TerrAscend Reports Third Quarter 2025 Financial Results

Core Insights - TerrAscend Corp reported net revenue of $65.1 million for Q3 2025, showing stability compared to $65.0 million in Q2 2025 and $65.2 million in Q3 2024 [6][12] - The company achieved a gross profit margin of 52.1%, an increase from 51.1% in Q2 2025 and 51.0% in Q3 2024, indicating improved operational efficiency [7][13] - TerrAscend has maintained positive cash flow from continuing operations for 13 consecutive quarters and positive free cash flow for 9 consecutive quarters, with net cash provided from continuing operations at $7.1 million [11][17] Financial Performance - GAAP net loss from continuing operations was $9.9 million, compared to a loss of $6.4 million in Q2 2025 and $15.8 million in Q3 2024, reflecting a reduction in losses year-over-year [14] - Adjusted EBITDA from continuing operations was $17.0 million, or 26.1% of revenue, compared to $16.0 million (24.6%) in Q2 2025 and $16.9 million (25.9%) in Q3 2024, indicating improved profitability metrics [15][36] - Free cash flow for the quarter was $4.9 million, slightly down from $5.0 million in Q2 2025 and $6.1 million in Q3 2024 [17][36] Business Developments - The company completed a $79 million non-dilutive refinancing of existing debt and established an additional uncommitted term loan facility of up to $35 million for strategic M&A [11][18] - TerrAscend is on track to exit the Michigan market by year-end 2025, with plans to divest substantially all Michigan assets, which will be used to pay down existing debt [5][11] - The company continues to evaluate strategic opportunities through a disciplined M&A approach, supported by a strong balance sheet with increased cash and no material debt maturities for several years [5][11] Market Position - TerrAscend maintained its leadership position in New Jersey, with four of its six stores ranking among the top ten in Pennsylvania and a 14.8% revenue increase in Maryland year-over-year [4][11] - The Apothecarium store in Phillipsburg was recognized as the 1 store in New Jersey out of nearly 250 licensed dispensaries [11] - The company’s brands, Kind Tree and Legend, consistently ranked in the top 10 across New Jersey, despite the market's rapid expansion [11]