Ascend Wellness (AAWH) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 was $127.3 million, with Adjusted EBITDA of $28.6 million and a 22.4% margin, marking a 5.7% increase quarter-over-quarter.

• Achieved tenth consecutive quarter of positive operating cash flow, generating $17.8 million in Q2 2025.

• Retail footprint expanded to 44 stores, with five new locations added in H1 2025 and a medium-term target of 60 stores across seven states.

• Launched new e-commerce platform, mobile app, and loyalty program, commercializing 225 SKUs in H1 2025.

• Repurchased 1.9 million shares in Q2 2025, totaling 2.7 million since January under the buyback program.

Financial highlights

• Q2 2025 net revenue was $127.3 million, down 0.5% sequentially; retail revenue rose 2.5% to $86.5 million, while wholesale revenue fell 6.4% to $40.8 million.

• Adjusted gross profit was $55.3 million (43.4% margin), up 260 basis points sequentially.

• Adjusted EBITDA was $28.6 million, with margin up 130 basis points to 22.4%.

• Free cash flow reached $12.1 million in Q2 2025.

• Cash and equivalents stood at $95.3 million as of June 30, 2025; net debt at $254 million.

Outlook and guidance

• Q3 2025 guidance: flat to low single-digit top-line growth, adjusted EBITDA margin between 22% and 23%.

• Medium-term plan targets 60 dispensaries, a 50% increase from FY2024, with a strong retail development pipeline.

• CapEx for 2025 expected at $30–$35 million, split between new store openings and facility upgrades.

• Continued focus on operational execution, digital innovation, and product portfolio expansion to drive growth.