and international exports, proprietary extraction services, white label product formulation and manufacturing, the sale of bulk winterized oil and distillate, toll processing and co-packaging services and analytical testing.

Net revenue for the three months ended December 31, 2024 was $37.1 million compared to $26.0 million for the three months ended December 31, 2023. The increase of $11.1 million was mainly due to increased provincial board and wholesale sales, as well as the impact of sales from the Indiva Transaction.

Net revenue for the year ended December 31, 2024 was $109.5 million compared to $87.1 million for the year ended December 31, 2023. The increase of $22.4 million was mainly due to increased provincial board and wholesale sales from a dedicated sales team focusing on segment growth, as well as the impact of sales from the Indiva Transaction.

Cost of sales for the three months ended December 31, 2024 were $27.0 million compared to $27.1 million for the three months ended December 31, 2023. The decrease of $0.1 million was mainly due to a decrease in inventory impairment and obsolescence of $7.7 million based on improved product management and demand planning, partially offset by an increase in cost of sales correlating to increased revenue.

Cost of sales for the year ended December 31, 2024 were $87.7 million compared to $107.6 million for the year ended December 31, 2023. The decrease of $19.9 million was due to a decrease in inventory impairment and obsolescence of $26.9 million based on improved product management and demand planning, partially offset by an increase in cost of sales correlating to increased revenue.

Gross profit for the three months ended December 31, 2024 was $10.1 million (27.2%) compared to negative $1.1 million (-4.2%) for the three months ended December 31, 2023. The increase of $11.2 million was due to the increase in net revenue, decrease in inventory impairment and obsolescence and increased production efficiencies, as noted above.

Gross profit for the year ended December 31, 2024 was $21.8 million (19.9%) compared to negative $20.6 million (-23.6%) for the year ended December 31, 2023. The increase of $42.4 million was due to the increase in net revenue, decrease in inventory impairment and obsolescence and increased production efficiencies, as noted above.

The increase in general and administrative expenses for the three months ended December 31, 2024 was mainly attributable to the Indiva operations. The decrease in general and administrative expenses for the year ended December 31, 2024 was due to the reversal of expected credit losses in the current period and a decrease in costs from the closure of the Olds facility.

During the year ended December 31, 2024, the Company recorded impairments to assets held for sale of $1.3 million due to adverse commercial real estate market conditions. During the year ended December 31, 2023, the Company recorded impairments to property, plant and equipment of $18.6 million, $15.6 million due to the closure of the Olds facility and $3.0 million relating to discontinued machinery and equipment, to intangible assets of $0.8 million due to decreasing market demand and to goodwill of $29.0 million due to changes in circumstance since the Valens acquisition.

INVESTMENTS SEGMENT RESULTS

operating income (loss)

Investment income for the three months ended December 31, 2024 was $2.7 million compared to $3.3 million for the three months ended December 31, 2023. The decrease of $0.6 million was mainly due to the reimbursement of principal and interest owed on a convertible debenture that has been extinguished and a decrease in interest revenue from cash.

Investment income for the year ended December 31, 2024, was $15.6 million compared to $5.4 million for the year ended December 31, 2023. The increase of $10.2 million was due a decrease in loss on marketable securities and the reimbursement of principal and interest owed on a convertible debenture that has been extinguished. The Company disposed of the majority of its marketable securities in the prior year resulting in a minor loss in the current period.

Share of profit (loss) of equity-accounted investees is comprised of the Company’s share of the net profit (or loss) generated from its investments in SunStream. The current investment portfolio of SunStream is comprised of secured debt, hybrid debt and derivative instruments issued by United States based cannabis businesses.

Share of loss of equity-accounted investees for the three months ended December 31, 2024 was $66.5 million compared to $8.4 million for the three months ended December 31, 2023. The decrease of $58.1 million was due to accounting fair value adjustments to the investments. The decreases in fair value of the investment portfolio were partly due to declining revenue forecasts, notably from Florida voting against the legalization of adult-use cannabis in November 2024.

Share of loss of equity-accounted investees for the year ended December 31, 2024 was a loss of $65.5 million compared to profit of $6.8 million for the year ended December 31, 2023. The decrease of $72.3 million was due to accounting fair value adjustments to the investments. The decreases in fair value of the investment portfolio were partly due to declining revenue forecasts, notably from Florida voting against the legalization of adult-use cannabis in November 2024.

FOURTH QUARTER 2024

Operating loss for the three months ended December 31, 2024 was $76.1 million compared to $85.0 million for the three months ended December 31, 2023. The decrease in operating loss of $8.9 million was due to a decrease in share of profit of equity-accounted investees ($58.1 million), partially offset by increases in gross profit ($11.5 million) and decreases in general and administrative expenses ($5.7 million), restructuring costs ($12.7 million) and asset impairment ($35.7 million).

Net loss from continuing operations for the three months ended December 31, 2024 was $67.2 million compared to $85.4 million for the three months ended December 31, 2023. The decrease in net loss from continuing operations of $18.2 million was largely due to a decrease in share of profit of equity-accounted investees ($58.1 million), partially offset by increases in gross profit ($11.5 million) and income tax recovery ($6.6 million), and decreases in general and administrative expenses ($5.7 million), restructuring costs ($12.7 million), asset impairment ($35.7 million) and other expenses ($2.7 million).

Free cash flow was $11.6 million for the three months ended December 31, 2024 compared to $1.4 million for the three months ended December 31, 2023. The increase of $10.2 million was mainly due to a decrease in net loss and adjustments for non-cash items, partially offset by an increase in non-cash working capital ($10.9 million).

SELECTED QUARTERLY INFORMATION

The following table summarizes selected consolidated operating and financial information of the Company for the preceding eight quarters.