[PRESS RELEASE] – TORONTO, Aug. 7, 2025 – TerrAscend Corp., a leading North American cannabis company, reported its financial results for the second quarter ended June 30, 2025. All amounts are expressed in U.S. dollars and are prepared under U.S. generally accepted accounting principles (GAAP), unless indicated otherwise.
The following financial measures are reported as results from continuing operations unless otherwise noted, due to the company’s previously stated intention to sell all of its Michigan assets, which are reported as discontinued operations effective as of the second quarter ended June 30, 2025. All historical periods have been restated accordingly.
Second Quarter 2025 Financial Highlights
- Net revenue was $65 million, compared to $67.2 million in Q2 2024.
- Gross profit margin was 51.1%, compared to 49.6% in Q2 2024.
- GAAP net loss from continuing operations was $6.4 million, compared to a net loss of $6.3 million in Q2 2024.
- EBITDA from continuing operations¹ was $15.9 million, compared to $15.4 million in Q2 2024.
- Adjusted EBITDA from continuing operations¹ was $16 million, compared to $17.3 million in Q2 2024.
- Adjusted EBITDA margin from continuing operations¹ was 24.6%, compared to 25.7% in Q2 2024.
- Net cash provided from continuing operations was $7.3 million, compared to $16.7 million in Q2 2024, which included an $8.4 million tax refund.
- Free Cash Flow¹ was $5 million, compared to $14.8 million in Q2 2024, which included an $8.4 million tax refund.
"In the second quarter of 2025, we made the decision to exit the Michigan market, to reduce existing debt and enable concentrated growth and improved profitability in core markets,” TerrAscend Executive Chairman Jason Wild said. “Adjusted EBITDA from continuing operations totaled $16 million with adjusted EBITDA margin of 24.6%. The second quarter marked our 12th consecutive quarter of positive cash flow from continuing operations and eighth consecutive quarter of positive free cash flow. Consistent performance in our three Northeast markets of New Jersey, Maryland and Pennsylvania were the key drivers of these results. In New Jersey we maintained our market leadership position, in Maryland we are on a $75 million revenue run rate with gross margins in the high 50’s, and in Pennsylvania our retail and wholesale revenue grew sequentially as we move towards potential adult-use in the state."
Wild said, "On the M&A front, we announced a definitive agreement in early May to acquire Union Chill dispensary in New Jersey, a well-situated dispensary with limited competition within a 10-mile radius, which will bring our total dispensaries in the state to four upon regulatory approval. Shortly thereafter, we closed on the Ratio Cannabis acquisition, our first dispensary in Ohio, a recently converted, still nascent adult-use state. Subsequent to the end of the quarter, we completed a $79 million non-dilutive senior secured syndicated term loan, which provides access to an additional uncommitted term loan facility of up to $35 million for strategic M&A and extends all senior secured debt maturities until late 2028. Our business is strong, and our confidence remains high as we continue to work towards further operational efficiencies, expanding our core business, and additional accretive acquisitions in key markets.”
Financial Summary Q2 2025 and Comparative Periods
Second Quarter 2025 Business and Operational Highlights
- Announced decision to exit the Michigan market, with plans to sell substantially all Michigan assets in the second half of 2025 and use the net proceeds to pay down existing debt.
- Achieved 12th consecutive quarter of positive cash flow from continuing operations and eighth consecutive quarter of positive free cash flow.
- Maintained a leadership position in New Jersey with all three Apothecarium retail locations ranking in the top 15 out of over 220 dispensaries statewide in total units sold.2
- Phillipsburg, N.J., dispensary ranked No. 3 in the state in unit sales and No. 2 in revenue.2
- Completed expansion of cultivation and manufacturing capabilities at New Jersey facility.
- Expanded cultivation capacity by 50% at Maryland facility, with first harvest completed in June.
- Retail revenue increased quarter-over-quarter across all markets.
- Pennsylvania revenue grew 6.9% quarter-over-quarter.
- Repurchased 535,000 shares at a weighted average price of USD$0.29 per share during the quarter as part of the $10 million share repurchase program initiated in August of 2024.
- Closed on acquisition of Ratio Cannabis, a well-situated and profitable dispensary in Ohio.
- Signed definitive agreement to acquire Union Chill, an $11 million revenue run rate dispensary in New Jersey, which, upon closing, will bring TerrAscend's total number of dispensaries to four in the state.
Subsequent Events
- Closed on $79 million non-dilutive refinancing extending all senior secured debt maturities until late 2028, with an additional uncommitted term loan facility providing up to $35 million for strategic M&A.
1. EBITDA from continuing operations, Adjusted EBITDA from continuing operations, Adjusted EBITDA margin from continuing operations, and Free Cash Flow are non-GAAP measures defined in the section titled “Definition and Reconciliation of Non-GAAP Measures” in the company’s press release, and reconciled to the most directly comparable GAAP measure, at the end of the release.
2. According to LIT Alerts.
Second Quarter 2025 Financial Results
Net revenue from continuing operations for the second quarter of 2025 was $65 million, compared to $67.2 million for the second quarter of 2024, representing a slight decrease year-over-year and in line with the company’s expectations as communicated on last quarter’s earnings conference call.
Retail revenue increased 1% year-over-year. The increase in retail revenue was driven by a partial quarter of sales from the recent Ratio acquisition in Ohio, which was offset by price compression in the New Jersey market. Wholesale revenue declined 10.8% year-over-year. Wholesale growth in Maryland was offset by a decline in New Jersey, while Pennsylvania remained steady.
Gross profit margin for the second quarter of 2025 was 51.1%, as compared to 49.6% for the second quarter of 2024, driven by continued strong performance in both New Jersey and Maryland.
General and administrative (G&A) expenses for the second quarter of 2025 were $21 million, and 32.3% of revenue, compared to $22.6 million, and 33.7% of revenue, in the second quarter of 2024.
GAAP net loss from continuing operations for the second quarter of 2025 was $6.4 million, compared to a net loss of $6.3 million in the second quarter of 2024.
Adjusted EBITDA from continuing operations for the second quarter of 2025 was $16 million, or 24.6% of revenue, compared to adjusted EBITDA from continuing operations of $17.3 million for the second quarter of 2024, or 25.7% of revenue.
Balance Sheet and Cash Flow
Cash and cash equivalents were $26.7 million as of June 30, 2025. Net cash provided by continuing operations was $7.3 million in the second quarter of 2025, compared to $16.7 million in the second quarter of 2024, which included an $8.4 million tax refund. This represents the company's 12th consecutive quarter of positive cash flow from continuing operations.
Capex spending was $2.3 million in the second quarter of 2025, mainly related to expansions at the company's Maryland and New Jersey facilities. The 50% expansion of cultivation in Maryland was completed in April, with the first harvest occurring in June. Also, the expanded edibles production and greenhouse expansion in New Jersey were both completed in the second quarter of 2025. Free cash flow was $5 million in the second quarter of 2025, compared to $14.8 million in the second quarter of 2024, which included an $8.4 million tax refund, representing the company's eighth consecutive quarter of positive free cash flow.
During the quarter, the company distributed $1.3 million to its New Jersey minority partners and paid down $0.5 million of debt.
Subsequent to quarter end, the company closed on an upsized senior secured syndicated term loan of $79 million, $68 million of which was used to retire existing indebtedness across other lenders, with the remainder designated for future growth initiatives. As part of this transaction, an additional uncommitted term loan facility in an aggregate principal amount of up to $35 million will be available for future M&A. This transaction extends all senior secured debt maturities until late 2028. It also provides further financial flexibility to execute on the company’s growth strategy, including organic growth initiatives and strategic M&A.
As of June 30, 2025, there were approximately 381 million basic shares of the company issued and outstanding, including 306 million common shares, 11 million preferred shares as converted, and 63 million exchangeable shares. Additionally, there were 38 million warrants and options outstanding at a weighted average price of $3.77.
