Ascend Wellness Holdings Reports $116.9 Million Revenue, Net Loss Increases to $29.5 Million

Ascend Wellness Holdings, Inc. (AWH) reported a net revenue of $116.9 million for the three months ended March 31, 2026, a decrease of 9% compared to $128.0 million in the same period last year. The decline was attributed to increased competition and pricing pressures in key markets, particularly Illinois, New Jersey, and Pennsylvania, which overshadowed incremental revenue from acquisitions and new retail partnerships. Despite the revenue drop, the company achieved a gross profit of $44.9 million, reflecting a gross margin of 38.4%, up from 30.9% in the prior year, primarily due to improved margins and a reallocation of overhead expenses.

Operating expenses rose to $42.3 million, a 14% increase from $37.1 million in the previous year, driven by higher overhead and compensation costs associated with the expansion of operations. The company reported an operating profit of $2.5 million, slightly up from $2.5 million in the prior year. However, net loss increased to $29.5 million, compared to a loss of $19.3 million in the same quarter of 2025, largely due to a significant rise in interest expenses, which surged by 81% to $20.3 million.

In terms of strategic developments, AWH has been actively expanding its footprint through acquisitions and partnerships. As of March 31, 2026, the company operated 48 retail locations, including 10 partner locations, and aims to increase this number to 60. The company also opened dispensaries associated with two previously consolidated transactions during the quarter. Additionally, AWH has been focusing on optimizing its operations and enhancing its product offerings, including a revamped line of Ozone-branded products.

Operationally, AWH employed approximately 2,300 individuals as of the end of the quarter, reflecting its growth strategy. The company sold around 56,000 pounds of wholesale product during both the first quarters of 2026 and 2025. AWH's cash and cash equivalents stood at $60.9 million, down from $85.7 million at the end of 2025, with management indicating that this, along with anticipated cash flows, is sufficient to support operations for the next twelve months. Looking ahead, AWH plans to continue its expansion efforts while navigating the evolving regulatory landscape, particularly in light of recent developments regarding cannabis rescheduling by federal authorities.