Ascend Wellness reported Q4 2024 revenue of $136.0 million, a year-over-year decline of 2.96% and a quarter-over-quarter decline of 3.98%. The quarter delivered a robust improvement in profitability, aided by the company’s ongoing cost-savings program and higher operating efficiency. Management highlighted approximately $30 million in annualized cost savings that delivered a 450 basis point expansion in adjusted EBITDA margin, a sequential uplift of 20.4%, and a fourth quarter adjusted EBITDA of $30.2 million (EBITDA margin ~17.4% of revenue). Free cash flow for the quarter was $30.1 million, and cash and cash equivalents rose to $88.3 million, underpinning a leveraged but improving liquidity position amid a capital-intensive growth plan.
Management signaled a disciplined path to growth via store densification (targeting roughly 20 new locations in the midterm, with 10 identified for 2H 2025), continued optimization of product portfolios to eliminate unprofitable SKUs, and an accelerated rollout of refreshed SKUs (approximately 350) alongside higher-margin, in-house brands. The company also reaffirmed a customer-centric strategy, enhanced by a reimagined e-commerce experience and a renewed emphasis on a premier retail footprint in key markets (Ohio, Illinois, New Jersey, Pennsylvania). In 2025, Ascend intends roughly $30–$35 million of capital expenditures, with about half allocated to new store openings. While near-term topline headwinds persist (price compression and weather-related softness in Q1 planned), management projects margin stabilization around 20% in the near term and potential topline/margin gains in H2 2025, driven by higher yields, automation, and improved product mix. This combination of cost discipline, retail/wholesale synergies, and brand portfolio evolution supports a constructive longer-term investment thesis, albeit with elevated leverage and regulatory risk inherent to cannabis operations.