AYR Wellness Q1 2024 Earnings Report

By Bill McNarland On May 16, 2024

The TDR Three Key Takeaways regarding AYR Wellness Q1 2024 Earnings Report:

AYR Wellness reports Q1 2024 revenue of $118.0 million, a 2.8% increase from Q4 2023.
Adjusted EBITDA for Q1 2024 was $29.1 million, up over 10% year-over-year.
AYR Wellness achieved positive free cash flow for the quarter.

AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF), a vertically integrated U.S. multi-state cannabis operator, announced its earnings report for the first quarter of 2024, highlighting continued progress in key operational metrics and cost controls.

For Q1 2024, AYR Wellness reported revenue of $118.0 million, a 2.8% increase from $114.8 million in Q4 2023. The company’s gross profit for the quarter was $50.7 million, up 2.6% from $49.4 million in Q4 2023. Adjusted EBITDA was $29.1 million, with an adjusted EBITDA margin of 25%, reflecting a slight decrease from the previous quarter’s 25.9%.

David Goubert, President & CEO of AYR, emphasized the company’s focus on execution, improving product quality, and building a loyal retail customer base. Goubert noted the significance of the U.S. Department of Justice’s decision to recommend reclassifying cannabis from Schedule I to Schedule III, which AYR views as a positive development for the industry.

AYR wellness’s Q1 2024 results included a GAAP loss from operations of $2.0 million, a notable improvement from the $21.7 million loss reported in Q1 2023. The company generated positive free cash flow and expects to continue this trend for the full year 2024.

AYR Wellness launched its premium edibles line in Florida and Nevada under the kynd brand and opened a new dispensary in Tallahassee. Additionally, AYR closed an $8.4 million upsizing of its existing mortgage for the Gainesville cultivation facility to support further investments in Florida.

Looking ahead, AYR expects Q2 2024 revenue to be flat or modestly up compared to Q1 2024, with stronger growth anticipated in the second half of the year. The company aims to maintain an adjusted EBITDA margin of approximately 25% for 2024 and continue generating positive cash flow.AYR Wellness remains committed to its strategic objectives and looks forward to capitalizing on upcoming state-level catalysts, particularly in Ohio, Florida, and Pennsylvania, where adult-use cannabis legislation could increase growth. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.