Ascend Wellness Reports Q2 Net Sales of $127M

[PRESS RELEASE] – NEW YORK, Aug. 7, 2025 – Ascend Wellness Holdings Inc. (AWH), a multistate, vertically integrated cannabis operator, reported its financial results for the quarter ended June 30, 2025. All financial information is reported using U.S. generally recognized accounting principles.

Business Highlights

• Fully repaid the company’s existing $60 million term loan using $10 million of cash on hand and $50 million through a private placement of 12.75% senior secured notes² due July 2029. This transaction represents the final phase of a comprehensive refinancing initiative that began with the $235 million notes offering completed in July 2024 and was supplemented by a $15 million private placement in January 2025.
  • These transactions together enhance financial flexibility and support the long-term management of capital structures. They also preserve the debt maturities that are currently the longest in the cannabis industry.
• AWH increased its retail footprint by executing the densification strategies of the business. Five new locations were added in the key markets of the first half 2025. This brings AWH’s total number of stores, including those of partners, up to 44.
  • The company has a strong pipeline of retail developments that will help it achieve its medium-term goal of 60 stores. This represents an expansion of 50% since the launch of this target at the end 2024.³.
• Sustained positive operating cash flow for ten straight quarters, supporting a strong balance sheet with $95.3 million in cash and cash equivalents and generating $17.8 million in cash from operations.
• Commercialized 225 product SKUs by H1 2025. Additional 300 are on the way for the rest the year. It continues to be focused on increasing shelf presence, and improving margins through roll-outs of in-house-branded high-margin products throughout its multiple state footprint.
• High Wired is a carefully crafted collection of pre-rolls and infused flowers for experienced enthusiasts. The brand established a top-selling position in Illinois and Massachusetts following its initial debut and is slated to enter New Jersey in the coming weeks.
• Repurchased approximately 1.9 million shares of Class A common stock in the open market through AWH’s normal course issuer bid (NCIB) share buyback program in Q2 2025, for a total of approximately 2.7 million common shares since its launch in January 2025. Company intends to continue to repurchase shares subject to regulations.
• AWH’s new integrated, all-encompassing ecommerce platform was launched after the end of quarter:
  • The program includes a redesigned digital shopping platform and app powered by Dutchie, featuring AI-driven personalized product recommendations and pay-by-bank functionality, all within a seamless one-stop experience for browsing, tracking, redeeming, and purchasing.
  • Ascenders club, the revamped company loyalty program now has a tiered system with best-in class rewards, based on points, and exclusive benefits for members.

Q2 2025 Financial Highlights

Revenue:

• Total net revenue was flat quarter-over-quarter, with a slight decrease of 0.5%, to $127.3 million.
• Retail revenue increased 2.5% quarter-over-quarter to $86.5 million.
• Wholesale revenue decreased 6.4% quarter-over-quarter to $40.8 million.

Net Loss:

• Net loss of $24.4 million in Q2 2025 compared to net loss of $19.3 million in the first quarter of 2025.

Adjusted EBITDA¹:

• Adjusted EBITDA¹ was $28.6 million for Q2 2025, representing a 22.4% margin¹. Adjusted EBITDA¹ increased 5.7% quarter-over-quarter, and adjusted EBITDA margin¹ The increase is 130 basis points.

Balance sheet:

• As of June 30, 2025, cash and cash equivalents were $95.3 million, a sequential decrease of $4.8 million, reflecting the repayment of $10 million in cash and refinancing of $50 million via the notes to retire the total principal outstanding under the company’s term loan. Net debt⁵, which equals total debt less unamortized deferred financing costs less cash and cash equivalents, was $254.3 million.

Cash flow:

• Generated $17.8 million of cash from operations in Q2 2025, representing the 10th consecutive quarter of positive operating cash flow, and free cash flow⁶ of $12.1 million.

Management Commentary

“With the first half of the year behind us, we have taken pivotal steps to fortify our capital structure and position the company for sustained success,” AWH CEO Sam Brill said. Our balance sheet is strengthened and our financial runway extended by the retirement of our previous term loan. We can now focus more on our priorities and execute them with stability. The initiatives that have been identified as driving our transformation, and therefore improved profitability in the last few quarters remain our priority. These include expanding our vertical profit margins through retailer densification; supporting our store footprint by offering differentiated products to customers and elevating their experience. The foundational initiatives support our growth strategy for the long term as we head into the second part of the year.

Frank Perullo said that Q2 was a strong quarter, with the opening of new stores and the launch of High Wired, our infused product. In addition, we ramped-up commercialization of top-selling, higher-margin SKUs. We will launch 225 of these in the first six months of 2025. Our products continue to gain strong consumer traction, maintaining the number two brand house position by both sales and units across Illinois, Massachusetts and New Jersey⁷ For the second quarter in a row, combined. In addition to this accomplishment, we launched our new ecommerce ecosystem in full across all of our footprints. This platform has a completely reinvented tiered program of loyalty and mobile application, which is intended to revolutionize shopping and provide our customers with benefits and perks that are unmatched.

Roman Nemchenko is the chief financial officer at AWH. He said: “We are building a solid, scalable foundation to support our expansion while we strive to increase topline. We have not only paid down our debt but also achieved a milestone of positive cash flow operating for 10 consecutive quarters. This has led to improvements in cost control. Although there are many things to do, we believe that our strategic initiatives implemented during the first half will produce meaningful results within the next few months. We remain focused on creating value for shareholders.”

Q2 2025 Financial Overview

Net revenue was flat at $127.3 million, with a slight decrease of 0.5% sequentially, of which 2.1% resulted from declines in third-party wholesale revenue that was offset by 1.6% attributable to growth in retail revenue.

Retail revenue totaled $86.5 million, representing a 2.5% increase compared to the prior quarter, primarily driven by the addition of five stores in H1 2025, along with sustained strong performance in Ohio’s adult-use market. The growth in revenue was offset to some extent by the ongoing price pressures across multiple markets.

Third-party wholesale revenue totaled $40.8 million, a 6.4% decrease from the prior quarter. This reduction was primarily driven by softer sales in Illinois and continued price compression in various markets, offset by an increase in sales in New Jersey.

Q2 2025 gross profit was $41.4 million, or 32.5% of revenue, as compared to $39.6 million, or 30.9% of revenue, in Q1 2025. Adjusted gross profit¹ was $55.3 million, or 43.4% of revenue, for Q2 2025, as compared to $52.2 million, or 40.8% of revenue, for the prior quarter. The increase in revenue was due to a stronger unit-growth and an additional 260 basis points, partly offset by pricing pressures on both the retail and wholesale channel.

Total general and administrative (G&A) expenses for Q2 2025 were $42.4 million, or 33.3% of revenue, compared to $37.1 million, or 29% of revenue, for Q1 2025. This increase is primarily due to the expansion of our operations. However, it was partially offset by cost-saving initiatives that were implemented previously.

Net loss attributable to AWH for Q2 2025 was $24.4 million, compared to $19.3 million in Q1 2025, primarily driven by higher G&A expenses, partially offset by a contribution from improved margins and continued cost-saving and operational efficiency initiatives.

Adjusted EBITDA¹ was $28.6 million in Q2 2025 compared to $27 million for Q1 2025, with an adjusted EBITDA margin¹ The increase is 130 basis points, or 22.4%. This improvement was driven by an increase in adjusted gross profit of 260 basis points and the benefits of continued cost-savings initiatives, and was partially offset by continued pricing pressure and slightly higher G&A expenses.

Cash and cash equivalents at the end of Q2 2025 were $95.3 million, and net debt⁵ was $254.3 million. Cash from operations was $17.8 million in Q2 2025, representing the 10th consecutive quarter of positive operating cash flow, and free cash flow⁶ was $12.1 million.