AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF), a vertically integrated U.S. multi-state cannabis operator, released its financial results for the fourth quarter and full year of 2024, revealing a period of recalibration amidst macroeconomic pressures and company-specific hurdles. While the numbers reflect these challenges, AYR is proactively implementing strategic changes to drive future growth and profitability.
The fourth quarter saw revenue holding steady at $114.0 million, a slight decrease compared to both the previous quarter and the same period last year. However, gross profit and adjusted EBITDA experienced more significant declines, reflecting the impact of ongoing market pressures. For the full year 2024, revenue matched the previous year’s $463.6 million, but gross profit and adjusted EBITDA decreased. The company reported an operating loss of $133.9 million for the quarter, which included $118.1 million in non-cash impairment charges.
Interim CEO Steven M. Cohen emphasized the crucial steps taken to reorient the business. Key to this is a restructured leadership team, with George DeNardo promoted to President, and Julie Winter and Jamie Mendola stepping into the roles of co-Chief Revenue Officers. These changes aim to enhance operational focus and agility across the organization. DeNardo’s immediate objective is to foster synergy between revenue generation and supply chain functions.
AYR’s vision for 2025 centers on strategic investments in core brands and streamlined operations to achieve cost efficiencies and faster decision-making. The company is actively refining branded product offerings and optimizing its state portfolio to concentrate on key markets.
A significant investment is underway in Florida, with a new state-of-the-art indoor cultivation facility designed to supply high-quality flower to AYR’s 67 dispensaries in the state. The company also plans to expand its presence in Ohio’s retail and wholesale channels and is positioned for entry into the Virginia market.
AYR is committed to balance sheet discipline, with capital expenditures for 2025 expected to be approximately $10 million, a decrease from the $17.7 million spent in 2024. The company ended 2024 with a cash balance of $35.5 million and generated $9.6 million in cash flow from operations during the year.
For the first quarter of 2025, AYR anticipates revenue to be down mid-single digits compared to Q4 2024, with a modest increase in Adjusted EBITDA Margin. While challenges remain, AYR Wellness is focused on executing its strategic initiatives and positioning itself for sustainable growth and profitability in the evolving cannabis market.
