TerrAscend Q2 Net Revenue Grows 12.7% YoY, What About Adjusted EBITDA?

TerrAscend Corp. TSNDF TSND released its financial results for the second quarter ended June 30, 2023. The following financial measures are reported as results from continuing operations due to the shutdown of the licensed producer business in Canada, which is reported as discontinued operations for all of 2022. All historical periods have been restated accordingly.

Q2 2023 Financial Highlights

• Net revenue was $72.1 million, an increase of 3.9% sequentially and 12.7% year-over-year.

• Gross profit was $36.2 million, an increase of 6.8% sequentially and 50.8% year-over-year.

• Gross profit margin was 50.2%, compared to 48.8% in Q1 2023 and 37.5% in Q2 2022.

• Net loss from continuing operations was $12.9 million, compared to a loss of $19.2 million in Q1 2023 and net income of $16.9 million in Q2 2022.

• Adjusted EBITDA from continuing operations was $12.8 million, compared to $12.2 million in Q1 2023 and $8.8 million in Q2 2022.

• Adjusted EBITDA Margin from continuing operations was 17.8%, compared to 17.6% in Q1 2023 and 13.8% in Q2 2022.

• Cash and cash equivalents, including restricted cash, totaled $34.5 million as of June 30, 2023, of which $2.5 million was long term restricted, as compared to $33.5 million as of March 31, 2023.

“We are pleased to deliver results in the second quarter that exceeded our internal forecasts. We have made substantial progress over the last several months across virtually all facets of our business. We have significantly improved our margins, transformed our balance sheet, materially lowered our interest expense, delivered positive operating cashflow, acquired four dispensaries in Maryland and successfully listed on the TSX, all while driving sector leading revenue growth of 26% in the first half of 2023,” stated Jason Wild, executive chairman of TerrAscend. “These achievements give us confidence in the remainder of the year, as evidenced by our full year revenue and adjusted EBITDA guidance. We expect to deliver significant growth in revenue and profitability as we realize the benefits of our now vertically integrated operations in Maryland as well as continued strong execution in our other geographies.”

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