AWH Announces Fourth Quarter and Full Year 2025 Results
Executive Summary
- Ascend Wellness Holdings reported Q4 2025 net revenue of $120.5 M and FY 2025 net revenue of $500.6 M, both down year‑over‑year, with a net loss of $48.7 M for the quarter and $118.2 M for the full year.
- Adjusted EBITDA improved to $30.2 M (25.1% margin) in Q4 and $116.9 M (23.4% margin) FY, despite revenue declines.
- The company refinanced its debt, repaid a $60 M term loan via a $50 M private placement of 12.75% senior secured notes due 2029, and added $9.3 M mortgage financing on Ohio properties.
Key Details
- Revenue
- Q4 2025: $120.5 M (‑3.4% QoQ); FY 2025: $500.6 M (‑10.9% YoY).
- Retail revenue Q4: $85.0 M (+1.4% QoQ); FY retail: $339.6 M (‑8.8% YoY).
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Wholesale revenue Q4: $35.5 M (‑13.1% QoQ); FY wholesale: $161.0 M (‑15.0% YoY).
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Profitability
- Adjusted EBITDA Q4: $30.2 M (25.1% margin, +20 bps QoQ).
- Adjusted EBITDA FY: $116.9 M (23.4% margin, slight improvement YoY).
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Gross profit Q4: $45.1 M (37.4% of revenue); Adjusted gross profit Q4: $54.7 M (45.4% margin).
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Losses
- Net loss Q4: $48.7 M (includes $17.0 M arbitration settlement).
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Net loss FY: $118.2 M vs. $85.0 M in FY 2024.
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Liquidity & Capital Structure
- Cash & cash equivalents as of 31 Dec 2025: $85.7 M.
- Net debt: $215.8 M.
- Completed repayment of $60 M term loan via $50 M senior secured notes (12.75% due 2029) and $10 M cash.
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Secured additional $9.3 M mortgage financing on three Ohio properties at 8.5% interest, maturing Sep 2030.
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Share Repurchase
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Normal Course Issuer Bid repurchased ~15.8 M shares at an average price of $0.32 per share since Q4 2024.
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Retail Expansion
- Total dispensary footprint: 48 locations (incl. partner‑owned).
- Added eight new stores in FY 2025; pipeline of 12 additional sites to reach ~60 by end‑2026 pending approvals.
- Opened first social‑equity partner store in Little Falls, NJ; second approved for Eatontown, NJ (expected Apr 2026).
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Closed underperforming Ann Arbor, MI location.
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Product Portfolio
- Launched record 566 SKUs in FY 2025 (146 in Q4), including new brands “High Wired” and “Honor Roll.”
- Introduced Ozone Liquid Diamonds vape and limited‑edition Ozone King of Queen Cola.
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Began full‑scale refresh of flagship Ozone brand in Q1 2026 across IL, MA, NJ.
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E‑commerce & Loyalty
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Ascend Pay transactions up 49.4% QoQ; loyalty program members grew 56%, now represent 88% of retail transactions.
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Outlook (Q1 2026)
- Anticipates low‑ to mid‑single‑digit revenue decline due to post‑holiday softness and pricing pressure.
- Adjusted EBITDA margin expected to remain in low‑20% range.
Notable Quotes
- Sam Brill, CEO: Emphasized progress on densification, cost savings, and capital structure improvements, positioning the company for 2026 growth.
- Frank Perullo, Founder/President: Highlighted product innovation, brand performance, and e‑commerce enhancements driving competitive advantage.
- Roman Nemchenko, CFO: Stressed strengthened liquidity and readiness to pursue selective M&A while maintaining disciplined expansion.