TerrAscend Triumphs: Unprecedented Revenue Growth and Financial Milestones in Q3 2023

TerrAscend Corp. reported a significant increase in Q3 2023 revenues with a 34.7% year-over-year growth to $89.2 million and raised its full-year 2023 guidance, reflecting strong financial performance and optimistic projections.

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TerrAscend Corp
Image Credits: TerrAscend Corp

TerrAscend Corp., a leading North American cannabis operator, announced its financial results for the third quarter of 2023 on November 9th, 2023, in Toronto. The company reported record-breaking net revenue and raised its full-year guidance. Net revenue increased by 34.7% year-over-year and 23.7% sequentially to reach $89.2 million, while gross profit margin improved to 53.6%, up from the previous quarter’s 50.2%.

Adjusted EBITDA from continuing operations increased by 89% sequentially, amounting to $24.2 million, accompanied by an adjusted EBITDA margin of 27.1%. TerrAscend has further raised its guidance for net revenue and adjusted EBITDA from continuing operations for the full year of 2023 to $320 million and $73 million, respectively. This signifies a year-over-year growth of 29% and 87%. Furthermore, the company expects Q4 net revenue to reach $89 million, with adjusted EBITDA from continuing operations totaling $24 million.

In addition to top-line solid numbers, several vital indicators show positive company performance trends during Q3 2023. Gross profit margin reached 53.6%, up from 50.2% in Q2 2023 and 47.0% in Q3 2022. GAAP net loss from continuing operations was reported at $8.4 million, while EBITDA from continuing operations stood at $20.7 million, showcasing significant progress compared to the same period last year.

The company’s Q3 2023 net revenue of $89.2 million highlights a sequential growth of 23.7% from $72.1 million in Q2 2023 and a year-over-year increase of 34.7% from $66.2 million in Q3 2022.

Increased cash flow and liquidity

TerrAscend also enjoyed increased cash flow and liquidity during the quarter, with net cash provided by operating activities from continuing operations amounting to $9.4 million. This reflects an increase from $1.8 million in Q2 2023 and $2.3 million in Q3 2022. Free cash flow from continuing operations was reported at $7.7 million.

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Q3 2023 Business and Operational Highlights

The company highlighted its business and operational achievements for the third quarter of 2023, noting significant increases in revenue and gross profit margin compared to the same period last year. A few key highlights include:

  • Opening additional dispensaries in New Jersey and Pennsylvania
  • Completion of facility expansions in New Jersey, increasing cultivation capacity
  • Acquisition of a vertically integrated operator in Maryland, expanding TerrAscend’s footprint in the state
  • Achieving operational efficiencies through vertical integration and process improvements

Moving forward with confidence into 2024

TerrAscend’s impressive performance during Q3 2023 indicates that the company is well-positioned for continued growth and expansion. As it seeks to further entrench its market position within North America, investors can remain confident in the company’s ability to capitalize on emerging opportunities in medical and recreational cannabis markets.

Rita Ferreira

Rita Ferreira

Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.

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