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Cannabis multi-state operator (MSO) Ascend Wellness Holdings, Inc. AAWH AAWH announced its financial results on Tuesday for the third quarter ended Sept. 30, 2024.



During the quarter the company <a href="https://www.benzinga.com/markets/cannabis/24/08/40408620/ohio-cannabis-market-hits-11-5m-in-first-week-of-adult-use-sales">launched cannabis sales</a> in Ohio in five dispensaries reporting a sales increase of over three times compared to pre-adult use levels.



It also initiated cost-saving measures to reduce expenditures by $30 million in 2025 while optimizing the leadership team with a 15% reduction in corporate headcount and 10% at retail/operations.



Ascend Wellness recently <a href="https://www.benzinga.com/markets/cannabis/24/08/40583646/ascend-wellness-holdings-fires-both-ceo-and-cfo-replaces-management">appointed</a> three key executives, including Sam Brill as CEO, Frank Perullo as president and Roman Nemchenko as CFO.



"We are thrilled to lead this transformation and have already started to lay the groundwork for meaningful progress in the quarters ahead," Brill said. "Moving forward, we must focus on three financial priorities: improving profitability, maximizing asset efficiency, and enhancing cash flow generation."



Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/08/40323074/meet-the-two-cannabis-companies-that-plan-to-boost-each-others-reach-in-new-markets">Meet The Two Cannabis Companies That Plan To Boost Each Other&#8217;s Reach In New Markets</a>



<h3 class="wp-block-heading">Q3 2024 Financial Highlights</h3>



<ul>
<li>Total revenue amounted to $141.6 million, up 0.3% year-over-year and 0.1% quarter-over-quarter.</li>



<li>Retail revenue totaled $93.6 million, representing a 7.6% decrease year-over-year but a 0.6% increase compared to the previous quarter.</li>



<li>Wholesale revenue amounted to $48 million, up 20.1% year-over-year but down 0.8% from the prior quarter.</li>



<li>Net loss was $28.3 million, compared to a net loss of $11.2 million in the third quarter of 2023 and $21.8 million in the prior period.</li>



<li>Adjusted EBITDA was positive at $25.1 million (17.7% margin), a 14.9% decrease year over year and an 11.4% decline from the previous quarter.</li>



<li>Generated $2 million in operating cash flow, marking the seventh consecutive quarter of positive operating cash flow.</li>



<li>Ended the quarter with $65.3 million in cash and cash equivalents, and $240.6 million in net debt.</li>



<li>In July, Ascend closed its <a href="https://www.benzinga.com/markets/cannabis/24/07/39776292/ascend-wellness-to-issue-235m-of-senior-secured-notes-to-prepay-215m-under-term-loan">previously announced</a> private placement of $235 million of 12.75% senior secured notes due 2029. It plans to prepay $215 million of principal outstanding under its <a href="https://www.benzinga.com/markets/cannabis/24/07/39839510/ascend-wellness-cannabis-co-closes-235m-private-placement-of-senior-secured-notes-refinances-exi">existing term loan.</a></li>
</ul>



<h3 class="wp-block-heading">AAWH Price Action</h3>



Ascend's shares traded 0.02% higher at $0.5 per share after the market close on Monday afternoon.



<h3 class="wp-block-heading">Read Next:</h3>



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<li><a href="https://www.benzinga.com/markets/cannabis/24/10/41388261/revolutionizing-cannabis-edibles-ascends-new-thc-cannabinoid-blends-now-available-in-this-east-c">Revolutionizing Cannabis Edibles: Ascend&#8217;s New THC-Cannabinoid Blends Now Available In This East Coast Market</a></li>
</ul>

Cannabis

Earnings

News

Ascend Wellness reported Q3 revenue amounted to $141.6 million, up 0.3% year-over-year and 0.1% quarter-over-quarter. Q3 net loss was $28.3 million, compared to a net loss of $11.2 million in the third quarter of 2023 and $21.8 million in the prior period. It also initiated cost-saving measures to reduce expenditures by $30 million in 2025.

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