Cannabis Company's Optimization Plan Results In Over 50% YoY Increase In Adjusted EBITDA, Q3 Revenue
Portfolio Pulse from Jelena Martinovic
AYR Wellness Inc. (OTCQX:AYRWF) reported Q3 financial results with a 50% YoY increase in adjusted EBITDA and a slight revenue increase from the previous year. The company saw a net loss but improved operating loss and has entered agreements to extend debt maturities and secure new financing. However, AYR no longer expects H2 2023 growth over H1 and anticipates flat Q4 revenue with a 25% adjusted EBITDA margin. AYRWF shares rose 7.5% post-announcement.
November 16, 2023 | 2:14 pm
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AYR Wellness Inc. reported a 50% YoY increase in adjusted EBITDA for Q3, with a slight revenue increase and improved operating loss. The company has extended debt maturities and secured new financing but expects flat Q4 revenue.
The positive EBITDA growth and debt restructuring are encouraging, but the flat revenue forecast for Q4 tempers expectations. The after-hours stock price increase indicates a positive short-term sentiment, but the lack of expected growth could limit upside potential.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100