Ayr Wellness Q3 Financial Metrics All Show Major Improvements

Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) reported its financial results for the third quarter ended September 30, 2022 today.

Third Quarter Financial Highlights 

Unless otherwise noted, all results below are presented in U.S. dollars.  

  Q3 2021 Q2 2022 Q3 2022 % Change
% Change
Revenue $96.2 M $110.1 M $119.6 M 24.4 % 8.6 %
Gross Profit $40.1 M $40.3 M $49.5 M 23.5 % 22.9 %
Adjusted Gross Profit $56.6 M $57.2 M $62.9 M 11.0 % 9.9 %
Operating Loss $(8.9) M $(24.8) M $(20.7) M NA   NA  
Adjusted EBITDA $26.0 M $19.6 M $21.7 M -16.7 % 10.3 %
Adjusted EBITDA Margin   27.0 %   17.8 %   18.1 % -890bps   30bps  

Management Commentary

Jonathan Sandelman, Founder and CEO, said,

  • “Ayr executed on its growth and profitability objectives during the third quarter, with our financial results largely in line with expectations.
  • We grew retail market share in 6 of the 7 states where we operate.
  • We maintained strong unit volumes across nearly all of our markets [despite]...economic headwinds and inflationary pressures  demonstrating the defensibility of cannabis as a consumer staple.
  • ...We continue to optimize our existing foundation, as reflected in:
    • our hiring of David Goubert as Ayr’s first President...
    • [and the announcement] that the Board of Directors has named Joyce Johnson-Miller as the Company’s Lead Independent Director, further strengthening our corporate governance.
  • Looking ahead, we anticipate further growth from the optimization and ramping of our existing asset base, as well as a number of new catalysts that we expect to begin contributing by early next year.
    • The closing of our acquisition of two Dispensary 33 retail locations in Illinois,
    • the opening of 15+ new Florida stores,
    • the commencement of sales from our state-of-the-art cultivation facility in Ohio,
    • and the continued phased openings of our Massachusetts cultivation expansion will be key growth and profitability drivers in 2023...".

Third Quarter Operational Highlights

  • Retail Updates
    • Opened two Greater Boston adult-use dispensaries.
    • Opened two new dispensaries in Florida bringing Ayr’s total footprint to 50 dispensaries across the state.
  • Brand/Product Updates
    • Introduced Lost in Translation (LIT), a brand known for sought- after genetics and terpene profiles, in Massachusetts, Florida, Pennsylvania, New Jersey and Arizona.
    • Introduced HAZE live resin concentrates and vapes in Florida and Nevada.
    • Launched Levia water-soluble tinctures in Arizona and Nevada in August, representing the first expansion of Levia outside of Massachusetts.
    • Introduced Secret Orchard vapes in Nevada.
  • Regulatory Updates
    • Received state regulatory approval to convert Ayr’s Somerville, Massachusetts medical dispensary to adult use, pending local approvals.
    • Received state regulatory approval to begin phased production at Ayr’s new cultivation expansion in Massachusetts.
  • Financing Update
    • Deployed $7.9 million of capital expenditures in Q3 and ended the quarter with a cash balance of $100.8 million.


  •  The Company expects Adjusted EBITDA and Operating Income to grow approximately 10% sequentially from Q3 2022 to Q4 2022 and expects further growth in 2023 as future milestones come online. This guidance assumes further price compression in the wholesale and retail market. 

Stock Performance

Despite the major progress in their financial metrics in Q3 Ayr's stock price went DOWN 52.2% during the quarter reacting poorly to the overall weakness in the cannabis market weakness which declined 10.9% during the same period. Since then the stock has rebounded by 63.3% as of last Friday, November 5th, remaining relatively unchanged since then despite the release of the impressive Q3 results today. 

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