TerrAscend Corp (TSND) AI Stock Analysis

• Market Cap: C$317.32M
• Dividend Yield: N/A
• Average Volume (3M): 372.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -11.16%
• EPS Growth: -29.56%
• Country: CA
• Employees: 950
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 305,483,300
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$0.87 ▼(-22.74% Downside)

TerrAscend Corp's overall stock score reflects significant financial challenges, including declining revenues and high leverage. While technical indicators show moderate momentum, the valuation remains unattractive due to unprofitability. The earnings call provided some optimism with improved margins and strategic growth plans, but the ongoing net loss and acquisition delays are concerning.

Positive Factors

Consistent operating cash flow

A long streak of positive operating and free cash flow demonstrates durable cash generation from core operations. This reduces near-term financing reliance, supports reinvestment and M&A, and provides a stable liquidity foundation even while GAAP profitability lags.

Improving margins and efficiency

Material margin expansion reflects structural gains in cultivation and manufacturing efficiency and a shift toward higher-margin products. Sustained higher gross and EBITDA margins enhance cash conversion, increase resilience to pricing pressure, and improve scalability across markets.

Non-dilutive financing and M&A capacity

Access to sizable non-dilutive capital and extended debt maturity provides the company with durable firepower for strategic M&A and retail expansion without equity dilution, enabling execution of growth plans and market consolidation in regulated state markets.

Negative Factors

High leverage

A debt-to-equity ratio above 2 indicates substantial leverage, increasing refinancing and interest-rate vulnerability. In a regulated, state-by-state cannabis market this constrains financial flexibility, elevates default risk, and limits ability to pursue opportunistic investments if cash flow weakens.

Continued GAAP net losses

Ongoing GAAP losses signal that non-operational charges, interest and other items still outstrip operating profits. Persistent net losses erode equity, limit retained earnings, and may complicate long-term investor returns despite positive operating cash generation.

Declining revenue trend

A multi-period revenue decline undermines operating leverage and makes sustaining recent margin gains harder. In a fragmented, regulated industry, shrinking top-line suggests competitive pressure or market shifts; reversing this trend is necessary for durable profitability and scale.

TerrAscend Corp Business Overview & Revenue Model

Company Description

TerrAscend Corp (TSND) is a leading North American cannabis company that operates in the regulated cannabis sector. The company is engaged in the cultivation, processing, and sale of cannabis products, including both medical and recreational use. TerrAscend has a diverse portfolio of products, ranging from flower and oils to edibles and topicals, catering to various consumer preferences across multiple markets. The company also operates dispensaries in several states and has a growing presence in Canada, focusing on providing high-quality cannabis products and innovative solutions to its customers.

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 significant losses. The high leverage and negative return on equity pose financial risks, while cash flow metrics show some ability to generate cash despite operational losses. The company needs to address its profitability and leverage to improve its financial health.

Income Statement

TerrAscend Corp's income statement shows a declining revenue trend with a negative revenue growth rate of -3.19% in the TTM. The company has a positive gross profit margin of 50.46%, indicating efficiency in production, but the net profit margin is significantly negative at -41.46%, reflecting substantial losses. The EBIT and EBITDA margins are also weak, indicating operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.05, suggesting significant leverage and potential financial risk. The return on equity is negative, indicating that the company is not generating profit from shareholders' equity. The equity ratio is low, highlighting a reliance on debt financing.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by -14.09% in the TTM, indicating cash flow challenges. However, the operating cash flow to net income ratio is 0.24, suggesting some ability to convert income into cash. The free cash flow to net income ratio is 0.51, indicating moderate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.46M	306.68M	317.33M	433.51M	310.32M	198.32M
Gross Profit	141.29M	149.96M	159.70M	160.66M	170.92M	26.34M
EBITDA	13.13M	6.16M	-1.03M	-431.22M	133.23M	-93.25M
Net Income	-120.56M	-80.23M	-91.10M	-577.08M	―	-155.12M
Balance Sheet
Total Assets	555.26M	607.23M	666.52M	1.28B	936.84M	603.88M
Cash, Cash Equivalents and Short-Term Investments	37.51M	28.11M	24.15M	55.27M	128.21M	75.41M
Total Debt	254.62M	246.18M	255.70M	449.36M	340.38M	271.12M
Total Liabilities	459.78M	430.41M	425.78M	692.57M	568.25M	592.76M
Stockholders Equity	93.87M	176.96M	319.76M	580.39M	359.94M	1.19M
Cash Flow
Free Cash Flow	9.83M	27.40M	18.04M	-118.07M	-113.26M	-28.10M
Operating Cash Flow	23.26M	37.95M	27.47M	-44.79M	-49.00M	33.01M
Investing Cash Flow	-19.44M	-12.25M	-16.22M	-49.14M	-213.42M	-251.60M
Financing Cash Flow	5.60M	-24.72M	-12.50M	6.51M	291.13M	284.71M

TerrAscend Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.13
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1.13 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 0.95, and above the 200-day MA of 0.82, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 29.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TSND.

TerrAscend Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTII	75 Outperform	C$2.10B	35.06	2.42%	―	6.18%	-28.69%
TRUL	60 Neutral	C$1.80B	-9.59	-9.95%	―	4.27%	3.41%
CURA	58 Neutral	C$2.33B	-6.18	-27.61%	―	-3.38%	-31.35%
TSND	53 Neutral	C$317.32M	-1.53	-43.99%	―	-11.16%	-29.56%
CL	52 Neutral	C$631.79M	―	-11.79%	―	-6.48%	22.63%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VRNO	49 Neutral	C$2.17B	-4.68	-33.01%	―	-4.58%	-141.91%

TerrAscend Corp Corporate Events

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.