Ayr Wellness reported fourth-quarter results before the bell Thursday, revealing revenue that fell short of expectations and a widening loss.
The Miami-based cannabis company posted revenue of $124.6 million, up 11% from $111.8 million a year ago but below Street expectations of $128.7 million. Its operating loss was $176.2 million, much larger than a $13.9 million loss in the fourth quarter of 2021.
Ayr shares fell 10% to $0.86 Thursday morning.
Going forward, the company is banking on improving cash flow.
“We have implemented cost saving measures, stepped back from certain markets that didn’t align with our core business goals, and invested further into markets and activities that did meet those goals,” CEO David Goubert said in a statement.
“By better prioritizing our time, our attention, and our capital, we find ourselves better positioned to capture growth opportunities in our existing and future footprint, which we anticipate will help us grow our cash flow profile, our revenue, and adjusted EBITDA margins consistently throughout 2023.”
The company said it expects its financial results in the first quarter of 2023 to be consistent with industry trends, expecting revenue and adjusted EBITDA to be in line with the fourth quarter. Ayr also expects to further ramp revenue, adjusted EBITDA and operating cash flow thereafter.
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