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Background Ascend Wellness Holdings, Inc. is a vertically integrated multi-state cannabis operator focused on operating in adult-use or near-term adult-use states in primarily limited license markets. Ascend s core business is the cultivation, manufacturing, and distribution of cannabis consumer packaged goods, which are sold through company-owned retail stores, to retail partner locations, and…
The business is unprofitable at the operating level (-3.40% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 10.9% YoY. Margins deteriorated 4.2pp alongside, both lines moving the wrong way.
Free cash flow declined 76% versus the prior year, cash generation momentum has weakened. ROIC dropped from 0.55% to -2.16%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$490M
▼ -10.9% YoY
Net Income (TTM)
-$128M
▼ -39.1% YoY
Op. Margin
-3.46%
▼ -4.2pp YoY
ROIC
-2.11%
▼ -2.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$12M
▼ -76.3% YoY
Op. Cash Flow (TTM)
$13M
▼ -48.1% YoY
Net Debt
$552M
Cash & Equiv.
$61M
5Y CAGR: +28.3%
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