Ascend Wellness Q2 Revenue Increases to Record $123 Million

  • Reported Record Quarterly Revenue
  • Achieved $123.0M Net Revenue in Q2 2023, a 26.1% Increase Year-Over-Year and 7.7% Increase Quarter-Over-Quarter
  • Generates Positive Cash from Operations for Second Consecutive Quarter

NEW YORK, Aug. 8, 2023 /PRNewswire/ – Ascend Wellness Holdings, Inc. (“AWH” or the “Company” or “Ascend”) (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 three months ending June 30, 2023 (“Q2 2023”). Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and all currency is in U.S. dollars.

Q2 2023 Financial Highlights

  • Gross revenue increased 28.4% year-over-year and 7.0% quarter-over-quarter to $151.0 million.
  • Net revenue, which excludes intercompany sales of wholesale products, increased 26.1% year-over-year and 7.7% quarter-over-quarter to $123.0 million.
  • Retail revenue increased 18.9% year-over-year and 8.6% quarter-over-quarter to $89.9 million.
  • Gross wholesale revenue increased 45.3% year-over-year and 4.7% quarter-over-quarter to $61.2 million. Wholesale revenue, net of intercompany sales, increased 51.0% year-over-year and 5.4% quarter-over-quarter to $33.1 million.
  • Net income of $0.8 million during the quarter represented an improvement compared to a net loss of $21.2 million in Q2 2022 and $18.5 million in Q1 2023.
  • Adjusted EBITDA¹ was $21.3 million, representing a 17.3% margin. Adjusted EBITDA increased 2% and margins declined 409 basis points year-over-year. Margins declined 308 basis points quarter-over-quarter.
  • As of June 30, 2023, cash and cash equivalents were $68.0 million and net debt2 was $241.8 million.
  • Generated $25.4 million of cash flows from operations, representing the second quarter in a row of positive operating cash flow. This included a benefit from the recognition of a $22.8 million employee retention tax credit (“ERTC”), of which $17.5 million was collected and then returned to a lender as debt repayment of an advance previously received. Excluding this inflow, cash flows from operations would have been nearly $8 million.

¹Adjusted EBITDA/margin and Adjusted Gross Profit/margin are a non-GAAP financial measures. Please see the “GAAP Reconciliations” at the end of this release.

²Total debt less cash and cash equivalents less unamortized deferred financing costs.

Business Highlights

  • During the quarter, the Company announced it appointed John Hartmann as permanent Chief Executive Officer of the Company effective May 15th, 2023.
  • During the quarter, the Company opened its ninth dispensary in Illinois, in Tinley Park. This is the Company’s first retail outlet store in the state of Illinois.
  • During the quarter, the Company closed the acquisition of four dispensaries in Maryland, marking AWH’s expansion to a seventh state with a total of 31 operating dispensaries across all seven states.
  • Subsequent to the quarter, on July 1st, the Company commenced adult-use sales at four dispensaries in Maryland.

Management Commentary

I am proud of the Company for achieving another quarter of record revenue and cash generation, fueled by growth across both our retail and wholesale businesses. We were able to deliver a meaningful 26% revenue increase compared to last year and an 8% increase compared to the prior quarter.

Abner Kurtin, Executive Chairman

John Hartmann, Chief Executive Officer, commented, “With the team’s strong performance in the quarter, we remain optimistic about the future of the business and continue to see substantial growth across all areas, particularly in our retail outlet model. As we expand our presence into Maryland’s adult-use market and closely monitor Ohio’s upcoming recreational cannabis ballot, we are confident in Ascend’s continued success and potential for further growth.”

Dan Neville, Chief Financial Officer, added, “Our dedication to producing cash flow is evident as we generated nearly $8 million in cash from operations, excluding the receipt of the ERTC, and approached being free cash flow positive for the quarter. Further, we remain on track to generate cash from operations for the full year, marking a significant milestone in the Company’s journey to self-sufficiency.”

Q2 2023 Financial Overview

Net revenue increased 7.7% quarter-over-quarter, driven by growth in both the retail and wholesale businesses.

Total retail revenue in the second quarter of 2023 was $89.9 million, which represents an 8.6% increase compared to the prior quarter and was driven by the full quarter benefit of the New Bedford, MA and Century, MI dispensaries, the opening of the Tinley Park, IL dispensary, and the acquisition of four dispensaries in Maryland.

Gross wholesale revenue was $61.2 million, a 4.7% sequential increase, driven by increases in revenue in New Jersey, Massachusetts, Michigan, and Pennsylvania, partially offset by declines in Illinois and Ohio. Net wholesale revenue, excluding intercompany sales, increased 5.4% sequentially to $33.1 million, driven by increases in third party wholesale sales in New Jersey and Massachusetts, partially offset by declines in Illinois, Michigan, and Ohio.

Q2 2023 gross profit was $28.3 million, or 23.0% of revenue, compared to $35.7 million, or 31.3% of revenue, in the prior quarter. Q2 2023 Adjusted Gross Profit1 was $44.9 million, or 36.5% of revenue, compared to $47.6 million, or 41.7% of revenue, in the prior quarter. Adjusted Gross Profit1 excludes depreciation and amortization included in cost of goods sold, equity-based compensation included in cost of goods sold, and non-cash inventory adjustments. Adjusted Gross Profit1 margin decreased 516 basis points sequentially driven by lower gross profit in Illinois retail and wholesale and New Jersey wholesale.

Total Q2 2023 general and administrative (“G&A”) expenses were $36.3 million, compared to $35.4 million in the prior quarter. Total G&A expenses as a percentage of revenue improved from 31.0% of revenue in the prior quarter to 29.5% of revenue as the Company leveraged existing infrastructure, absorbed incremental revenue from the acquisition of four dispensaries in Maryland without meaningful incremental costs, and continued to optimize the organizational structure.

Net income in the second quarter of 2023 was $0.8 million, which was driven by the recognition of the $22.8 million ERTC.

Adjusted EBITDA1, which adjusts for tax, interest, depreciation, amortization, equity-based compensation, and other items deemed one-time or non-recurring in nature, was $21.3 million in Q2 2023. This represents an 8.5% decrease quarter-over-quarter driven by the aforementioned gross profit declines in the New Jersey wholesale and Illinois retail and wholesale businesses. Adjusted EBITDA Margin1 of 17.3% represented a 308 basis point decrease compared to the prior quarter.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the United States Securities and Exchange Commission (“SEC”), including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, and Adjusted EBITDA Margin. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

Conference Call and Webcast

AWH will host a conference call on August 8, 2023 at 6:00 p.m. ET to discuss its financial results for the quarter ended June 30, 2023. The conference call may be accessed by dialing (888) 390-0605. A live audio webcast of the call will also be available on the Investor Relations section of AWH’s website at and will be archived for replay.

About Ascend Wellness Holdings, Inc.

AWH is a vertically integrated multi-state cannabis operator with licenses and assets in Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania. AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products for retail and wholesale customers. AWH produces and distributes its in-house Simply Herb, Ozone, and Ozone Reserve branded products. For more information, visit

Additional information relating to the Company’s second quarter 2023 results is available on the Investor Relations section of AWH’s website at, the SEC’s Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”) at and Canada’s System for Electronic Document Analysis and Retrieval (“SEDAR”) at

Original press release

Published by NCV Newswire
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