Ascend Wellness Holdings, Inc., a vertically integrated multi-state cannabis operator has reported its financial results for Q2 2021, showing strong growth in revenue and EBITDA.
For the quarter ended June 30, 2021, the company saw its total revenue increase by 28.5% quarter-over-quarter and 236.2% year-over-year to $97.5 million. Net revenue, which excludes intercompany sale of wholesale products, increased by 26.1% quarter-over-quarter to $83.4 million, while adjusted EBITDA of $20.3 million represented a 28.3% increase quarter-over-quarter, and adjusted EBITDA margin of 24.4% represented a 43 basis point increase compared to the prior quarter.
For the first six months of 2021, net revenue was $149.5 million, a 4.0% increase over the company's full-year 2020 net revenue of $143.7 million.
As of June 30, 2021, the company said cash and cash equivalents were $104.2 million, and net debt, which equals total debt less cash and cash equivalents was $27.4 million. The company noted that it has engaged Seaport Global to refinance the existing debt to lower the company's cost of capital and provide additional cash to support investment.
In a statement, Abner Kurtin, founder and CEO of Ascend Wellness: "Our business continues to produce impressive quarter-over-quarter revenue and adjusted EBITDA growth as we scale our wholesale and retail operations across the high-quality markets where we operate."
"We remain focused on executing, disciplined in our approach to allocating capital, and excited about the trajectory of the company. As a result, we are pleased to announce that we are increasing our full year net revenue guidance range to $330-$350 million," Kurtin added.
The company hosted a conference call on August 10, 2021, to discuss the financial results for the quarter ended June 30, 2021. An audio webcast of the call is available on the Investor Relations section of the company's website at https://awholdings.com/investors/.
Ascend Wellness is a vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts and New Jersey. AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products. AWH produces and distributes Ozone branded products.
Contact the author at jon.hopkins@proactiveinvestors.com