Ascend Wellness Studies $562M Income in Hashish Marketplace

[PRESS RELEASE] – NEW YORK, March 12, 2025 – Ascend Wellness Holdings Inc. (AWH), a vertically built-in multistate hashish operator occupied with making improvements to lives thru hashish, reported its monetary effects for the fourth quarter and entire 12 months ended Dec. 31, 2024. Monetary effects are reported based on U.S. most often permitted accounting rules (GAAP) and all foreign money is in U.S. greenbacks.

This fall 2024 Trade Highlights

• Maintained center of attention on lowering expenditures in make stronger of the corporate’s charge financial savings transformation projects, that have definitely impacted each adjusted EBITDA¹ of $30.2 million and changed gross margin¹ of 41.9% within the quarter, forward of control’s preliminary expectancies.
• Call for for AWH’s in-house manufacturers, together with Not unusual Items, Merely Herb, Effin’, Ozone, and Royale, progressed within the quarter and contributed to a 6% sequential building up in vertical gross sales in addition to progressed gross margin.
• The corporate has endured to make forged growth in making improvements to its stability sheet and dealing capital, highlighted through the $30.1 million in loose coins drift² that used to be generated within the quarter.
• AWH stays dedicated to imposing its densification technique, which is anticipated to lead to a 50% building up in retailer depend within the medium time period. The corporate continues to care for its data-backed center of attention on premier places in high-density inhabitants facilities in its growth efforts. Lately, the corporate has 10 retail outlets in building, together with 3 in Ohio and one in Pennsylvania, in addition to 4 further spouse retail outlets in Illinois, which might carry the entire companions within the state to 6, and two spouse websites recognized in New Jersey.
• Introduced Effin’, an effect-based logo occupied with handing over centered results the usage of minor cannabinoids. The logo has been nicely gained, temporarily reaching the highest spot within the edibles class at Ascend retail outlets the place it’s to be had.
• Effectively repurchased 11 million stocks of Magnificence A commonplace inventory, representing over 5% of the then-outstanding stocks. The stocks had been received at an important bargain to the final value at the Canadian Securities Change (CSE) as of Dec. 17, 2024. This strategic transfer used to be meant to fortify shareholder price, scale back downward force at the inventory, and power long-term returns for shareholders.
• Introduced a proportion buyback program, which started in January 2025. Pursuant to an ordinary direction issuer bid (NCIB), the corporate might repurchase as much as the lesser of: (i) 10,215,690 stocks of the corporate’s magnificence A commonplace inventory (commonplace stocks), representing roughly 5% of AWH’s then-outstanding commonplace stocks; and (ii) $2.25 million price of commonplace stocks, within the open marketplace. The NCIB represents every other significant step within the corporation’s ongoing efforts to ship price to shareholders, highlighting the robust self assurance of each control and the board of administrators within the corporation’s undervalued basis and its long run enlargement doable. Next to year-end, the corporate repurchased 620,500 commonplace stocks by way of the NCIB program.

Complete Yr 2024 Trade Highlights 

• Opened 4 dispensaries right through 2024, together with one in Cincinnati and 3 in Pennsylvania in Monaca, Cranberry and Whitehall, and started supporting two spouse places bringing AWH’s overall community to 39 dispensaries. Next to year-end, in February the corporate re-opened the Detroit dispensary which used to be quickly closed right through 2024 to make bigger for adult-use gross sales.
• Commenced adult-use gross sales at 5 dispensaries in Ohio, reaching a median gross sales building up of over 3 times in comparison to their efficiency previous to the beginning of adult-use.
• Offered greater than 187,000 kilos of wholesale merchandise, on a gross foundation, and greater wholesale earnings in each and every of the corporate’s key markets in comparison to the prior 12 months.
• Greater logo reputation around the portfolio in quite a lot of markets, with AWH achieving the highest 3 Emblem Area in gross sales and devices throughout our 3 key markets (Illinois, Massachusetts and New Jersey mixed). The Merely Herb logo rose to the No. 1 promoting logo in Massachusetts. Ozone holds the No. 1 spot through devices in our 3 key markets and is No. 2 in gross sales.
• The corporate considerably finished a sequence of charge financial savings and transformation projects it initiated as a part of the corporate’s dedication to sustainable profitability, pursuant to which the corporate objectives to streamline operations and scale back expenditures through $30 million on an annualized foundation. The corporate is occupied with steady growth and has recognized further charge financial savings and potency alternatives that it plans to enforce all over 2025.
• Introduced the appointment of 3 key executives to its management workforce as a part of its transformation efforts. The corporate finished the transition to a tactical, lean management workforce occupied with controlling prices whilst proceeding to power enlargement, together with a discount of headcount.

Monetary Highlights

• Income:
  • FY 2024:
    • Internet earnings greater 8.3% year-over-year to $561.6 million.
    • Retail earnings greater 0.3% year-over-year to $372.2 million.
    • Wholesale earnings greater 28.5% year-over-year to $189.4 million.
  • This fall 2024:
    • General internet earnings declined 4% quarter-over-quarter to $136 million.
    • Retail earnings reduced 3.5% quarter-over-quarter to $90.4 million.
    • Wholesale earnings reduced 5% quarter-over-quarter to $45.6 million.
• Internet Loss:
  • FY 2024: Internet lack of $85 million in comparison to internet lack of $48.2 million for FY 2023.
  • This fall 2024: Internet lack of $16.8 million in comparison to internet lack of $28.3 million in Q3 2024.
• Adjusted EBITDA¹:
  • FY 2024: Adjusted EBITDA¹ used to be $116.2 million, a 9.1% building up year-over-year. adjusted EBITDA margin¹ used to be 20.7%, a 15-basis-point building up in comparison to the prior 12 months.
  • This fall 2024: Adjusted EBITDA¹ used to be $30.2 million, representing a 22.2% margin^1. Adjusted EBITDA¹ greater 20.4% and changed EBITDA margin¹ greater 450 foundation issues quarter-over-quarter.
• Stability Sheet:
  • As of Dec. 31, 2024, coins and coins equivalents had been $88.3 million, a sequential building up of $23 million. Internet debt³, which equals overall debt much less unamortized deferred financing prices much less coins and coins equivalents, used to be $220.2 million.
• Money Go with the flow:
  • FY 2024: Generated $73.3 million coins from operations within the complete 12 months, representing the second one complete 12 months the corporate generated coins from operations, and generated $50.8 million in loose coins drift².
  • This fall 2024: Generated $35.2 million in coins from operations within the quarter, representing the 8th consecutive quarter of certain working coins drift, and generated $30.1 million in loose coins drift² within the quarter.

Control Statement

“The fourth quarter marked the primary complete quarter with our new control workforce in position, and I’m happy with the preliminary growth we made on our key projects—making improvements to profitability, maximizing asset potency, and riding coins drift technology,” Leader Govt Officer Sam Brill stated. “This used to be accomplished thru our workforce’s good fortune in considerably finishing our $30 million in annualized charge financial savings goal, forward of plan, and with this milestone finished, we have now grew to become our efforts to compelling earnings enlargement. Having a look forward, we’re occupied with executing our densification technique, sponsored through our reinforced stability sheet, that places us in a robust place to behave on thrilling retail and wholesale alternatives throughout our footprint.”

Frank Perullo, co-founder and president, stated, “We’re development our trade for long-term good fortune and are occupied with offering sufferers and shoppers with constant, high quality merchandise in an approachable and increased retail revel in. This, at the side of our densification technique and transformation projects, supplies us with self assurance that we’re well-positioned to thrive on this present marketplace and proceed to guide as a premier operator in an more and more dynamic trade.”

Leader Monetary Officer Roman Nemchenko stated, “Vital growth has been made in strengthening our stability sheet and making improvements to our margins and profitability. This has led to a 450-basis-point sequential growth in adjusted EBITDA margin and $30.1 million in loose coins drift generated within the quarter. Moreover, we have now taken steps to rationalize our stock ranges thru extra rigorous acquire making plans intended to transparent the backlog. Whilst that is an ongoing procedure, I’m pleased with the paintings completed thus far. It’s been a robust beginning for our new management workforce, and we’re simply getting began.”

This fall 2024 Monetary Evaluation

Internet earnings reduced through 4% sequentially to $136 million, of which 2.3% used to be resulting from a decline in retail earnings and 1.7% used to be because of a decline in third-party wholesale earnings. Retail earnings totaled $90.4 million, representing a three.5% lower in comparison to the prior quarter, basically because of the softening of gross sales in Illinois, Michigan, New Jersey and Massachusetts as a result of a mixture of pricing force and quantity, partly offset through the contribution of adult-use gross sales in Ohio that started within the prior quarter and the ramp of recent spouse retail outlets in Illinois. 3rd-party wholesale earnings totaled $45.6 million, representing a 5% lower in comparison to the prior quarter, resulting from declines in Illinois and New Jersey, partly offset through enhancements in Massachusetts.

This fall 2024 gross benefit used to be $46.9 million, or 34.5% of earnings, as in comparison to $43.7 million, or 30.9% of earnings, in Q3 2024. This fall 2024 adjusted gross benefit¹ used to be $56.9 million, or 41.9% of earnings, as in comparison to $53.6 million, or 37.8% of earnings, for the prior quarter. Those will increase resulted from an building up in company-produced merchandise bought in AWH retail retail outlets pushed through potency enhancements and expanded manufacturing on the corporation’s New Jersey and Massachusetts cultivation amenities, in spite of aggressive pressures.

General normal and administrative (G&A) bills for This fall 2024 had been $40.8 million, or 30% of earnings, in comparison to $46.1 million, or 32.6% of earnings, for Q3 2024. The development of G&A bills as a proportion of earnings used to be basically because of positive cost-savings projects, decrease headcount within the present quarter, and the absence of positive one-time bills identified in Q3 2024.

Internet loss resulting from AWH for This fall 2024 used to be $16.8 million right through This fall 2024, in comparison to $28.3 million in Q3 2024. The enhancements are basically because of the absence of positive one-time prices identified in Q3 2024, the contribution of upper margins, and a get pleasure from positive cost-saving projects.

Adjusted EBITDA¹ used to be $30.2 million in This fall 2024, a 20.4% building up quarter-over-quarter, and Adjusted EBITDA Margin¹ used to be 22.2%, a 450-basis-point building up in comparison to Q3 2024, basically resulting from the contribution of upper margins and decrease G&A bills.

Money and coins equivalents on the finish of This fall 2024 had been $88.3 million and internet debt³ used to be $220.2 million. Money generated from working actions used to be roughly $35 million in This fall 2024, representing the 8th consecutive quarter of certain working coins drift.

Complete Yr 2024 Monetary Evaluation

Internet earnings greater 8.3% year-over-year to $561.6 million, basically pushed through growth of the corporate’s wholesale trade. 3rd-party wholesale earnings greater 28.5% year-over-year to $189.4 million, pushed through growth in New Jersey, Massachusetts and Illinois. General retail earnings greater modestly through 0.3% to $372.2 million. AWH benefited from a complete 12 months of adult-use gross sales in Maryland, the hole of 3 new dispensaries in Pennsylvania, the graduation of adult-use gross sales at 5 dispensaries in Ohio and supporting two spouse places right through the 12 months. Those will increase had been in large part offset through a decline in retail gross sales in New Jersey, Illinois and Massachusetts basically because of greater festival and pricing force in the ones states, in addition to declines in Michigan principally pushed through pricing force.

Complete-year 2024 gross benefit used to be $184.2 million, or 32.8% of earnings, in comparison to $155.1 million, or 29.9% of earnings, for the prior 12 months, pushed through an building up in company-produced merchandise at AWH retail places and sure overhead enhancements.

Complete-year 2024 adjusted gross benefit¹ used to be $225.9 million, or 40.2% of earnings, in comparison to $209 million, or 40.3% of earnings, in 2023. Adjusted gross benefit¹ greenbacks greater 8.1% year-over-year. Adjusted gross benefit¹ margin reduced 8 issues year-over-year pushed through margin declines in Illinois and Massachusetts cultivation and Michigan retail, offset through a advantage of expanded manufacturing at our New Jersey cultivation facility.

General G&A bills for 2024 had been $179.5 million, or 32% of earnings, in comparison to $158.7 million, or 30.6% of earnings, for 2023 resulting from positive one-time prices partly offset through the leveraging of the corporate’s current infrastructure and sure cost-savings projects.

Internet loss for 2024 used to be $85 million, in comparison to a internet lack of $48.2 million for 2023, in large part because of the absence of a $22.8 million tax credit score identified in 2023. 

Adjusted EBITDA¹, used to be $116.2 million in 2024, representing a 9.1% building up year-over-year. Adjusted EBITDA margin¹ used to be 20.7%, a 15-basis-point building up in comparison to 2023, basically pushed through a contribution from total progressed margins.

Non-GAAP Monetary Knowledge

This press free up contains positive non-GAAP monetary measures as outlined through the U.S. Securities and Change Fee (SEC). Reconciliations of those non-GAAP monetary measures to probably the most immediately similar monetary measure calculated and offered based on GAAP are incorporated within the monetary schedules hooked up to this press free up or in different knowledge contained herein. This data will have to be thought to be as supplemental in nature and no longer as an alternative choice to, or awesome to, any measure of efficiency ready based on GAAP.

Adjusted EBITDA/margin and changed gross benefit/margin are non-GAAP monetary measures. See “Reconciliations of Non-GAAP Monetary Measures (Unaudited)” on the finish of this free up.

The corporate defines loose coins drift as “internet coins supplied through working actions” internet of “additions to capital belongings,” which might be disclosed within the corporation’s Decided on Condensed Consolidated Money Go with the flow Knowledge (unaudited) incorporated within the monetary schedules hooked up to the corporate’s press free up. The corporate makes use of loose coins drift measures, amongst different measures, to judge the corporate’s liquidity and its skill to generate coins drift. The corporate believes that it is a significant monetary measure to traders as it supplies a view of the corporate’s liquidity after deducting capital expenditures, which might be thought to be to be a vital element of ongoing operations. This non-GAAP monetary measure will have to no longer be thought to be in isolation of, or as an alternative choice to, internet coins supplied through working actions and might not be similar to in a similar fashion titled measures supplied through different corporations.

The corporate defines internet debt as overall debt, internet of unamortized deferred financing prices, much less coins and coins equivalents, which elements are disclosed within the corporation’s Decided on Condensed Consolidated Stability Sheet Knowledge (unaudited) incorporated within the monetary schedules hooked up to the corporate’s press free up below the captions “Present portion of debt, internet,” “Lengthy-term debt, internet,” and “Money and coins equivalents.” The corporate believes this measure is crucial indicator of the corporate’s skill to provider its long-term debt duties. This non-GAAP monetary measure will have to no longer be thought to be in isolation of, or as an alternative choice to, probably the most immediately similar GAAP monetary measures as a trademark of working efficiency or liquidity and might not be similar to in a similar fashion titled measures supplied through different corporations.

Reconciliations of Non-GAAP Monetary Measures (Unaudited)

The corporate defines “adjusted gross benefit” as gross benefit except for non-cash stock prices, which come with depreciation and amortization incorporated in the price of items bought, equity-based reimbursement incorporated in the price of items bought, start-up prices incorporated in the price of items bought, and different non-cash stock changes. The corporate defines “adjusted gross margin” as adjusted gross benefit as a proportion of internet earnings. The corporate’s “adjusted EBITDA” is a non-GAAP measure utilized by control that’s not outlined through GAAP and might not be similar to equivalent measures offered through different corporations. The corporate defines “adjusted EBITDA margin” as adjusted EBITDA as a proportion of internet earnings. Control calculates adjusted EBITDA because the reported internet loss, adjusted to exclude: source of revenue tax expense, different (source of revenue) expense, passion expense, depreciation and amortization, depreciation and amortization incorporated in charge of products bought, non-cash stock changes, equity-based reimbursement, equity-based reimbursement incorporated in charge of products bought, start-up prices, start-up prices incorporated in charge of products bought, transaction-related and different non-recurring bills, litigation agreement, and achieve or loss on sale of belongings. Accordingly, control believes that adjusted EBITDA supplies significant and helpful monetary knowledge, as this measure demonstrates the working efficiency of the trade. Non-GAAP monetary measures is also thought to be along with the effects ready based on GAAP, however they will have to no longer be thought to be an alternative choice to, or awesome to, GAAP effects. The Corporate’s presentation of those monetary measures might not be similar to equivalent non-GAAP measures utilized by different corporations. Those monetary measures are meant to offer additional info to traders regarding the corporation’s efficiency.