TerrAscend Reports $65.5 Million in Q1 Revenue, Posts 15th Straight Quarter of Positive Operating Cash Flow
- TerrAscend reported $65.5 million in net revenue for Q1 2026, a 1.9% increase year-over-year, marking its 15th consecutive quarter of positive cash flow from continuing operations.
- The company achieved a gross profit of $34.6 million with a 52.8% margin, and adjusted EBITDA of $17.4 million (26.5% of net revenue), despite a GAAP net loss of $6.8 million from continuing operations.
- TerrAscend highlighted the positive impact of federal rescheduling of medical marijuana to Schedule III, which eliminates the 280E tax burden, potentially enhancing profitability and capital access.
- Key business highlights included launching Tyson 2.0 brand in PA and MD, strong retail performance in NJ, MD, and PA markets, ending the quarter with $39.1 million cash, and completing a share repurchase of 115,000 shares.
TerrAscend reported $65.5 million in net revenue for the first quarter of 2026, a 1.9% increase from the same period last year, while posting its 15th consecutive quarter of positive cash flow from continuing operations.
The North American cannabis operator, which has operations in Pennsylvania, New Jersey, Maryland, Ohio and California, said gross profit for the quarter was $34.6 million, with a gross profit margin of 52.8%. Adjusted EBITDA from continuing operations was $17.4 million, or 26.5% of net revenue.
TerrAscend reported a GAAP net loss from continuing operations of $6.8 million, compared with a loss of $7.7 million in the first quarter of 2025. Revenue was down slightly from the fourth quarter of 2025, when the company reported $66.1 million.
The company also reported $8.7 million in net cash provided by continuing operations and $7.8 million in free cash flow, marking its 11th consecutive quarter of positive free cash flow.
“The business returned to year-over-year revenue growth from continuing operations, while gross margins, Adjusted EBITDA margins and other key profitability metrics grew sequentially and exceeded our targets for the quarter,” said Jason Wild, executive chairman of TerrAscend.
Wild also pointed to the recent federal rescheduling of state-licensed medical marijuana to Schedule III, saying the move has eliminated the 280E tax burden for medical marijuana and could help improve profitability and access to capital.
TerrAscend said its first-quarter business highlights included launching the Tyson 2.0 brand in Pennsylvania and Maryland through an exclusive licensing agreement. The company also reported strong retail performance in several core markets, including New Jersey, where all three Apothecarium stores ranked among the state’s top 25, and Maryland, where two of its four Apothecarium stores ranked among the top 10.
In Pennsylvania, five of the company’s six Apothecarium stores ranked among the top 15 in the state. TerrAscend said its Kind Tree and Legend brands posted double-digit growth across key categories in Pennsylvania, helping drive market share gains.
The company ended the quarter with $39.1 million in cash and cash equivalents. TerrAscend also said it completed the repurchase of 115,000 shares during the quarter at a weighted average price of $0.66 per share.