Ayr Wellness Increases Guidance For 2022 To $800 Million

Following the close of the market on Monday,  Ayr Wellness Inc. (OTCQX: AYRWF) reported financial results for the three months ending June 30, 2021, with revenue rising 222% to $91.3 million. This was a 56% increase sequentially. Ayr is raising its revenue guidance for 2022 revenue to $800 million, up from $725 million, and is reiterating guidance for 2022 Adjusted EBITDA of $300 million reflecting substantial investments in growth.

Ayr’s net losses increased to $24.9 million over last year’s $5.4 million and the first-quarter net loss of $8.4 million. The company attributed the increase in losses to non-cash, one-time expenses, and non-operating adjustments totaling $52.3 million.

CEO Jonathan Sandelman said, “In the last 12 months we’ve laid out an ambitious plan for growth – growing our footprint and building our brands on the foundation of being the largest scale producer of high-quality flower in the country. Because everything starts with the plant. I am incredibly pleased to see those plans becoming reality, with Q2’s exceptional 222% year-over-year growth in revenue and 56% growth over last quarter.  Today our brands are in over 280 stores, up 3 times year-over-year, and they aren’t slowing down. We’re seeing increased demand for our products and accelerating growth in our wholesale business.”


Ayr Wellness said that based on the results to date, management is targeting the third quarter revenue to be approximately $100 million, which would reflect the growth of over 10% quarter-over-quarter and 211% year-over-year. Adjusted EBITDA on a US GAAP basis is expected to be in line with the second quarter, following accelerated investments in branding, new markets, and growth projects.

“As we double down on our success, we have the opportunity to continue to grow our top line at 100%+ rates year-over-year. We are raising our 2022 revenue target to $800 million, and we are reinvesting in our business to accelerate that growth,” concluded Mr. Sandelman.

The company outlined the following plans in the pipeline:

  • Three additional Pennsylvania dispensaries are scheduled to open later this year, bringing the total to six
  • Provisional licenses were received for three Adult Use Dispensaries in Greater Boston
  • Construction is underway on a 100,000 ft2 new cultivation and production facility in Milford, MA that is expected to add 75,000 ft2 of the new canopy to bring Ayr to the maximum capacity allowed under its Massachusetts license
  • In Florida, an additional three stores are expected to open by the end of the third quarter and the company has sited an additional eight new locations, bringing its year-end Florida dispensary target to 50


The company has been on a spending spree and outlined the following recent acquisitions:

  • This week the company announced the proposed acquisition of Cultivauna, LLC, the owner of Levia, a top-selling brand of cannabis-infused seltzers
  • It announced the proposed acquisition of Herbal Remedies, adding two dispensaries in Illinois; won an additional retail license in Bloomington-Normal, Illinois with a partner, Land of Lincoln
  • It announced the proposed acquisition of Tahoe Hydroponics Company, an award-winning cultivator and one of Nevada’s top producers of high-quality flower

Viridian Capital Advisors wrote, “As we have previously mentioned, once all transactions (including outstanding transactions in Illinois and New Jersey) are completed AYR will have one of the most sizable footprints in US cannabis to go along with its proven execution capabilities. We continue to expect execution on the build-out of assets will translate to outperforming stock returns and valuation expansion for investors. Our rating remains Buy and our price target $42.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.