Multi-state cannabis operator Ascend Wellness ( AAWH ) (CSE:AAWH) reported its financial results Tuesday for the fourth quarter and full year, revealing quarterly revenue of $140.2 million, down by 0.8% quarter-over-quarter and up by 25% year-over-year.

“AWH had an excellent quarter and full year," CEO John Hartmann stated. ‘" Our notable achievements translated into impressive financial success, with 2023 net revenue reaching $519 million, a robust 28% growth from the previous year. This growth was fueled by the expansion of both retail and wholesale businesses, including a 21% increase in the retail business driven by store openings and strategic acquisitions and a 47% growth in the third-party wholesale business as we increased our presence in New Jersey, Massachusetts, and Illinois."

Q4 Financial Summary 

Net loss of $19.3 million compared to net loss of $15.1 million in Q4 2022.

Adjusted EBITDA was $32.4 million, a 9.6% increase quarter-over-quarter and a 14.8% increase year-over-year. Adjusted EBITDA Margin was 23.1%, a 218 basis point increase compared to the prior quarter and a 207 basis point decrease compared to the prior year.

Generated $16.7 million in cash from operations in the quarter, representing the fourth quarter in a row that the company generated cash from operations. Generated $8.4 million free cash flow in the quarter, representing the second quarter in a row that the company generated positive free cash flow.

As of December 31, 2023, cash and cash equivalents were $72.5 million, and net debt was $236.2 million.

Full Year Financial Summary 

Net revenue increased 27.8% year-over-year to $518.6 million. 

Net loss of $48.2 million compared to net loss of $80.9 million for FY 2022.

Adjusted EBITDA was $106.5 million, a 14.3% increase year-over-year. Adjusted EBITDA Margin was 20.5%, a 243 basis point decrease compared to the prior year.

Generated $54.5 million cash from operations in the full year, representing the first full year the company generated cash from operations since the company was founded. Generated $30.3 million free cash flow for the full year, representing the first full year the company generated positive free cash flow. Both of these metrics exclude the benefit of $20.8 million in cash that the company received throughout the year attributable to an employee retention tax credit.

Price Action 

Ascend Wellness ( AAWH ) shares closed Monday market session 10.92% lower at $1.06 per share. 

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