TerrAscend Corp (TSND) AI Stock Analysis

• Market Cap: C$353.42M
• Dividend Yield: N/A
• Average Volume (3M): 372.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• Revenue Growth: -11.16%
• EPS Growth: -29.56%
• Country: CA
• Employees: 950
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.01
• Shares Outstanding: 308,532,530
• 10 Day Avg. Volume: 457,020
• 30 Day Avg. Volume: 372,127
• PEG Ratio: -0.69
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 16.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2.00
• Price Target Upside: 110.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.05
• Revenue Forecast (FY): C$265.90M

• Rating: 58 Neutral
• Price Target: C$0.97 ▲(1.79% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by improved financial resilience (stronger cash generation and sharply lower debt) and a constructive earnings update highlighting better margins and sustained positive cash flow. These positives are tempered by persistent net losses and recent revenue declines, while technical indicators remain broadly neutral and valuation is challenged by negative earnings.

Positive Factors

Consistent positive cash generation

Thirteen straight quarters of positive operating cash flow and nine of free cash flow create a durable internal funding source. That consistent cash conversion reduces near-term financing dependence, supports retail expansion and selective M&A, and provides a buffer through industry volatility.

Material debt reduction

A significant decline in total debt materially lowers financial leverage and interest burden, improving solvency and runway. Lower leverage increases flexibility to fund capex or strategic initiatives non-dilutively and reduces refinancing risk, strengthening the balance sheet over the medium term.

Improved gross and EBITDA margins

Higher gross and adjusted EBITDA margins reflect better product mix, pricing or manufacturing scale, driving stronger cash generation per dollar of revenue. Sustained margin expansion increases the likelihood of converting operating gains into durable profitability as revenues stabilize.

Negative Factors

Ongoing GAAP net losses

Material GAAP net losses persist despite cash flow improvements. Continued accounting losses erode retained earnings and equity, complicate the path to consistent profitability, and can limit investor confidence and access to equity capital until sustained net income is achieved.

Declining revenue trend

A multi-year decline in revenue weakens operating leverage and undermines the impact of margin gains. If top-line trends continue, fixed costs and retail expansion investments may deliver lower returns, slowing the transition from cash generation to durable profitability.

Shrinking equity base

Substantial reduction in shareholders' equity reflects accumulated losses and reduces the capital buffer. A thinner equity base raises refinancing and covenant risks, limits the ability to raise non-dilutive capital, and constrains strategic optionality for acquisitions or sustained expansion.

TerrAscend Corp Business Overview & Revenue Model

Company Description

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures cannabis-infused artisan edibles. It also operates retail dispensaries under the Apothecarium brand name in California, Pennsylvania, and New Jersey. In addition, the company owns various synergistic businesses under Gage Growth, Pinnacle, TerrAscend NJ, Ilera Healthcare, HMS Health and HMS Processing, Valhalla Confections, State Flower, Arise Bioscience Inc., and TerrAscend Canada brands. It serves medical and legal adult-use markets. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.

How the Company Makes Money

TerrAscend primarily makes money by selling cannabis products in U.S. state-regulated markets through two main channels: (1) retail sales at company-operated dispensaries, where revenue is generated from direct-to-consumer purchases of cannabis flower and manufactured products; and (2) wholesale sales, where the company sells cultivation output and manufactured/packaged products to third-party dispensaries and other licensed operators (where state regulations allow). Its revenue model is supported by vertical integration: cultivation and production supply its own stores (capturing retail margin) and also generate wholesale revenue when product is sold externally. Earnings are influenced by state-by-state licensing and regulatory constraints (e.g., limited license structures), product mix (higher-margin manufactured/brand products vs. commodity flower), retail footprint and store productivity, and the company’s ability to scale cultivation/processing efficiently while maintaining compliance. Specific material partnerships or partner-driven revenue arrangements are null.

TerrAscend Corp Financial Statement Overview

Summary

Mixed fundamentals: cash flow is a bright spot with positive operating cash flow and free cash flow in 2023–2025, and leverage improved sharply with debt reduced to ~46M by 2025. Offsetting this, profitability remains weak with sizable net losses (2025 net loss ~88M) and revenue has been drifting down over 2023–2025.

Income Statement

Profitability has been volatile. After meaningful losses in 2022, results improved materially, with positive EBIT in 2025 (annual) and stronger gross profit dollars, but the company is still reporting sizable net losses (2025 net loss of ~88M; 2024–2023 also deeply negative). Revenue has been drifting down in recent years (2023–2025 negative growth), which limits operating leverage and makes a full earnings recovery less certain.

Balance Sheet

Leverage improved versus prior years, with total debt dropping sharply by 2025 (annual) to ~46M from ~246–256M in 2024–2023, which meaningfully reduces financial risk. However, equity has also declined substantially by 2025 (~97M vs ~177M in 2024 and ~320M in 2023), and the company continues to generate negative returns on equity in the years provided, reflecting ongoing net losses. Total assets remain sizable, but the balance sheet quality is pressured by continued losses and shrinking equity.

Cash Flow

Cash generation is a relative bright spot recently: operating cash flow and free cash flow are positive in 2023–2025 (annual), and free cash flow improved in 2025 (annual) versus 2024. That said, cash flow has been inconsistent over the cycle (notably negative operating and free cash flow in 2021–2022), and the business still has not translated improved cash flow into sustained net profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	265.12M	306.68M	317.33M	433.51M	310.32M
Gross Profit	133.19M	149.96M	159.70M	160.66M	170.92M
EBITDA	45.41M	6.16M	-1.03M	-431.22M	133.23M
Net Income	-87.74M	-80.23M	-91.10M	-577.08M	―
Balance Sheet
Total Assets	566.83M	607.23M	666.52M	1.28B	936.84M
Cash, Cash Equivalents and Short-Term Investments	37.82M	28.11M	24.15M	55.27M	128.21M
Total Debt	45.66M	246.18M	255.70M	449.36M	340.38M
Total Liabilities	467.99M	430.41M	425.78M	692.57M	568.25M
Stockholders Equity	97.31M	176.96M	319.76M	580.39M	359.94M
Cash Flow
Free Cash Flow	13.31M	27.40M	18.04M	-118.07M	-113.26M
Operating Cash Flow	22.07M	37.95M	27.47M	-44.79M	-49.00M
Investing Cash Flow	-15.03M	-12.25M	-16.22M	-49.14M	-213.42M
Financing Cash Flow	4.26M	-24.72M	-12.50M	6.51M	291.13M

TerrAscend Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSND, the sentiment is Positive. The current price of 0.95 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.94, and above the 200-day MA of 0.89, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TSND.

TerrAscend Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTII	65 Neutral	C$2.08B	16.23	6.29%	―	6.18%	-28.69%
TSND	58 Neutral	C$353.42M	-2.47	-72.77%	―	-11.16%	-29.56%
TRUL	56 Neutral	C$1.67B	―	-9.71%	―	4.27%	3.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CURA	50 Neutral	C$2.45B	-8.05	-28.58%	―	-3.38%	-31.35%
VRNO	48 Neutral	C$2.17B	-1.75	-30.10%	―	-4.58%	-141.91%
CL	45 Neutral	$601.92M	-1.18	-33.00%	―	-6.48%	22.63%

TerrAscend Corp Corporate Events

TerrAscend Delivers Solid 2025 Margins and Cash Flow as It Refocuses on Core U.S. Markets

TerrAscend reported fourth-quarter 2025 net revenue of $66.1 million and full-year revenue of $260.6 million, with gross profit margins just above 52% from continuing operations. The company continues to generate positive operating and free cash flow, marking its 14th straight quarter of positive cash flow from continuing operations and 10th consecutive quarter of positive free cash flow.

While annual revenue declined slightly from 2024, EBITDA from continuing operations improved and margins held steady, reflecting disciplined cost management and a focus on core markets. Management highlighted strong performance in New Jersey, Maryland, and Pennsylvania, successful integration of Ohio operations, and substantial progress on exiting Michigan, positioning the company with a stronger balance sheet and no major debt maturities until late 2028.

TerrAscend expanded its New Jersey retail footprint to four dispensaries and reported Maryland operations running at roughly a $75 million annualized rate with near-60% gross margins. The company emphasized a disciplined M&A strategy centered on accretive deals in key states, underpinned by consistent free cash flow and regulatory momentum that could enhance its competitive position and support shareholder value in 2026 and beyond.

The most recent analyst rating on (TSE:TSND) stock is a Hold with a C$0.95 price target. To see the full list of analyst forecasts on TerrAscend Corp stock, see the TSE:TSND Stock Forecast page.

TerrAscend Sets March Date to Report 2025 Results and Hold Earnings Call

TerrAscend Corp., a leading North American cannabis operator with vertically integrated cultivation, processing, manufacturing, and retail assets in key U.S. states and Canada, plans to showcase its portfolio of brands including The Apothecarium, Cookies, Kind Tree, and others across medical and adult-use channels. The company emphasizes consistent, high-quality cannabis production to support its position in both regulated medical and recreational markets.

TerrAscend announced it will release its fourth-quarter and full-year 2025 financial results on March 12, 2026, after market close, followed by an earnings conference call that same day at 5:00 p.m. Eastern Time. The scheduled call signals an upcoming update on the company’s financial performance and operational progress, which will be closely watched by investors and stakeholders in the cannabis sector.

The most recent analyst rating on (TSE:TSND) stock is a Hold with a C$0.95 price target. To see the full list of analyst forecasts on TerrAscend Corp stock, see the TSE:TSND Stock Forecast page.