NEW YORK – Ascend Wellness Holdings Inc., a multistate, vertically integrated cannabis operator, reported its financial results for the quarter ended June 30, 2025 (“Q2 2025”). Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”), and all currency is in U.S. dollars.
Business Highlights
Fully repaid the Company’s existing $60 million term loan (the “Term Loan”) using $10 million of cash on hand and $50 million through a private placement of 12.75% Senior Secured Notes (the “Notes”) 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.
Together, these transactions enhance the Company’s financial flexibility, support long-term capital structure management, and preserve one of the longest dated debt maturity profiles currently in the cannabis sector.
Grew retail footprint through continued execution of the Company’s densification strategy, adding five locations in key markets during the first half of 2025 (“H1 2025”), bringing AWH’s total store count, including partner locations, to 44.
A strong retail development pipeline remains in place, which is anticipated to progress the Company’s medium-term target of 60 total stores, which represents a 50% expansion since launching this goal at the end of 2024.
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 SKUs in H1 2025, with an additional ~300 in flight for the remainder of the year spanning all product formats. The Company continues to focus on expanding shelf presence and driving margin improvement through the rollout of high-margin, in-house branded products across its multi-state footprint.
Launched High Wired, a meticulously crafted line of infused flower and pre-roll products designed for seasoned 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 (“Common Shares”) in the open market through AWH’s normal course issuer bid (“NCIB”) share buyback program (the “Buyback Program”) in Q2 2025, for a total of approximately 2.7 million Common Shares since its launch in January 2025. The Company intends to continue repurchasing shares, subject to regulatory limits.
Subsequent to quarter end, AWH launched its new, fully integrated e-commerce ecosystem:
- 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 Company’s revamped loyalty program, now features a tiered structure with points-based, best-in-class rewards and exclusive member benefits.
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 (“Q1 2025”).
Adjusted EBITDA
Adjusted EBITDA was $28.6 million for Q2 2025, representing a 22.4% margin. Adjusted EBITDA increased 5.7% quarter-over-quarter and Adjusted EBITDA Margin increased by 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 Debt, 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 tenth consecutive quarter of positive operating cash flow, and Free Cash Flow 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,” said Sam Brill, Chief Executive Officer. “The retirement of our prior term loan strengthens our balance sheet and extends our financial runway, allowing us to execute on our strategic priorities with greater focus and stability. We remain committed to the initiatives identified in recent quarters that are fueling our transformation and driving improved profitability, such as expanding our vertical margin through retail densification and supporting our store footprint with differentiated products and elevated customer experiences. These foundational efforts support our long-term growth strategy as we enter the second half of the year with strong momentum and a clear roadmap ahead.”
Frank Perullo, Co-Founder and President, added, “Q2 delivered strong progress, including the addition of three new stores in key markets and the debut of our new infused brand, High Wired. We also ramped up commercialization of higher-margin, top-selling SKUs, launching 225 in the first half 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 Jersey combined for another consecutive quarter. To complement this achievement, we completed the full-scale launch of our new e-commerce ecosystem across our entire footprint. The platform features a completely reimagined tiered loyalty program and mobile app, designed to revolutionize the shopping experience and reward our valued customers with unmatched perks and benefits.”
Roman Nemchenko, Chief Financial Officer of AWH, concluded, “We continue to build a strong, scalable platform to support disciplined expansion as we work to grow our topline. In addition to paying down debt, we reached a significant milestone by achieving positive operating cash flow for ten consecutive quarters and have driven improvements through strong cost controls. While there is still progress to be made, we are confident that the strategic actions implemented in the first half of the year will continue to yield meaningful results in the near-term and we remain steadily focused on delivering value for our 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. This growth was partially offset by ongoing pricing pressure across several 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 Profit 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. This increase was primarily attributable to stronger unit growth and a 260-basis point lift, partially offset by competitive pricing pressures across both retail and wholesale channels.
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 29.0% of revenue, for Q1 2025. The increase was primarily associated with the expansion of operations, partially offset by a benefit from cost-savings initiatives previously implemented.
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 EBITDA was $28.6 million in Q2 2025 compared to $27.0 million for Q1 2025, with an Adjusted EBITDA Margin of 22.4%, a 130-basis point increase over Q1 2025. 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 Debt was $254.3 million. Cash from Operations was $17.8 million in Q2 2025, representing the tenth consecutive quarter of positive operating cash flow, and Free Cash Flow was $12.1 million.
About Ascend Wellness Holdings, Inc.
AWH is a vertically integrated cannabis operator with assets in Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania. AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products for retail and wholesale customers. AWH produces and distributes its in-house Simply Herb, Ozone, Ozone Reserve, High Wired, Effin’, Common Goods, and Royale branded products.
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