New York-headquartered cannabis company, Ascend Wellness Holdings, Inc. (CSE:AAWH) (OTCQX:AAWH) reported its financial results Tuesday for the first quarter ended March 31, 2024 disclosing revenue of $142.4 million, up by 24.7% year-over-year, and 1.6% sequentially.

"I want to extend my gratitude to all of our stakeholders for their dedicated efforts in delivering a solid first quarter," stated John Hartmann, CEO. "We've seen tremendous 25% year-over-year growth in revenue and a 39% increase in adjusted EBITDA, complemented by a 239-basis point expansion in our Adjusted EBITDA margin compared to the prior year. This quarter also marks our fifth consecutive period of gross wholesale growth. These achievements reflect the hard work of our team, and they underscore our commitment to sustained operational excellence and financial health."

Q1 2024 Financial Highlights

• Net loss of $18.2 million during the quarter compared to $18.5 million in Q1 2023.
• Adjusted EBITDA was $32.5 million, representing a 22.8% margin. Adjusted EBITDA increased by 39% and the margin improved by 239 basis points year-over-year. Adjusted EBITDA improved by 0.4% quarter-over-quarter and the Adjusted EBITDA margin was largely flat sequentially.
• Gross profit was $52.0 million, or 36.5% of revenue, compared to $47.5 million, or 33.9% of revenue, in the prior quarter.
• Generated $3.9 million of cash flows from operations, representing the fifth consecutive quarter of positive operating cash flow.
• As of March 31, 2024, cash and cash equivalents were $72.9 million and net debt was $237.6 million.

Hartmann was one of the speakers at the recent Benzinga Cannabis Capital Conference in Florida who shared his professional expertise in a conversation about how to best attract retail consumers. If you missed this one, but want to learn all about the future of the cannabis industry join us at the upcoming Benzinga Cannabis Capital Conference this October in Chicago. Hear directly from key industry players, experts, investors, advocates and policymakers. Get your tickets now by following this link.

Business Highlights

• Opened two dispensaries in Q1 2024, in Cincinnati, Ohio and Monaca, Pennsylvania, bringing the total number of operating dispensaries across the network to 36.
• Secured operating agreements with two additional partner dispensaries, bringing a total number of partner stores in the pipeline to four.
• Operationalized second cultivation and manufacturing facility in Massachusetts, bringing a total number of facilities to seven with 255,000 sq. ft of active canopy. Further development at this facility is underway with plans to expand total cultivation across the portfolio to 260,000 sq. ft.
• Entered into two long-term supply agreements in Maryland, providing both AWH and third-party branded products to serve retail and wholesale customers in the state.

Price Action

Ascend Wellness shares closed Monday market session 0.78% higher at $1.29 per share.