Earnings release
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1 AWH Announces Third Quarter 2025 Financial Results Delivered Q3 2025 Net Revenue of $124.7 million Achieved Q3 2025 Adjusted EBITDA1 of $31.1 million, representing a 24.9% margin Focused margin optimization fueled sequential Adjusted Gross Margin1 growth of 300-basis points to 46.4% Drove strategic market densification with seven new stores added year-to-date, expanding nationwide footprint to 46 locations2 NEW YORK, NY, November 10, 2025 — Ascend Wellness Holdings, Inc. (“AWH,” “Ascend,” or the “Company”) (CSE: AAWH.U , OTCQX: AAWH), a leading, multi-state, vertically integrated cannabis operator and consumer packaged goods company , today reported its financial results for the quarter ended September 30 , 2025 (“Q3 2025”). Financial results are reported in accordance with U.S. generally accepted accounting principles (“GAAP” ), and all currency is in U.S. dollars. Business Highlights • Advanced densification strategy through the addition of seven strategically located retail stores year-to-date, enhancing market depth and expanding total footprint to 46 locations nationwide, including partners. o Subsequent to the quarter, the Company received approval from the New Jersey Cannabis Regulatory Commission for its newest store in Little Falls. This location marks Ascend’s first partner dispensary in New Jersey. The Company is one of only six operators approved under Assembly Bill A4151, which aims to expand investment opportunities for diversely owned cannabis businesses. o A robust retail development pipeline comprised of 13 additional stores positions the Company to achieve its target of 60 locations2 within the next 12 months, a goal launched at the end of 2024 and subject to regulatory approvals and timelines. • Executed CPG-driven growth initiatives and customer-focused innovation with a series of product launches including: o Expansion of the Effin’ product line with the introduction of effects-based vapes, offered in 1g full -flavor cartridges across five SKUs – Zen, Chillin’, Do It!, Deep
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2 Sleep, and Love. The new vapes feature expertly formulated combinations of THC and minor cannabinoids and are available across Illinois, Massachusetts, and New Jersey. An all-in-one disposable format is slated for launch in the coming weeks. o Unveiling of new effects-based gummies from Effin’, including five unique flavors and formulations such as Relief (Sour Acai), Zen (Peach & Honey), Showtime (Pina Colada), Deep Sleep (Dark Cherry), and Create (Strawberry Tequila). Select offerings are available in Illinois, Massachusetts, and New Jersey. o Launched High Wired infused flower and pre -rolls in New Jersey in September, after an initial highly successful debut in Illinois and Massachusetts in Q2 2025. High Wired is the number two infused flower brand by sales and units across all three states, according to BDSA. o Debut of Ozone Reserve and Simply Herb pre -rolls in Ohio, following the state’s approval of the form factor in August 2025. o As of the end of Q3 2025, the Company has launched 420 SKUs and remains on track to achieve a record of nearly 550 SKU launches for the full year. o Rollout of Simply Herb’s all -in-one disposable 1g vapes in seven unique flavors early in the fourth quarter of 2025, such as Mango Sticky Rice and Fruit Lagoon, across Illinois, Massachusetts, and New Jersey. • Launched a fully integrated e -commerce ecosystem in alignment with AWH’s customer- first focus, including a redesigned Dutchie-powered shopping platform, an app featuring AI-driven personalization , Ascend Pay pay-by-bank functionality, and an enhanced Ascenders Club loyalty program with tiered, points-based rewards and exclusive benefits. • Strengthened capital position with the closing of a $9.3 million financing from CF Bank through a mortgage loan secured by our Ohio real estate assets (the “Ohio Mortgage Loan”). The Ohio Mortgage Loan carries a competitive interest rate of 8.5% per annum and matures in September 2030. • Repurchased approximately 1.0 million shares of Class A common stock (“Common Shares”) in the open market under AWH’s normal course issuer bid (“NCIB”) share buyback program (the “Buyback Program”) in Q3 2025. ◦ Since Q4 2024, the Company has repurchased and retired a total of approximately 15 million shares at an average price of $0.30 per share 3. Share repurchases under the Buyback Program are expected to continue in line with NCIB terms and applicable regulatory limits.
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3 Q3 2025 Financial Highlights • Total net revenue was $124.7 million compared to $127.3 million in the second quarter of 2025 (“Q2 2025”). ◦ Retail revenue was $83.8 million, a 3.1% sequential decrease. ◦ Wholesale revenue increased 0.3% quarter-over-quarter to $41.0 million. • Adjusted Gross Profit1 was $57.8 million compared to $55.3 million in Q2 2025. • Net loss of $25.8 million compared to $24.4 million in Q2 2025. • Adjusted EBITDA1 was $31.1 million for Q3 2025, representing a 24.9% margin1. ◦ Quarter-over-quarter, Adjusted EBITDA 1 increased 8.9% and Adjusted EBITDA Margin1 increased by 250-basis points. • As of September 30, 2025, cash and cash equivalents were $87.3 million and Net Debt4 was $281.8 million. Management Commentary “During the third quarter, we continued to execute on our optimization strategies with discipline, maintaining a sharp focus on cost control and operational efficiency that underpin our long -term strategy,” said Sam Brill, Chief Executive Officer and Director of AWH . “These priorities have delivered profitability improvements, as reflected in our margin expansion, as we navigate a complex operating environment and focus on rebuilding topline momentum and strengthen ing operating leverage. Our market densification strategy continues, with the approval of our planned expansion in New Jersey coming to fruition later this month with the opening of our Little Falls partner store. This key growth milestone positions us for further store development and regional penetration in New Jersey, while our balance sheet and strong store pipeline support additional planned openings in other key markets as we secure necessary regulatory approvals.” “Alongside our expansion efforts, we continued to elevate the customer experience by refreshing our leading brand portfolio with the addition of over 420 new SKUs year-to-date and rolling out our new shopping platform and loyalty program across our network ,” said Frank Perullo, Co - Founder, President, and Director of AWH. “These investments are firmly rooted in our customer- centric approach and commitment to innovation, driving meaningful brand differentiation, growing long-term market loyalty, and supporting continued margin improvement. A standout achievement in the third quarter was the successful launch of Ozone Reserve and Simply Herb pre-rolls in Ohio, where strong customer demand is reinforcing our brand’s momentum in a foundational market.” Roman Nemchenko, Chief Financial Officer of AWH, added, “As year-end approaches, we believe that the decisive steps we have taken are positioning the Company for sustained financial strength. The successful completion of our recent $9.3 million mortgage financing, secured by our Ohio assets at an attractive 8.5% interest rate, has fortified our capital base and supports our
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4 disciplined retail expansion strategy. We remain committed to p rudent cost management, which has been instrumental in generating the capital needed for targeted investments across our brands, product innovation, customer engagement platforms, and facilities. These initiatives have strengthened our foundation and created a clear path for value creation f or our shareholders in the year ahead.” Q3 2025 Financial Overview Net revenue totaled $124.7 million for Q3 2025 , representing a 2.0% sequential decline. This decrease is attributable to a reduction of 2.1% in retail revenue, offset by a 0.1% increase in third- party wholesale revenue. Retail revenue was $83.8 million, a 3.1% decrease sequentially, primarily due to ongoing pric e compression and lower transaction volumes across various markets, which adversely impacted same-store sales growth. This pressure was partially offset by the gradual ramp -up of five new stores that opened in the first half of 2025, as well as the addition of two stores during the quarter. Third-party wholesale revenue was $41.0 million, a 0.3% increase from the prior quarter, reflecting a shift in mix, including a strategic shift to redirect biomass toward higher margin finished products, but thereby reduced bulk flower and oil available to third -party customers, and an impact from continued pricing pressures in several markets. Q3 2025 gross profit was $43.6 million, or 35.0% of revenue, as compared to $41.4 million, or 32.5% of revenue, in Q2 2025. Adjusted Gross Profit1 was $57.8 million, or 46.4% of revenue, for Q3 2025, as compared to $55.3 million, or 43.4% of revenue, for the prior quarter. This increase was primarily driven by the Company’s retail channel, reflecting a higher vertical sales mix along with improved margins on third-party products. Th ere was also a benefit from an increase in wholesale margin from improvements in the mix between bulk and finished goods. Total general and administrative (“G&A”) expenses for Q3 2025 were $44.9 million, or 36.0% of revenue, compared to $42.4 million, or 33.3% of revenue, for Q2 2025. The increase was primarily associated with t he expansion of operations as the Company continued to advance its retail densification strategy in key markets, partially offset by ongoing cost controls. Net loss for Q3 2025 was $25.8 million, compared to $24.4 million in the prior quarter. This was largely due to increased G&A expenses, partially offset by improvements in margin profile and ongoing cost-saving and operational efficiency initiatives. Adjusted EBITDA1 was $31.1 million in Q3 2025 compared to $28.6 million in Q2 2025, with an Adjusted EBITDA Margin 1 of 24.9%, a 250-basis point increase from the prior quarter . This improvement was driven b y an increase in adjusted gross profit of 300-basis points and was partially offset by slightly higher G&A expenses. Cash and cash equivalents at the end of Q3 2025 were $87.3 million and Net Debt4 was $281.8 million. Net cash used in operations was $2.0 million and reflects a $19.1 million biannual interest
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5 payment. 1 Measure is a non-GAAP financial measure. Please see “Non-GAAP Financial Information” below and “Reconciliations of Non- GAAP Financial Measures (Unaudited)” at the end of this press release. 2 Includes both Company-owned and partner locations. 3 Under the Buyback Program, the Company may repurchase up to the lesser of: (i) 10,215,690 shares of the Company’s Class A common stock (“Common Shares”); and (ii) $2.25 million worth of Common Shares, in the open market. Total shares repurchased includes 11 million shares repurchased in a private transaction in Q4 2024. 4 Net Debt is a non-GAAP financial measure defined as total debt, net of unamortized deferred financing costs of ~$369.1 million, less cash and cash equivalents of $87.3 million as of September 30, 2025. Please see “Non-GAAP Financial Information” below.
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6 Non-GAAP Financial Information and Definitions This press release includes certain non -GAAP financial measures as defined by the U.S. Securities and Exchange Commission (“SEC”). Reconciliations of these non -GAAP financial measures to the most directly comparable financial measure calculated and present ed in accordance with GAAP are included in the financial schedules attached to this press release or in other information contained herein. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any mea sure of performance prepared in accordance with GAAP. Adjusted EBITDA/Margin and Adjusted Gross Profit/Margin are non -GAAP financial measures. Please see “Reconciliations of Non -GAAP Financial Measures (Unaudited)” at the end of this release. We define Net Debt as total debt, net of unamortized deferred financing costs, less cash and cash equivalents, which components are disclosed in the Company’s Selected Condensed Consolidated Balance Sheet Information (Unaudited) included in the financial schedules attached to this press release under the captions “Current portion of debt, net,” “Long-term debt, net,”, and “Cash and cash equivalents.” We believe this measure is an important indicator of the Company’s ability to service its long -term debt obligations. This non-GAAP financial measure should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or liquidity and may not be comparable to similarly titled measures provided by other companies. Conference Call and Webcast AWH will host a conference call on Monday, November 10, 2025, at 5:00 p.m. ET, to discuss its financial results for the quarter ended September 30, 2025. The call can be accessed by dialing 1 -888- 699-1199. A live webcast will be available on the Investor Relations section of AWH’s website at https://www.awholdings.com/investors, and will be archived for replay. The conference call replay can be accessed by phone at 1 -888-660-6345, using code: 00660#, and will be available until midnight ET, Monday, November 17, 2025. About Ascend Wellness Holdings Ascend Wellness Holdings, Inc. (“AWH”) is a vertically integrated cannabis operator with assets across Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio , and Pennsylvania. The Company owns and operates state-of-the-art cultivation facilities, where it grows award-winning strains and produces a curated selection of products for both retail and wholesale customers. AWH’s in-house brand and product portfolio includes Common Goods, Effin’, High Wired, Honor Roll, Ozone, Ozone Reserve, Royale, and Simply Herb . For more information, visit www.awholdings.com. Additional information relating to the Company’s Q3 2025 results can be found on the Investor Relations section of AWH’s website at https://awholdings.com/investors/, the SEC’s Electronic
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7 Data Gathering, Analysis , and Retrieval system (“EDGAR”) at www.sec.gov and Canada’s System for Electronic Document Analysis and Retrieval Plus (“SEDAR+”) at www.sedarplus.ca. Cautionary Note Regarding Forward-Looking Information This news release includes forward -looking information and statements (together, “forward - looking statements”), which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as “expects”, “continue”, “may”, “will”, “anticipates”, and “intends” or similar expressions are intended to identify forward -looking statements. Without limiting the generality of the preceding statement, all statements in this press release relating to estimated and projected revenue, expectations regarding production capacity, anticipated capital expenditures, expansion, profit, product demand, margins, costs, cash flows, sources of capital, growth rates, potential acquisitions, closing dates for transactions, regulat ory approvals, future facility openings, and, enhancing shareholder value, reducing downward pressure on the stock, and future financial and operating results are forward-looking statements. We caution investors that any such forward -looking statements are based on the Company’s current projections and expectations about future events and financial trends, the receipt of all required regulatory approvals, and on certain assumptions and analysi s made by the Company in light of the experience of the Company and perception of historical trends, current conditions, and expected future developments and other factors management believes are appropriate. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward -looking statements herein. Such factors include, among others, the risks and uncertainties identified in the Company’s most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable, and in the Company’s other reports and filings with the applicable Canadian securities administrators on its profile on SEDAR+ at www.sedarplus.ca and the SEC on its profile on EDGAR at www.sec.gov. Although the Company believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward -looking statements. Any forward-looking statements herein a re made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward -looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws. No securities regulator nor the Canadian Securities Exchange has reviewed, approved, or disapproved the content of this press release.
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8 Contacts Chief Financial Officer Roman Nemchenko (617) 453-4042 ext. 90102 Investor & Media Contact: IR@awholdings.com (617) 453-4042 ext. 90102
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ASCEND WELLNESS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (UNAUDITED) 9 Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2025 2024 2025 2024 Revenue, net $ 124,734 $ 141,647 $ 380,035 $ 425,593 Cost of goods sold (81,133) (97,918) (255,481) (288,254) Gross profit 43,601 43,729 124,554 137,339 Operating expenses General and administrative expenses 44,926 46,146 124,395 138,703 Operating (loss) profit (1,325) (2,417) 159 (1,364) Other (expense) income Interest expense (12,562) (16,481) (35,810) (33,554) Other, net 341 409 1,302 1,098 Total other expense (12,221) (16,072) (34,508) (32,456) Loss before income taxes (13,546) (18,489) (34,349) (33,820) Income tax expense (12,279) (9,767) (35,141) (34,383) Net loss $ (25,825) $ (28,256) $ (69,490) $ (68,203) Net loss per share attributable to Class A and Class B common stockholders — basic and diluted $ (0.13) $ (0.13) $ (0.34) $ (0.32) Weighted-average common shares outstanding — basic and diluted 202,970 214,290 203,943 212,134
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ASCEND WELLNESS HOLDINGS, INC. SELECTED CONDENSED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED) 10 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2025 2024 2025 2024 Net cash (used in) provided by operating activities $ (2,003) $ 1,972 $ 21,737 $ 38,126 Cash flows from investing activities Additions to capital assets (6,449) (4,972) (19,115) (17,510) Investments in notes receivable (285) — (285) (600) Collection of notes receivable 4,181 81 4,345 8,345 Proceeds from sale of assets — — 27 11 Acquisition of businesses, net of cash acquired (5,984) 200 (9,445) (9,800) Purchases of intangible assets (4,000) (6,450) (4,500) (10,450) Net cash used in investing activities (12,537) (11,141) (28,973) (30,004) Cash flows from financing activities Proceeds from issuance of debt 9,345 217,413 72,412 217,413 Repayments of debt (1,627) (215,000) (61,962) (215,786) Debt issuance costs (102) (6,658) (462) (6,658) Repayments under finance leases (548) (126) (1,395) (366) Taxes withheld under equity-based compensation plans, net — — — (5,060) Repurchase of common stock (586) — (1,580) — Proceeds from the exercise of stock options 60 175 60 175 Payment of contingent consideration — (4,842) (819) (4,842) Distributions to non-controlling interests — (227) — (227) Net cash provided by (used in) financing activities 6,542 (9,265) 6,254 (15,351) Net decrease in cash, cash equivalents, and restricted cash (7,998) (18,434) (982) (7,229) Cash, cash equivalents, and restricted cash at beginning of period 95,270 83,713 88,254 72,508 Cash, cash equivalents, and restricted cash at end of period $ 87,272 $ 65,279 $ 87,272 $ 65,279
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ASCEND WELLNESS HOLDINGS, INC. SELECTED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED) 11 (in thousands) September 30, 2025 December 31, 2024 Cash and cash equivalents $ 87,272 $ 88,254 Inventory 82,681 89,552 Other current assets 39,261 51,570 Property and equipment, net 288,903 260,461 Operating lease right-of-use assets 122,259 139,067 Intangible assets, net 206,865 205,502 Goodwill 57,780 49,599 Other noncurrent assets 15,341 16,426 Total Assets $ 900,362 $ 900,431 Current portion of debt, net $ 25,302 $ 73,881 Other current liabilities 70,702 70,660 Long-term debt, net 343,749 234,542 Operating lease liabilities, noncurrent 243,253 267,221 Other noncurrent liabilities 214,778 182,326 Total stockholders’ equity 2,578 71,801 Total Liabilities and Stockholders’ Equity $ 900,362 $ 900,431
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ASCEND WELLNESS HOLDINGS, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 12 We define “Adjusted Gross Profit” as gross profit excluding non-cash inventory costs, which include depreciation and amortization included in cost of goods sold, equity -based compensation included in cost of goods sold, and other non-cash inventory adjustments. We define “Adjusted Gross Margin” as Adjusted Gross Profit as a percentage of net revenue. Our “Adjusted EBITDA” is a non -GAAP measure used by management that is not defined by GAAP and may not be comparable to similar measures presented by other com panies. We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of net revenue. Management calculates Adjusted EBITDA as the reported net loss, adjusted to exclude: income tax expense, other (income) expense, interest expense, depreciation an d amortization, depreciation and amortization included in cost of goods sold, non -cash inventory adjustments, equity-based compensation, equity-based compensation included in cost of goods sold, start-up costs, start-up costs included in cost of goods sold , transaction -related and other non -recurring expenses, and gain or loss on sale of assets. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information, as this measure demonstrates the operating performance of the business. Non-GAAP financial measures may be considered in addition to the results prepared in accordance with GAAP, but they should not be considered a substitute for, or superior to, GAAP results. The Company’s presentation of these financial measures may not be comparable to similar non -GAAP measures used by other companies. These financial measures are intended to provide additional information to investors regarding the Company’s performance. The following table presents Adjusted Gross Profit for the quarter and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Gross Profit $ 43,601 $ 43,729 $ 124,554 $ 137,339 Depreciation and amortization included in cost of goods sold 6,928 7,864 25,209 22,631 Equity-based compensation included in cost of goods sold 329 230 1,631 6,777 Non-cash inventory adjustments(1) 6,967 1,749 13,883 2,223 Adjusted Gross Profit $ 57,825 $ 53,572 $ 165,277 $ 168,970 Adjusted Gross Margin 46.4% 37.8% 43.5% 39.7% (1) Consists of write -offs of expired products, obsolete packaging, and net realizable value adjustments related to certain inventory items.
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ASCEND WELLNESS HOLDINGS, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) 13 The following table presents Adjusted EBITDA for the quarter and nine months ended September 30, 2025 and 2024: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands) 2025 2024 2025 2024 Net loss $ (25,825) $ (28,256) $ (69,490) $ (68,203) Income tax expense 12,279 9,767 35,141 34,383 Other, net (341) (409) (1,302) (1,098) Interest expense 12,562 16,481 35,810 33,554 Depreciation and amortization 16,771 16,628 53,001 48,689 Non-cash inventory adjustments(1) 6,967 1,749 13,883 2,223 Equity-based compensation 806 (129) 2,610 16,066 Start-up costs(2) 4,092 884 8,708 2,329 Transaction-related and other non- recurring expenses(3) 3,783 8,402 8,251 18,006 Loss (gain) on sale of assets — — 55 (11) Adjusted EBITDA $ 31,094 $ 25,117 $ 86,667 $ 85,938 Adjusted EBITDA Margin 24.9% 17.7% 22.8% 20.2% (1) Consists of write -offs of expired products, obsolete packaging, and net realizable value adjustments related to certain inventory items. (2) One-time costs associated with acquiring real estate, obtaining licenses and permits, and other costs incurred before commencement of operations at certain locations, as well as incremental expenses associated with the expansion of activities at our cultivation facilities that are not yet operating at scale, other expenses resulting from delays in regulatory approvals, and other related one-time or non-recurring expenses, as applicable. The three and nine months ended September 30, 2025 also include $3,580 and $6,693, respectively, of unallocated overhead expenses at certain cultivation facilities resulting from a rebalancing of overhead expenses from cost of goods sold to general and administrative expenses based on overhead allocations relative to production output at those locations. (3) Other non-recurring expenses including legal and professional fees associated with litigation matters, potential acquisitions, other regulatory matters, and other reserves or one -time expenses. The nine months ended September 30, 2025 includes approximatel y $700 of expenses associated with our May 2025 term loans and approximately $400 of expenses associated with our January 2025 term loans. The three and nine months ended September 30, 2025 include approximately $170 and $270, respectively, of fair value adjustments associated with acquisition earn-outs. The three and nine months ended September 30, 2024 each include a reserve of $2,083 associated with a noncurrent receivable and approximately $3,600 of expenses associated with a debt refinancing. The nine months ended September 30, 2024 also includes: a reserve of $5,774 related to certain amounts associated with a previous transaction, $984 recognized as a discount on a noncurrent receivable, and a $630 fair value adjustment related to an acquisition earn-out.