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.

• Retail footprint grew to 48 locations, with eight new dispensaries opened in 2025 and a pipeline targeting 60 by end of 2026.

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

• Launched 566 new SKUs in FY 2025, including two new brands and significant product innovation.

• Strengthened capital structure by refinancing debt and completing a share buyback program.

Financial highlights

• Q4 2025 net revenue was $120.5 million, down 3.4% sequentially, in line with guidance for a promotional-heavy quarter.

• 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), up 20 basis points sequentially.

• Q4 gross profit was $45.1 million (37.4% margin); FY gross profit was $169.7 million (33.9% margin).

• Cash and cash equivalents at year-end were $85.7 million; net cash from operations in Q4 was $16.3 million.

Outlook and guidance

• Targeting 12 additional dispensary openings by end of 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 2026.

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