📊 AAWH Key Takeaways
Is Ascend Wellness Holdings, Inc. (AAWH) a Good Investment?
Ascend Wellness is in acute financial distress with negative stockholders' equity of -$47.4M, indicating liabilities exceed assets by a significant margin. The company is experiencing deteriorating profitability with net margins of -23.6%, negative operating income of -$17.0M, and an alarming -$118.2M net loss, while revenue is contracting at -10.9% YoY. Although operating cash flow of $38.1M provides temporary liquidity, the negative equity position, high debt burden of $319.5M, and inability to cover interest obligations signal imminent solvency risk.
Ascend Wellness shows some underlying operating resilience through positive operating cash flow, positive free cash flow, and a still-serviceable gross margin, but the broader fundamentals remain weak. Revenue is shrinking, net losses are large, interest coverage is negative, and the balance sheet is stressed with negative equity, which materially raises financial risk. Until profitability and leverage improve meaningfully, the fundamentals do not support a constructive view.
Why Buy Ascend Wellness Holdings, Inc. Stock? AAWH Key Strengths
- Positive operating cash flow of $38.1M provides near-term liquidity cushion
- Current ratio of 1.92x indicates adequate short-term liquidity relative to current liabilities
- Gross margin of 33.9% shows underlying business units can generate adequate margins on direct costs
- Positive operating cash flow of $38.05M and free cash flow of $12.04M indicate the business is still generating cash despite accounting losses
- Current ratio of 1.92x and quick ratio of 1.14x suggest near-term liquidity is not the immediate problem
- Gross margin of 33.9% shows the core product economics are still viable before overhead, interest, and other charges
AAWH Stock Risks: Ascend Wellness Holdings, Inc. Investment Risks
- Negative stockholders' equity of -$47.4M represents technical insolvency and existential balance sheet risk
- Net loss of -$118.2M with -23.6% net margin indicates severe operational unprofitability and cash burn
- Long-term debt of $319.5M with negative interest coverage ratio of -0.3x means company cannot service debt from earnings
- Revenue decline of -10.9% YoY combined with operating losses suggests deteriorating market position
- Zero insider buying activity in last 90 days indicates lack of management confidence in turnaround
- Revenue declined 10.9% YoY, pointing to weakening demand, pricing pressure, or execution issues
- Profitability is poor, with operating margin of -3.4% and net margin of -23.6%, showing the business is not earning through its cost structure
- Balance sheet risk is high because stockholders equity is negative and interest coverage is -0.3x, implying elevated refinancing and solvency pressure
Key Metrics to Watch
- Quarterly net income trend and path to profitability
- Stockholders' equity recovery trajectory
- Free cash flow sustainability and cash balance depletion rate
- Revenue stabilization and margin expansion initiatives
- Debt refinancing or restructuring activities
- Revenue growth trend
- Operating margin and interest coverage
Ascend Wellness Holdings, Inc. (AAWH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility.
AAWH Profit Margin, ROE & Profitability Analysis
AAWH vs Materials Sector: How Ascend Wellness Holdings, Inc. Compares
How Ascend Wellness Holdings, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ascend Wellness Holdings, Inc. Stock Overvalued? AAWH Valuation Analysis 2026
Based on fundamental analysis, Ascend Wellness Holdings, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ascend Wellness Holdings, Inc. Balance Sheet: AAWH Debt, Cash & Liquidity
AAWH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ascend Wellness Holdings, Inc.'s revenue has grown significantly by 69% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.24 indicates the company is currently unprofitable.
AAWH Revenue Growth, EPS Growth & YoY Performance
AAWH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $124.7M | -$18.2M | $-0.13 |
| Q2 2025 | $127.3M | -$18.2M | $-0.10 |
| Q1 2025 | $128.0M | -$18.2M | $-0.09 |
| Q3 2024 | $141.3M | $841.0K | $-0.05 |
| Q2 2024 | $123.0M | $841.0K | $0.00 |
| Q1 2024 | $114.2M | -$18.2M | $-0.09 |
| Q3 2023 | $111.2M | $841.0K | $-0.05 |
| Q2 2023 | $97.5M | $841.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ascend Wellness Holdings, Inc. Dividends, Buybacks & Capital Allocation
AAWH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ascend Wellness Holdings, Inc. (CIK: 0001756390)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AAWH
What is the AI rating for AAWH?
Ascend Wellness Holdings, Inc. (AAWH) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AAWH's key strengths?
Claude: Positive operating cash flow of $38.1M provides near-term liquidity cushion. Current ratio of 1.92x indicates adequate short-term liquidity relative to current liabilities. ChatGPT: Positive operating cash flow of $38.05M and free cash flow of $12.04M indicate the business is still generating cash despite accounting losses. Current ratio of 1.92x and quick ratio of 1.14x suggest near-term liquidity is not the immediate problem.
What are the risks of investing in AAWH?
Claude: Negative stockholders' equity of -$47.4M represents technical insolvency and existential balance sheet risk. Net loss of -$118.2M with -23.6% net margin indicates severe operational unprofitability and cash burn. ChatGPT: Revenue declined 10.9% YoY, pointing to weakening demand, pricing pressure, or execution issues. Profitability is poor, with operating margin of -3.4% and net margin of -23.6%, showing the business is not earning through its cost structure.
What is AAWH's revenue and growth?
Ascend Wellness Holdings, Inc. reported revenue of $500.6M.
Does AAWH pay dividends?
Ascend Wellness Holdings, Inc. does not currently pay dividends.
Where can I find AAWH SEC filings?
Official SEC filings for Ascend Wellness Holdings, Inc. (CIK: 0001756390) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AAWH's EPS?
Ascend Wellness Holdings, Inc. has a diluted EPS of $-0.58.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AAWH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ascend Wellness Holdings, Inc. has a SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AAWH stock overvalued or undervalued?
Valuation metrics for AAWH: ROE of N/A (sector avg: 14%), net margin of -23.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AAWH stock in 2026?
Our dual AI analysis gives Ascend Wellness Holdings, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AAWH's free cash flow?
Ascend Wellness Holdings, Inc.'s operating cash flow is $38.1M, with capital expenditures of $26.0M. FCF margin is 2.4%.
How does AAWH compare to other Materials stocks?
Vs Materials sector averages: Net margin -23.6% (avg: 10%), ROE N/A (avg: 14%), current ratio 1.92 (avg: 1.6).