Ascend Wellness Holdings Stock Earnings Reports

Ascend Wellness reported Q1 2026 net revenue of $116.9M (down 3% sequentially) and adjusted EBITDA of $26.3M (22.5% margin), both ahead of guidance despite seasonal and weather-related softening. The company highlighted a favorable shift in product mix toward retail/vertical sales (retail = 71.1% of revenue), resulting in a 70 bps expansion in adjusted gross margin to 46.1%. Management emphasized consumer demand resilience, with rising transaction volumes in key markets (e.g., Ohio +11.8% QoQ) and significant loyalty program traction (members up >34% sequentially; ~89% of transactions tied to loyalty members who spend ~20% more). CPG momentum was notable: Ascend moved to #2 by sales/units across IL, MA and NJ combined, driven by new product launches (notably High Wired and a relaunch of Ozone). Operational priorities for 2026 remain retail densification (pipeline to grow from 51 to at least 60 stores), improving the customer-first retail experience, and advancing higher-margin CPGs. Balance sheet: $60.9M cash at quarter end, no major debt maturities until July 2029, but cash declined $24.8M QoQ due to cash outflows including a $19.1M biannual interest payment and a $17M arbitration settlement. Management is evaluating the April DOJ rescheduling (medical cannabis to Schedule III) for its tax (Section 280E) and capital implications and is pursuing potential uplisting opportunities. Post-quarter, Ascend temporarily suspended its Lansing, MI cultivation facility to remediate a fire-related issue, which management does not expect to be material. Guidance: Q2 revenue growth of ~2–3% and adjusted EBITDA margins to stay in the low-20% range; 2026 CapEx expected to be ~ $20M focused on store openings and tuck-in M&A.