TerrAscend Corp. reported its financial results for the third quarter of 2025, revealing a net revenue of $65.1 million, a slight decrease of 0.1% from $65.2 million in the same period last year. For the nine months ending September 30, 2025, total revenue was $194.4 million, down 4% from $201.6 million in 2024. The decline in revenue was primarily attributed to a $7.1 million drop in wholesale sales, which faced challenges from increased competition and price compression, although retail sales saw a modest increase due to recent acquisitions.
The company's gross profit for the third quarter was $33.9 million, resulting in a gross margin of 52.1%, compared to 51.0% in the prior year. Operating expenses decreased to $22.8 million from $26.0 million, largely due to reduced share-based compensation. However, finance and other expenses rose to $9.0 million, reflecting higher interest costs associated with the company's debt obligations. The net loss from continuing operations was $9.9 million, an improvement from a loss of $15.8 million in the same quarter of 2024.
TerrAscend's balance sheet showed total assets of $555.3 million as of September 30, 2025, down from $607.2 million at the end of 2024. Current assets decreased significantly, primarily due to a reduction in cash and cash equivalents, which increased to $36.5 million from $26.4 million. The company’s liabilities also rose, with total liabilities reaching $459.8 million, up from $430.4 million, driven by an increase in loans payable. The company’s working capital was reported at $43.1 million, a decrease from $85.8 million at the end of 2024.
Strategically, TerrAscend completed the acquisition of Ratio Cannabis in May 2025, expanding its operations into Ohio. The total consideration for this acquisition was approximately $10.1 million, which included cash, a promissory note, and common shares. The company also announced a share repurchase program, allowing for the buyback of up to 10 million common shares, which reflects its commitment to returning value to shareholders. Additionally, the company is in the process of exiting the Michigan market, with plans to sell its assets there, which has been classified as discontinued operations.
Looking ahead, TerrAscend anticipates continued challenges in the competitive cannabis market, particularly in wholesale pricing. The company is focused on enhancing operational efficiencies and expanding its retail footprint to drive growth. Management remains optimistic about the potential for future acquisitions and the overall growth of the cannabis industry, despite the ongoing regulatory uncertainties and market conditions.
About TerrAscend Corp.
TerrAscend Corp. is a North American cannabis company engaged in the cultivation, processing, and retail sale of cannabis products. It operates licensed facilities and dispensaries across the U.S. and Canada, offering brands like Cookies, Wana, and Lemonnade. The company focuses on premium, innovative cannabis products for medical and adult-use markets, emphasizing quality, brand recognition, and regulatory compliance within a highly regulated industry.
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