Ascend Wellness Holdings, Inc. Q1 FY26 Results

Our first quarter performance highlights the improved strength of our operational foundation. Amid weather-related closures and a challenging operating environment, our operations proved resilient. We believe this marks an important inflection point as we execute our 2026 priorities, specifically through further retail densification, the continued enhancement of our customer-first retail model, and the deployment of our CPG strategy designed to capture high-margin sales and optimize our product mix. Densification puts us on a clear path to drive topline growth in the coming quarters, and we look forward to realizing the benefits of the operating leverage we have built. Looking ahead, the Trump Administration’s move to reschedule medical cannabis to Schedule III brings real benefits for patients, medical research, and access, while supporting the industry as a whole. As details emerge following the Drug Enforcement Administration’s anticipated hearing this summer on adult-use cannabis rescheduling, we are encouraged and are actively evaluating the potential immediate and near-term benefits for our operations.

The evolution of our legacy brand, Ozone, is the result of years of intentional focus and investment to achieve our highest quality standards. Alongside newer additions like High Wired and Honor Roll, we have built a diversified brand house that spans the full spectrum of consumer preferences. This portfolio drove 11% sequential market share growth across Illinois, Massachusetts, and New Jersey, with representation across all major product categories. Ozone is our best-selling brand overall, while High Wired has secured the #1 spot in infused flower sales across those three states, combined. Customer engagement remained a key driver in Q1 2026, with Ascenders Club loyalty sign-ups increasing 34% sequentially and approximately 89% of sales at Ascend stores tied to members. This performance serves as a clear indicator of our progress and highlights how the improved quality, consistency, and potency that define our portfolio today are setting a new benchmark for Ascend.

Our balance sheet remains in a position of strength. We have stayed disciplined in managing our ongoing financial commitments while navigating operational headwinds. While pricing pressures persist across our footprint, our prudent approach to capital allocation has provided the flexibility to stay focused on executing our growth strategy.