Ascend Wellness Beats on Revenue by 33% in Q3

The results beat analysts' estimates by 33%.

New York-based Ascend Wellness Holdings (CSE: AAWH.U) (OTCQX: AAWH) reported a solid third quarter, with the key metric of same-store sales climbing as the company cuts costs.

Ascend’s gross revenue for the period that ended Sept. 30 soared 26.6% from a year earlier to $169.9 million. Stripping out the impact of sales within its own divisions, net revenue jumped an impressive 27%, bumping off broader retail woes.

The results beat analysts’ estimates of $127.4 million by 33%.

“In my first full quarter as Ascend’s CEO, we’ve been diligently optimizing operations and fortifying our team,” newly minted CEO John Hartmann said in a statement Tuesday. “Early signs of results are encouraging.”

Retail revenue rose to $101.3 million, up 22.3% from the same period last year, reflecting strong consumer uptake, especially in Maryland where Ascend kicked off adult-use sales earlier this year.

Wholesale operations weren’t left behind, boasting a 33.4% rise in gross revenue year-over-year, as the company’s wholesale strategy appears to resonate with a market that’s growing in sophistication and scale. That was particularly evident in its net wholesale gains, which shot up by 40.6% after accounting for internal sales.

Despite the glossy revenue numbers, Ascend still reported a net loss, though the $11.2 million figure was a marked improvement over last year’s $16.9 million in the red. Ascend’s adjusted EBITDA improved by 38.5% from the previous quarter, albeit with a slight year-over-year decline in margin. Margins still climbed by 356 basis points sequentially.

Cash and cash equivalents stood at $63.9 million, providing the company with a cushion. Still, the company’s net debt position stands at $243.5 million.

Cash flow from operations told a brighter story, with Ascend generating $24.2 million in the quarter, marking its third consecutive period of operational cash positivity. The figure excludes a $3.3 million employee retention tax credit the company received and subsequently used for debt repayment.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at

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