TerrAscend Reports Q1 2026 Financial Results

TORONTO – TerrAscend Corp. announced financial results for the first quarter ended March 31, 2026, showing modest year-over-year revenue growth from continuing operations and sustained operational performance across its core Northeast markets.

The company reported net revenue of $65.5 million, up from $64.3 million in the same period last year but down slightly from $66.1 million in Q4 2025. Retail sales increased sequentially, while wholesale revenue showed a downward trend. Gross profit reached $34.6 million, producing a gross margin of 52.8%, compared with 52.1% in the prior quarter and 53.9% a year earlier.

Adjusted EBITDA from continuing operations came in at $17.4 million, or 26.5% of revenue, an improvement from $16.7 million and 25.2% in the fourth quarter. The company posted a GAAP net loss from continuing operations of $6.8 million. It generated $8.7 million in net cash from continuing operations and $7.8 million in free cash flow, extending streaks of positive operating cash flow to 15 quarters and positive free cash flow to 11 quarters.

TerrAscend operates vertically integrated businesses in Pennsylvania, New Jersey, Maryland, Ohio, and California, along with retail in Canada. Operations in New Jersey, Maryland, and Pennsylvania drove results. In New Jersey, Apothecarium stores held strong retail rankings, and brands like Kind Tree and Legend gained traction. Maryland stores posted solid margins, while Pennsylvania saw year-over-year revenue growth and market share gains supported by flower, vapes, and edibles. The company launched the Tyson 2.0 brand in Pennsylvania and Maryland during the quarter, reflecting the company’s continued push to attract mainstream consumer attention in a market where differentiation remains one of the harder problems to solve.

Subsequent events included the completion of first harvests from expanded cultivation site in Pennsylvania and the appointment of Eric Jackson as Chief Financial Officer. Federal policy shifts also factored into the outlook. The U.S. Department of Justice announced the reclassification of state-licensed medical Cannabis to Schedule III, eliminating the 280E tax burden, a change that TerrAscend leadership described as a historic step forward expected to enhance profitability, strengthen the balance sheet, and lower the cost of capital over time.

TerrAscend’s Q1 read-out comes at a crossroads moment for the broader Cannabis sector. The 280E elimination for medical operators is real, immediate financial relief, not a regulatory promise somewhere down the road. For a company that has maintained positive operating cash flow through nearly four years of compressed margins and regulatory uncertainty, the combination of disciplined operations and a shifting tax structure could meaningfully change the math going forward.