Ascend Wellness Holdings Inc. and Ayr Wellness Inc. posted wider losses but signaled that their businesses remain sound as they eye revenue growth ahead despite economic headwinds.
“AWH continues to be among the industry leaders in revenue growth…despite challenging macro and microenvironments,” said Abner Kurtin, executive chairman of Ascend Wellness.
Citing operating costs and tax expenses, Ascend Wellness said its net loss widened to $16.82 million, or 9 cents a share, from a loss of $13.03 million, or 8 cents a share, in the year-ago quarter. Net revenue increased to $111.24 million from $94.38 million.
Ascend Wellness beat the Wall Street target of $105 million for revenue but fell short of the estimate for a loss of 4 cents a share.
During the quarter, Ascend Wellness launched adult use sales in Montclair, N.J. and ramped up edibles production at its cultivation facility in Franklin, N.J. It also plans to open its store in Fort Lee, N.J. by the end of the year.
For its part, Ayr Wellness
said its third-quarter loss increased to $36.1 million, or 52 cents a share, from a loss of $3.38 million, or 6 cents a share, in the year-ago quarter.
Revenue increased to $119.64 million from $96.19 million.
Wall Street analysts expected Ayr Wellness to lose 38 cents a share on revenue of $120.1 million.
Ayr continues to increase its presence in Massachusetts, where it received state regulatory approval to begin adult use sales in Somerville, but it obtain local approvals. It’s also won approval to begin production at a new cultivation expansion in Massachusetts.