Ascend Wellness Q2 Net Revenue Grows 26.1% YoY, What About Income?

Ascend Wellness Holdings, Inc. AAWH AAWH released its financial results for the three months ending June 30, 2023, revealing net revenue, which excludes intercompany sales of wholesale products, increased 26.1% year-over-year and 7.7% quarter-over-quarter to $123.0 million.

Q2 2023 Financial Highlights

• Gross profit was $28.3 million, or 23.0% of revenue, compared to $35.7 million, or 31.3% of revenue, in the prior quarter, and $33 million, or 33.8% of revenue in Q2 2022.

• Net income of $841,000 during the quarter represented an improvement compared to a net loss of $21.2 million in Q2 2022 and $18.5 million in Q1 2023.

• Adjusted EBITDA was $21.3 million, compared to $20.9 million in Q2 2022.

• As of June 30, 2023, cash and cash equivalents were $68.0 million and net debt was $241.8 million.

"I am proud of the company for achieving another quarter of record revenue and cash generation, fueled by growth across both our retail and wholesale businesses," stated Abner Kurtin, executive chairman. "We were able to deliver a meaningful 26% revenue increase compared to last year and an 8% increase compared to the prior quarter."

John Hartmann, CEO, stated, "With the team's strong performance in the quarter, we remain optimistic about the future of the business and continue to see substantial growth across all areas, particularly in our retail outlet model. As we expand our presence into Maryland's adult-use market and closely monitor Ohio's upcoming recreational cannabis ballot, we are confident in Ascend's continued success and potential for further growth."

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