TerrAscend Reports Fourth Quarter and Full Year 2025 Financial Results
Executive Summary
- TerrAscend reported Q4 2025 net revenue of $66.1 M and FY 2025 net revenue of $260.6 M, both modestly down YoY but with stable gross margins above 52 %.
- GAAP net loss from continuing operations narrowed to $0.5 M in Q4 (vs. $9.9 M prior quarter) and $24.5 M for the year, while Adjusted EBITDA remained strong at $16.7 M (Q4) and $67.8 M (FY).
- The company generated positive operating cash flow for the 14th consecutive quarter ($8.3 M in Q4) and free cash flow for the 10th straight quarter ($6.6 M), supporting a $79 M non‑dilutive refinancing and an up‑to‑$35 M uncommitted term loan facility.
Key Details
- Revenue:
- Q4 2025: $66.1 M (↑1.6 % QoQ)
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FY 2025: $260.6 M (−2.8 % YoY)
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Gross Profit Margin (continuing ops):
- Q4 2025: 52.1 % (flat QoQ)
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FY 2025: 52.3 % (up from 50.7 % in 2024)
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GAAP Net Loss – Continuing Operations:
- Q4 2025: $0.5 M (vs. $9.9 M Q3)
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FY 2025: $24.5 M (vs. $20.9 M in 2024)
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Adjusted EBITDA – Continuing Ops:
- Q4 2025: $16.7 M (Adj. EBITDA margin 25.2 %)
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FY 2025: $67.8 M (Adj. EBITDA margin 26.0 %)
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Cash Flow:
- Net cash from continuing ops Q4 2025: $8.3 M (↑17 % QoQ)
- Free cash flow Q4 2025: $6.6 M (↑35 % QoQ)
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FY 2025 net cash from continuing ops: $33.9 M; free cash flow: $25.3 M
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Financing Activity:
- Completed a $79 M senior secured term loan (non‑dilutive) in Q3 2025, used mainly to retire existing debt.
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Secured an additional uncommitted term loan facility up to $35 M for future M&A.
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Operational Highlights:
- Closed Union Chill transaction, adding a fourth NJ dispensary.
- Expanded retail footprint in MD (four stores) and PA (three top‑10 stores).
- Entered exclusive licensing agreement with Tyson 2.0 for MD & PA product launch.
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Acquired Ratio Cannabis assets in Ohio; continued strategic exit from Michigan, using proceeds to reduce debt.
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Share Repurchase:
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Normal course issuer bid repurchased 1.12 M shares at a weighted‑average price of $0.44 per share during 2025.
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Balance Sheet (Dec 31 2025):
- Cash & cash equivalents: $37.4 M (up from $26.4 M YoY).
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Total assets: $557.4 M; total liabilities: $458.4 M; shareholders’ equity: $99.0 M.
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Conference Call:
- Hosted March 12 2026, 5:00 p.m. ET (webcast link provided).
Notable Quotes
“We remain disciplined in our M&A strategy – focusing solely on accretive transactions that align with our strategic goals… With a strong balance sheet, no material debt maturities until late 2028, consistent free cash flow generation, and regulatory momentum… we are well equipped to deliver sustainable growth.” – Jason Wild, Executive Chairman.