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][7][10] - The gross profit margin improved to 52.1%, up from 51.1% in Q2 2025 and 51.0% in Q3 2024, indicating enhanced operational efficiency [7][12] - The company achieved its 13th consecutive quarter of positive cash flow from continuing operations and 9th consecutive quarter of positive free cash flow, with net cash provided from continuing operations at $7.1 million [4][11][16] 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 [7][13] - EBITDA from continuing operations was $14.3 million, down from $15.9 million in Q2 2025 but up from $9.7 million in Q3 2024 [7][14] - Adjusted EBITDA from continuing operations was $17.0 million, with an adjusted EBITDA margin of 26.1%, compared to 24.6% in Q2 2025 and 25.9% in Q3 2024 [7][14] Operational Highlights - The company 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 the top store in New Jersey, and the launch of a new preroll assortment led to a 32% increase in category sales [11] - The company is on track to exit the Michigan market by year-end 2025, with plans to divest substantially all Michigan assets [5][11] Strategic Developments - TerrAscend completed a $79 million non-dilutive refinancing of existing debt and has an additional uncommitted term loan facility of up to $35 million for strategic M&A [11][17] - The Board of Directors authorized a normal course issuer bid to repurchase up to $10 million of the company's common shares over a 12-month period [11] - Cash and cash equivalents stood at $36.6 million as of September 30, 2025, reflecting a strong balance sheet with no material debt maturities for several years [15][5]