TerrAscend Reports Q1 2025 Financial Results with $70.997M Revenue and Strategic Acquisitions

TerrAscend Corp. reported its financial results for the first quarter of 2025, revealing a net revenue of $70.997 million, a decrease of 12% from $80.633 million in the same period last year. The decline in revenue was primarily attributed to reduced retail sales in Michigan and New Jersey, which were partially offset by increased sales in Maryland. The company's cost of sales also decreased by 18% to $34.194 million, reflecting lower sales in Michigan and New Jersey, while the gross profit margin improved to 51.8% from 48.0% in the prior year.

The company's operating expenses for the quarter were $28.144 million, down from $32.661 million a year earlier, largely due to a reduction in general and administrative expenses, which fell by 6% to $26.380 million. This decrease was driven by ongoing cost-cutting initiatives that reduced professional fees and marketing costs. TerrAscend reported an income from operations of $8.659 million, compared to $6.070 million in the previous year, indicating improved operational efficiency.

In terms of strategic developments, TerrAscend completed the acquisition of certain assets from Ratio Cannabis LLC for $10.3 million in May 2025, which included cash, common shares, and a seller's note. Additionally, the company signed an option agreement to acquire Union Chill Cannabis Company LLC for $13 million, further expanding its footprint in the cannabis market. As of March 31, 2025, TerrAscend had 293,004,431 common shares outstanding and a total of 9,255,600 shares remaining for repurchase under its share repurchase program.

Operationally, TerrAscend's total assets decreased to $600.734 million from $607.230 million at the end of 2024, while total liabilities increased slightly to $435.628 million. The company reported a net loss of $12.269 million for the quarter, an improvement from a loss of $14.851 million in the same period last year. The company’s cash and cash equivalents rose to $29.248 million, up from $26.381 million at the end of 2024, indicating a stronger liquidity position.

Looking ahead, TerrAscend remains focused on expanding its market presence and enhancing operational efficiencies. The company anticipates that its strategic acquisitions and ongoing cost management efforts will support future growth. However, it also acknowledges the challenges posed by competitive pressures and regulatory uncertainties in the cannabis industry. The management's outlook emphasizes the importance of adapting to market conditions while pursuing opportunities for expansion in both the U.S. and Canadian markets.