TerrAscend Corp. (TSX: TSND) Reports Modest Revenue Rise in 4Q2024, Gross Profit Margin Improves to 50%

2 min read | March 07, 2025 06:52 AM EST | By Team Kalkine Media

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TerrAscend Corp. (TSX: TSND) Reports Modest Revenue Rise in 4Q2024, Gross Profit Margin Improves to 50% — Image source: Shutterstock

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Highlights

Fourth Quarter Net Revenue: CAD74.4 million, a slight increase of 0.3% QoQ

Gross Profit Margin improved to 50.2%, a 140 basis points increase

GAAP Net Loss: CAD30.2 million, including CAD45.4 million non-cash impairment charge

TerrAscend Corp (TSX:TSND) reported its financial results for the fourth quarter of 2024, ending December 31. The company achieved net revenue of CAD74.4 million, marking a modest increase of 0.3% compared to Q3 2024. This slight growth reflects the company’s ability to maintain revenue levels despite ongoing challenges in the competitive cannabis sector. Notably, gross profit margin improved by 140 basis points, reaching 50.2% from 48.8% in the previous quarter, indicating enhanced operational efficiency.

However, the company faced a significant setback in terms of profitability. GAAP net loss expanded to CAD30.2 million, primarily due to a CAD45.4 million non-cash impairment charge related to the Michigan business unit. This impairment negatively impacted the bottom line, overshadowing the otherwise positive revenue and margin growth. Despite this, adjusted EBITDA reached CAD15.1 million, representing an increase from CAD13.7 million in Q3 2024, showcasing the company’s improved operational performance when excluding one-time charges.

Full Year 2024 Financial Summary

For the full year of 2024, TerrAscend reported net revenue of CAD306.7 million, a 3.3% decrease from the prior year’s revenue of CAD317.3 million. This decline was largely driven by the continued challenges in the cannabis industry, compounded by the closure of the licensed producer business in Canada, which the company has now classified as discontinued operations. Gross profit margin for the year was 48.9%, slightly down from 50.3% in 2023.

The company recorded a GAAP net loss from continuing operations of CAD72.7 million, an improvement over the CAD82.3 million loss in 2023. The annual net loss included non-cash impairment charges totaling CAD47.8 million, which also heavily impacted financial results. Despite these challenges, adjusted EBITDA from continuing operations was CAD60.7 million, compared to CAD68.8 million in 2023, reflecting the pressures of a competitive market and a shift in business operations.

On a more positive note, net cash provided by continuing operations improved to CAD38.0 million, up from CAD31.1 million in 2023. Additionally, the company reported free cash flow of CAD28.6 million, a notable increase from CAD23.4 million in 2023.

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