TerrAscend Q3 2026 Earnings Results: Revenue Rises 5%, Operating Profit Falls 8% and Net Loss Persists

By Nicolás Rodríguez, Managing Editor

TerrAscend reported stronger cash flow and a narrower net loss in the third quarter of 2026, although rising administrative expenses weighed on operating profitability and adjusted EBITDA margins.

TerrAscend Corp. (TSX: TSND; OTCQX: TSNDF) reported third-quarter net revenue of $68.2 million, up 4.8% from $65.1 million a year earlier, driven primarily by retail and wholesale growth in Pennsylvania.

The cannabis operator generated $17.5 million in adjusted EBITDA, compared with $17 million in the prior-year period, while reporting a GAAP net loss of $5.5 million from continuing operations, narrowing from $9.9 million.

However, operating income declined 7.7% to $10.3 million from $11.1 million, even though gross profit increased to $35.7 million. General and administrative expenses rose 12.6% to $24 million, outpacing revenue growth and increasing from 32.8% to 35.2% of net revenue.

Adjusted EBITDA margin consequently slipped to 25.6% from 26.1%.

Cash Flow Improves Despite Continued Losses

TerrAscend generated $8.8 million in operating cash flow from continuing operations, up from $7.1 million a year earlier, marking its 17th consecutive quarter of positive operating cash flow.

Free cash flow increased to $6.1 million from $4.9 million after $2.7 million in capital expenditures. This represented the company’s 13th consecutive quarter of positive free cash flow.

“We delivered growth in revenue, gross margin and EBITDA during the quarter, while marking our 17th consecutive quarter of positive operating cash flow and 13th consecutive quarter of positive free cash flow,” said Jason Wild, TerrAscend’s executive chairman.

The difference between cash generation and GAAP profitability remains significant.

The company reported $10.3 million in operating income but incurred $8.6 million in finance and other expenses and recorded an $11.9 million income tax provision.

A $4.8 million gain from changes in the fair value of derivative liabilities also benefited reported earnings. This noncash accounting gain helped reduce the reported loss but was excluded from adjusted EBITDA.

For the first nine months of 2026, TerrAscend recorded $200.9 million in net revenue, $33.9 million in operating income and a $22.4 million net loss from continuing operations.

Debt, Taxes and the Balance Sheet

TerrAscend ended September with $42.5 million in cash and cash equivalents, compared with $37.4 million at the end of 2025.

Its balance sheet showed approximately $217.1 million in loans payable and convertible debt, excluding lease obligations, compared with approximately $226.4 million at year-end 2025.

A less prominent figure in the financial statements is the company’s $163.5 million liability for uncertain tax positions, up from $128.8 million at the end of 2025.

The increase of approximately $34.7 million highlights the continuing importance of tax exposure in assessing the company’s financial position. The liability is an accounting measure and should not be interpreted as an immediately payable cash obligation.

Total liabilities stood at $479.3 million against $557.8 million in assets, leaving shareholders’ equity of $78.5 million, down from $99 million at year-end.

Pennsylvania Drives Growth, New Jersey Expansion Continues

Pennsylvania was a major contributor to the quarter’s revenue growth.

TerrAscend reported 12% same-store sales growth and a 31% increase in wholesale revenue in the state, driving a 16.8% year-over-year increase in its Pennsylvania business.

The company also reported sequential and year-over-year revenue growth in Maryland.

In September, TerrAscend completed its acquisition of Aunt Mary’s, adding a fifth New Jersey dispensary to its portfolio. According to management, the acquired operation generates more than $10 million in annualized revenue and is immediately accretive to EBITDA and cash flow.

“Our strong balance sheet, access to capital through our term loan facility and free cash flow generation provide the fuel to pursue additional growth opportunities,” Wild said.

The company also authorized a renewed share repurchase program of up to 10 million common shares or $10 million, whichever is lower, and continued preparations for a potential listing on a major U.S. stock exchange.

TerrAscend’s results highlight the financial challenges and opportunities facing U.S. cannabis operators, from profitability and access to capital to the evolving federal regulatory landscape. These issues will be central to discussions among industry executives, investors, and policymakers at IgniteIt’s Cannabis Capital & Policy Summit in Washington, D.C., on November 18, 2026, where industry leaders will examine the policies and investment decisions shaping the sector’s future.