Ayr Wellness Reports Revenue Increase in Q2 2024

LOS ANGELES- Ayr Wellness Inc. posted a slight revenue increase for Q2 2024, reporting earnings of $117 million, a 0.5% improvement compared to the same quarter last year but a 0.6% decline from Q1 2024. The results fell short of analysts’ projections, which anticipated revenue of $119 million.

The company attributed the decline in performance primarily to an 8.6% drop in same-store sales, though this was partially offset by gains from new store openings and acquisitions. Wholesale revenues saw significant growth, up 51.8%, largely due to expansions in New Jersey and other key markets.

Despite a 10.4% reduction in operating expenses, Ayr reported a net loss of $38 million, an increase from the $29 million loss in Q2 2023. The widening loss was driven by higher income taxes and increased interest expenses. The company’s earnings per share loss was ($0.34), falling short of the expected ($0.25).

Looking forward, Ayr projects low to mid-single-digit revenue growth for Q3 2024 and plans to enhance EBITDA margins through operational efficiencies and market expansions. The company also aims for positive cash flow by year-end, contingent on resolving certain tax liabilities.