Q1 2026 Ascend Wellness Holdings Inc Earnings Call Transcript
Key Points
- Ascend Wellness Holdings Inc (AAWH) reported revenue and adjusted EBITDA ahead of guidance and market expectations, demonstrating resilience despite challenging conditions.
- The company is actively exploring pathways to uplist to a major exchange, which could enhance its market presence and access to capital.
- Ascend Wellness Holdings Inc (AAWH) achieved a 70 basis point increase in adjusted gross profit margin to 46.1%, driven by optimized product mix and increased verticality.
- The company expanded its retail footprint with five new stores and plans to increase its total store count to at least 60 by year-end, supporting its densification strategy.
- Ascend Wellness Holdings Inc (AAWH) saw significant growth in its loyalty program, with membership up over 34% sequentially, contributing to increased customer retention and spending.
- Net revenue decreased by 3% sequentially, impacted by post-holiday spending softness and severe winter weather affecting store operations.
- Wholesale revenue declined by 5% sequentially, influenced by seasonality trends and competitive pricing pressures.
- Adjusted EBITDA decreased by 12.9% from the prior quarter, affected by lower sales and increased SG&A expenses.
- The company experienced a $24.8 million decrease in cash from year-end, partly due to a $70 million settlement of an arbitration matter.
- Operations at the Lansing, Michigan cultivation facility were temporarily suspended due to a fire incident, although it is not expected to materially impact the business.
Good afternoon and thank you for standing by. Welcome to Ascend Wellness Holdings Q1 2026 earnings call.
Before proceeding, the company would like to remind you that the following discussion and presentation contains various forward-looking statements or information. These forward-looking statements or information are subject to risks and uncertainties that may cause actual results to differ from historical or anticipated results. For more information on the risks and uncertainties, please refer to today's earnings release and Ascend's SEC and SEDAR filings, including their most recent report on Form 10-K and quarterly report on Form 10-Q. During today's call, the company will be referring to non-GAAP financial measures such as adjusted EBITDA. Reconciliations to the most directly comparable GAAP measures are in an appendix to the presentation and in the company's earnings release.
I am pleased to introduce the Ascend management team joining us on today's call. We will begin with Sam Brill, Chief Executive Officer and Director, who will provide an overview of the key operational
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