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Ayr Wellness (AYRWF)
OTHER OTC:AYRWF

Ayr Wellness (AYRWF) AI Stock Analysis

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Ayr Wellness (AYRWF) vs. SPDR S&P 500 ETF (SPY)

Ayr Wellness Business Overview & Revenue Model

Company DescriptionAyr Wellness Inc., a vertically-integrated cannabis multi-state operator, cultivates, manufactures, and retails cannabis products and branded cannabis packaged goods. The company's cannabis and cannabis products include concentrates, edibles, and vaporizers. It also provides administrative, consulting, and operations support services to licensed cannabis companies. As of November 1, 2022, Ayr Wellness Inc. operated 52 dispensaries. The company was formerly known as Ayr Strategies Inc. and changed its name to Ayr Wellness Inc. in February 2021. Ayr Wellness Inc. was incorporated in 2017 and is headquartered in Miami, Florida.
How the Company Makes Money

Ayr Wellness Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q4-2024)
|
% Change Since: -41.67%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The call highlighted strategic moves to strengthen the business through operational streamlining and market expansion, particularly in Ohio. However, significant challenges persist, including price compression and various operational difficulties, leading to a decline in profitability and substantial impairment charges.
Q4-2024 Updates
Positive Updates
Strong Wholesale Revenue Growth
CPG wholesale revenue in 2024 was up 20% year-over-year, with core brands Kynd, Haze, and Later Days up 126% over the prior year.
Ohio Market Expansion
Ohio adult use sales in Q4 contributed to meaningful increases in both retail and wholesale revenues. Ohio retail sales increased 41% quarter-over-quarter.
Operational Streamlining
Efforts to streamline operations include selling assets in Illinois, consolidating facilities in Nevada and Massachusetts, and reducing SG&A costs.
New Indoor Cultivation Facility in Florida
Launch of a new indoor cultivation facility in Ocala, expected to come online in Q2, will more than double current flower production capacity.
Negative Updates
Price Compression Across Various Markets
Price compression continued to impact margins, with BDSA flower pricing decreasing sequentially across all markets, ranging from 5% to 12%.
Challenges in Florida
Florida faced price compression, seasonal greenhouse impacts, and inventory challenges stemming from the transition to a new seed-to-sale tracking system.
Q4 Gross Profit Decline
Q4 gross profit of $35.8 million represented a 17% decrease from the prior quarter and a 27% decrease from the prior year.
Impairment Charges
Q4 loss from continuing operations was $133.9 million, driven by $116 million of non-cash impairment charges, including a $94 million goodwill impairment.
Company Guidance
During the Ayr Wellness fourth quarter and full-year 2024 earnings call, Interim CEO Steven Cohen and President George DeNardo discussed the company's strategic focus on sustainable growth and profitability amidst industry challenges. The call highlighted that full-year sales remained flat at $463.6 million compared to the previous year, with retail sales declining by 4% and wholesale sales increasing by 28%. Adjusted gross margin was reported at 51.6%, down from 55% the previous year, primarily due to price compression and a shift in revenue from retail to wholesale. Ayr emphasized its commitment to core markets, including Florida, Ohio, and Pennsylvania, and announced plans to divest non-core assets like those in Illinois. The $10 million CapEx guidance for 2025, excluding potential Virginia investments, reflects a careful approach to capital deployment. Ayr's leadership transition includes the upcoming departure of CFO Brad Asher, with a focus on building a resilient leadership team to drive future success.

Ayr Wellness Financial Statement Overview

Summary
Ayr Wellness is facing significant financial challenges, including declining profitability and increasing debt levels. The negative cash flows and operational inefficiencies raise concerns about the company's ability to stabilize its financial position.
Income Statement
45
Neutral
Ayr Wellness has faced declining profitability with negative EBIT and net income over the recent years. Revenue has been stagnant, and margins, including gross profit, have decreased. The company shows no revenue growth and negative EBIT and EBITDA margins, indicating operational inefficiencies.
Balance Sheet
50
Neutral
The balance sheet shows a reasonable equity ratio, but the debt-to-equity ratio has been increasing, indicating rising leverage. The return on equity is negative due to ongoing losses, which suggests potential financial instability.
Cash Flow
40
Negative
Cash flow is a concern with negative free cash flow and declining operating cash flow. The operating cash flow to net income ratio is weak, and the company struggles to generate cash from its operations, raising liquidity risks.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
463.63M463.63M465.62M357.61M155.11M
Gross Profit
176.68M202.44M190.44M138.10M103.10M
EBIT
-160.99M-37.21M-243.02M-56.01M16.12M
EBITDA
-154.53M84.60M-67.66M87.69M17.21M
Net Income Common Stockholders
-359.31M-272.43M-245.47M-16.95M-176.33M
Balance SheetCash, Cash Equivalents and Short-Term Investments
35.48M50.77M80.64M154.34M127.24M
Total Assets
1.27B1.46B1.76B1.86B615.87M
Total Debt
621.88M597.77M621.66M483.82M190.62M
Net Debt
586.40M547.00M541.02M329.48M63.38M
Total Liabilities
904.31M889.20M928.56M839.85M465.01M
Stockholders Equity
379.53M581.78M833.32M1.02B150.86M
Cash FlowFree Cash Flow
-15.14M-12.44M-96.66M-127.78M21.74M
Operating Cash Flow
9.63M27.16M-34.16M-27.78M36.51M
Investing Cash Flow
-21.81M-24.15M-66.50M-219.63M-62.25M
Financing Cash Flow
-3.10M-32.89M26.96M274.51M144.57M

Ayr Wellness Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$13.22M-74.75%
54
Neutral
$5.31B3.28-45.10%2.80%16.76%0.02%
OGOGI
$181.34M19.854.76%
$76.92M4.9618.60%
$24.28M-16.22%
$65.40M-39.53%
48
Neutral
C$137.07M-38.89%-6.80%11.94%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AYRWF
Ayr Wellness
0.14
-1.91
-93.17%
OGI
OrganiGram Holdings
1.35
-0.24
-15.09%
CBWTF
Auxly Cannabis Group
0.06
0.04
200.00%
MEDIF
MediPharm Labs
0.06
0.00
0.00%
PLNH
Planet 13 Holdings
0.20
-0.37
-64.91%
TSE:TSND
TerrAscend Corp
0.38
-1.63
-81.09%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.