TerrAscend Earnings + Call Notes

U.S. canna leader talks through Q125.

TerrAscend Earnings

$71M Revs; est. $71.8M
$15.3M AEBITDA; est. $14.1M
$36.8M GP; est. $35.6M
$8.7M OI; est. $6.4M
51.8% GM; est. 49.6%

$8m OPCF
$5.5m FCF

Gross Profit Margin of 51.8%, +160 basis points YoY

11th consecutive quarter of positive Cash Flow from operations and 7th consecutive quarter of positive Free Cash Flow

Subsequent to quarter end, closed on acquisition of a dispensary in Ohio and signed definitive agreement to acquire a dispensary in New Jersey

"Despite a challenging industry environment, revenue performed in line with our guidance, while gross margin and EBITDA margin outperformed our expectations during the first quarter of 2025.

Revenue totaled $71M, a sequential decline of 4.5%, due to seasonality, while gross profit margin increased to 51.8% and AEBITDA margin improved to 21.6%.

These results were driven by strong revenue growth and margin expansion in MD, along with our continued leadership in the NJ market. General & Administrative expenses declined by an additional $1.6M in Q1, following a $3.6M reduction in Q4 2024, as part of our ongoing G&A reduction program aimed at achieving $10M in year-over-year savings for 2025.

Following quarter-end, we completed the acquisition of a OH dispensary, expanding our footprint to six U.S. states. We also announced a definitive agreement to acquire a fourth dispensary in New Jersey, pending regulatory approval.

Our continued accomplishments, including our eleventh consecutive quarter of positive operating cash flow and seventh consecutive quarter of positive free cash flow, reflect the strength of our business.

Combined with a robust balance sheet, over $150Min owned real estate, minimal leaseback obligations, and no significant debt maturities until late 2028, we are well-positioned to drive further operational efficiencies, grow our core business, and strategically pursue additional acquisitions at increasingly attractive valuations.”

Jason Wild, Executive Chairman of TerrAscend

Call Notes