NEW YORK - Ascend Wellness Holdings, Inc. (OTC: AAWH), a multi-state cannabis operator, announced its financial results for the fourth quarter ended December 31, 2023, with a reported net revenue increase of 25% YoY to $140 million.
However, the company missed earnings per share (EPS) expectations, posting a loss of -$0.09 per share, which was $0.02 below the analyst estimate of -$0.07.
The company's Q4 net revenue, while up significantly from the same quarter last year, fell slightly short of the consensus estimate of $140.98 million. Despite this, Ascend Wellness reported a strong year with a full-year net revenue increase of 28% YoY to $519 million and a 14% increase in adjusted EBITDA to $107 million, marking the first full year of positive cash from operations and positive free cash flow.
Adjusted EBITDA for Q4 rose 15% YoY to $32 million, reflecting the company's operational improvements and expansion efforts. Ascend Wellness ended the quarter with $73 million in cash and cash equivalents, positioning it well for future growth.
Abner Kurtin, Executive Chairman of AWH, expressed gratitude to stakeholders for the company's strong performance and optimism about future federal cannabis reform prospects. CEO John Hartmann highlighted the company's impressive financial success, fueled by retail and wholesale business expansions, including a 21% increase in retail driven by store openings and strategic acquisitions, as well as a 47% growth in third-party wholesale business.
CFO Mark Cassebaum emphasized the significance of generating meaningful cash from operations and free cash flow, especially as the company begins discussions to refinance its term loan due in August 2025.
Ascend Wellness's strategic initiatives and commitment to execution have ensured a robust financial performance, with the company continuing to see strong geographic diversification and successful brand performance. Despite challenges earlier in the year and initial pressure on Illinois retail, the company rebounded, achieving notable growth in adjusted EBITDA.
The company's financial overview for Q4 indicated a slight sequential decrease in net revenue by 0.8% to $140.2 million, led by declines in Illinois retail, but partially offset by new stores and gross wholesale revenue growth in New Jersey, Massachusetts, and Michigan. The year-over-year increase was driven by six new store openings, the acquisition of four Maryland stores, and increases in third-party sales.
Total retail revenue for Q4 decreased 3.9% sequentially to $97.3 million but increased 15% compared to Q4 2022. Gross wholesale revenue for the quarter was $75.8 million, up 10.4% quarter-over-quarter, with net wholesale revenue after intercompany sales reaching $42.8 million, a 7.1% increase from the previous quarter.
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