TerrAscend Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

TerrAscend (TSNDF) reported its Q4 and full year 2024 financial results, with Q4 net revenue reaching $74.4 million, a slight increase of 0.3% from Q3. The company achieved a gross profit margin of 50.2% in Q4, up 140 basis points from Q3.

For full year 2024, net revenue was $306.7 million, down 3.3% from 2023, with an adjusted EBITDA of $60.7 million. The company maintained positive cash flow for the 10th consecutive quarter, generating $38 million in operating cash flow and $28.6 million in free cash flow for 2024.

Notable highlights include:

• Maintained #1 market share position in New Jersey throughout 2024
• Improved Maryland operations from negligible revenue to $70 million Q4 run rate
• Recorded Q4 GAAP net loss of $30.2 million, including $45.4 million non-cash impairment charge related to Michigan business
• Completed non-dilutive debt financing, extending majority of debt maturities to 2028
• Initiated first-ever share repurchase program in August 2024

Positive

• Maintained #1 market share position in New Jersey throughout 2024
• Maryland revenue grew to $70M Q4 run rate with 50%+ gross margin
• Generated $38M operating cash flow and $28.6M free cash flow in 2024
• Q4 gross profit margin improved to 50.2%, up 140 basis points
• Secured $140M debt financing extending maturities to 2028

Negative

• Full year revenue declined 3.3% to $306.7M
• Q4 net loss increased to $30.2M from $21.4M in Q3
• $45.4M non-cash impairment charge for Michigan business
• Full year gross profit margin declined to 48.9% from 50.3%
• Retail sales declined in Michigan and New Jersey markets

Fourth Quarter Net Revenue of $74.4 million, up 0.3% from $74.2 million in the third quarter of 2024

Fourth Quarter Gross Profit Margin of 50.2%, up 140 basis points from 48.8% in the third quarter of 2024

Full Year 2024 Net Cash provided by continuing operations of $38.0 million and Free Cash Flow¹ of $28.6 million

10^th consecutive quarter of positive Cash Flow from continuing operations and 6^th consecutive quarter of positive Free Cash Flow¹

TORONTO, March 06, 2025 (GLOBE NEWSWIRE) -- TerrAscend Corp. ("TerrAscend" or the "Company") (TSX: TSND) (OTCQX: TSNDF), a leading North American cannabis company, today reported its financial results for the fourth quarter and full year ended December 31, 2024. All amounts are expressed in U.S. dollars and are prepared under U.S. Generally Accepted Accounting Principles (GAAP), unless indicated otherwise.

The following financial measures with respect to full year 2024 are reported as results from continuing operations due to the shutdown of the licensed producer business in Canada, which is reported as discontinued operations through September 30, 2023. All historical periods have been restated accordingly.

Fourth Quarter 2024 Financial Highlights

• Net Revenue was $74.4 million, compared to $74.2 million in Q3 2024, an increase of 0.3% quarter-over-quarter.
• Gross Profit Margin was 50.2%, up 140 basis points compared to 48.8% in Q3 2024.
• GAAP Net loss was $30.2 million, compared to a net loss of $21.4 million in Q3 2024; Q4 2024 net loss included a $45.4 million non-cash impairment charge related to the Company’s Michigan business.
• EBITDA¹ loss was $30.6 million, compared to $6.6 million in Q3 2024; Q4 2024 loss included a $45.4 million non-cash impairment charge primarily related to the Company’s Michigan business.
• Adjusted EBITDA¹ was $15.1 million, compared to $13.7 million in Q3 2024.
• Adjusted EBITDA Margin¹ was 20.3%, compared to 18.5% in Q3 2024.
• Net Cash provided by operating activities was $9.7 million, compared to $1.8 million in Q3 2024.
• Free Cash Flow¹ was $5.0 million, compared to $1.5 million in Q3 2024.

Full Year 2024 Financial Highlights

• Net Revenue was $306.7 million, compared to $317.3 million in 2023, a decline of 3.3% year-over-year.
• Gross Profit Margin was 48.9%, compared to 50.3% in 2023.
• GAAP Net loss from continuing operations was $72.7 million, compared to a net loss from continuing operations of $82.3 million in 2023; Net loss included $47.8 million and $58.1 million of non-cash impairment charges for 2024 and 2023, respectively, primarily related to intangible and fixed assets in the Company’s Michigan business unit.
• EBITDA from continuing operations¹ was $3.3 million, compared to ($3.3) million in 2023.
• Adjusted EBITDA from continuing operations¹ was $60.7 million, compared to $68.8 million in 2023.
• Adjusted EBITDA Margin from continuing operations¹ was 19.8% compared to 21.7% in 2023.
• Net Cash provided by continuing operations was $38.0 million compared to $31.1 million in 2023.
• Free Cash Flow¹ was $28.6 million compared to $23.4 million in 2023.  

"The business performed ahead of our expectations in the fourth quarter. For 2024, we generated $307 million in revenue, $61 million in Adjusted EBITDA from continuing operations, $38 million in positive operating cash flow, and $29 million in free cash flow. This performance was driven by our ability to achieve a #1 market share position in New Jersey for all quarters of 2024, growth of our business in Maryland from negligible revenue in early 2023 to a fourth quarter 2024 run rate of over $70 million, while surpassing 50% gross margin, as well as improved gross margin in Pennsylvania, a state that I am particularly excited about in anticipation of proposed adult-use legislation,” stated Jason Wild, Executive Chairman of TerrAscend. "During the year we completed a non-dilutive debt financing, aided by our $150 million of owned real estate, extending the vast majority of our debt maturities to late 2028. All of these accomplishments in 2024, including achieving our tenth consecutive quarter of positive operating cash flow and sixth consecutive quarter of positive free cash flow, give us confidence in our ability to drive operational efficiencies and growth of our core business while judiciously pursuing multiple greenfield expansion opportunities at increasingly attractive prices.”

Financial Summary Q4 2024, Full Year 2024 and Comparative Periods

All comparative figures have been restated to reflect the classification of the Canadian business as discontinued operations through the third quarter of 2023. Financial results from the fourth quarter of 2023 onward reflect only continuing operations.

(in millions of U.S. Dollars)	Q4 2024			Q3 2024			2024			2023
Revenue, net	74.4			74.2			306.7			317.3
Quarter-over-Quarter increase	0.3	%		-4.3	%
Year-over-Year increase	-14.1	%		-16.8	%		-3.3	%		28.0	%
Gross profit	37.3			36.2			150.0			159.7
Gross profit margin	50.2	%		48.8	%		48.9	%		50.3	%
General & Administrative expenses	28.0			31.6			111.6			115.2
Share-based compensation expense (included in G&A expenses above)	2.0			4.3			9.7			7.7
G&A as a % of revenue, net	37.6	%		42.6	%		36.4	%		36.3	%
Net loss from continuing operations	(30.2	)		(21.4	)		(72.7	)		(82.3	)
EBITDA from continuing operations	(30.6	)		6.6			3.3			(3.3	)
Adjusted EBITDA from continuing operations1	15.1			13.7			60.7			68.8
Adjusted EBITDA Margin from continuing operations1	20.3	%		18.5	%		19.8	%		21.7	%
Net cash provided by operations - continuing operations	9.7			1.8			38.0			31.1
Free Cash Flow1	5.0			1.5			28.6			23.4

1. EBITDA loss, EBITDA from continuing operations, Adjusted EBITDA, Adjusted EBITDA from continuing operations, Adjusted EBITDA margin, Adjusted EBITDA margin from continuing operations, and Free Cash Flow are non-GAAP measures defined in the section titled “Definition and Reconciliation of Non-GAAP Measures” below and reconciled to the most directly comparable GAAP measure, at the end of this release.

2024 Business and Operational Highlights

• Achieved 10^th consecutive quarter of positive operating cash flow and 6^th consecutive quarter of positive free cash flow in the fourth quarter of 2024.
• Signed definitive agreement to enter the Company’s sixth state with the acquisition of Ohio Ratio Cannabis, a well situated and currently profitable dispensary in Ohio. The transaction is expected to close in the coming weeks, subject to regulatory approval.
• Maintained #1 market share position in New Jersey every quarter in 2024, according to BDSA.
• All three New Jersey Apothecarium retail locations were ranked in the top 10 out of approximately 200 locations in the state, according to Lit Alerts².
• Commenced expansion of cultivation and manufacturing in Boonton, New Jersey to support innovation and enable a broader product portfolio to meet consumer demand.
• Revenue grew sequentially in Maryland for all four quarters of 2024 while expanding gross margin from 25% to over 50%.
• Increased market share position in Maryland from #13 in the fourth quarter of 2023 to #6 in the fourth quarter of 2024, according to BDSA. The Company is now only 1.9 market share points away from a #2 position in the state.
• Initiated expansion of Maryland cultivation facility by adding four additional grow rooms with first harvest expected during the second quarter of 2025.
• Commenced preparation for anticipated Pennsylvania adult-use implementation, leveraging the Company’s 150 thousand square foot cultivation and manufacturing facility and Apothecarium retail network of six dispensaries.
• Closed on a senior secured term loan for gross proceeds of $140 million, carrying an interest rate of 12.75%, maturing in August 2028 and containing no warrants or prepayment penalties. The terms of the loan were aided by the Company’s approximately $150 million of owned real estate.
• Initiated first-ever share repurchase program in August 2024.
• Implemented company-wide ERP system, enhancing efficiency across departments and providing improved data visibility and control.
• Completed a series of initiatives that are expected to reduce General & Administrative expenses year-over-year in 2025 by at least $10 million.
• Appointed Lynn Gefen, TerrAscend’s Chief Legal Officer, to an expanded role as Chief People and Legal Officer, and Corporate Secretary.

2. Data based on total units sold during the fourth quarter of 2024.

Fourth Quarter 2024 Financial Results

Net revenue for the fourth quarter of 2024 was $74.4 million as compared to $74.2 million for the third quarter of 2024, representing quarter-over-quarter growth of 0.3%. This growth was driven by the Company’s #1 market share position in New Jersey combined with sequential revenue growth in Maryland for the fourth consecutive quarter, partially offset by retail decline in Michigan.

Gross profit margin for the fourth quarter of 2024 was 50.2% as compared to 48.8% in the third quarter of 2024. The quarter-over-quarter 140 basis-point expansion was driven by improvements in Maryland and Pennsylvania while New Jersey remained relatively flat quarter-over-quarter.

General & Administrative expenses (G&A) for the fourth quarter of 2024 were $28.0 million as compared to $31.6 million in the third quarter of 2024. The $3.6 million sequential decline in G&A expenses was driven by a $2.3 million reduction in share-based compensation expense and $1.3 million of operating expense reductions.

GAAP Net Loss was $30.2 million, inclusive of $45.4 million of non-cash impairment charges related to the Company’s Michigan business, compared to a net loss of $21.4 million in the third quarter of 2024.

Adjusted EBITDA, a non-GAAP measure, was $15.1 million, a 20.3% Adjusted EBITDA margin, as compared to $13.7 million, a 18.5% Adjusted EBITDA margin, in the third quarter of 2024. The quarter-over-quarter increase was driven by gross margin expansion and G&A expense reduction.

Full Year 2024 Financial Results 

Net revenue for the full year 2024 was $306.7 million, compared to $317.3 million for full year 2023. The year-over-year decline was mainly driven by a decline in retail sales in Michigan and New Jersey. The decline in retail sales in Michigan was driven by reduced foot traffic related to reductions in discounting and promotions driven by the Company's ongoing efforts to expand gross margin. The decline in New Jersey was driven by an increase in retail competition related to store openings across the state. These declines were partially offset by wholesale revenue growth in New Jersey and Pennsylvania and both retail and wholesale revenue growth in Maryland due to a full year of adult-use sales and market share gains in that state.

Gross profit margin for the full year 2024 was 48.9% as compared to 50.3% for the full year 2023. The decline in gross margin was driven by price compression in New Jersey and Pennsylvania, partially offset by margin improvement in Maryland related to the Company’s expansion and continued productivity gains and cost reductions in that market.

G&A expenses for the full year 2024 were $111.6 million compared to $115.2 million in 2023, representing a 3% decline in G&A expenses year-over-year. This reduction in G&A expense was related to the Company’s on-going initiatives to optimize its G&A expenses. G&A as a percent of revenue was unchanged versus the prior year at 36.3%.

Net loss from continuing operations for the full year 2024 was $72.7 million compared to a net loss of $82.3 million in 2023. Both 2024 and 2023 included $47.8 million and $58.1 million, respectively, of non-cash impairment charges primarily related to intangible and fixed assets in the Company’s Michigan business unit.

Full year 2024 Adjusted EBITDA from continuing operations, a non-GAAP measure, was $60.7 million compared to $68.8 million in 2023. The year-over-year change in Adjusted EBITDA from continuing operations was driven by lower revenue and gross profit margin, partially offset by lower G&A expenses year-over-year. Adjusted EBITDA margin from continuing operations for the full year was 19.8% as compared to 21.7% in 2023.

Balance Sheet and Cash Flow

Cash and cash equivalents, including $600,000 of restricted cash, were $27.0 million as of December 31, 2024, compared to $27.2 million as of September 30, 2024. Net cash provided by operating activities was $9.7 million for the fourth quarter of 2024 compared to $1.8 million in the third quarter of 2024. This represented the Company’s tenth consecutive quarter of positive cash flow from continuing operations. Capex spending was $4.7 million in the fourth quarter of 2024, mainly related to the Company’s expansions at its facilities in New Jersey and Maryland. Free cash flow was $5.0 million compared to $1.5 million in the third quarter of 2024, representing the Company’s sixth consecutive quarter of positive free cash flow. During the quarter, the Company distributed $2.9 million to its New Jersey partners and made $1.4 million of principal payments on its debt.

As of March 5, 2025, there were approximately 369 million basic shares of the Company issued and outstanding, including 292 million common shares, 13 million preferred shares as converted, and 63 million exchangeable shares. Additionally, there were 43.1 million warrants and options outstanding at a weighted average price of $3.90.

Conference Call Details
TerrAscend will host a conference call today, March 6, 2025, to discuss these results. Jason Wild, Executive Chairman, Ziad Ghanem, President and Chief Executive Officer, and Keith Stauffer, Chief Financial Officer, will host the call starting at 5:00 p.m. Eastern time. A question-and-answer session will follow management's presentation.

Date:	Thursday, March 6, 2025
Time:	5:00 p.m. Eastern Time
Webcast:	https://app.webinar.net/MnqwOWP3G5o
Dial-in Number:	1-888-510-2154
Replay:	1-289-819-1450 or 1-888-660-6345 Available until 12:00 midnight Eastern Time on Thursday, March 20, 2025 Replay Entry Code: 33966#

About TerrAscend
TerrAscend is a leading TSX-listed cannabis company with interests across the North American cannabis sector, including vertically integrated operations in Pennsylvania, New Jersey, Maryland, Michigan and California through TerrAscend Growth Corp. and retail operations in Canada, TerrAscend operates The Apothecarium, Gage and other dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend’s cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns or licenses several synergistic businesses and brands including Gage Cannabis, The Apothecarium, Cookies, Lemonnade, Ilera Healthcare, Kind Tree, Legend, State Flower, Wana, and Valhalla Confections. For more information visit www.terrascend.com.

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend’s operations and financial performance.

Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, and include, but not limited to, statements with respect to the Company’s expectations for its overall operational improvements, growth and expansion opportunities; the expected closing of signed acquisitions and the anticipated profitability of acquired dispensaries; the potential benefits of facility expansions; and the outcome of cost reduction initiatives. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, current and future market conditions; risks related to federal, state, provincial, territorial, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States; and the risk factors set out in the Company’s most recently filed MD&A, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR+ at www.sedarplus.ca and in the section titled “Risk Factors” in the Company’s Annual Report for the year ended December 31, 2024 filed with the Securities and Exchange Commission on March 6, 2025.

The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether, as a result of new information, future events, or results or otherwise, other than as required by applicable securities laws.

Definition and Reconciliation of Non-GAAP Measures

In addition to reporting the financial results in accordance with GAAP, the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP measures used by management do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies. The Company believes that certain investors and analysts use these measures to measure a company’s ability to meet other payment obligations or as a common measurement to value companies in the cannabis industry, and the Company calculates: (i) Free cash flow from net cash provided by operating activities from continuing operations less capital expenditures for property and equipment, which management believes is an important measurement of the Company's ability to generate additional cash from its business operations, (ii) EBITDA loss, EBITDA from continuing operations, Adjusted EBITDA and Adjusted EBITDA from continuing operations as net loss, adjusted to exclude provision for income taxes, finance expenses, depreciation and amortization, share-based compensation, loss on extinguishment of debt, gain (loss) from revaluation of contingent consideration, gain (loss) on disposal of fixed assets, Impairment of goodwill and intangible assets, impairment of property and equipment and right of use assets, bad debt recovery, unrealized and realized loss on investments, (gain) loss on lease termination and derecognition of finance lease, unrealized and realized foreign exchange, gain on fair value of derivative liabilities and purchase option derivative assets, restructuring and executive severance, legal settlements and certain other items, which management believes is not reflective of the ongoing operations and performance of the Company , and (iii) General & Administration expense, excluding stock-based compensation, which management believes provides a clearer view of the Company’s core operating cost structure by removing the impact of non-cash, equity-based compensation expenses.. Such information is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

For more information regarding TerrAscend:
Keith Stauffer
Chief Financial Officer
ir@terrascend.com 
717-343-5386

Investor Relations Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
Valter@KCSA.com 
212-896-1254

TerrAscend Corp.
Consolidated Balance Sheets
(Amounts expressed in thousands of United States dollars, except for share and per share amounts)
		At				At
		December 31, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents		$	26,381			$	22,241
Restricted cash			606				3,106
Accounts receivable, net			20,880				19,048
Investments			1,727				1,913
Inventory			48,799				51,683
Prepaid expenses and other current assets			6,040				4,898
Total current assets			104,433				102,889
Non-current assets
Property and equipment, net			184,019				196,215
Deposits			168				337
Operating lease right of use assets			41,355				43,440
Intangible assets, net			169,604				215,854
Goodwill			106,929				106,929
Other non-current assets			722				854
Total non-current assets			502,797				563,629
Total assets		$	607,230			$	666,518
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities		$	46,725			$	49,897
Deferred revenue			5,129				4,154
Loans payable, current			6,761				137,737
Contingent consideration payable, current			3,121				6,446
Operating lease liability, current			2,511				1,244
Derivative liability, current			92				—
Lease obligations under finance leases, current			1,864				2,030
Corporate income tax payable			11,531				4,775
Other current liabilities			795				717
Total current liabilities			78,529				207,000
Non-current liabilities
Loans payable, non-current			183,461				61,633
Operating lease liability, non-current			42,469				45,384
Lease obligations under finance leases, non-current			—				407
Derivative liability, non-current			451				5,162
Convertible debt			9,114				7,266
Deferred income tax liability			8,428				17,175
Contingent consideration payable, non-current			172				—
Liability on uncertain tax position			106,991				79,627
Other long term liabilities			799				2,124
Total non-current liabilities			351,885				218,778
Total liabilities			430,414				425,778
Commitments and contingencies
Shareholders' equity
Share capital
Series A, convertible preferred stock, no par value, unlimited shares authorized; 12,350 and 12,350 shares outstanding as of December 31, 2024 and December 31, 2023, respectively			—				—
Series B, convertible preferred stock, no par value, unlimited shares authorized; 600 and 600 shares outstanding as of December 31, 2024 and December 31, 2023, respectively			—				—
Exchangeable shares, no par value, unlimited shares authorized; 63,492,038 and 63,492,038 shares outstanding as of December 31, 2024 and December 31, 2023, respectively			—				—
Common shares, no par value, unlimited shares authorized; 293,232,131 and 288,327,497 shares outstanding as of December 31, 2024 and December 31, 2023, respectively			—				—
Treasury stock, no par value; 129,500 and nil shares outstanding as of December 31, 2024 and December 31, 2023, respectively			—				—
Additional paid in capital			952,463				944,859
Accumulated other comprehensive income			3,011				1,799
Accumulated deficit			(778,514	)			(704,162	)
Non-controlling interest			(144	)			(1,756	)
Total shareholders' equity			176,816				240,740
Total liabilities and shareholders' equity		$	607,230			$	666,518

TerrAscend Corp.
Consolidated Statements of Operations and Comprehensive Loss
(Amounts expressed in thousands of United States dollars, except for share and per share amounts)
		For the Years Ended
			December 31, 2024				December 31, 2023				December 31, 2022
Revenue, net			$	306,677			$	317,328			$	247,829
Cost of sales				156,717				157,630				146,325
Gross profit				149,960				159,698				101,504
Operating expenses:
General and administrative				111,596				115,189				115,588
Amortization and depreciation				8,823				9,433				9,658
Impairment of intangible assets				39,334				51,303				140,727
Impairment of goodwill				—				4,690				170,357
Impairment of property and equipment and right of use assets				8,511				2,079				1,089
Other operating income				(1,198	)			(3,131	)			—
Total operating expenses				167,066				179,563				437,419
Loss from operations				(17,106	)			(19,865	)			(335,915	)
Other expense (income)
Loss (gain) from revaluation of contingent consideration				2,465				(645	)			(1,061	)
Loss (gain) on extinguishment of debt				1,662				—				(4,153	)
Gain on fair value of derivative liabilities and purchase option derivative assets				(4,549	)			(322	)			(58,523	)
Finance and other expenses				34,370				37,041				35,893
Transaction and restructuring costs				—				344				1,445
Unrealized and realized foreign exchange loss (gain)				940				(53	)			712
Unrealized and realized loss (gain) on investments				238				2,603				(43	)
Loss from continuing operations before provision for income taxes				(52,232	)			(58,833	)			(310,185	)
Provision for (benefit from) income taxes				20,438				23,453				(10,783	)
Net loss from continuing operations			$	(72,670	)		$	(82,286	)		$	(299,402	)
Discontinued operations:
Loss from discontinued operations, net of tax			$	—			$	(4,444	)		$	(25,949	)
Net loss			$	(72,670	)		$	(86,730	)		$	(325,351	)
Foreign currency translation adjustment				(1,212	)			286				738
Comprehensive loss			$	(71,458	)		$	(87,016	)		$	(326,089	)
Net loss from continuing operations attributable to:
Common and proportionate Shareholders of the Company			$	(80,232	)		$	(91,101	)		$	(303,959	)
Non-controlling interests			$	7,562			$	8,815			$	4,557
Comprehensive loss attributable to:
Common and proportionate Shareholders of the Company			$	(79,020	)		$	(95,831	)		$	(330,646	)
Non-controlling interests			$	7,562			$	8,815			$	4,557
Net loss per share - basic & diluted:
Continuing operations			$	(0.28	)		$	(0.33	)		$	(1.24	)
Discontinued operations				—				(0.02	)			(0.11	)
Net loss per share - basic & diluted			$	(0.28	)		$	(0.35	)		$	(1.35	)
Weighted average number of outstanding common shares				291,513,878				279,285,588				244,351,028

TerrAscend Corp.
Consolidated Statements of Cash Flows
(Amounts expressed in thousands of United States dollars, except for share and per share amounts)
	For the Years Ended
	December 31, 2024				December 31, 2023				December 31, 2022
Operating activities
Net loss from continuing operations	$	(72,670	)		$	(82,286	)		$	(299,402	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Non-cash adjustments of inventory		—				985				9,082
Accretion expense		11,622				10,674				9,740
Depreciation of property and equipment and amortization of intangible assets		20,103				20,382				22,624
Amortization of operating right-of-use assets		2,882				2,319				1,980
Share-based compensation		9,706				7,707				12,162
Deferred income tax recovery		(8,746	)			(18,615	)			(35,299	)
Gain on fair value of derivative liabilities and purchase option derivative assets		(4,549	)			(322	)			(58,523	)
Gain on disposal of fixed assets		(30	)			(1,914	)			—
Unrealized and realized loss (gain) on investments		238				2,603				(43	)
Loss (gain) from revaluation of contingent consideration		2,465				(645	)			(1,061	)
Impairment of goodwill and intangible assets		39,334				55,993				311,084
Impairment of property and equipment and right of use assets		8,511				2,079				1,089
(Gain) loss on lease termination and derecognition of finance lease		(1,220	)			(1,217	)			1,163
Release of indemnification asset		—				—				3,973
Bad debt (recovery) expense		(1,136	)			—				9,941
Employee Retention Credits recorded in other income		—				—				(9,440	)
Loss (gain) on extinguishment of debt		1,662				—				(4,153	)
Debt modification fees		—				—				2,507
Unrealized and realized foreign exchange loss (gain)		940				(53	)			712
Changes in operating assets and liabilities
Receivables		(2,950	)			(9,259	)			2,862
Inventory		4,166				(5,185	)			676
Prepaid expense and other current assets		307				1,198				856
Deposits		169				500				3,666
Other assets		78				797				711
Accounts payable and accrued liabilities and other payables		(5,288	)			644				(12,103	)
Operating lease liability		(2,351	)			(1,861	)			(1,314	)
Other liability		(388	)			(2,070	)			(13,846	)
Uncertain tax position liabilities		27,364				66,404				3,905
Contingent consideration payable		—				—				(410	)
Corporate income tax payable		6,756				(18,946	)			14,598
Deferred revenue		975				1,219				428
Net cash provided by (used in) operating activities- continuing operations		37,950				31,131				(21,835	)
Net cash used in operating activities - discontinued operations		—				(3,660	)			(4,288	)
Net cash provided by (used in) operating activities		37,950				27,471				(26,123	)
Investing activities
Investment in property and equipment		(9,362	)			(7,762	)			(39,631	)
Investment in note receivable, net of interest received		(1,460	)			—				—
Investment in intangible assets		(1,187	)			(1,666	)			(2,261	)
Principle payments received on lease receivable		—				—				515
Insurance recovery for property and equipment		871				—				—
Success fees related to Alternative Treatment Center license		—				(3,012	)			—
Deposits for business acquisition		—				—				(1,065	)
Payment for land contracts		(859	)			(1,275	)			(1,271	)
Cash portion of consideration paid in acquisitions, net of cash of acquired		(250	)			(16,789	)			16,227
Net cash used in investing activities - continuing operations		(12,247	)			(30,504	)			(27,486	)
Net cash provided by (used in) investing activities - discontinued operations		—				14,285				(93	)
Net cash used in investing activities		(12,247	)			(16,219	)			(27,579	)
Financing activities
Transfer of Employee Retention Credit		—				12,677				—
Proceeds from loan payable, net of transaction costs		129,382				23,869				43,419
Proceeds from options and warrants exercised		—				98				24,342
Loan principal paid		(146,159	)			(50,154	)			(42,221	)
Loan amendment fee paid and prepayment premium paid		—				(1,178	)			(4,977	)
Tax distributions to NJ partners		—				—				(1,539	)
Capital distributions paid to non-controlling interests		(7,324	)			(11,621	)			(7,550	)
Proceeds from contingent consideration		—				—				(6,630	)
Proceeds from private placement, net of share issuance costs		—				20,822				—
Payments made for financing obligations and finance lease		(400	)			(1,474	)			(1,125	)
Repurchases of common shares		(215	)			—				—
Net cash (used in) provided by financing activities- continuing operations		(24,716	)			(6,961	)			3,719
Net cash used in financing activities- discontinued operations		—				(5,539	)			—
Net cash (used in) provided by financing activities		(24,716	)			(12,500	)			3,719
Net increase (decrease) in cash and cash equivalents and restricted cash during the year		987				(1,248	)			(49,983	)
Net effects of foreign exchange		653				(168	)			(2,896	)
Cash and cash equivalents and restricted cash, beginning of the year		25,347				26,763				79,642
Cash and cash equivalents and restricted cash, end of the year	$	26,987			$	25,347			$	26,763

TerrAscend Corp.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Amounts expressed in thousands of United States dollars, except for share and per share amounts)
The table below reconciles net loss from continuing operations to EBITDA from continuing operations and Adjusted EBITDA from continuing operations:
		For the Three Months Ended								For the Years Ended
		December 31, 2024				September 30, 2024				December 31, 2024				December 31, 2023
Revenue, net		$	74,353			$	74,168			$	306,677			$	317,328
Net loss			(30,163	)			(21,419	)			(72,670	)			(86,730	)
Net loss margin %			-40.6	%			-28.9	%			-23.7	%			-27.3	%
Loss from discontinued operations			—				—				—				4,444
Loss from continuing operations			(30,163	)			(21,419	)			(72,670	)			(82,286	)
Add (deduct) the impact of:
Provision for income taxes			(14,335	)			14,373				20,438				23,453
Finance expenses			8,788				8,610				35,402				35,106
Amortization and depreciation			5,074				5,036				20,103				20,382
EBITDA from continuing operations			(30,636	)			6,600				3,273				(3,345	)
Add (deduct) the impact of:
Share-based compensation			1,986				4,275				9,706				7,707
Loss on extinguishment of debt			—				1,662				1,662				—
(Gain) loss from revaluation of contingent consideration			(1,082	)			327				2,465				(645	)
(Gain) loss on disposal of fixed assets			(21	)			8				(30	)			(1,914	)
Impairment of goodwill and intangible assets			39,334								39,334				55,993
Impairment of property and equipment and right of use assets			6,073				—				8,511				2,079
Bad debt recovery			—				—				(4,169	)			—
Employee Retention Credits Transfer Fee			—				—				—				2,236
Unrealized and realized loss (gain) on investments			25				(14	)			238				2,603
(Gain) loss on lease termination and derecognition of finance lease			—				(51	)			(1,220	)			(1,012	)
Unrealized and realized foreign exchange loss (gain)			765				(214	)			940				(53	)
Gain on fair value of derivative liabilities and purchase option derivative assets			(1,941	)			(669	)			(4,549	)			(322	)
Restructuring and executive severance			—								—				921
Legal settlements			—								—				746
Other one-time items			606				1,793				4,533				3,808
Adjusted EBITDA from continuing operations		$	15,109			$	13,717			$	60,694			$	68,802
Adjusted EBITDA Margin from continuing operations			20.3	%			18.5	%			19.8	%			21.7	%

The table below reconciles Net cash provided by operating activities – continuing operations to Free Cash Flow:
		For the Three Months Ended								For the Years Ended
		December 31, 2024				September 30, 2024				December 31, 2024				December 31, 2023
Net cash provided by operating activities- continuing operations		$	9,747			$	1,823			$	37,950			$	31,131
Capital expenditures for property and equipment			(4,739	)			(351	)			(9,362	)			(7,762	)
Free Cash Flow		$	5,008			$	1,472			$	28,588			$	23,369

The table below reconciles General & administrative expenses to General & administrative expenses, excluding stock-based compensation:
		For the Three Months Ended								For the Years Ended
		December 31, 2024				September 30, 2024				December 31, 2024				December 31, 2023
General & administrative expenses			27,976				31,552				111,596				115,189
Less: stock-based compensation			1,986				4,275				9,706				7,707
General & administrative expenses, excluding stock-based compensation		$	25,990			$	27,277			$	101,890			$	107,482

FAQ

What was TerrAscend's (TSNDF) Q4 2024 revenue and how did it compare to Q3?

TerrAscend's Q4 2024 revenue was $74.4 million, up 0.3% from $74.2 million in Q3 2024.

How much free cash flow did TSNDF generate in full year 2024?

TerrAscend generated $28.6 million in free cash flow for full year 2024, compared to $23.4 million in 2023.

What was TerrAscend's market position in New Jersey during 2024?

TerrAscend maintained the #1 market share position in New Jersey for all quarters of 2024.

What was TSNDF's gross profit margin in Q4 2024?

Gross profit margin was 50.2% in Q4 2024, up 140 basis points from 48.8% in Q3 2024.

How much was TerrAscend's non-cash impairment charge in Q4 2024?

TerrAscend recorded a $45.4 million non-cash impairment charge related to its Michigan business in Q4 2024.