Ascend Wellness Holdings Reports Financial Results for Q3 2025 with Significant Revenue Growth

Ascend Wellness Holdings Q3 2025 Financial Highlights

Ascend Wellness Holdings, Inc. (AWH) recently unveiled its financial performance for the third quarter of 2025, ending September 30. The report highlights a net revenue of $124.7 million, slightly down from $127.3 million in the previous quarter. Despite this reduction, the company's adjusted EBITDA reached $31.1 million, reflecting a robust margin of 24.9%.

Business and Operational Advances

AWH's strategic endeavors are evident through various operational expansions, including the opening of seven new retail locations this year, bringing its total to 46 across the nation. Notably, the company received a nod from the New Jersey Cannabis Regulatory Commission for its new store in Little Falls. This location signifies AWH's first partner dispensary in New Jersey, positioning the company as one of just six operators permitted under Assembly Bill A4151—a pivotal move aimed at fostering investment opportunities for diverged-owned cannabis enterprises.

Furthermore, the company is strategically poised to enhance its footprint further, given its strong retail development pipeline, which includes plans for 13 additional stores aimed at reaching a target of 60 locations within the next year, contingent upon regulatory approvals.

Innovative Product Offerings

AWH continues to reveal innovative products, focusing on customer engagement and experience. The company expanded its Effin' product line with the launch of a new series of effects-based vapes, which feature full-flavor cartridges across five distinct SKUs, such as Zen and Deep Sleep. The vapes, now available in Illinois, Massachusetts, and New Jersey, are designed to provide customers with tailored experiences through expertly formulated combinations of THC and minor cannabinoids.

Additionally, new gummies from the Effin' range, comprising unique flavors like Sour Acai and Peach Honey, have been rolled out in select markets. In September, AWH launched High Wired infused flower and pre-rolls in New Jersey, following a successful introduction in other states. With a total of 420 SKUs now available, AWH is on track to surpass its goal of launching nearly 550 products by the year's end.

Financial Insights and Future Projections

The report also notes that retail revenue reached $83.8 million—a 3.1% decline attributed to price compression and declining transaction volumes in various markets. Conversely, wholesale revenue showed a modest increase, up 0.3% to $41.0 million.

The adjusted gross profit improved to $57.8 million, representing a gross profit margin of 46.4%, an increase from the previous quarter's 43.4%. AWH continues to control costs while maintaining operational efficiency, aiming to foster financial strength moving forward.

Management expressed confidence in the company’s growth trajectory. CEO Sam Brill remarked, "We are focused on enhancing our operational efficiency and exploring new market opportunities while ensuring strong fiscal health." Brill also emphasized the importance of their market densification strategy, especially in New Jersey, highlighting it as a growth milestone that supports future expansion efforts.

CFO Roman Nemchenko echoed these sentiments, indicating that the $9.3 million mortgage financing achieved recently has strengthened the company's financial base and supports disciplined retail expansion strategies. This proactive financial management is crucial as AWH navigates the evolving landscape of cannabis regulations and market dynamics.

AWH plans to host a conference call to discuss these results on Monday, November 10, 2025, allowing stakeholders to gain further insight into the company's operational strategies and financial outlook.

Conclusion

As AWH forges ahead with its strategic initiatives and innovative product developments, it remains committed to enhancing customer experience while managing costs effectively. The company's robust financial positioning and expanding market presence poise it well for growth as it ventures into new territories within the cannabis sector.