# EDGAR Filing Document

**Accession Number:** 0001756390
**File Stem:** 0001628280-25-038887
**Filing Date:** 2025-8
**Character Count:** 36889
**Document Hash:** 72c6413fbb2422a637155aa3bbd015ec
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-038887.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001628280-25-038887

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250807

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ascend Wellness Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001756390
- **STANDARD INDUSTRIAL CLASSIFICATION:** MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 830602006
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-254800
- **FILM NUMBER:** 251194195

**BUSINESS ADDRESS:**
- **STREET 1:** 44 WHIPPANY ROAD, SUITE 101
- **CITY:** MORRISTOWN
- **STATE:** NJ
- **ZIP:** 07960
- **BUSINESS PHONE:** (646) 661-7600

**MAIL ADDRESS:**
- **STREET 1:** 44 WHIPPANY ROAD, SUITE 101
- **CITY:** MORRISTOWN
- **STATE:** NJ
- **ZIP:** 07960

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Ascend Wellness Holdings, Inc
- **DATE OF NAME CHANGE:** 20210420

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Ascend Wellness Holdings, LLC
- **DATE OF NAME CHANGE:** 20181018

?xml version='1.0' encoding='ASCII'? aawh-20250807

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

__________________________

**FORM 8-K**

__________________________

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(D) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** August 7, 2025

__________________________

**ASCEND WELLNESS HOLDINGS, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **333-254800** | **83-0602006** |
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

**44 Whippany Road**

**Suite 101**

**Morristown, NJ 07960**

 (Address of principal executive offices)

**(646) 661-7600**

 (Registrant's telephone number, including area code)

**N/A**

 (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below).

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On August 7, 2025, Ascend Wellness Holdings, Inc. (the "Company") issued a press release announcing financial results for the quarter ended June 30, 2025. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K, which is incorporated into this item by reference.

The information furnished under this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 99.1‡ | <u>[Press release dated August 7, 2025](awhq22025pressrelease.htm)</u> |

---

‡&nbsp;&nbsp;&nbsp;&nbsp;Document has been furnished, is not deemed filed and is not to be incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, irrespective of any general incorporation language contained in any such filing.

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| | **Ascend Wellness Holdings, Inc.** |
| <u>August 7, 2025</u> | <u>/s/ Roman Nemchenko</u> |
| | Roman Nemchenko<br>Chief Financial Officer <br>(Principal Financial Officer) |

---

## Exhibit 99.1

**Exhibit 99.1**![awhlogoa.jpg](awhlogoa.jpg)

**AWH Announces Second Quarter 2025 Financial Results** 

*Q2 2025 Net Revenue of $127.3 million and Adjusted EBITDA*<sup>1</sup> *of $28.6 million* 

*Tenth straight quarter of positive operating cash flow with $17.8 million generated*

*Fully retired $60 million term loan via strategic refinancing*

*Robust cash position of $95.3 million at quarter end*

**NEW YORK, NY, August 7, 2025** — Ascend Wellness Holdings, Inc. ("AWH" or the "Company") (CSE: AAWH.U, OTCQX:AAWH), a multi-state, vertically integrated cannabis operator, today reported its financial results for the quarter ended June 30, 2025 ("Q2 2025"). Financial results are reported in accordance with U.S. generally accepted accounting principles ("GAAP"), and all currency is in U.S. dollars.

**<u>Business Highlights</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fully repaid the Company's existing $60 million term loan (the "Term Loan") using $10 million of cash on hand and $50 million through a private placement of 12.75% Senior Secured Notes<sup>2</sup> (the "Notes") due July 2029. This transaction represents the final phase of a comprehensive refinancing initiative that began with the $235 million notes offering completed in July 2024 and was supplemented by a $15 million private placement in January 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Together, these transactions enhance the Company's financial flexibility, support long-term capital structure management, and preserve one of the longest dated debt maturity profiles currently in the cannabis sector.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Grew retail footprint through continued execution of the Company's densification strategy, adding five locations in key markets during the first half of 2025 ("H1 2025"), bringing AWH's total store count, including partner locations, to 44.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ A strong retail development pipeline remains in place, which is anticipated to progress the Company's medium-term target of 60 total stores, which represents a 50% expansion since launching this goal at the end of 2024<sup>3</sup>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sustained positive operating cash flow for ten straight quarters, supporting a strong balance sheet with $95.3 million in cash and cash equivalents and generating $17.8 million in cash from operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commercialized 225 SKUs in H1 2025, with an additional ~300 in flight for the remainder of the year spanning all product formats. The Company continues to focus on expanding shelf presence and driving margin improvement through the rollout of high-margin, in-house branded products across its multi-state footprint.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Launched High Wired, a meticulously crafted line of infused flower and pre-roll products designed for seasoned enthusiasts. The brand established a top-selling position in Illinois and Massachusetts following its initial debut and is slated to enter New Jersey in the coming weeks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased approximately 1.9 million shares of Class A common stock ("Common Shares") in the open market through AWH's normal course issuer bid ("NCIB") share buyback program (the "Buyback Program") in Q2 2025, for a total of approximately 2.7 million Common Shares since its launch in January 2025. The Company intends to continue repurchasing shares, subject to regulatory limits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Subsequent to quarter end, AWH launched its new, fully integrated e-commerce ecosystem:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Ascenders Club, the Company's revamped loyalty program, now features a tiered structure with points-based, best-in-class rewards and exclusive member benefits.

**<u>Q2 2025 Financial Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenue:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Total net revenue was flat quarter-over-quarter, with a slight decrease of 0.5%, to $127.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Retail revenue increased 2.5% quarter-over-quarter to $86.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Wholesale revenue decreased 6.4% quarter-over-quarter to $40.8 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net Loss:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net loss of $24.4 million in Q2 2025 compared to net loss of $19.3 million in the first quarter of 2025 ("Q1 2025").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted EBITDA**<sup>1</sup>**:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Adjusted EBITDA<sup>1</sup> was $28.6 million for Q2 2025, representing a 22.4% margin<sup>1</sup>. Adjusted EBITDA<sup>1</sup> increased 5.7% quarter-over-quarter and Adjusted EBITDA Margin<sup>1</sup> increased by 130-basis points.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Balance Sheet:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ As of June 30, 2025, cash and cash equivalents were $95.3 million, a sequential decrease of $4.8 million, reflecting the repayment of $10 million in cash and refinancing of $50 million via the Notes to retire the total principal outstanding under the Company's Term Loan. Net Debt<sup>5</sup>, which equals total debt less unamortized deferred financing costs less cash and cash equivalents, was $254.3 million.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Cash Flow:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Generated $17.8 million of Cash from Operations in Q2 2025, representing the tenth consecutive quarter of positive operating cash flow, and Free Cash Flow<sup>6</sup> of $12.1 million.

**<u>Management Commentary</u>**

"With the first half of the year behind us, we have taken pivotal steps to fortify our capital structure and position the company for sustained success," said Sam Brill, Chief Executive Officer of AWH. "The retirement of our prior term loan strengthens our balance sheet and extends our financial runway, allowing us to execute on our strategic priorities with greater focus and stability. We remain committed to the initiatives identified in recent quarters that are fueling our transformation and driving improved profitability, such as expanding our vertical margin through retail densification and supporting our store footprint with differentiated products and elevated customer experiences. These foundational efforts support our long-term growth strategy as we enter the second half of the year with strong momentum and a clear roadmap ahead."

Frank Perullo, Co-Founder and President of AWH, added, "Q2 delivered strong progress, including the addition of three new stores in key markets and the debut of our new infused brand, High Wired. We also ramped up commercialization of higher-margin, top-selling SKUs, launching 225 in the first half of 2025. Our products continue to gain strong consumer traction, maintaining the number two brand house position by both sales and units across Illinois, Massachusetts, and New Jersey<sup>7</sup> combined for another consecutive quarter. To complement this achievement, we completed the full-scale launch of our new e-commerce ecosystem across our entire footprint. The platform features a completely reimagined tiered loyalty program and mobile app, designed to revolutionize the shopping experience and reward our valued customers with unmatched perks and benefits."

Roman Nemchenko, Chief Financial Officer of AWH, concluded, "We continue to build a strong, scalable platform to support disciplined expansion as we work to grow our topline. In addition to paying down debt, we reached a significant milestone by achieving positive operating cash flow for ten consecutive quarters and have driven improvements through strong cost controls. While there is still progress to be made, we are confident that the strategic actions implemented in the first half of the year will continue to yield meaningful results in the near-term and we remain steadily focused on delivering value for our shareholders."

**<u>Q2 2025 Financial Overview</u>**

Net revenue was flat at $127.3 million, with a slight decrease of 0.5% sequentially, of which 2.1% resulted from declines in third-party wholesale revenue that was offset by 1.6% attributable to growth in retail revenue.

Retail revenue totaled $86.5 million, representing a 2.5% increase compared to the prior quarter, primarily driven by the addition of five stores in H1 2025, along with sustained strong performance in Ohio's adult-use market. This growth was partially offset by ongoing pricing pressure across several markets.

Third-party wholesale revenue totaled $40.8 million, a 6.4% decrease from the prior quarter. This reduction was primarily driven by softer sales in Illinois and continued price compression in various markets, offset by an increase in sales in New Jersey.

------

Q2 2025 gross profit was $41.4 million, or 32.5% of revenue, as compared to $39.6 million, or 30.9% of revenue, in Q1 2025. Adjusted Gross Profit<sup>1</sup> was $55.3 million, or 43.4% of revenue, for Q2 2025, as compared to $52.2 million, or 40.8% of revenue, for the prior quarter. This increase was primarily attributable to stronger unit growth and a 260-basis point lift, partially offset by competitive pricing pressures across both retail and wholesale channels.

Total general and administrative ("G&A") expenses for Q2 2025 were $42.4 million, or 33.3% of revenue, compared to $37.1 million, or 29.0% of revenue, for Q1 2025. The increase was primarily associated with the expansion of operations, partially offset by a benefit from cost-savings initiatives previously implemented.

Net loss attributable to AWH for Q2 2025 was $24.4 million, compared to $19.3 million in Q1 2025, primarily driven by higher G&A expenses, partially offset by a contribution from improved margins and continued cost-saving and operational efficiency initiatives.

Adjusted EBITDA<sup>1</sup> was $28.6 million in Q2 2025 compared to $27.0 million for Q1 2025, with an Adjusted EBITDA Margin<sup>1</sup> of 22.4%, a 130-basis point increase over Q1 2025. This improvement was driven by an increase in adjusted gross profit of 260-basis points and the benefits of continued cost-savings initiatives, and was partially offset by continued pricing pressure and slightly higher G&A expenses.

Cash and cash equivalents at the end of Q2 2025 were $95.3 million and Net Debt<sup>5</sup> was $254.3 million. Cash from Operations was $17.8 million in Q2 2025, representing the tenth consecutive quarter of positive operating cash flow, and Free Cash Flow<sup>6</sup> was $12.1 million.

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Measure is a non-GAAP financial measure. Please see "Non-GAAP Financial Information" below and "Reconciliations of Non-GAAP Financial Measures (Unaudited)" at the end of this press release.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;The Notes form part of the same series of the $250 million aggregate principal amount of the Company's 12.75% senior secured notes due 2029, of which $235 million aggregate principal amount was issued on July 16, 2024 and $15 million aggregate principal amount was issued on January 13, 2025. The Notes were issued at a price of 97.5% of face value pursuant to and governed by a trust indenture entered into as of July 16, 2024, as amended and supplemented by a first supplemental indenture dated as of January 13, 2025.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Includes both Company-owned and partner locations.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;The Company may repurchase up to the lesser of: (i) 10,215,690 shares of the Company's Class A common stock ("Common Shares"); and (ii) $2.25 million worth of Common Shares, in the open market.

<sup>5</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net Debt is a non-GAAP financial measure defined as total debt, net of unamortized deferred financing costs of ~$349.6 million, less cash and cash equivalents of $95.3 million as of June 30, 2025. Please see "Non-GAAP Financial Information" below.

<sup>6</sup>&nbsp;&nbsp;&nbsp;&nbsp;Free Cash Flow is a non-GAAP financial measure defined as Cash from Operations of $17.8 million less capital expenditures of $5.7 million, which represents total additions to capital assets excluding $0.5 million related to new store builds. Please see "Non-GAAP Financial Information" below.

<sup>7</sup>&nbsp;&nbsp;&nbsp;&nbsp;Source: BDSA

------

**<u>Non-GAAP Financial Information and Definitions</u>**

This press release includes certain non-GAAP financial measures as defined by the U.S. Securities and Exchange Commission ("SEC"). Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release or in other information contained herein. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

Adjusted EBITDA/Margin and Adjusted Gross Profit/Margin are non-GAAP financial measures. Please see "Reconciliations of Non-GAAP Financial Measures (Unaudited)" at the end of this release.

We define Net Debt as total debt, net of unamortized deferred financing costs, less cash and cash equivalents, which components are disclosed in the Company's Selected Condensed Consolidated Balance Sheet Information (Unaudited) included in the financial schedules attached to this press release under the captions "Current portion of debt, net," "Long-term debt, net,", and "Cash and cash equivalents." We believe this measure is an important indicator of the Company's ability to service its long-term debt obligations. This non-GAAP financial measure should not be considered in isolation of, or as a substitute for, the most directly comparable GAAP financial measures as an indicator of operating performance or liquidity and may not be comparable to similarly titled measures provided by other companies.

We define Free Cash Flow as "Net cash provided by operating activities" net of "Additions to capital assets" which are disclosed in the Company's Selected Condensed Consolidated Cash Flow Information (unaudited) included in the financial schedules attached to this press release, adjusted for spending related to new store builds. We use Free Cash Flow measures, among other measures, to evaluate the Company's liquidity and its ability to generate cash flow. We believe that this is a meaningful financial measure to investors because it provides a view of the Company's liquidity after deducting capital expenditures, which are considered to be a necessary component of ongoing operations. This non-GAAP financial measure should not be considered in isolation of, or as a substitute for, net cash provided by operating activities and may not be comparable to similarly titled measures provided by other companies.

**<u>Conference Call and Webcast</u>**

AWH will host a conference call on Thursday, August 7, 2025, at 5:00 p.m. ET, to discuss its financial results for the quarter ended June 30, 2025.

The call can be accessed by dialing 1-888-699-1199. A live webcast will be available on the Investor Relations section of AWH's website at https://www.awholdings.com/investors, and will be archived for replay. The conference call replay can be accessed by phone at 1-888-660-6345, using code: 21204#, and will be available until midnight ET, Thursday, August 14, 2025.

------

**<u>About Ascend Wellness Holdings, Inc.</u>**

AWH is a vertically integrated cannabis operator with assets in Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania. AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products for retail and wholesale customers. AWH produces and distributes its in-house Simply Herb, Ozone, Ozone Reserve, High Wired, Effin', Common Goods, and Royale branded products. For more information about AWH, visit www.awholdings.com.

Additional information relating to the Company's Q2 2025 results is available on the Investor Relations section of AWH's website at https://awholdings.com/investors/, the SEC's Electronic Data Gathering, Analysis and Retrieval system ("EDGAR") at www.sec.gov and Canada's System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at www.sedarplus.ca.

**<u>Cautionary Note Regarding Forward-Looking Information</u>**

This news release includes forward-looking information and statements (together, "forward-looking statements"), which may include, but are not limited to, the plans, intentions, expectations, estimates, and beliefs of the Company. Words such as "expects", "continue", "may", "will", "anticipates", and "intends" or similar expressions are intended to identify forward-looking statements. Without limiting the generality of the preceding statement, all statements in this press release relating to estimated and projected revenue, expectations regarding production capacity, anticipated capital expenditures, expansion, profit, product demand, margins, costs, cash flows, sources of capital, growth rates, potential acquisitions, closing dates for transactions, regulatory approvals, future facility openings, and, enhancing shareholder value, reducing downward pressure on the stock, and future financial and operating results are forward-looking statements.

We caution investors that any such forward-looking statements are based on the Company's current projections and expectations about future events and financial trends, the receipt of all required regulatory approvals, and on certain assumptions and analysis made by the Company in light of the experience of the Company and perception of historical trends, current conditions, and expected future developments and other factors management believes are appropriate.

Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein. Such factors include, among others, the risks and uncertainties identified in the Company's most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable, and in the Company's other reports and filings with the applicable Canadian securities administrators on its profile on SEDAR+ at www.sedarplus.ca and the SEC on its profile on EDGAR at www.sec.gov. Although the Company believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking statements. Any forward-looking statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any

------

forward-looking statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws. No securities regulator nor the Canadian Securities Exchange has reviewed, approved, or disapproved the content of this press release.

**<u>Contacts</u>**

**Chief Financial Officer**

Roman Nemchenko

(617) 453-4042 ext. 90102

**Investor & Media Contact:**

IR@awholdings.com

(617) 453-4042 ext. 90102

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**ASCEND WELLNESS HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS INFORMATION (UNAUDITED)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| *<u>(in thousands, except per share amounts)</u>* | **2025** | **2024** | **2025** | **2024** |
| Revenue, net | $127304 | $141536 | $255301 | $283946 |
| Cost of goods sold | (85912) | (99963) | (174348) | (190336) |
| **Gross profit** | 41392 | 41573 | 80953 | 93610 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 42394 | 43095 | 79469 | 92557 |
| **Operating (loss) profit** | (1002) | (1522) | 1484 | 1053 |
| Other (expense) income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (12058) | (8535) | (23248) | (17073) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other, net | 484 | 379 | 961 | 689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (11574) | (8156) | (22287) | (16384) |
| Loss before income taxes | (12576) | (9678) | (20803) | (15331) |
| Income tax expense | (11831) | (12106) | (22862) | (24616) |
| **Net loss** | $(24407) | $(21784) | $(43665) | $(39947) |
| **Net loss per share attributable to Class A and Class B common stockholders — basic and diluted** | $(0.12) | $(0.10) | $(0.21) | $(0.19) |
| **Weighted-average common shares outstanding — basic and diluted** | 203866 | 213160 | 204430 | 211057 |

---

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**ASCEND WELLNESS HOLDINGS, INC.**

**SELECTED CONDENSED CONSOLIDATED CASH FLOW INFORMATION (UNAUDITED)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| *<u>(in thousands)</u>* | **2025** | **2024** | **2025** | **2024** |
| **Net cash provided by operating activities** | $17801 | $32254 | $23740 | $36154 |
| **Cash flows from investing activities** |  |  |  |  |
| Additions to capital assets | (6243) | (5357) | (12666) | (12538) |
| Investments in notes receivable |  | (600) |  | (600) |
| Collection of notes receivable | 82 | 82 | 164 | 8264 |
| Proceeds from sale of assets | 15 |  | 27 | 11 |
| Acquisition of businesses, net of cash acquired | (2443) | (10000) | (3461) | (10000) |
| Purchases of intangible assets |  | (1000) | (500) | (4000) |
| **Net cash used in investing activities** | (8589) | (16875) | (16436) | (18863) |
| **Cash flows from financing activities** |  |  |  |  |
| Proceeds from issuance of debt | 48517 |  | 63067 |  |
| Repayments of debt | (60335) |  | (60335) | (786) |
| Debt issuance costs | (184) |  | (360) |  |
| Repayments under finance leases | (506) | (122) | (847) | (240) |
| Taxes withheld under equity-based compensation plans, net |  | (4448) |  | (5060) |
| Repurchase of common stock | (649) |  | (994) |  |
| Payment of contingent consideration | (819) |  | (819) |  |
| **Net cash used in financing activities** | (13976) | (4570) | (288) | (6086) |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (4764) | 10809 | 7016 | 11205 |
| **Cash, cash equivalents, and restricted cash at beginning of period** | 100034 | 72904 | 88254 | 72508 |
| **Cash, cash equivalents, and restricted cash at end of period** | $95270 | $83713 | $95270 | $83713 |

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**ASCEND WELLNESS HOLDINGS, INC.**

**SELECTED CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (UNAUDITED)**

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| | | |
|:---|:---|:---|
| *<u>(in thousands)</u>* | **June 30, 2025** | **December 31, 2024** |
| Cash and cash equivalents | $95270 | $88254 |
| Inventory | 82317 | 89552 |
| Other current assets | 48067 | 51570 |
| Property and equipment, net | 277896 | 260461 |
| Operating lease right-of-use assets | 124251 | 139067 |
| Intangible assets, net | 206702 | 205502 |
| Goodwill | 53996 | 49599 |
| Other noncurrent assets | 15368 | 16426 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $903867 | $900431 |
| Current portion of debt, net | $26145 | $73881 |
| Other current liabilities | 74645 | 70660 |
| Long-term debt, net | 323437 | 234542 |
| Operating lease liabilities, noncurrent | 246102 | 267221 |
| Other noncurrent liabilities | 205384 | 182326 |
| Total stockholders' equity | 28154 | 71801 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities and Stockholders' Equity** | $903867 | $900431 |

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**ASCEND WELLNESS HOLDINGS, INC.**

**RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)**

We define "Adjusted Gross Profit" as gross profit excluding non-cash inventory costs, which include depreciation and amortization included in cost of goods sold, equity-based compensation included in cost of goods sold, and other non-cash inventory adjustments. We define "Adjusted Gross Margin" as Adjusted Gross Profit as a percentage of net revenue. Our "Adjusted EBITDA" is a non-GAAP measure used by management that is not defined by GAAP and may not be comparable to similar measures presented by other companies. We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of net revenue. Management calculates Adjusted EBITDA as the reported net loss, adjusted to exclude: income tax expense, other (income) expense, interest expense, depreciation and amortization, depreciation and amortization included in cost of goods sold, non-cash inventory adjustments, equity-based compensation, equity-based compensation included in cost of goods sold, start-up costs, start-up costs included in cost of goods sold, transaction-related and other non-recurring expenses, and gain or loss on sale of assets. Accordingly, management believes that Adjusted EBITDA provides meaningful and useful financial information, as this measure demonstrates the operating performance of the business. Non-GAAP financial measures may be considered in addition to the results prepared in accordance with GAAP, but they should not be considered a substitute for, or superior to, GAAP results. The Company's presentation of these financial measures may not be comparable to similar non-GAAP measures used by other companies. These financial measures are intended to provide additional information to investors regarding the Company's performance.

The following table presents Adjusted Gross Profit for the quarter and six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| *<u>($ in thousands)</u>* | **2025** | **2024** | **2025** | **2024** |
| Gross Profit | $41392 | $41573 | $80953 | $93610 |
| &nbsp;&nbsp;Depreciation and amortization included in cost of goods sold | 8581 | 7105 | 18281 | 14767 |
| &nbsp;&nbsp;Equity-based compensation included in cost of goods sold | 164 | 4336 | 1302 | 6547 |
| &nbsp;&nbsp;Non-cash inventory adjustments<sup>(1)</sup> | 5142 |  | 6916 | 474 |
| **Adjusted Gross Profit** | $55279 | $53014 | $107452 | $115398 |
| *Adjusted Gross Margin* | *43.4 %* | *37.5 %* | *42.1 %* | *40.6 %* |

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<sup>(1)</sup> Consists of write-offs of expired products, obsolete packaging, and net realizable value adjustments related to certain inventory items.

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**ASCEND WELLNESS HOLDINGS, INC.**

**RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)**

The following table presents Adjusted EBITDA for the quarter and six months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| *<u>($ in thousands)</u>* | **2025** | **2024** | **2025** | **2024** |
| Net loss | $(24407) | $(21784) | $(43665) | $(39947) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 11831 | 12106 | 22862 | 24616 |
| &nbsp;&nbsp;&nbsp;Other, net | (484) | (379) | (961) | (689) |
| &nbsp;&nbsp;&nbsp;Interest expense | 12058 | 8535 | 23248 | 17073 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 17830 | 15681 | 36230 | 32061 |
| &nbsp;&nbsp;&nbsp;Non-cash inventory adjustments<sup>(1)</sup> | 5142 |  | 6916 | 474 |
| &nbsp;&nbsp;&nbsp;Equity-based compensation | 288 | 7515 | 1804 | 16195 |
| &nbsp;&nbsp;&nbsp;Start-up costs<sup>(2)</sup> | 3880 | 951 | 4616 | 1445 |
| &nbsp;&nbsp;&nbsp;Transaction-related and other non-recurring expenses<sup>(3)</sup> | 2405 | 5721 | 4468 | 9604 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on sale of assets | 17 |  | 55 | (11) |
| **Adjusted EBITDA** | $28560 | $28346 | $55573 | $60821 |
| *Adjusted EBITDA Margin* | *22.4 %* | *20.0 %* | *21.8 %* | *21.4 %* |

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<sup>(1)</sup> Consists of write-offs of expired products, obsolete packaging, and net realizable value adjustments related to certain inventory items.

<sup>(2)</sup> One-time costs associated with acquiring real estate, obtaining licenses and permits, and other costs incurred before commencement of operations at certain locations, as well as incremental expenses associated with the expansion of activities at our cultivation facilities that are not yet operating at scale, unallocated overhead expenses at certain cultivation facilities, and other expenses resulting from delays in regulatory approvals. Also includes other one-time or non-recurring expenses, as applicable.

<sup>(3)</sup> Other non-recurring expenses including legal and professional fees associated with litigation matters, potential acquisitions, other regulatory matters, and other reserves or one-time expenses. The three and six months ended June 30, 2025 each include approximately $700 of expenses associated with our May 2025 term loans and the six months ended June 30, 2025 includes approximately $400 of expenses associated with our January 2025 term loans. The three and six months ended June 30, 2025 also each include approximately $100 of fair value adjustments associated with acquisition earn-outs. The three and six months ended June 30, 2024 include a reserve of $2,744 and $5,774, respectively, related to certain amounts associated with a previous transaction and $490 and $630, respectively, of fair value adjustments related to an acquisition earn-out. The six months ended June 30, 2024 also includes $984 recognized as a discount on a noncurrent receivable.