TerrAscend Announces Record Results in Q3 2023

LOS ANGELES- TerrAscend Corp. a player in the cannabis industry, has reported its financial outcomes for the third quarter ending September 30, 2023, showcasing substantial growth and profitability. Executive Chairman Jason Wild expressed satisfaction with the company’s performance, marking it as the 8th consecutive quarter of sequential Net Revenue growth and the 5th consecutive quarter of positive Cash Flow from Continuing Operations.

For the third quarter of 2023, TerrAscend’s financial highlights reveal a robust upward trajectory:

• Net Revenue reached $89.2 million, a significant rise of 23.7% from the previous quarter’s $72.1 million and a 34.7% increase from $66.2 million in the same period last year.
• Gross Profit Margin improved to 53.6%, a substantial increase from 50.2% in Q2 and 47.0% in the same quarter the prior year.
• GAAP Net loss from continuing operations narrowed to $8.4 million from $12.9 million in Q2 and a stark reduction from $300.6 million year-over-year.
• EBITDA from continuing operations soared to $20.7 million, a notable climb from $6.5 million in Q2 and a turnaround from the previous year’s ($317.9) million.
• Adjusted EBITDA from continuing operations reached $24.2 million, marking an 89% sequential increase, with a margin of 27.1% compared to 17.8% in Q2 and 19.3% year-over-year.
• Net cash from operating activities rose to $9.4 million, improving from $1.8 million in Q2 and $2.3 million from the prior year.
• Free cash flow from continuing operations was reported at $7.7 million, a positive shift from ($0.2) million in Q2 and ($9.5) million in the same quarter the previous year.

Wild attributes the remarkable growth to strategic expansions and operational improvements. The conversion to adult use in Maryland, increased market share in New Jersey, margin expansion in Michigan, and growth in retail and wholesale in Pennsylvania were key drivers. These achievements have bolstered TerrAscend’s confidence, leading to an upward revision of their full-year revenue and Adjusted EBITDA guidance to $320 million and $73 million, respectively.

This fiscal report underscores TerrAscend’s strong position in the cannabis market and its ability to generate sustained growth and profitability amidst a dynamically evolving industry.