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TerrAscend Corp (TSE:TSND)
TSX:TSND
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TerrAscend Corp (TSND) AI Stock Analysis

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TSE:TSND

TerrAscend Corp

(TSX:TSND)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
C$0.72
▼(-2.30% Downside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by balance-sheet risk (high leverage) and continued net losses despite an operating recovery. Technical signals are also weak with the stock trading below major moving averages and negative MACD. Partially offsetting these risks are positive operating/free cash flow and a constructive earnings-call narrative around strong margins, EBITDA, and cash flow consistency, alongside modest near-term growth guidance.
Positive Factors
Cash Generation
Sustained positive operating and free cash flow provides internal funding for working capital, modest capex, and debt reduction. Over the next 2–6 months this cash generation supports operational flexibility, lowers near-term refinancing risk, and enables disciplined M&A or balance-sheet repair.
Negative Factors
High Leverage
Materially elevated leverage constrains financial flexibility and raises refinancing and interest-rate risk. With a thin equity base, debt servicing can crowd out investment and limit ability to opportunistically fund growth or absorb shocks over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating and free cash flow provides internal funding for working capital, modest capex, and debt reduction. Over the next 2–6 months this cash generation supports operational flexibility, lowers near-term refinancing risk, and enables disciplined M&A or balance-sheet repair.
Read all positive factors

TerrAscend Corp (TSND) vs. iShares MSCI Canada ETF (EWC)

TerrAscend Corp Business Overview & Revenue Model

Company Description
TerrAscend Corp. operates as a comprehensive cannabis enterprise, engaging in the cultivation, processing, and distribution of cannabis products for both medical and regulated adult recreational markets across Canada and the United States. In addi...
How the Company Makes Money
TerrAscend makes money by generating revenue from cannabis sales through two primary channels: (1) retail sales via company-operated dispensaries and (2) wholesale sales to other licensed cannabis retailers and distributors. Retail revenue is earn...

TerrAscend Corp Earnings Call Summary

Earnings Call Date:May 07, 2026
(Q1-2026)
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% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial momentum across core markets — notably robust gross margins, expanding adjusted EBITDA margins, consistent positive operating and free cash flow streaks, and improved liquidity — while also acknowledging material GAAP net losses, wholesale revenue softness in select states, and the tail of a challenging Michigan exit and some Ohio execution friction. Strategic tailwinds such as federal rescheduling and potential uplisting were highlighted as important upside catalysts.
Positive Updates
Regulatory Rescheduling Benefit
Federal rescheduling of medical cannabis announced — expected elimination of 280E tax burden, potential for improved profitability, stronger balance sheet, lower cost of capital, increased access to institutional capital and potential uplisting to a U.S. exchange; viewed as a transformational upside catalyst for the business.
Negative Updates
Widening Net Loss
Net loss from continuing operations increased to $6.8 million in Q1 versus a net loss of $0.5 million in Q4 — a material sequential deterioration in GAAP profitability despite strong adjusted EBITDA performance.
Read all updates
Q1-2026 Updates
Negative
Regulatory Rescheduling Benefit
Federal rescheduling of medical cannabis announced — expected elimination of 280E tax burden, potential for improved profitability, stronger balance sheet, lower cost of capital, increased access to institutional capital and potential uplisting to a U.S. exchange; viewed as a transformational upside catalyst for the business.
Read all positive updates
Company Guidance
Management guided Q2 year‑over‑year revenue growth of 2–3% and said they expect "consistent strong gross margin performance," while highlighting upside from federal rescheduling (elimination of 280E), potential retroactive tax relief and a possible uplisting within ~12–24 months; they anchored that guidance to Q1 continuing‑ops results of $65.5M revenue, 52.8% gross margin, $17.4M adjusted EBITDA (26.5% margin), $8.7M operating cash flow (15th consecutive quarter), $7.8M free cash flow (11th consecutive quarter), operating cash flow yield 13.3% and free cash flow yield 10.3%, $39.1M cash, $0.9M capex, ~$24.3M free cash flow in the past four quarters, ~85% of Michigan asset sales completed, Maryland at an annualized ~$75M run rate, no material debt maturing until late‑2028, and a $20–30B psychoactive hemp market — all cited as supporting disciplined M&A activity and improved profitability and balance‑sheet flexibility.

TerrAscend Corp Financial Statement Overview

Summary
Operating performance is improving (TTM revenue up ~15% with solid gross margin ~51% and EBIT margin ~17%), and cash generation is positive (TTM operating cash flow ~$25.7M; free cash flow ~$19.3M). However, the company remains loss-making (TTM net margin ~-16%) and the balance sheet is a major risk with materially higher leverage (debt-to-equity ~3.06) and deeply negative ROE (TTM ~-46%).
Income Statement
48
Neutral
Balance Sheet
34
Negative
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue262.12M265.12M306.68M250.51M247.83M194.21M
Gross Profit134.10M133.19M149.96M138.02M104.27M115.97M
EBITDA61.18M62.92M6.16M-1.03M-246.52M44.96M
Net Income-41.07M-87.74M-80.23M-91.10M-320.09M3.11M
Balance Sheet
Total Assets552.80M566.83M607.23M666.52M701.59M581.93M
Cash, Cash Equivalents and Short-Term Investments42.05M37.82M28.11M24.15M29.75M79.64M
Total Debt243.22M256.49M246.18M255.70M246.02M211.44M
Total Liabilities468.90M467.99M430.41M425.78M380.42M352.98M
Stockholders Equity79.49M97.31M176.96M242.50M318.80M223.59M
Cash Flow
Free Cash Flow19.27M13.31M27.40M18.04M-88.00M-88.82M
Operating Cash Flow25.70M22.07M37.95M27.47M-33.38M-38.43M
Investing Cash Flow-5.27M-15.03M-12.25M-16.22M-27.58M-132.42M
Financing Cash Flow-5.09M4.26M-24.72M-12.50M3.72M182.20M

TerrAscend Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.74
Price Trends
50DMA
0.86
Negative
100DMA
0.90
Negative
200DMA
0.91
Negative
Market Momentum
MACD
-0.04
Negative
RSI
44.75
Neutral
STOCH
64.44
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 0.74 is below the 20-day moving average (MA) of 0.75, below the 50-day MA of 0.86, and below the 200-day MA of 0.91, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 44.75 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TSND.

TerrAscend Corp Risk Analysis

TerrAscend Corp disclosed 61 risk factors in its most recent earnings report. TerrAscend Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

TerrAscend Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
C$2.10B12.646.59%3.81%344.13%
57
Neutral
C$3.43B-68.37-4.47%1.50%81.84%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
C$2.17B-1.54-34.03%-2.30%26.63%
50
Neutral
C$389.62M-2.40-28.27%-5.83%-115.39%
48
Neutral
C$272.05M-4.04-45.81%-8.14%66.53%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:TSND
TerrAscend Corp
0.81
-0.24
-22.86%
TSE:CURA
Curaleaf Holdings
13.80
2.55
22.67%
TSE:GTII
Green Thumb Industries
10.19
-1.13
-9.98%
TSE:CL
Cresco Labs
1.08
-0.33
-23.40%
TSE:VRNO
Verano Holdings
6.32
0.00
0.00%

TerrAscend Corp Corporate Events

Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingShareholder Meetings
TerrAscend Posts Higher Q2 Revenue, Boosts Cash Flow and Extends Debt Maturities
Positive
Aug 6, 2026
TerrAscend reported second-quarter 2026 net revenue of $67.1 million, up both sequentially and year-over-year, with gross profit margins rising to 54.0 percent and adjusted EBITDA reaching $17.7 million. Despite a GAAP net loss from continuing ope...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 10, 2026