TerrAscend lifts third-quarter revenue 4.8% to $68.2 million
Key Facts
TerrAscend reported on November 5 results for the third quarter ended September 30, 2026, recording net revenue of $68.2 million, up 4.8% year over year from $65.1 million in the same period of 2025. The company said the annual improvement came mainly from strong growth in retail and wholesale sales in Pennsylvania. The results reflect revenue expansion alongside a continued loss from continuing operations. That loss narrowed under GAAP to $5.5 million from $9.9 million a year earlier. Pennsylvania's contribution to growth was concentrated in sales at existing stores and wholesale revenue, the company said.
Gross margin was 52.3% in the third quarter, compared with 52.1% in the same period last year, an increase of 20 basis points. But adjusted EBITDA growth was slower than revenue growth, reaching $17.5 million versus $17.0 million a year earlier. The margin on adjusted EBITDA fell to 25.6% from 26.1%, putting the improvement in gross profit alongside a slight decline in adjusted profitability. General and administrative expenses rose to $24.0 million, equal to 35.2% of revenue. These expenses were $21.3 million, or 32.8% of revenue, in the third quarter of 2025, according to the investor relations statement.
Pennsylvania stood out as the main driver of the growth reported by the company. Same-store sales in the state rose 12% year over year, while wholesale revenue increased 31%, bringing total revenue growth there to 16.8%. TerrAscend linked the improvement in companywide revenue to the strength of these two businesses in Pennsylvania. In Maryland, the company said revenue increased from both the previous quarter and the same period last year. In New Jersey, it said it maintained a leading position and made gains in sales and market share across key product categories. The company provided no additional figures for these markets in its results statement.
Operating cash generation and free cash flow improved from a year earlier. Net cash provided by continuing operations was $8.8 million in the third quarter, compared with $7.1 million in the third quarter of 2025, marking the seventeenth consecutive quarter in which the company recorded positive operating cash flow. Free cash flow was also $6.1 million, up from $4.9 million a year earlier, marking the thirteenth consecutive quarter of positive free cash flow. As of September 30, cash and cash equivalents totaled $42.5 million. Capital expenditures during the quarter were $2.7 million and were tied mainly to ongoing facility improvement and cultivation projects, the company said.
As part of its expansion in New Jersey, TerrAscend completed the acquisition of Aunt Mary's in late September, its fifth dispensary in the state. The company said the facility generates revenue at an annualized rate of more than $10 million and is immediately accretive to adjusted EBITDA and cash flow. The deal is part of acquisition activity that the company said it continues to evaluate. Executive Chairman Jason Wild said, "We are actively evaluating a number of attractive assets, and I look forward to sharing additional updates in the coming weeks." Wild did not specify a date for those updates.
The board authorized the renewal and continuation of its share repurchase program for a 12-month period, for up to the lesser of 10,000,000 shares or $10 million in share value. The program announcement was part of the company's updates accompanying its third-quarter results. TSNDF shares closed at $0.4925 on November 4, before the results were released on November 5. The company held a call to discuss its third-quarter results on November 5, 2026, at 5:00 p.m. Eastern time. The information provided does not include a later share price that can be linked to the results announcement.