Ascend Wellness Reports Revenue Growth in Q2 2024

LOS ANGELES- Ascend Wellness Holdings, Inc. delivered a mixed performance for Q2 2024, reflecting both revenue gains and profitability pressures. The company reported a 15% year-over-year increase in revenue, reaching $141.5 million. Despite this growth, profitability declined significantly, with a net loss of $21.8 million compared to a net income of $800,000 in the same quarter last year.

The company’s adjusted EBITDA rose 33% year-over-year to $28.3 million but fell 12.7% from the previous quarter. Ascend attributed this downturn to rising competition, particularly in key markets like Illinois, New Jersey, and Massachusetts. However, some retail growth was observed in Pennsylvania and Maryland.

Due to competitive pressures and shrinking wholesale profitability, Ascend revised its 2024 revenue growth forecast to 11-13%, down from its original estimate of 12-15%. Despite these headwinds, the company remains committed to expansion, with plans to open new dispensaries and secure a cultivation license in Massachusetts.

In a significant financial move during the quarter, Ascend closed a $235 million private placement of senior secured notes. The funds are intended to refinance existing debt as part of the company’s strategy to strengthen its financial footing in a challenging market environment.