Ascend Wellness (OTCMKTS:AAWH – Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($0.15) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.02), Zacks reports. Ascend Wellness had a negative net margin of 23.61% and a negative return on equity of 1,099.51%.
Here are the key takeaways from Ascend Wellness’ conference call:
- Ascend said Q1 revenue and adjusted EBITDA came in ahead of its guidance and broader market expectations, with net revenue of $116.9 million and adjusted EBITDA of $26.3 million.
- Margins improved despite softer sales, with adjusted gross margin up 70 basis points to 46.1%, helped by stronger vertical sales, better product mix, and menu optimization.
- Management pointed to healthy underlying consumer demand, saying transaction volumes were stable overall and that some markets saw stronger traffic; Ohio transaction volumes rose 11.8% quarter over quarter after pricing changes.
- The company highlighted continued progress in its retail expansion, saying it added five stores year to date and expects its footprint to grow from 51 to at least 60 stores by year-end, subject to approvals.
- Ascend said the DOJ’s move to reschedule medical cannabis to Schedule III is a historic step and could eventually support tax relief, better banking access, and even a future uplisting, though the near-term impact appears mainly tax-related and still unclear.
Ascend Wellness Stock Performance
Shares of OTCMKTS AAWH opened at $0.57 on Thursday. The stock has a market cap of $115.27 million, a PE ratio of -0.98 and a beta of 1.22. Ascend Wellness has a 1 year low of $0.26 and a 1 year high of $1.20. The firm has a fifty day moving average price of $0.51 and a 200-day moving average price of $0.59. The company has a debt-to-equity ratio of 133.34, a current ratio of 1.92 and a quick ratio of 1.14.
Wall Street Analysts Forecast Growth
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Ascend Wellness Company Profile
Ascend Wellness Holdings, Inc engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores.
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