TerrAscend Corp (TSND) AI Stock Analysis

• Market Cap: C$343.85M
• Dividend Yield: N/A
• Average Volume (3M): 372.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: -11.16%
• EPS Growth: -29.56%
• Country: CA
• Employees: 950
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.06
• Shares Outstanding: 306,240,020
• 10 Day Avg. Volume: 457,020
• 30 Day Avg. Volume: 372,127
• PEG Ratio: 0.15
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 6.80
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: C$1.00 ▲(5.26% Upside)

TerrAscend Corp's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and persistent losses. While the company shows some operational improvements and strategic positioning, the ongoing net loss and valuation concerns weigh heavily on the score. Technical analysis provides mixed signals, and the earnings call offers some optimism with operational efficiencies and strategic plans.

Positive Factors

Cash Flow Generation

Consistent cash flow generation indicates strong operational management and financial stability, supporting long-term business sustainability.

Market Leadership

Market leadership in key regions like New Jersey enhances competitive advantage and secures a stable revenue base, crucial for long-term growth.

Operational Efficiency

Improved margins reflect enhanced operational efficiencies, which can lead to better profitability and competitive positioning over time.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market expansion or product adoption, which could hinder long-term growth prospects and financial health.

High Leverage

Significant leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Net Loss

Ongoing net losses highlight profitability challenges, which may affect the company's ability to sustain operations and invest in future growth.

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 generates revenue primarily through the sale of cannabis products across its retail dispensaries and wholesale distribution channels. Its key revenue streams include the sale of dried flower, concentrates, edibles, and other cannabis-infused products. The company benefits from significant partnerships with other cannabis operators and retailers, enhancing its market reach and distribution capabilities. Additionally, TerrAscend engages in strategic collaborations and licensing agreements that allow it to expand its product offerings and enter new markets, further contributing to its earnings. The company's focus on quality and compliance with regulatory standards also helps maintain consumer trust and loyalty, driving repeat business.

TerrAscend Corp Financial Statement Overview

Summary

TerrAscend Corp faces financial challenges with declining revenues and persistent losses. The company is highly leveraged, which poses risks, but it maintains some cash flow efficiency. Overall, the financial health is weak, requiring strategic improvements to stabilize and grow.

Income Statement

The income statement shows declining revenue with a negative growth rate of -4.21% TTM. Gross profit margin is relatively stable at 49.84%, but the net profit margin is significantly negative at -25.84%, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.39, indicating significant leverage. Return on equity is negative, suggesting the company is not generating returns for shareholders. However, the equity ratio is moderate, showing some level of asset financing through equity.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth by -47.97% TTM. The operating cash flow to net income ratio is 0.42, showing some cash generation capability despite losses. The free cash flow to net income ratio is positive, suggesting some efficiency in converting income to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	284.52M	306.68M	317.33M	433.51M	310.32M	198.32M
Gross Profit	143.58M	149.96M	159.70M	160.66M	170.92M	26.34M
EBITDA	5.73M	6.16M	-1.38M	-431.22M	133.23M	-96.45M
Net Income	-117.95M	-80.23M	-91.10M	-577.08M	―	-155.12M
Balance Sheet
Total Assets	572.01M	607.23M	666.52M	1.28B	936.84M	603.88M
Cash, Cash Equivalents and Short-Term Investments	27.66M	28.11M	24.15M	55.27M	128.21M	75.41M
Total Debt	242.19M	246.18M	255.70M	449.36M	340.38M	271.12M
Total Liabilities	453.62M	430.41M	425.78M	692.57M	568.25M	592.76M
Stockholders Equity	117.94M	176.96M	319.76M	580.39M	359.94M	1.19M
Cash Flow
Free Cash Flow	11.44M	27.40M	18.04M	-118.07M	-113.26M	-28.10M
Operating Cash Flow	22.39M	37.95M	27.47M	-44.79M	-49.00M	33.01M
Investing Cash Flow	-18.54M	-12.25M	-16.22M	-49.14M	-213.42M	-251.60M
Financing Cash Flow	-7.64M	-24.72M	-12.50M	―	291.13M	284.71M

TerrAscend Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.95
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.95 is below the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.13, and above the 200-day MA of 0.76, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 27.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:TSND.

TerrAscend Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOVE	75 Outperform	$154.52M	9.86	16.92%	―	33.04%	191.50%
XLY	68 Neutral	$202.27M	6.94	22.40%	―	27.24%	―
OGI	59 Neutral	C$282.08M	72.00	1.86%	―	38.86%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TSND	48 Neutral	C$343.85M	-1.68	-43.99%	―	-11.16%	-29.56%
CBST	44 Neutral	C$227.80M	―	―	―	-21.73%	4.03%
TILT	37 Underperform	C$213.77M	-2.05	―	―	-40.23%	-5.31%

TerrAscend Corp Corporate Events

TerrAscend’s Earnings Call: Strong Performance Amid Challenges

TerrAscend’s Earnings Call: A Mix of Optimism and Challenges

TerrAscend Corp Reports Stable Q3 2025 Financial Results Amid Strategic Market Shifts

TerrAscend Corp reported its financial results for the third quarter of 2025, showing a net revenue of $65.1 million and a gross profit margin of 52.1%. The company achieved its 13th consecutive quarter of positive cash flow from continuing operations and completed a $79 million non-dilutive refinancing of existing debt. Despite a slight year-over-year revenue decrease, TerrAscend maintained stable performance in its core markets and is progressing with its strategic exit from the Michigan market. The company is well-positioned for future growth with a strong balance sheet and no significant debt maturities in the near term.

The most recent analyst rating on (TSE:TSND) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on TerrAscend Corp stock, see the TSE:TSND Stock Forecast page.

TerrAscend to Announce Q3 2025 Financial Results

TerrAscend Corp announced it will host a conference call to discuss its third-quarter 2025 financial results on November 6, 2025. The announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning in the competitive cannabis industry.

The most recent analyst rating on (TSE:TSND) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on TerrAscend Corp stock, see the TSE:TSND Stock Forecast page.

TerrAscend Renews $10 Million Share Repurchase Program

TerrAscend Corp. has announced the renewal and replenishment of its $10 million share repurchase program, allowing the company to buy back up to 10 million of its common shares over the next 12 months. This move is seen as a strategic effort to capitalize on current market conditions and federal regulatory momentum, providing flexibility in capital allocation while maintaining a focus on operational excellence and revenue growth. The program represents 4.73% of the public float and will be conducted on the Toronto Stock Exchange and other permitted trading systems, with all repurchased shares being cancelled.

The most recent analyst rating on (TSE:TSND) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on TerrAscend Corp stock, see the TSE:TSND Stock Forecast page.