Ascend Wellness (AAWH) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue was $116.9 million, down 3% sequentially, with adjusted EBITDA of $26.3 million (22.5% margin), both exceeding guidance despite post-holiday softness and severe winter weather disruptions.

• Net loss improved to $29.5 million from $48.7 million in the prior quarter.

• Regulatory progress included DOJ rescheduling of medical cannabis, with potential for broader reform and improved access to capital and financial services.

• Five new dispensaries were added year-to-date, expanding the footprint to 51 locations, with a pipeline to reach at least 60 stores by year-end, subject to regulatory approvals.

• Ranked No. 2 brand house in Illinois, Massachusetts, and New Jersey combined for Q1 2026.

Financial highlights

• Adjusted gross profit was $53.9 million (46.1% margin), up 70 basis points sequentially, driven by improved vertical sales and operating leverage.

• Retail sales reached $83.1 million, down 2.2% quarter-over-quarter; wholesale revenue was $33.8 million, down 5%.

• Gross profit was $44.9 million (38.4% margin), nearly flat sequentially.

• General and administrative expenses were $42.3 million (36.2% of revenue), down from $45.3 million in Q4 2025.

• Cash and cash equivalents stood at $60.9 million as of March 31, 2026, with no major debt maturities until July 2029.

Outlook and guidance

• Q2 2026 revenue is expected to increase 2%-3% sequentially, driven by new store openings and favorable seasonality.

• Adjusted EBITDA margin is projected to remain in the low 20% range.

• CapEx for 2026 is expected to be about $20 million, primarily for new store openings.

• Anticipated benefits from cannabis rescheduling, particularly regarding tax positions.

• Retail footprint projected to reach at least 60 stores by year-end, pending regulatory approvals.