TerrAscend Reports Q2 2025 Financial Results with $65M Revenue and $48.1M Net Loss

TerrAscend Corp. reported its financial results for the second quarter of 2025, revealing a net revenue of $65.0 million, a decrease of 3% from $67.2 million in the same period last year. For the first half of 2025, total revenue was $129.3 million, down 5% from $136.5 million in the prior year. The decline in revenue was primarily attributed to a significant drop in wholesale sales, which fell by $2.6 million due to price compression across multiple markets. Retail revenue, however, saw a slight increase, driven by growth in emerging markets and acquisitions, although it was offset by decreased foot traffic in other areas.

The company's cost of sales also decreased, totaling $31.8 million for the second quarter, down 6% from $33.8 million a year earlier. This reduction was mainly due to lower sales volume, with cost of sales as a percentage of revenue remaining stable at 49%. General and administrative expenses decreased by 7% to $21.0 million, reflecting lower professional fees and stock-based compensation. Despite these reductions, the company reported a net loss of $48.1 million for the quarter, compared to a loss of $6.2 million in the same quarter of 2024, largely due to a $34.9 million impairment charge related to its discontinued operations in Michigan.

TerrAscend has made strategic moves, including the acquisition of assets from Ratio Cannabis LLC for $10.3 million, which included cash, common shares, and a promissory note. The company is also in the process of exiting the Michigan market, which involves selling its assets there and is expected to result in a workforce reduction of approximately 21%. This exit is classified as discontinued operations, significantly impacting the company's financial results.

Operationally, TerrAscend's total assets decreased to $572.0 million as of June 30, 2025, down from $607.2 million at the end of 2024. Current liabilities remained stable at $91.7 million, while non-current liabilities increased to $362.0 million. The company reported a working capital of $41.4 million, a significant drop from $85.8 million at the end of the previous year. The company continues to focus on expanding its retail footprint and enhancing product quality, particularly in Maryland, where it has seen market share growth.

Looking ahead, TerrAscend aims to leverage its recent acquisitions and operational adjustments to stabilize its financial performance. The company anticipates that the exit from Michigan will allow it to concentrate resources on more profitable markets. Additionally, the company plans to continue its share repurchase program, having repurchased 1.0 million shares in the first half of 2025. The management remains optimistic about future growth opportunities, particularly in the expanding cannabis market across North America.