TerrAscend Corp (TSE:TSND)
TSX:TSND
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TerrAscend Corp
(TSX:TSND)
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Rating:53Neutral
Price Target:
C$0.86
▼(-3.03% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving operations and cash generation but is held back by heavy leverage and ongoing net losses. The latest earnings call adds support via positive guidance and margin/cash-flow momentum, while technicals are largely neutral and valuation is weak due to negative earnings and no dividend.
Positive Factors
Consistent cash generation
A multi-quarter streak of positive operating and free cash flow ($8.7M and $7.8M in Q1) provides durable internal funding to support operations, modest capex, disciplined M&A and debt reduction. This reduces reliance on external capital and increases resilience over the next 2–6 months.
Negative Factors
High leverage
A large debt burden relative to a shrunken equity base (~2.6x) constrains financial flexibility and raises refinancing and interest-rate risk. Heavy leverage limits the company's ability to fund growth or withstand operational setbacks and increases downside over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
A multi-quarter streak of positive operating and free cash flow ($8.7M and $7.8M in Q1) provides durable internal funding to support operations, modest capex, disciplined M&A and debt reduction. This reduces reliance on external capital and increases resilience over the next 2–6 months.
Read all positive factors
TerrAscend Corp (TSND) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$395.44M
Dividend YieldN/A
Average Volume (3M)372.13K
Price to Earnings (P/E)―
Beta (1Y)1.80
Revenue Growth-12.41%
EPS Growth-2.33%
CountryCA
Employees950
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.27
Shares Outstanding309,561,280
10 Day Avg. Volume457,020
30 Day Avg. Volume372,127
Financial Highlights & Ratios
PEG Ratio-0.69
Price to Book (P/B)2.23
Price to Sales (P/S)0.82
P/FCF Ratio16.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.00Price Target Upside124.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.06
Revenue Forecast (FY)C$265.17M
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 primarily makes money by selling cannabis and cannabis-derived products through two main channels: (1) retail sales at company-operated dispensaries, where revenue is generated from direct-to-consumer purchases of cannabis flower and ma...
TerrAscend Corp Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 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
Positive
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
Income Statement
36
Negative
Balance Sheet
28
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 261.74M | 265.12M | 306.68M | 317.33M | 240.45M | 243.36M |
| Gross Profit | 133.27M | 133.19M | 149.96M | 138.02M | 119.74M | 134.04M |
| EBITDA | 56.12M | 45.41M | 6.16M | -1.03M | -246.52M | 44.96M |
| Net Income | -81.53M | -87.74M | -80.23M | -91.10M | -303.96M | 3.06M |
Balance Sheet | ||||||
| Total Assets | 549.49M | 566.83M | 607.23M | 666.52M | 951.93M | 734.69M |
| Cash, Cash Equivalents and Short-Term Investments | 39.50M | 37.82M | 28.11M | 24.15M | 41.19M | 78.98M |
| Total Debt | 254.03M | 256.49M | 246.18M | 255.70M | 248.25M | 209.67M |
| Total Liabilities | 458.48M | 467.99M | 430.41M | 425.78M | 516.16M | 445.64M |
| Stockholders Equity | 87.99M | 97.31M | 176.96M | 319.76M | 321.69M | 221.73M |
Cash Flow | ||||||
| Free Cash Flow | 15.17M | 13.31M | 27.40M | 18.04M | -88.00M | -88.82M |
| Operating Cash Flow | 22.04M | 22.07M | 37.95M | 27.47M | -33.38M | -38.43M |
| Investing Cash Flow | -11.37M | -15.03M | -12.25M | -16.22M | -27.58M | -132.42M |
| Financing Cash Flow | -601.11K | 4.26M | -24.72M | -12.50M | 3.72M | 182.20M |
TerrAscend Corp Technical Analysis
Positive
0.89
Price Trends
0.94
Positive
0.93
Positive
0.99
Positive
Market Momentum
0.02
Negative
59.12
Neutral
87.06
Negative
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 0.89 is below the 20-day moving average (MA) of 0.94, below the 50-day MA of 0.94, and below the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 87.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.68B | 16.57 | 6.59% | ― | 4.14% | 146.77% | |
59 Neutral | C$3.49B | -30.61 | -6.88% | ― | -2.05% | 52.34% | |
56 Neutral | C$4.12B | -28.89 | -12.61% | ― | -2.25% | 55.22% | |
53 Neutral | C$395.44M | -2.87 | -82.13% | ― | -12.41% | -2.33% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | C$2.17B | -1.65 | -33.23% | ― | -6.05% | 25.65% | |
46 Neutral | C$614.33M | -2.53 | -35.26% | ― | -9.65% | -55.41% |
* Healthcare Sector Average
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TerrAscend Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
TerrAscend Delivers Solid 2025 Margins and Cash Flow as It Refocuses on Core U.S. Markets
Positive
Mar 12, 2026
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 f...
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.