TerrAscend Reports $259.7 Million Revenue for Fiscal Year 2025, Faces Net Loss

TerrAscend Corp. reported a net revenue of $259.7 million for the fiscal year ending December 31, 2025, a decrease of 3% from $267.0 million in 2024. The decline was primarily attributed to a $9.1 million drop in wholesale revenue, which was offset by a $1.6 million increase in retail revenue. The company’s gross profit for the year was $136.3 million, resulting in a gross margin of 52.5%. Despite the revenue decrease, the company reported an income from operations of $52.1 million, although it faced a net loss attributable to controlling interest of $21.5 million, compared to a loss of $18.5 million in the previous year.

In terms of strategic developments, TerrAscend has been active in expanding its operations through acquisitions and restructuring. Notably, the company completed the acquisition of Ratio Cannabis in Ohio for $10.3 million in May 2025 and exercised an option to acquire a 35% interest in Union Chill for $13 million in December 2025. Additionally, the company is in the process of exiting the Michigan market, with plans to sell all related assets, which is expected to be completed in the first half of 2026. This exit is part of a broader strategy to streamline operations and focus on more profitable markets.

Operationally, TerrAscend has seen a significant increase in its employee count, with 1,038 employees as of December 31, 2025, up from 828 in the previous year. The company operates 20 dispensaries across several states, including Pennsylvania, New Jersey, Maryland, and California, as well as in Ontario, Canada. The company’s retail operations have benefited from increased customer engagement, particularly in Ohio, where it has expanded its footprint. However, the competitive landscape remains challenging, with increased competition leading to price compression and impacting profit margins.

Looking ahead, TerrAscend's management expressed cautious optimism about future growth, emphasizing the importance of regulatory developments and market conditions. The company is focused on enhancing its operational efficiencies and expanding its product offerings to meet consumer demand. However, it also acknowledged the risks associated with the evolving cannabis regulatory environment, particularly in the United States, where cannabis remains illegal at the federal level. The company plans to continue leveraging its existing cash reserves and exploring additional financing options to support its growth initiatives.