Ascend Wellness Holdings Reports Q2 2025 Financial Results

NEW YORK – Ascend Wellness Holdings, Inc., a multi-state Cannabis operator, shared its financial performance for the second quarter of 2025, confirming steady performance, a fortified balance sheet, and ongoing retail growth.

The company recorded net revenue of $127.3 million, nearly unchanged from the prior quarter with a slight 0.5% decline. Retail sales climbed 2.5% to $86.5 million, fueled by five new store openings in the first half of 2025 and robust demand in Ohio’s adult-use market. However, wholesale revenue dropped 6.4% to $40.8 million, reflecting weaker sales in Illinois and competitive pricing pressures across several states.

Ascend achieved an adjusted EBITDA of $28.6 million, a 5.7% increase from Q1 2025, with a margin of 22.4%, up 130 basis points. This gain was driven by a 260-basis-point rise in adjusted gross profit to $55.3 million, or 43.4% of revenue, though higher general and administrative costs of $42.4 million (33.3% of revenue) tempered results. The company reported a net loss of $24.4 million, compared to $19.3 million in the previous quarter, largely due to increased operating expenses.

Ascend’s cash reserves totaled $95.3 million, a decrease of $4.8 million on a sequential basis, primarily due to a $10 million cash repayment as part of a strategic refinancing. The company fully retired a $60 million term loan using $10 million in cash and $50 million from a private placement of 12.75% Senior Secured Notes due July 2029. This completed a broader refinancing effort, including a $235 million notes offering in July 2024 and a $15 million placement in January 2025, reducing net debt to $254.3 million and extending debt maturities.

Operationally, Ascend expanded its retail footprint to 44 stores, including partnerships, with five new locations added in key markets during the first half of 2025. The company is on track to hit its goal of 60 stores, a 50% increase from its 2024 target. It also introduced 225 new SKUs in H1 2025, emphasizing high-margin, in-house brands like High Wired, which has gained strong footing in Illinois and Massachusetts and is poised for a New Jersey launch.

The company reinforced its digital presence with a new e-commerce platform, featuring AI-driven product recommendations and a revamped Ascenders Club loyalty program with tiered rewards. Additionally, Ascend repurchased 1.9 million shares in the second quarter of 2025 under its share buyback program, bringing the total number of shares to 2.7 million since January 2025.

CEO Sam Brill highlighted the company’s strengthened financial position, stating that the term loan repayment and retail expansion position Ascend for sustained growth. President Frank Perullo emphasized the success of new product launches and the e-commerce ecosystem, which aims to enhance customer experience. CFO Roman Nemchenko underscored the company’s consistent cash flow generation and cost controls, expressing confidence in delivering shareholder value.

Ascend’s results reflect the Cannabis industry navigating pricing challenges and regulatory complexities. The company’s focus on retail expansion and vertical integration aligns with broader market trends, where operators prioritize scale and brand strength to maintain competitiveness. Its robust cash position and extended debt maturities provide flexibility in a capital-intensive sector, though ongoing net losses highlight the need for continued operational efficiency.