AWH ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS
- First Quarter 2025 Net Revenue of $128.0 million and Adjusted EBITDA¹ of $27.0 million
- Generated Positive Cash from Operations of $5.9 million, the Ninth Consecutive Quarter of Positive Operating Cash Flow
- Company Ended Q1 2025 with $100.0 million of Cash and Cash Equivalents
NEW YORK, May 12, 2025 /PRNewswire/ – Ascend Wellness Holdings, Inc. (“AWH” or the “Company”) (CSE: AAWH.U) (OTCQX: AAWH), a vertically integrated multi-state cannabis operator focused on bettering lives through cannabis, today reported its financial results for the quarter ended March 31, 2025 (“Q1 2025”). Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars.
Business Highlights
- AWH remains committed to implementing its densification strategy, which is expected to result in an approximate 50% increase in store count in the medium term. The Company continues to maintain its data-backed focus on premier locations in high density population centers in its expansion efforts.
- Currently, the Company is targeting ten new stores to come online in 2025, including three in Ohio and one in Pennsylvania.
- In Illinois, three partner stores have now opened, Markham in Q1, and North Riverside and Lynwood subsequent to quarter end, with an additional partnership opportunity recently identified.
- In New Jersey, the Company expects to open its first partner store in Little Falls in the coming months, with three additional partner locations identified for later this year.
- Maintained focus on reducing expenditures in support of the Company’s cost savings transformation initiatives, which have positively impacted both Adjusted EBITDA¹ of $27.0 million and Adjusted Gross Margin¹ of 40.8% in the quarter.
- The Company has continued to make solid progress in improving its balance sheet and working capital, highlighted by the $100.0 million of cash and cash equivalents on hand and generation of $5.9 million in cash from operations.
- Launched a share buyback program in January 2025. Pursuant to a normal course issuer bid (“NCIB”), the Company may repurchase up to the lesser of: (i) 10,215,690 shares of the Company’s class A common stock (“Common Shares”); and (ii) $2.25 million worth of Common Shares, in the open market. As of April 30, 2025, the Company has repurchased 1,571,500 Common Shares via the NCIB program.
Financial Highlights
Revenue:
- Total net revenue declined 5.9% quarter-over-quarter to $128.0 million.
- Retail revenue decreased 6.6% quarter-over-quarter to $84.4 million.
- Wholesale revenue decreased 4.4% quarter-over-quarter to $43.6 million.
Net Loss:
- Net loss of $19.3 million in Q1 2025 compared to net loss of $16.8 million in Q4 2024.
Adjusted EBITDA¹:
- Adjusted EBITDA¹ was $27.0 million for Q1 2025, representing a 21.1% margin¹. Adjusted EBITDA1 decreased 10.7% and Adjusted EBITDA Margin¹ decreased 110-basis points quarter-over-quarter.
Balance Sheet:
- As of March 31, 2025, cash and cash equivalents were $100.0 million, a sequential increase of $11.7 million. Net Debt2, which equals total debt less unamortized deferred financing costs less cash and cash equivalents, was $233.0 million.
Cash Flow:
- Generated $5.9 million of Cash from Operations in Q1 2025, representing the ninth consecutive quarter of positive operating cash flow, and Free Cash Flow3 of $1.2 million.
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¹Measure is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” below and “Reconciliations of Non-GAAP Financial Measures (Unaudited)” at the end of this press release.
²Net Debt is a non-GAAP financial measure defined as total debt, net of unamortized deferred financing costs of ~$333.0 million, less cash and cash equivalents of $100.0 million as of March 31, 2025. Please see “Non-GAAP Financial Information” below.
³Free Cash Flow is a non-GAAP financial measure defined as Cash from Operations of $5.9 million less capital expenditures of $4.7 million, which represents total additions to capital assets excluding $1.7 million related to new store builds. Please see “Non-GAAP Financial Information” below.
Management Commentary
“Building on the groundwork we laid in 2024, we have begun to execute the key steps needed to drive long-term value across our business,” said Sam Brill, Chief Executive Officer. “Our priorities remain on improving our profitability, maximizing our asset efficiency, and enhancing our cash flow generation. Backed by our strong balance sheet, we are advancing our densification strategy and rolling out consumer-focused retail initiatives, including a refreshed e-commerce platform, across our footprint. We expect the actions we’ve taken will begin to deliver measurable benefits in the second half of the year.”
Frank Perullo, Co-Founder and President, added, “We have done the work to position the business for success, and we anticipate in the coming months we’ll be launching new products, as well as opening locations to advance our densification strategy. These initiatives reflect our commitment to expanding access, enhancing the consumer experience, and reinforcing our position as a leading operator in an increasingly dynamic and competitive market.”
Roman Nemchenko, Chief Financial Officer, concluded, “Over the quarter, we further strengthened our balance sheet and ended the quarter with a strong cash position. This enhanced liquidity will enable us to capitalize on accretive transactions, in an increasingly buyer-friendly environment, while pursuing strategic opportunities to further solidify our capital structure and reduce near-term debt pressures. The progress we have made reflects the disciplined execution of our team, and we are well-positioned to advance our long-term goals.”
