Ascend Wellness Holdings, Inc. (AAWHU) Earnings Call Transcripts

Ascend Wellness Holdings, Inc.'s Latest Earnings Call - Q1 FY2026

In Q1 2026, Ascend Wellness Holdings, Inc. reported net revenue of $116.9 million, a 3% sequential decline, primarily due to seasonal softness and weather-related disruptions. Adjusted EBITDA was $26.3 million, reflecting a 12.9% decrease from the previous quarter. Management remains optimistic, citing the recent rescheduling of medical cannabis by the DOJ as a potential catalyst for future growth and improved access to capital. Guidance for Q2 indicates expected top-line growth of 2% to 3%, driven by new store openings and favorable seasonality.

Reported metrics

Guidance from management

For Q2 2026, management expects 2% to 3% top-line growth and adjusted EBITDA margins to remain in the low 20% range. They did not change their guidance related to the uncertain tax position under Section 280E.

What management said

Yes. So thanks for the question. Yes, we're very happy with the margin profile. I think whenever you follow Q4, post-holiday discounting, I think the margin tends to improve a bit. You did see a larger portion of the retail -- of our total sales being retail this quarter. And I think as we also noted in the release, margin on third-party products improved. We improved verticality. So kind of all those factors togethe...

Yes. No, look, I think as we mentioned, the densification, obviously, is a key margin unlock for us, right? So as kind of more stores turn on and verticality will continue to increase and then the sales mix between kind of the direct-to-consumer channel and wholesale continues to get better. All else being equal, yes, I think there's opportunity there.

What analysts pressed on

Analysts expressed concerns about pricing pressures and their impact on margins, particularly in competitive markets. There were also questions regarding the potential effects of the DOJ's rescheduling on the company's tax position and operational strategies.

Main topics on the call

• Regulatory Changes and Industry Outlook — Management highlighted the significance of the DOJ's rescheduling of medical cannabis from Schedule I to Schedule III, stating, "This is a historic step forward for the industry." They anticipate this could lead to broad...
• Revenue Performance — Net revenue for Q1 was $116.9 million, down 3% sequentially. Management noted that sales softened post-holiday, impacted by weather-related store closures, but emphasized that underlying consumer demand remains healthy.
• Adjusted Gross Profit and Margin Expansion — Adjusted gross profit was $53.9 million, with a margin increase of 70 basis points to 46.1%. Management attributed this to improved verticality and a favorable product mix, stating, "The margin on third-party products im...
• Store Expansion Strategy — Ascend added five new stores in Q1 and plans to expand its footprint to at least 60 locations by year-end. Management indicated that this densification strategy is expected to drive top-line growth and improve operating ...

Read the full Ascend Wellness Holdings, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 28 Ascend Wellness Holdings, Inc. earnings call transcripts on record, spanning May 18, 2021 to August 12, 2026. Based on this history, Ascend Wellness Holdings, Inc. reports quarterly. The most recent call on file is dated August 12, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

AAWHU

Exchange

CNSX

Country

CA

Sector

Consumer Staples

Industry

Personal Care Products

Calls on record

28

First call

May 18, 2021

Most recent

August 12, 2026

Reporting cadence

quarterly