Ascend Wellness Holdings, Inc. (AWH) reported a net loss of $84.99 million for the year ended December 31, 2024, compared to a net loss of $48.21 million in 2023. Revenue increased by 8% to $561.599 million, driven primarily by a $41.944 million increase in wholesale revenue due to expanded cultivation and increased sales in New Jersey and Massachusetts. This growth was partially offset by a $52.664 million decrease in revenue from legacy locations in Illinois and New Jersey due to heightened competition. The company sold approximately 187,000 pounds of wholesale product in 2024, up from 145,000 pounds in 2023.
Operating profit improved significantly to $4.734 million in 2024 from a loss of $3.619 million in 2023. This improvement stemmed from increased wholesale production and efficient infrastructure utilization, although general and administrative expenses rose by 13% due to factors including debt refinancing costs and strategic initiatives. The company opened four dispensaries in 2024 and supported two partner locations, bringing its total dispensary count to 40 (including two partner locations) by March 1, 2025. AWH plans to expand to 60 retail locations, including partner locations.
Strategic developments included several acquisitions. AWH entered into a definitive agreement to acquire a cultivation and processing license in Massachusetts, adding 15,000 square feet of canopy. The company also acquired a 49% interest in an entity holding an adult-use license in Detroit, Michigan, subsequently transferring the license to its existing dispensary. Further, AWH acquired four dispensaries in Maryland and two in Illinois during 2024. The company also launched a new edibles brand, "Effin'," in 2024 and introduced 359 new SKUs across its product portfolio. As of December 31, 2024, AWH employed approximately 2,300 people.
AWH's cultivation footprint totaled approximately 255,000 square feet of canopy across six states. The company's retail operations included 39 open dispensaries (including two partner locations) as of December 31, 2024, with plans to expand to 60 total retail locations. The company highlighted its "outlet" store model, operating 11 locations with everyday low prices to compete in mature markets. AWH also emphasized its vertical integration strategy, aiming for 50% of retail sales to come from its own manufactured or produced products.
AWH acknowledged the ongoing uncertainty surrounding federal cannabis legislation and its potential impact on the business. The company stated that while its operations comply with state laws, they remain illegal under federal law. The company also discussed various legislative proposals, including the MORE Act and the SAFE Banking Act, that could affect the industry's future. AWH's outlook is contingent upon capital allocation decisions, the evolving regulatory environment, and general economic factors. The company's financial statements include substantial doubt about its ability to continue as a going concern, although management believes this doubt has been alleviated by cash on hand and sales growth.
About Ascend Wellness Holdings, Inc.
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