[PRESS RELEASE] – TORONTO, Nov. 6, 2025 – TerrAscend Corp., a leading North American cannabis company, reported its financial results for the third quarter ended Sept. 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.
Third Quarter 2025 Financial Highlights
- Net Revenue was $65.1 million, compared to $65 million in Q2 2025 and $65.2 million in Q3 2024.
- Gross Profit Margin was 52.1%, compared to 51.1% in Q2 2025 and 51% in Q3 2024.
- GAAP Net Loss from continuing operations was $9.9 million, compared to $6.4 million in Q2 2025 and $15.8 million in Q3 2024.
- EBITDA from continuing operations¹ was $14.3 million, compared to $15.9 million in Q2 2025 and $9.7 million in Q3 2024.
- Adjusted EBITDA from continuing operations¹ was $17 million, compared to $16 million in Q2 2025 and $16.9 million in Q3 2024.
- Adjusted EBITDA Margin from continuing operations¹ was 26.1%, compared to 24.6% in Q2 2025 and 25.9% in Q3 2024.
- Net Cash provided from continuing operations was $7.1 million, after net tax payments of $5 million during the quarter, compared to $7.3 million in Q2 2025 and $6.1 million in Q3 2024.
- Free Cash Flow¹ was $4.9 million, compared to $5 million in Q2 2025 and $6.1 million in Q3 2024.
“I’m pleased to report that both gross margins and adjusted EBITDA margins improved meaningfully in the third quarter of 2025, marking another quarter of steady progress,” TerrAscend Executive Chairman Jason Wild said. “This represents our 13th consecutive quarter of positive cash flow from continuing operations and our ninth consecutive quarter of positive free cash flow. Revenue from continuing operations remained stable year-over-year, supported by consistent performance across our key Northeast markets of New Jersey, Maryland and Pennsylvania. In New Jersey, we maintained our leadership position, according to BDSA, and in Pennsylvania, four of our six stores ranked among the top 10 statewide. In Maryland, our success story continues with a 14.8% increase in revenue year-over-year and gross margin in the high 50s.
“Since announcing our decision to exit the Michigan market, we have made significant progress and remain on track to complete these divestitures by year-end. At the same time, we continue to evaluate strategic opportunities through a disciplined M&A approach. Our fundamentals are improving, our balance sheet remains strong with increased cash and no material debt maturities for several years, and we are well-positioned to benefit from potential state and federal regulatory developments.”
Third Quarter 2025 Business and Operational Highlights
- During the quarter, completed a $79 million nondilutive refinancing of existing debt with an additional uncommitted term loan facility of up to $35 million for strategic M&A.
- Achieved 13th consecutive quarter of positive cash flow from continuing operations and ninth consecutive quarter of positive free cash flow.
- Maintained leadership position in New Jersey2.
- Apothecarium store in Phillipsburg is the No. 1 store in New Jersey out of nearly 250 licensed dispensaries3.
- Kind Tree and Legend brands consistently remained in the top 10 brands across New Jersey, even as the number of brands in the market has doubled to more than 200 in the past year2.
- With the launch of the new pre-roll assortment in New Jersey, category sales increased by 32% and improved share and rank quarter-over-quarter2.
- Kind Tree Cherry Slushee is TerrAscend’s bestseller in New Jersey, ranking No. 8 out of more than 3,000 flower products sold in Q32.
- In Maryland, the Cumberland and Salisbury Apothecarium locations are the top 5 dispensaries in the state3.
- Four of six Apothecarium stores rank in the top 10 across the state of Pennsylvania3.
- The board of directors authorized the company to renew and replenish its normal course issuer bid to repurchase up to $10 million U.S. dollars of the company’s common shares from time to time over a 12-month period.
- Announced decision to exit the Michigan market, with plans to divest substantially all Michigan assets, including dispensaries and cultivation/processing facilities by the end of 2025 and use the net proceeds to pay down existing debt.
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” below and reconciled to the most directly comparable GAAP measure at the end of this release.
2. Source: BDSA
3. Source: LIT Alerts
Third Quarter 2025 Financial Results
Net revenue for the third quarter of 2025 was $65.1 million, compared to $65 million for the second quarter of 2025 and $65.2 million for the third quarter of 2024, which was in line with the expectations communicated on last quarter’s earnings conference call. Retail revenue increased 3.4% year-over-year and 0.7% sequentially. Wholesale revenue declined 6.7% year-over-year and 1.1% sequentially.
Gross profit margin from continuing operations for the third quarter of 2025 improved to 52.1%, as compared to 51.1% for the second quarter of 2025 and 51% for the third quarter of 2024.
G&A expenses for the third quarter of 2025 were $21.3 million and 32.8% of revenue, compared to $21 million and 32.3% of revenue in the second quarter of 2025 and $24.7 million and 37.9% of revenue in the third quarter of 2024.
GAAP net loss from continuing operations for the third quarter of 2025 was $9.9 million, compared to a net loss of $6.4 million in the second quarter of 2025 and a net loss of $15.8 million in the third quarter of 2024.
Adjusted EBITDA from continuing operations was $17 million for the third quarter of 2025, or 26.1% of revenue, compared to adjusted EBITDA from continuing operations of $16 million for the second quarter of 2025, or 24.6% of revenue, and $16.9 million, or 25.9% of revenue, for the third quarter of 2024.
Balance Sheet and Cash Flow
Cash and cash equivalents were $36.6 million as of Sept. 30, 2025. Net cash provided by continuing operations in the third quarter of 2025 was $7.1 million, after net tax payments of $5 million during the quarter.
This represents the company’s 13th consecutive quarter of positive cash flow from continuing operations. Capex spending was $2.2 million in the third quarter, mainly related to expansions at the Maryland and New Jersey facilities. Free cash flow was $4.9 million in the third quarter of 2025, representing the ninth consecutive quarter of positive free cash flow.
During the third quarter, the company closed on an upsized senior secured syndicated term loan of $79 million, the majority of which was used to retire existing indebtedness, with the remainder designated for future growth initiatives. As part of this transaction, the company executed an additional uncommitted term loan facility in an aggregate principal amount of up to $35 million for future M&A.
As of Sept. 30, 2025, there were approximately 382 million basic shares of the company issued and outstanding, including 307 million common shares, 11 million preferred shares as converted, and 63 million exchangeable shares. Additionally, there were 23 million warrants and options outstanding at a weighted average price of $3.71.
