Ascend Wellness Reports Q2 2026 Financial Results

NEW YORK – Ascend Wellness Holdings Inc. reported its Q2 2026 financial results posting net revenue of $126.1 million, a 7.9% sequential increase from $116.9 million in Q1 2026. Retail revenue climbed 11.5% quarter-over-quarter to $92.7 million, accounting for 73.5% of total net revenue, up from 71.1% in the prior period.

Wholesale revenue held near flat at $33.4 million, down roughly 1% sequentially. A work stoppage at the company’s Barry, Illinois facility, which began June 25, 2026, and was resolved by August 3 under a new contract ratified July 30, contributed to the Q2 wholesale shortfall by disrupting a few days of deliveries. Management is still evaluating how the disruption may affect Q3 results.

On the margin side, adjusted gross profit reached $58.3 million, or 46.2% of revenue, essentially flat with 46.1% in Q1. Adjusted EBITDA rose 10.5% sequentially to $29.1 million, with margin improving to 23.1% from 22.5%. The GAAP net loss narrowed to $9.8 million. Operating cash flow reached $22.5 million, with free cash flow at $19.5 million, pushing the cash balance to $67 million at quarter-end. Net debt stood at $251.8 million.

CEO Sam Brill framed the results as confirmation of a thesis the company put forward at the start of the year. “On our last call, we said we believed we had reached an important inflection point,” Brill said on the earnings call. “This quarter’s performance confirms it.”

The company’s retail footprint grew to 55 locations by quarter-end, up from 48 at the end of Q1 2026 and 39 in August 2024 – a roughly 45% increase in under two years. Among the new openings was East Coasting in Eatontown, New Jersey, which launched April 20. Management expects to meet or exceed its year-end target of 60 stores, with additional expansion opportunities signaled in Ohio.

Combined market share grew approximately 5% across the company’s seven operating states, with total retail transactions up roughly 7% sequentially. For Q3, Ascend has guided for a 2–4% revenue increase over Q2, with adjusted EBITDA margin expected to hold at 23.1%, barring unusual conditions.

Two post-quarter developments add dimension to the forward outlook. Ascend submitted applications with the DEA to register certain state-licensed medical Cannabis operations under the expedited registration pathway tied to the federal rescheduling of Cannabis to Schedule III. Separately, shareholders are set to vote at a virtual special meeting on August 28 on a reverse stock split at a ratio between 1-for-10 and 1-for-50 – a prerequisite the board has tied directly to pursuing a listing on a major U.S. exchange.

AWH’s Q2 delivered what institutional observers needed to see: retail growth without meaningful margin erosion, positive free cash flow, and a labor dispute behind the company rather than ahead of it. The DEA registration applications embed the company within the federal rescheduling framework in a way that carries real structural implications. The August 28 vote, and what a U.S. exchange listing ultimately unlocks for capital access and investor reach, will be the sharper question to track through the back half of the year.