TerrAscend Reports Second Quarter 2025 Financial Results

Core Insights - TerrAscend Corp. reported net revenue of $65 million for Q2 2025, a decrease from $67.2 million in Q2 2024, with a gross profit margin of 51.1%, up from 49.6% year-over-year [7][14][15] - The company achieved its 12th consecutive quarter of positive cash flow from continuing operations and 8th consecutive quarter of positive free cash flow [4][13] - A strategic decision was made to exit the Michigan market to reduce debt and focus on growth in core markets [4][13] Financial Performance - Adjusted EBITDA from continuing operations was $16 million, with an adjusted EBITDA margin of 24.6%, down from 25.7% in Q2 2024 [7][16] - GAAP net loss from continuing operations was $6.4 million, compared to a net loss of $6.3 million in Q2 2024 [7][16] - Net cash provided from continuing operations was $7.3 million, a decrease from $16.7 million in Q2 2024, which included an $8.4 million tax refund [7][17] Market and Operational Highlights - The company maintained a leadership position in New Jersey, with all three Apothecarium retail locations ranking in the top 15 dispensaries statewide [13] - Retail revenue increased by 1.0% year-over-year, driven by sales from the Ratio acquisition in Ohio, while wholesale revenue declined by 10.8% year-over-year [14] - The company expanded cultivation capacity by 50% at its Maryland facility, with the first harvest completed in June [13][17] M&A Activity - TerrAscend announced the acquisition of Union Chill dispensary in New Jersey, which will increase its total dispensaries in the state to four upon regulatory approval [5] - The company closed on the Ratio Cannabis acquisition, marking its first dispensary in Ohio [5] - A $79 million non-dilutive refinancing was completed, extending senior secured debt maturities until late 2028 and providing access to an additional $35 million for strategic M&A [10][19] Shareholder Actions - During the quarter, the company repurchased 535,000 shares at a weighted average price of $0.29 per share as part of a $10 million share repurchase program initiated in August 2024 [13]