TerrAscend Corp. Raises Revenue Guidance, Sees Robust Growth in Multiple States

LOS ANGELES– TerrAscend Corp. displayed a strong financial posture by updating its revenue guidance for 2023 during its investor day at the Toronto Stock Exchange. This adjustment propelled the company’s stock upwards by 4%, resulting in a current value of $1.91 per share.

The company, showing confidence in its operational trajectory, elevated its 2023 forecast for both net revenue and adjusted EBITDA. It now expects at least $317 million in net revenue, marking a 28% year-over-year surge. The adjusted EBITDA from ongoing operations is projected to reach at least $63 million, indicating a 62% growth from the previous year. To provide context, TerrAscend’s prior estimations stood at $305 million in net revenue and $58 million in adjusted EBITDA.

Jason Wild, the executive chairman of TerrAscend, expressed optimism about the remainder of the fiscal year. “The augmentation in our full-year guidance underscores our solid visibility and confidence,” Wild said. “Our agenda is to spearhead industry-leading revenue growth, oversee consistent enhancements across all P&L metrics, and maintain a positive free cash flow during the latter half of the year.”

Furthermore, the firm anticipates that the gross margin will surpass the 50% threshold, and the free cash flow from continued operations will remain in the green for the second part of the year.

A Glimpse into TerrAscend’s Statewise Progress

In state-related developments, a recent report by PA Homepage highlighted comments from Chantelle Elsner, Terrascend Northeast’s acting president. She spoke about the prospects of the medical cannabis market in Pennsylvania, projecting its worth to eclipse $1 billion by 2023. “Given the current growth, there’s an anticipation of a 40% increase once the state potentially transitions to adult use,” Elsner noted.

In New Jersey, TerrAscend’s investor presentation shed light on its impressive stature as the second-leading operator. The company eyes an opportunity to incorporate seven additional retail outlets under The Apothecarium brand, aiming to fortify its retail presence and profitability in the state.

Meanwhile, in Maryland, the firm has reached its retail limit with four stores. However, there’s a silver lining as wholesale demand showcases an upward trend.

Shifting the focus to Michigan, TerrAscend remains on course to achieve a positive EBITDA by the end of 2023. The state’s unrestricted licensing framework has put the company in an advantageous position, prompting it to assess various opportunities to amplify its retail presence.

In the ever-evolving cannabis landscape, TerrAscend’s strategic moves and financial milestones underscore its commitment to growth and sustainability, reflecting a promising future for both the company and its stakeholders.