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TerrAscend Corp (TSE:TSND)
TSX:TSND
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TerrAscend Corp
(TSX:TSND)
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Rating:53Neutral
Price Target:
C$1.50
▲(32.74% Upside)
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
Operational Efficiency
Improved operational efficiency is demonstrated by rising gross margins, indicating better cost management and production efficiency, which can enhance profitability over time.
Cash Flow Generation
Consistent cash flow generation over multiple quarters indicates strong financial management and operational stability, providing a solid foundation for future growth initiatives.
Strategic M&A and Financial Positioning
The upsizing of the term loan enhances financial flexibility, supporting strategic M&A activities and positioning the company for long-term growth and market expansion.
Negative Factors
High Leverage
Significant leverage can increase financial risk and limit the company's ability to invest in growth opportunities, potentially impacting long-term financial stability.
Declining Revenue
A declining revenue trend indicates challenges in market demand or competitive positioning, which could affect the company's ability to sustain growth and profitability.
Net Loss Continues
Ongoing net losses highlight profitability challenges, which can strain resources and hinder the company's ability to invest in future growth and innovation.
TerrAscend Corp (TSND) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$405.87M
Dividend YieldN/A
Average Volume (3M)372.13K
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue Growth-11.16%
EPS Growth-29.56%
CountryCA
Employees950
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.06
Shares Outstanding305,483,300
10 Day Avg. Volume457,020
30 Day Avg. Volume372,127
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)1.05
Price to Sales (P/S)0.61
P/FCF Ratio6.80
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 Upside76.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
TerrAscend Corp Business Overview & Revenue Model
Company DescriptionTerrAscend 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 MoneyTerrAscend 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
TerrAscend demonstrated strong operational performance and financial stability with consistent cash flow and improved margins. However, challenges such as a continued net loss and delays in key acquisitions were noted. The company remains optimistic about future growth opportunities through strategic M&A and regulatory developments.Q3-2025 Updates
Positive Updates
Consistent Cash Flow Generation
TerrAscend reported its 13th consecutive quarter of positive cash flow from continuing operations and its 9th consecutive quarter of positive free cash flow, with $7.1 million generated from operations this quarter.
Strong Performance in Key Markets
TerrAscend maintained a leadership position in New Jersey with stable retail and wholesale revenue, while Maryland generated another record revenue quarter, outperforming the market's 2% decline in sales.
Operational Efficiency Improvements
Gross margin improved to 52.1%, up 110 basis points year-over-year, and adjusted EBITDA margin increased to 26.1%, reflecting enhanced operational efficiencies.
Strategic M&A and Financial Positioning
The company completed a $79 million non-dilutive upsizing to its senior secured syndicated term loan and has access to an additional $35 million for strategic M&A, extending debt maturity to late 2028.
Negative Updates
Net Loss Continues
Reported a GAAP net loss from continuing operations of $9.9 million for Q3 2025, although this is an improvement from a $15.8 million net loss in Q3 2024.
Challenges in New Jersey Wholesale Market
Wholesale revenue in New Jersey declined 6.7% year-over-year, although it did see a sequential increase.
Delay in New Jersey Acquisition
The acquisition of the Union Chill dispensary in New Jersey has been delayed due to regulatory approval issues, although it is expected to close soon.
Company Guidance
In the third quarter of 2025, TerrAscend Corp. reported revenue from continuing operations of $65.1 million, consistent with the previous year, while gross margins improved by 110 basis points to 52.1%. The adjusted EBITDA margin also increased to 26.1%, up from 25.9% the previous year, marking a sequential rise of 150 basis points. The company generated positive cash flow from continuing operations of $7.1 million, alongside $4.9 million in free cash flow, marking 13 and 9 consecutive quarters of positive results, respectively. Key drivers included strong performances in New Jersey, Pennsylvania, and Maryland, with New Jersey maintaining a leadership position and Maryland seeing a 14.8% revenue increase year-over-year. The company also highlighted its strategic exit from the Michigan market, unlocking further value and cash flow. TerrAscend plans to expand its retail footprint in New Jersey to 10 dispensaries and has completed a $79 million non-dilutive upsizing of its term loan to support future growth. Despite a GAAP net loss of $9.9 million, the company remains focused on its M&A strategy and potential regulatory reforms, with expectations for revenue and gross margins to remain stable in the upcoming quarter.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.45
Neutral
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.40
Negative
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.50
Neutral
| 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 | -1.03M | -431.22M | 133.23M | -93.25M |
| 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
Positive
1.13
Price Trends
0.92
Positive
1.03
Positive
0.76
Positive
Market Momentum
0.13
Negative
53.35
Neutral
54.76
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 1.13 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.92, and above the 200-day MA of 0.76, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, 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 76 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | C$167.02M | 12.24 | 13.39% | ― | 30.64% | 101.12% | |
64 Neutral | C$208.71M | 4.52 | 31.46% | ― | 27.38% | ― | |
54 Neutral | C$372.61M | -13.60 | -7.93% | ― | 62.15% | 60.50% | |
53 Neutral | C$405.87M | -1.95 | -43.99% | ― | -11.16% | -29.56% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
37 Underperform | C$213.77M | -2.05 | ― | ― | -40.23% | -5.31% | |
37 Underperform | C$227.80M | -1.07 | ― | ― | -26.73% | -32.33% |
* Healthcare Sector Average
TSE:TSND
TerrAscend Corp
1.10
0.21
23.60%
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TSE:XLY
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0.16
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416.67%
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0.00
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TSE:CBST
Cannabist Company Holdings
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0.00
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TSE:LOVE
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TerrAscend Corp Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
TerrAscend Corp Reports Stable Q3 2025 Financial Results Amid Strategic Market Shifts
Positive
Nov 6, 2025
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.
Financial Disclosures
TerrAscend to Announce Q3 2025 Financial Results
Neutral
Oct 7, 2025
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.
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.