Highlights;
Ascend Wellness Holdings Inc. (AWH) Q2 2025 Press Release Summary
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Debt Restructuring: AWH repaid a $60 million term loan using $10 million cash and $50 million from senior secured notes, part of a refinancing initiative started in 2024. This enhances financial flexibility and extends debt maturity.
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Retail Expansion: Added five new stores, totaling 44 locations, with a medium-term target of 60 stores. This reflects their strategic retail densification strategy.
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Product Development: Commercialized 225 SKUs in H1 2025, with 300 more planned. Launched High Wired, a premium brand successful in IL and MA, expanding to NJ soon.
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Share Repurchase: Repurchased 1.9 million Class A shares in Q2, totaling 2.7 million since January 2025, demonstrating confidence in stock value.
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E-Commerce Launch: Introduced an integrated e-commerce platform with AI-driven recommendations, pay-by-bank, and a tiered loyalty program to enhance customer experience.
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Financial Performance:
- Total revenue remained flat at $127.3 million, with a 0.5% decrease.
- Retail revenue grew 2.5% to $86.5 million; wholesale revenue dropped 6.4% to $40.8 million.
- Net loss increased to $24.4 million from Q1’s $19.3 million.
- Adjusted EBITDA rose to $28.6 million, a 5.7% increase with a 22.4% margin.
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Cash Flow: Maintained positive operating cash flow for ten consecutive quarters, generating $17.8 million in Q2. Cash and cash equivalents were $95.3 million.
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Management Insights: Emphasized balance sheet strength, strategic initiatives, and customer experience improvements, with optimism about future growth and profitability.
This summary captures key financial, operational, and strategic developments, highlighting AWH’s focus on growth, product innovation, and financial health.
[PRESS RELEASE] – NEW YORK, Aug. 7, 2025 –
Ascend Wellness Holdings Inc. (AWH), a vertically integrated multistate cannabis operator, has announced its financial results for the quarter ended June 30, 2025. The results are reported in accordance with U.S. GAAP, with all currency in U.S. dollars.
Business Highlights
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Debt Restructuring: AWH successfully repaid its $60 million term loan using $10 million in cash and securing $50 million through a private placement of 12.75% senior secured notes due July 2029. This concludes a comprehensive refinancing effort that began in July 2024 with a $235 million notes offering and was supplemented by a $15 million private placement in January 2025. These transactions enhance financial flexibility and maintain one of the longest debt maturity profiles in the cannabis sector.
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Retail Expansion: AWH expanded its retail footprint by adding five locations in key markets during the first half of 2025, bringing the total store count, including partner locations, to 44. The company aims to reach 60 stores, a 50% increase since late 2024.
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Operating Cash Flow: AWH sustained positive operating cash flow for the tenth consecutive quarter, with $17.8 million generated in Q2 2025. Cash and cash equivalents totaled $95.3 million.
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Product Expansion: 225 SKUs were commercialized in H1 2025, with an additional 300 in development. High-margin, in-house branded products are being rolled out to enhance shelf presence and margins.
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Brand Launch: High Wired, a premium line of infused flower and pre-rolls, was launched and became a top-selling product in Illinois and Massachusetts, with plans to enter New Jersey soon.
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Share Buyback: AWH repurchased approximately 1.9 million Class A shares in Q2 2025, totaling 2.7 million shares since January 2025, under its NCIB program.
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E-Commerce Launch: Post-quarter, AWH introduced a new e-commerce ecosystem featuring a Dutchie-powered platform with AI-driven recommendations, pay-by-bank functionality, and the Ascenders Club loyalty program with tiered rewards.
Q2 2025 Financial Highlights
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Revenue: Total net revenue was $127.3 million, down 0.5% from Q1 2025. Retail revenue grew 2.5% to $86.5 million, while wholesale revenue decreased 6.4% to $40.8 million.
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Net Loss: AWH reported a net loss of $24.4 million, up from $19.3 million in Q1 2025.
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Adjusted EBITDA: Adjusted EBITDA was $28.6 million, a 5.7% increase from Q1 2025, with a margin of 22.4%.
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Balance Sheet: Cash and cash equivalents were $95.3 million as of June 30, 2025. Net debt was $254.3 million.
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Cash Flow: Operating cash flow was $17.8 million, with free cash flow of $12.1 million.
Management Commentary
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CEO Sam Brill: “We’ve taken significant steps to strengthen our capital structure, positioning AWH for sustained success. Our focus remains on expanding margins through retail densification and delivering elevated customer experiences. We enter the second half of the year with strong momentum.”
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President Frank Perullo: “Q2 saw notable progress, including new store openings and the successful launch of High Wired. Our products maintain a strong market position, and our new e-commerce platform is set to transform the shopping experience.”
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CFO Roman Nemchenko: “We’ve built a scalable platform with disciplined expansion, achieving ten consecutive quarters of positive operating cash flow. Strategic actions taken in H1 2025 will continue to yield meaningful results.”
Q2 2025 Financial Overview
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Gross Profit: $41.4 million, or 32.5% of revenue, up from $39.6 million in Q1 2025.
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G&A Expenses: $42.4 million, or 33.3% of revenue, reflecting operational expansion and cost-saving efforts.
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Net Loss: Attributable to higher G&A expenses, partially offset by improved margins and efficiency initiatives.
Non-GAAP Financial Measures
- Adjusted EBITDA, gross profit, free cash flow, and net debt are non-GAAP measures. Reconciliations and additional details are available in the full press release.
Contact:
For more information, visit www.awholdings.com.
