TerrAscend (TER) Q3 2025 earnings summary

Executive summary

• Q3 2025 net revenue from continuing operations was $65.1 million, stable year-over-year and quarter-over-quarter, driven by strong performance in New Jersey, Maryland, and Pennsylvania.

• Gross profit margin improved to 52.1%, up 110 basis points from Q3 2024.

• Adjusted EBITDA reached $17.0 million, with a margin of 26.1%, up year-over-year and sequentially.

• Achieved 13th consecutive quarter of positive cash flow from continuing operations and 9th consecutive quarter of positive free cash flow.

• Strategic exit from Michigan is progressing, unlocking value and allowing focus on higher-value markets.

Financial highlights

• Net revenue for Q3 2025 was $65.1 million, compared to $65.2 million in Q3 2024 and $65.0 million in Q2 2025.

• Retail revenue increased 3.4% year-over-year, while wholesale revenue declined 6.7% year-over-year.

• Gross profit margin improved to 52.1% from 51% in Q3 2024.

• GAAP net loss from continuing operations was $9.9 million, down from $15.8 million in Q3 2024.

• Adjusted EBITDA was $17.0 million (26.1% of revenue), up from $16.9 million (25.9%) in Q3 2024.

• Cash and cash equivalents stood at $36.6 million as of September 30, 2025.

• CapEx was $2.2 million, mainly for Maryland and New Jersey expansions.

Outlook and guidance

• Q4 2025 revenue and gross margins expected to be similar to Q2 and Q3.

• Growth anticipated from organic expansion and M&A, especially in New Jersey and new states.

• Pennsylvania is positioned for rapid capacity expansion if adult use is legalized.

• On track to complete Michigan market exit by year-end 2025, with proceeds to pay down debt.