Ascend Wellness (AAWH) Q4 2025 earnings summary

Executive summary

• 2025 was a pivotal year with refreshed leadership, organizational changes, and execution on densification, profitability, and sustainability strategies.

• Eight new dispensaries opened, bringing the total to 48 by year-end, with a focus on prime retail locations and vertical integration.

• Achieved over $30 million in annualized cost savings, improved margins, and strengthened cash flow profile.

• Launched 566 new SKUs, including two new brands, and completed a full-scale rebrand of flagship Ozone, driving significant product innovation and consumer engagement.

• Strengthened capital structure by refinancing debt, repaying a $60 million term loan, and completing a share buyback program.

Financial highlights

• Q4 2025 net revenue was $120.5 million, down 3.4% sequentially, with retail sales up 1.4% and wholesale down 13.1%.

• Full-year net revenue was $500.6 million, down from $561.6 million in 2024; adjusted EBITDA for the year was $116.9 million (23.4% margin).

• Q4 adjusted EBITDA was $30.2 million (25.1% margin); Q4 adjusted gross profit was $54.7 million.

• Operating cash flow for the year was $38.1 million; ended 2025 with $85.7 million in cash and no significant debt maturities until 2029.

• Q4 net loss was $48.7 million; FY net loss was $118.2 million.

Outlook and guidance

• Targeting 12 new dispensary openings in 2026, with cadence expected to be second-half weighted due to regulatory approvals.

• Q1 2026 guidance anticipates a low- to mid-single-digit top-line decline due to post-holiday spending, pricing headwinds, and weather-related closures.

• Adjusted EBITDA margin expected in the low 20s% for Q1; top-line improvements for 2026 depend on new store openings and M&A.

• CapEx for 2026 projected at $20 million, focused on new stores and cultivation/manufacturing projects.