TerrAscend Reports $65.5 Million Revenue in Q1 2026, Net Loss Improves to $8 Million

TerrAscend Corp. reported a net revenue of $65.5 million for the first quarter of 2026, reflecting a 2% increase from $64.3 million in the same period last year. The growth was primarily driven by a $5.6 million rise in retail sales, attributed to acquisitions and increased foot traffic, although this was partially offset by a $4.3 million decline in wholesale revenue due to heightened competition and price compression. The company's gross profit for the quarter was $34.6 million, resulting in a gross profit margin of 52.8%, down from 53.9% in the prior year.

In terms of expenses, TerrAscend's cost of sales increased by 4% to $30.9 million, while general and administrative expenses rose by 2% to $21.5 million, largely due to operational costs associated with recent acquisitions. The company reported a net loss of $8.0 million, an improvement from a loss of $12.3 million in the same quarter of 2025. This improvement was attributed to reduced losses from discontinued operations, which amounted to $1.2 million compared to $4.6 million a year earlier.

Strategically, TerrAscend completed the acquisition of a 35% interest in Union Chill Cannabis Company on January 2, 2026, which is expected to enhance its operational footprint in New Jersey. The total consideration for this acquisition was $13 million, including $4 million in cash and $9 million in convertible promissory notes. The company also continues to finalize its exit from the Michigan market, which has been classified as discontinued operations, with the process expected to be completed in the first half of 2026.

Operationally, TerrAscend's total current assets decreased to $102.4 million from $110.1 million at the end of 2025, while total liabilities remained relatively stable at $458.2 million. The company reported a working capital of $34.8 million, an increase from $30.2 million in the previous quarter. As of March 31, 2026, TerrAscend had cash and cash equivalents of $39.0 million, up from $37.4 million at the end of 2025, indicating a solid liquidity position.

Looking ahead, TerrAscend remains focused on expanding its market presence and enhancing operational efficiencies. The company is optimistic about the potential regulatory changes regarding cannabis classification, which could positively impact its tax positions and overall business operations. However, the company acknowledges the uncertainties surrounding these developments and their potential effects on financial performance.