TerrAscend Corp. SEC 10-Q Report

TerrAscend Corp., a leading North American cannabis operator, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial and operational performance, highlighting key metrics and strategic initiatives undertaken during the period.

Financial Highlights

Revenue, net: $65.006 million, decreased by 3% from the prior year due to a decline in wholesale revenue, partially offset by an increase in retail revenue.

Gross Profit: $33.235 million, with a gross profit margin of 51.1%, reflecting improved cost absorption despite a decrease in sales volume.

Income from operations: $10.971 million, showing a slight increase from the previous year, driven by reduced operating expenses.

Net loss from continuing operations: $(6.406) million, reflecting a slight increase in loss compared to the previous year, primarily due to higher income tax provisions.

Net loss per share - basic & diluted: $(0.17), impacted by the net loss from discontinued operations and a decrease in overall revenue.

Business Highlights

Revenue Segments: The company experienced a 3% decrease in revenue for the three months ended June 30, 2025, primarily due to a $2,592 decline in wholesale revenue, partially offset by a $402 increase in retail revenue. The wholesale revenue decline was driven by price compression across multiple markets, while retail revenue saw growth due to acquisitive expansion and strong consumer demand in emerging markets.

Geographical Performance: The company reported market share growth in Maryland, supported by cultivation projects aimed at scaling operations and delivering enhanced product quality. However, other markets experienced a decrease in foot traffic and average order sizes, impacting retail revenue.

Future Outlook: The company is engaged in an active program to sell its Michigan assets, including cultivation and processing facilities and retail dispensaries, as part of a strategic shift expected to be completed in the second half of 2025. This exit is anticipated to result in a 21% reduction in the workforce by the end of the fourth quarter of 2025.

SEC Filing: TerrAscend Corp. [ TSND ] - 10-Q - Aug. 07, 2025