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TerrAscend () reported its financial and operating results for the third quarter ended September 30, 2023, today. All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.
Q3 Financial Highlights
Net Revenue: UP for 8th consecutive quarter by 23.7% to $89.2M
Gross Profit: UP 32.0% to $47.8M
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Gross Profit Margin: UP to 53.6% from 50.2%
Gen. & Admin. Exp.: DOWN 3.9% to $29.3M
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as a % of Net Revenue: DOWN to 32.8% from 42.3%
Adj. EBITDA: UP 89.1% to $24.2M
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Adj. EBITDA Margin: UP to 27.1% from 17.8%
Net Income (Loss): DOWN 34.9% to $(8.4)M
Cash/Equiv. + Restricted): DOWN 17.4% to $28.5M
Q3 Business & Operational Highlights
Improved to #2 position in New Jersey, with 18.6% market share, and is closing in on the #1 position of 18.8%, according to BDSA for September 2023.
Commenced adult-use sales in Maryland with four retail dispensaries and a state-of-the-art cultivation facility.
Launched Wana brand into the Maryland market.
Improved gross margin in Michigan by 800-basis points sequentially to 36% in Q3 and exited the quarter at 40% in September.
Returned to retail and wholesale growth in Pennsylvania both year-over-year and sequentially.
Commenced trading on the Toronto Stock Exchange (“TSX”) under the symbol ‘TSND’ on July 4, 2023.
Outlook for 2023
The Company is raising its outlook for Net Revenue and Adjusted EBITDA from continuing operations for 2023 to $320 million and $73 million, respectively, representing year-over-year growth of 29% in Net Revenue and 87% in Adjusted EBITDA from continuing operations, respectively.
The full year 2023 increase in guidance implies 2023 fourth quarter Net Revenue of $89 million and Adjusted EBITDA from continuing operations of $24 million.
Stock PerformanceTerrAscend’s stock price had climbed by 86.4% as of the end of Q3 but has declined by 21.5% since then but remains UP 44.9% YTD.More By This Author:
