Core Insights - Ascend Wellness Holdings, Inc. reported Q1 2025 net revenue of $128.0 million, a decrease of 5.9% quarter-over-quarter, with retail revenue down 6.6% and wholesale revenue down 4.4% [1][7][8] - The company generated positive cash from operations of $5.9 million, marking the ninth consecutive quarter of positive operating cash flow [1][11] - The company ended Q1 2025 with $100.0 million in cash and cash equivalents, reflecting a sequential increase of $11.7 million [1][11] Business Highlights - The company is focused on executing a densification strategy aimed at increasing store count by approximately 50% in the medium term, targeting ten new stores in 2025 [6][7] - New product launches and store openings are anticipated in the coming months to enhance consumer experience and expand access [6][7] Financial Highlights - Adjusted EBITDA for Q1 2025 was $27.0 million, representing a margin of 21.1%, a decrease of 10.7% from the previous quarter [7][11] - The net loss for Q1 2025 was $19.3 million, compared to a net loss of $16.8 million in Q4 2024 [7][10] - Total general and administrative expenses decreased to $37.1 million, or 29.0% of revenue, down from $40.8 million, or 30.0% of revenue, in Q4 2024 [10][11] Revenue Breakdown - Total net revenue of $128.0 million included retail revenue of $84.4 million and wholesale revenue of $43.6 million, both showing declines due to competitive pressures and pricing [7][8] - Gross profit for Q1 2025 was $39.6 million, or 30.9% of revenue, down from $46.9 million, or 34.5% of revenue, in Q4 2024 [9][11] Cash Flow and Balance Sheet - Free Cash Flow for Q1 2025 was $1.2 million, calculated as cash from operations minus capital expenditures [5][11] - Net Debt as of March 31, 2025, was $233.0 million, reflecting total debt less cash and cash equivalents [4][11] - The company launched a share buyback program in January 2025, repurchasing 1,571,500 shares by April 30, 2025 [7]
AWH ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS