Terrascend Corp. · TSX:TSND
Terrascend — Q1 2025 Earnings Presentation
26 slides from Terrascend's earnings presentation, May 8, 2025
Slide 1: 2025 First Quarter Financial Results
2025 First Quarter Financial Results May 8, 2025 Terrascend.com TSX: TSND | OTCQX: TSNDF
Slide 2: Executive Leadership Speakers
Executive Leadership Speakers Jason Wild Ziad Ghanem Keith Stauffer Executive Chairman President & Chief Financial Officer Chief Executive Officer p. 2
Slide 3: Disclaimer
Disclaimer Forward-Looking Information This presentation contains “forward-looking information” within the meaning of applicable securities laws, including the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of
Slide 4: Disclaimer: Definition and Reconciliation of Non-GAAP Measures
Disclaimer Definition and Reconciliation of Non-GAAP Measures In addition to reporting the financial results in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP
Slide 5: Overview
Overview Jason Wild, Executive Chairman terrascend.com
Slide 6: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Key Drivers of this Performance: Growth and Margin Expansion in the Northeast $71.0 M $1.6 M 11th Consecutive Quarter Net Revenue Decrease in G&A of Positive Cash Flow from Expenses Operations 51.8% $15.3 M $8.0 M Gross Profit Margin Adjusted EBITDA* Net Cash provided by
Slide 7: Aggressive Pursuit of M&A
Aggressive Pursuit of M&A Uniquely positioned to target bolt on acquisition opportunities and possible transformational deals • Targeted approach puts TerrAscend in a differentiated position to invest in the best geographies and assets at attractive valuations. • Closed on dispensary, Ratio Cannabis
Slide 8: Signed Definitive Agreement to Expand Retail Footprint in NJ
Signed Definitive Agreement to Expand Retail Footprint in NJ • Announced a definitive agreement to purchase Union Chill dispensary, which will bring total number of dispensaries in the state to 4, subject to regulatory approval. • Union Chill is a strong performer, generating more than $11 million i
Slide 9: Monitoring Regulatory Cannabis Reform
Monitoring Regulatory Cannabis Reform • Closely monitoring developments at both the federal and state levels. • Federal regulatory environment seems to be showing positive movement. • Continue to see progress related to the possible passage of a PA adult use bill – will be prepared to meet the incre
Slide 10: Summary
Summary • Cannabis industry is still in the early stages of its development. • TerrAscend has demonstrated: • A pathway to organic growth and through M&A • Consistent delivery of positive free cashflow for 7 consecutive quarters • Operating efficiency by expanding gross margins for 5 consecutive qua
Slide 11: First-Ever Share Repurchase Program for Up to $10 Million
First-Ever Share Repurchase Program for Up to $10 Million • Demonstrating confidence in the Company’s future and commitment to enhancing shareholder value. • In March, repurchased shares during the 15-day open trading window and within the daily purchase restriction limits. • Will continue executing
Slide 12: State-by-State Overview
State-by-State Overview Ziad Ghanem, President & Chief Executive Officer terrascend.com
Slide 13: New Jersey
Leading New Jersey Market 1Q ’25 Highlights Share • According to BDSA, TerrAscend maintained a leadership position in the state. • All three Apothecarium retail locations in New Jersey continued to rank in the top 10 out of over Lodi (Dispensary) 200 dispensaries, according to Lit Alerts*. • While w
Slide 14: Maryland
Maryland 1Q ’25 Highlights • Market share increased from 5.2% to 5.9%, now only 1.4 share points away from #2 position in the state, according to BDSA. • Gained significant market share across all five product categories. Flower, vapes, edibles, extracts and pre rolls. Burtonsville (Dispensary) • Re
Slide 15: Pennsylvania
Pennsylvania 1Q ’25 Highlights • Fastest share gainer in PA. • Increased market share by 38% quarter-over- quarter to a #7 position, according to BDSA. • Retail revenue steady sequentially as productivity per store continues to be healthy. • Wholesale revenue increased 9% quarter-over- quarter, driv
Slide 16: Michigan / Ohio
Michigan / Ohio 1Q ’25 Highlights • Michigan priorities remain to improve Harrison operational efficiency and drive gross (Cultivation / Processing & Distribution) margins. Monitor (Cultivation / Processing) Traverse City • Announced entry into the neighboring (Dispensary) Lansing state of Ohio with
Slide 17: Financial Overview
Financial Overview Keith Stauffer, Chief Financial Officer terrascend.com
Slide 18: First Quarter 2025 Net Revenue
First Third Quarter Quarter2025 2023Net Revenue Financial Results Sequential decrease in retail, as expected, largely due to seasonality Net Revenue • Revenue: $71.0 million versus $74.4 million in Q4 (in millions, US$) Wholesale Retail 2024. $74.4 $71.0 • 4.5% decrease sequentially, as expected, la
Slide 19: First Quarter 2025 Gross Profit Margin
First Quarter 2025 Gross Profit Margin QoQ 160 basis-point expansion driven by improvements in Maryland, Pennsylvania, and Michigan, while New Jersey remained relatively flat QoQ Gross Profit Margin • Gross Profit Margin: 51.8% versus 50.2% in Q4 2024 and 48.0% in Q1 2024. +160 bps • Quarter-over-qu
Slide 20: First Quarter 2025 General & Administrative Expenses
First Quarter General 2025 GeneralExpenses* & Administrative & Administrative (G&A) Expenses Ongoing initiatives to optimize G&A expenses expected to reduce G&A by $10 million YoY in 2025 General & Administrative Expenses • G&A expenses for Q1 2025, $26.4 million, (in millions, US$) compared to $28.
Slide 21: First Quarter 2025 Net Loss and Adjusted EBITDA
First Quarter 2025 Net Loss and Adjusted EBITDA* GAAP Net Loss Adj EBITDA* (in millions, US$) (in millions, US$) -$12.3 -$30.2 $15.1 $15.3 Q4 2024 Q1 2025 Q4 2024 Q1 2025 20.3% 21.6% of Revenue of Revenue GAAP Net Loss: Adjusted EBITDA*: • $12.3 million net loss, compared to a $30.2 million • $15.3
Slide 22: Balance Sheet, Cash Flow & Stock Repurchase Program
Balance Sheet, Cash Flow & Stock Repurchase Program • Cash, and cash equivalents: • Other payments: • $29.4 million (3/31/25), compared to $26.4 million • Paid down $1.0 million in debt (12/31/24) • $700 thousand of distributions to NJ minority partners • Q1 2025 net cash provided by operations: • $
Slide 23: Second Quarter 2025 Expectations
Second Quarter 2025 Expectations • Revenue flat to up low single digits sequentially. • Gross margin to continue at ~50%. • Further G&A expense reduction quarter-over-quarter. • Continue to realize G&A savings from actions taken, with expectation to generate $10 million in savings for the full year
Slide 24: Thank You
Thank You terrascend.com
Slide 25: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures The table below reconciles net loss to EBITDA and Adjusted EBITDA for the quarters ended March 31, 2025 and December 31, 2024. For the Three Months Ended March 31, 2025 December 31, 2024 Revenue, net $ 70,997 $ 74,353 Net loss (12,269 ) (30,163 ) Net lo
Slide 26: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures The table below reconciles Net cash provided by operating activities to Free Cash Flow for the quarters ended March 31, 2025 and December 31, 2024. For the Three Months Ended March 31, 2025 December 31, 2024 Net cash provided by operating activities $ 8