Ascend Wellness Holdings, Inc.

What they do

AWH cultivates, manufactures, and distributes cannabis consumer packaged goods, selling them through company-owned retail stores, retail partner locations, and third-party licensed retail locations. Founded in 2018 with initial operations in Illinois, it now has operations or financial interests in seven U.S. markets: Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania. As of December 31, 2025 it had 47 open dispensaries, 42 of them in adult-use states, and as of June 30, 2026 it employed approximately 2,200 people excluding retail partner employees.

Revenue drivers

• Retail — Company-owned and partner dispensary sales were $92.7 million in Q2 2026, up 11.5% sequentially from $83.1 million, making retail the larger of the two reported revenue lines.
• Wholesale — Wholesale revenue was $33.4 million in Q2 2026, roughly flat versus $33.8 million in Q1 2026, as the company sells its packaged goods to retail partner and third-party licensed stores.
• Cultivation and manufacturing — Products are generated primarily from plant material AWH grows and processes itself, with production capacity across five manufacturing facilities and approximately 230,000 square feet of canopy as of June 30, 2026.

Recent performance

Q2 2026 net revenue was $126.1 million, up 7.9% sequentially from $116.9 million in Q1 2026. Retail revenue rose 11.5% sequentially to $92.7 million while wholesale was $33.4 million versus $33.8 million. Adjusted EBITDA was $29.1 million, or a 23.1% margin, compared with $26.3 million in Q1 2026, and Adjusted Gross Profit Margin was 46.2% versus 46.1%. Cash and cash equivalents were $67.0 million at June 30, 2026, up $6.1 million sequentially. Full-year 2025 revenue was $500.6 million with net loss of $118.2 million, and at June 30, 2026 total liabilities of $973.4 million exceeded total assets of $888.3 million, leaving shareholder equity of negative $85.9 million.

Strategy

AWH is expanding its retail footprint, reaching 55 locations including partners at the end of Q2 2026, up from 48 at the end of Q1 2026, and says it expects to meet or exceed its year-end target of 60 stores. It is densifying in states such as New Jersey and Massachusetts, where a Massachusetts law change raised the retail license cap per operator from three to six, and it has a strategic relationship with an Ohio operator acquiring dispensary licenses pending regulatory approval. The company filed a definitive proxy for a reverse stock split to support a planned uplisting to a major U.S. exchange, with a shareholder vote set for August 28, 2026. It also submitted DEA applications to register certain state-licensed medical cannabis operations under the expedited pathway tied to rescheduling of medical cannabis to Schedule III. Product innovation accelerated with 199 new SKUs in Q2 2026, up 50% sequentially.

Risks

• Federal illegality — Cannabis remains illegal under federal law, exposing the company to enforcement uncertainty and constraints even as it pursues DEA registration for medical operations.
• Tax treatment — The application of Section 280E of the Internal Revenue Code creates unfavorable tax treatment for cannabis businesses and potential changes in related legislation could affect tax liabilities and financial performance.
• Balance sheet and leverage — At June 30, 2026 total liabilities of $973.4 million exceeded total assets of $888.3 million and shareholder equity was negative $85.9 million, with long-term debt of $293.5 million.
• Operational and licensing disruption — A fire temporarily closed the Lansing, Michigan facility at the end of Q2 2026, and a work stoppage at the Barry, Illinois facility that began June 25, 2026 was resolved with a new contract ratified July 30, 2026, with the company evaluating the potential Q3 2026 impact.

Outlook

Management said Q2 2026 performance confirms the inflection point it described last quarter, and the company expects to meet or exceed its year-end target of 60 stores while identifying additional opportunities. It is evaluating the potential impact on anticipated third-quarter 2026 results from the resolved Barry, Illinois work stoppage. AWH has filed a definitive proxy for an August 28, 2026 shareholder vote on a reverse stock split in support of a planned uplisting to a major U.S. exchange.