Ayr Wellness (AYR-A) investor relations material

Executive summary

• Revenue for Q1 2025 was $107.3M, down 9.1% year-over-year, with retail and wholesale both declining due to increased competition and price compression.

• Net loss attributable to shareholders was $57.1M, a significant improvement from $106.1M in Q1 2024, primarily due to lower non-recurring expenses.

• The company initiated a major restructuring post-quarter, including a Restructuring Support Agreement (RSA) with senior noteholders and plans for asset sales and wind-downs.

Financial highlights

• Gross profit fell to $32.8M (30.6% margin) from $50.7M (42.9%) year-over-year, reflecting revenue declines and margin compression.

• Adjusted EBITDA was $19.2M, down from $29.1M in Q1 2024.

• Operating expenses rose to $61.0M, up 16% year-over-year, driven by $7.3M in non-cash impairment and higher payroll.

• Cash flow from operations was $10.7M, with $4.8M used in investing and $3.8M used in financing activities.

• Cash and equivalents at quarter-end were $37.6M, with negative working capital of $185.4M due to reclassification of senior notes.

Outlook and guidance

• Management highlights substantial doubt about the ability to continue as a going concern, citing negative working capital, accumulated deficit, and upcoming debt maturities.

• The RSA contemplates an asset sale of core businesses and a court-supervised liquidation of remaining assets.

• The company is monitoring the impact of new tariffs and federal legislation, with potential effects on future results.