Ascend Wellness Reports $116.9M Revenue In Q1 2026, Net Loss Narrows

Ascend Wellness Holdings (OTC: AAWH) reported first-quarter 2026 revenue of $116.9 million, down 3% sequentially, as pricing pressure and weaker seasonal demand continued affecting cannabis markets across its footprint.

“Our Q1 performance reflects a resilient business in a challenging operating environment. Momentum in our CPG strategy is translating into share gains across our in-house brands in highly competitive states. In Illinois, Massachusetts, and New Jersey combined, Ozone delivered a 2.6% lift in vertical sales following its relaunch. High Wired ranked as the number one infused flower brand, and our infused flower category grew share 37.5% sequentially,” Sam Brill, CEO & Director of AWH, told IgniteIt.

“As we expand our retail footprint and continue to benefit from the operating leverage we have built over the past year, we see a clear path to renewed top-line growth. The Administration’s progress on rescheduling is also encouraging, and we look forward to exploring how that could help accelerate our progress,” Brill said.

The company reported:

• Gross profit of $44.9 million
• Gross margin of 38.4%
• Net loss of $29.5 million
• Adjusted EBITDA of $26.3 million
• Adjusted EBITDA margin of 22.5%

Retail revenue declined to $83.1 million while wholesale revenue fell to $33.8 million during the quarter.

Ascend’s operating cash flow turned negative at $19.4 million, driven largely by:

• a $19.1 million interest payment
• a $17 million arbitration settlement payment

The company ended the quarter with:

• $60.9 million in cash
• approximately $241.2 million in net debt

Management said pricing pressure remained a challenge, but pointed to expanding retail density, stronger vertical integration, and growing brand performance across Illinois, Massachusetts, and New Jersey.

Ascend also said it expects:

• 2% to 3% revenue growth in Q2 2026
• Adjusted EBITDA margins to remain in the low-20% range

The company continues to evaluate potential benefits related to federal cannabis rescheduling and possible 280E tax relief.