TerrAscend (TER) Q1 2026 earnings summary

Executive summary

• Net revenue from continuing operations reached $65.5 million in Q1 2026, up 1.9% year-over-year, with retail growth offsetting wholesale declines and gross and adjusted EBITDA margins exceeding targets.

• Adjusted EBITDA was $17.4 million (26.5% margin), up from $16.7 million (25.2%) in Q4 2025.

• Gross profit margin improved to 52.8%, a 70 bps increase quarter-over-quarter, reflecting strength in core markets.

• Fifteenth consecutive quarter of positive cash flow from continuing operations and eleventh consecutive quarter of positive free cash flow.

• Operational efficiencies and strong performance in vertically integrated Northeast markets drove results.

Financial highlights

• Net revenue: $65.5 million (Q1 2026), $66.1 million (Q4 2025), $64.3 million (Q1 2025).

• Gross margin for Q1 2026 was 52.8%, up from 52.1% in Q4 2025.

• Adjusted EBITDA margin: 26.5% in Q1 2026, up from 25.2% in Q4 2025.

• Net loss from continuing operations was $6.8 million, compared to $0.5 million in Q4 2025 and $7.7 million in Q1 2025.

• G&A expenses reduced to $21.5 million (32.8% of revenue), down from $22.8 million (34.4%).

Outlook and guidance

• Q2 2026 is expected to deliver year-over-year revenue growth of 2%-3%.

• Consistent strong gross margin performance and positive operating cash flow are anticipated for the remainder of the year.

• Anticipated rescheduling of adult-use cannabis could expand access to institutional capital and enable potential up-listing to NASDAQ or NYSE.

• Recent regulatory changes expected to improve profitability, strengthen the balance sheet, and lower cost of capital.

• The company remains focused on disciplined growth, operational efficiency, and capturing opportunities from regulatory changes.