TerrAscend Reports Q4 and FY 2025 Financial Results

TORONTO – In an industry still wrestling with persistent pricing compression, TerrAscend Corp. managed to hold the line on profitability while posting modest sequential growth in its latest quarter. The company released its financial results, showing net revenue of $66.1 million in Q4, up 1.6% from Q3, and $260.6 million for the full year, down 2.8% from $268.1 million in 2024.

The figures come from continuing operations after the company reclassified its Michigan assets as discontinued. Gross profit margins held at 52.1% in the fourth quarter and rose to 52.3% for the year, up from 50.7% in 2024. Adjusted EBITDA reached $16.7 million in Q4, or 25.2% of revenue, and $67.8 million for the full year, or 26%.

The company generated $8.3 million in net cash from operations in the fourth quarter and $33.9 million for the year. Free cash flow stood at $6.6 million in the period and $25.3 million annually, marking the 10th straight quarter of positive free cash flow and the 14th of positive operating cash flow. Cash and equivalents ended the year at $37.4 million. The balance sheet includes a senior secured term loan of $79 million, refinanced on nondilutive terms with no major maturities until late 2028.

TerrAscend pointed to solid execution in its core Northeast markets. In New Jersey, its Apothecarium stores ranked among the top performers, while Maryland operations ran at an annual pace of about $75 million with roughly 60% gross margins. Pennsylvania showed sequential gains in both retail and wholesale, and the Ohio integration advanced steadily. The company continued its exit from Michigan, using proceeds to pay down debt.

An exclusive licensing deal with Tyson 2.0 for branded products in Maryland and Pennsylvania is set to launch in March. The company also renewed its normal-course issuer bid for up to $10 million in share repurchases.

The fourth-quarter revenue topped analyst estimates of $64.4 million, yet the modest annual decline mirrors pricing pressure across the U.S. Cannabis sector. By sharpening focus on higher-margin states and shedding noncore assets, TerrAscend expanded profitability measures while preserving cash.

On balance, these numbers illustrate a measured strategy that has delivered steady cash generation even as top-line growth paused. The improved margins and clean debt profile leave the operator with flexibility to pursue targeted expansions in its strongest markets, though sustained pricing discipline and execution on new licensing initiatives will determine whether that momentum carries forward.