TerrAscend Reports Q3 2026 Financial Results

TORONTO – TerrAscend Corp. reported net revenue of $68.2 million for the third quarter, up 4.8% from $65.1 million a year earlier. Gross margin edged up to 52.3% from 52.1%, based on Q3 2025 figures.

Pennsylvania drove the gain. Same-store sales there rose 12% and wholesale revenue climbed 31%, lifting the state’s revenue 16.8% over last year. Five of its six Apothecarium dispensaries in Pennsylvania ranked among the state’s top 15 stores. Maryland revenue grew both from the prior quarter and from a year ago, and TerrAscend said it kept a leading position in New Jersey.

Net loss from continuing operations narrowed to $5.5 million from $9.9 million. The filing shows $6.4 million in pre-tax income, but an $11.9 million tax provision pushed the result below zero. EBITDA from continuing operations reached $20.2 million, compared with $14.3 million, though a $4.8 million non-cash gain on derivative liabilities contributed to that figure. Adjusted EBITDA, which removes that gain and other items, was $17.5 million, up from $17 million, while the adjusted margin slipped to 25.6% from 26.1%. General and administrative costs rose to $24 million, or 35.2% of revenue, from 32.8%.

Cash generation held steady. Operating cash flow from continuing operations was $8.8 million, and free cash flow was $6.1 million after $2.7 million in capital spending. The company counted it as a 17th straight quarter of positive operating cash flow and a 13th of positive free cash flow. Cash stood at $42.5 million on Sept. 30, up from $37.4 million at the end of 2025, against roughly $199 million in loans payable.

In late September, TerrAscend closed acquisition of Aunt Mary’s, a dispensary in Flemington, New Jersey, which the company said brings in more than $10 million in annual revenue and is its fifth in the state. Executive Chairman Jason Wild said the company is “actively evaluating several attractive assets” and expects to share updates in the coming weeks. The board also renewed its share buyback for up to 10 million shares or $10 million over 12 months. The company repurchased about 1 million shares in the first nine months.

Shareholders approved a share consolidation on August 24, which the company described as a step toward a possible listing on a major U.S. exchange. Management has tied that goal to federal rescheduling. The Justice Department’s rule, effective April 28, placed FDA-approved Cannabis products and state-licensed medical Cannabis in Schedule III. Other Cannabis, including adult-use, remains in Schedule I, a distinction the company repeats in its risk disclosures.

Wrapping up, TerrAscend’s quarter shows a business that generates cash consistently, yet its tax expense still exceeds its pre-tax income. Pennsylvania did most of the lifting, so results from that state will get close attention in coming quarters. The liability for uncertain tax positions on the balance sheet rose to $163.5 million from $128.8 million at year-end, and adult-use sales remain under Schedule I treatment, so the tax line deserves the same scrutiny as revenue. Acquisitions, the buyback and the listing effort all draw on the same cash flow, and how management divides it will shape how investors view TerrAscend heading into 2027.