TerrAscend Reports Q2 2025 Financial Results

TORONTO – TerrAscend Corp. released its financial results for the second quarter of 2025, highlighting stable performance and strategic shifts. The company reported net revenue of $65 million, a slight decline from $67.2 million in Q2 2024, alongside a gross profit margin of 51.1%, up from 49.6% in the prior year.

TerrAscend achieved its 12th consecutive quarter of positive cash flow from continuing operations at $7.3 million, down from $16.7 million in Q2 2024, which included an $8.4 million tax refund. Free cash flow was $5.0 million, marking the eighth straight quarter of positive free cash flow, compared to $14.8 million in Q2 2024, also impacted by the tax refund. Adjusted EBITDA was $16.0 million, with a margin of 24.6%, compared to $17.3 million and 25.7% in Q2 2024. The GAAP net loss from continuing operations was $6.4 million, slightly higher than the $6.3 million loss in Q2 2024.

All figures reflect continuing operations, excluding Michigan, which the company plans to exit by selling substantially all assets in the second half of 2025 to streamline operations and bolster profitability in its core Northeast markets of New Jersey, Maryland, and Pennsylvania. In New Jersey, the company maintained its market leadership, with its three Apothecarium dispensaries ranking among the top 15 statewide for unit sales. Maryland operations hit a $75 million revenue run rate with gross margins in the high 50s, while Pennsylvania saw 6.9% quarter-over-quarter revenue growth. The company also expanded cultivation capacity by 50% in Maryland and completed upgrades in New Jersey for edibles production and greenhouse operations.

On the M&A front, TerrAscend closed the acquisition of Ratio Cannabis, a profitable dispensary in Ohio, and signed an agreement to acquire Union Chill, an $11 million revenue run-rate dispensary in New Jersey, pending regulatory approval. Post-quarter, the company secured a $79 million non-dilutive refinancing, extending senior secured debt maturities to late 2028, with an additional $35 million uncommitted term loan facility for future acquisitions. Additionally, TerrAscend repurchased 535,000 shares at an average price of $0.29 as part of a $10 million share repurchase program initiated in August 2024.

TerrAscend’s Q2 2025 results reflect a disciplined approach to financial management in a challenging Cannabis market. The improved gross margin signals operational efficiency, particularly in Maryland and New Jersey, though the slight revenue dip and lower adjusted EBITDA highlight competitive pressures and price compression in key regions. The Michigan exit, while a strategic retreat, aims to strengthen the balance sheet by reducing debt, potentially freeing up capital for high-growth opportunities. The $79 million refinancing and access to additional M&A funding provide flexibility, positioning TerrAscend to capitalize on emerging adult-use markets like Ohio and Pennsylvania. However, the company’s $6.4 million net loss underscores the need for sustained cost control and revenue growth to achieve profitability.

As TerrAscend refines its footprint, its focus on cash flow generation and selective expansion aligns with broader industry trends toward operational efficiency and market consolidation. The Cannabis sector remains dynamic, with companies navigating regulatory shifts and competitive pressures. TerrAscend’s emphasis on core markets and financial discipline offers a blueprint for stability, but its success will hinge on executing divestitures and acquisitions effectively while maintaining margin growth.