Ascend Wellness Holdings, Inc. (AWH) reported a net revenue of $127.3 million for the three months ended June 30, 2025, a decrease of 10% from $141.5 million in the same period last year. The decline was attributed to increased competition and pricing pressures in key markets, particularly Illinois and New Jersey, which overshadowed gains from new store openings and partnerships. The company's gross profit for the quarter was $41.4 million, resulting in a gross margin of 32.5%, up from 29.4% in the prior year, primarily due to improved operational efficiencies and a higher volume of products sold through retail channels.
In terms of profitability, AWH reported an operating loss of $1.0 million for the quarter, an improvement from a loss of $1.5 million in the same quarter of 2024. This was largely due to a reduction in general and administrative expenses, which fell by 2% to $42.4 million. However, the company experienced a net loss of $24.4 million, compared to a net loss of $21.8 million in the previous year, driven by increased interest expenses related to new term loans. Interest expense rose significantly to $12.1 million, up 41% year-over-year, reflecting a higher average debt balance and interest rates.
Operationally, AWH has been expanding its footprint, with 44 retail locations as of June 30, 2025, and plans to reach 60 locations in the medium term. The company sold approximately 56,000 pounds of wholesale product during the quarter, an increase from 47,000 pounds in the same period last year. The company’s workforce has grown to approximately 2,300 employees, reflecting its ongoing expansion efforts. AWH also reported a cash balance of $95.3 million, an increase of $7.0 million year-to-date, which management attributes to improved working capital management.
Strategically, AWH has been active in acquisitions, including the purchase of several dispensaries and partnerships to enhance its market presence. Notably, the company entered into agreements to acquire two adult-use dispensaries and has been providing operational support to additional partner stores. The total cash consideration for these acquisitions is expected to be approximately $7.9 million, subject to regulatory approvals. The company has also prepaid $60 million of its previous credit facility, utilizing proceeds from new term loans, which positions it for future growth.
Looking ahead, AWH anticipates continued revenue growth driven by new store openings and increased consumer demand. However, the company remains cautious due to the competitive landscape and regulatory challenges in the cannabis industry. Management plans to access capital markets for additional funding as needed, although they acknowledge the uncertainty surrounding future capital raises. The company’s ability to sustain operations and execute its growth strategy will depend on its financial performance and market conditions in the evolving cannabis sector.
About Ascend Wellness Holdings, Inc.
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