Ascend is a leading US multi-state operator that reported better-than-expected revenue and adjusted EBITDA for the third quarter. I interviewed Daniel Neville, Co-CEO and CFO to discuss the robust results.
I am an investor in Ascend and appreciate their limited-license footprint, consitent revenue growth, and execution in a challenging environment. In what has been a flat quarter for many MSOs, Ascend experienced 14.1% quarter-over-quarter revenue growth and increased adjusted EBITDA margins.
Despite the strong metrics, Ascend trades a discount to peers and is often ignored by large allocators. Ascend is the only top-ten US cannabis stock excluded from the $705,000,000 AdvisorShares MSOS ETF. It is also not in the other large ETFs like $MJ, $MJUS, or $CNBS. Being added may be a meaningful catalyst. While frustrating in the near term, the cheap valuation and limited institutional ownership may present a long-term opportunity.
During our conversation, Daniel and I discussed the recent leadership changes at Ascend, what drove the strong quarter, and risks and opportunities in 2023. With a third adult-use store opening in New Jersey, two new dispensaries in Pennsylvania, and a third store launching in Massachusetts, Ascend is positioned for more growth in the fourth quarter.
To listen to the full conversation, please click on the tweet below. Spaces only play on mobile devices. For more details on the quarter, here is a link to Ascend's Q3 earnings presentation.
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