Ascend Increases Revenue in Q4, but Still Not Profitable

Company is shifting focus from expansion to generating cash flow.

New York-based Ascend Wellness Holdings Inc. (CSE: AAWH.U) (OTCQX: AAWH) got leaner and meaner while also expanding its footprint significantly in 2022, but that wasn’t enough to make the company profitable yet.

Despite highlights in 2022 of opening four new stores in three states, transitioning three shops in New Jersey to recreational sales, expanding cultivation capacity by 69,000 square feet, and increasing revenue by more than 22% to $405.9 million, Ascend still lost $15 million in Q4 and almost $81 million for the entire year.

Those losses are down significantly from 2021, however. That year, Ascend lost $16.9 million in the fourth quarter and $122.7 million for the full year. In addition, Q4 2022 revenues shot up 26.7% year-over-year to $112.1 million.

That marks a major improvement and is cause for optimism about the future, asserted Ascend’s executive chairman, Abner Kurtin, who said in a press release that he was “thrilled” with the “record-breaking results” Ascend achieved in 2022.

As of Dec. 31, Ascend had $74.1 million in cash and equivalents to offset its $256.6 million in debts.

Other highlights for 2022, according to the press release, included:

  • Launching a new value brand called Simply Herb through its retailers in Illinois, Massachusetts, Michigan, and New Jersey.
  • Entering the Pennsylvania market through the acquisition of Story of PA CR, a vertically integrated business with six retail licenses and a cultivation permit.
  • Signed off on three more acquisition deals to bring a trio of Ohio dispensaries and two Illinois shops into the Ascend portfolio.

“We are now directing our attention to the objective of generating cash flow in the coming year,” said Ascend co-CEO Dan Neville.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.

One comment

  • michael g mclaughlin

    March 14, 2023 at 9:45 pm

    256 million in debt? Not profitable. Record sales profits. The CEO is thrilled.
    So I guess the way to profitability is more losses? Makes sense nowadays in the cannabis business.


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