TerrAscend (TER) Q2 2026 earnings summary

Executive summary

• Net revenue reached $67.1 million in Q2 2026, up 2.4% sequentially and 3.3% year-over-year, driven by retail and wholesale strength in core Northeast markets.

• Gross profit margin improved to 54.0%, up from 52.8% in Q1 2026 and 51.1% in Q2 2025, with Adjusted EBITDA at $17.7 million (26.3% margin), up 11% year-over-year.

• Achieved 16 consecutive quarters of positive operating cash flow and 12 consecutive quarters of positive free cash flow.

• Strengthened balance sheet with $42.0 million in cash and an oversubscribed $21.8 million convertible debt financing, extending debt maturity to 2031.

• Regulatory momentum, including cannabis rescheduling and potential tax relief, is expected to further benefit profitability.

Financial highlights

• Net revenue: $67.1M (Q2 2026), $65.5M (Q1 2026), $65.0M (Q2 2025).

• Gross margin: 54.0% (Q2 2026), up from 52.8% in Q1 2026 and 51.1% in Q2 2025.

• Adjusted EBITDA: $17.7M (26.3% margin) in Q2 2026, up 11% year-over-year.

• GAAP net loss from continuing operations was $10.1 million, compared to $6.8 million in Q1 2026.

• Free cash flow was $5.7 million in Q2 2026, with a free cash flow yield of 9.9%.

Outlook and guidance

• Q3 2026 is expected to deliver year-over-year revenue growth of 2%-3% and continued strong gross margin performance.

• Confident in maintaining Pennsylvania gross margins between 52%-54% for the remainder of the year.

• Regulatory changes and enforcement in Ohio and potential federal rescheduling are anticipated to drive future growth.

• Preparing for uplisting to a major U.S. exchange, including a proposed share consolidation.

• Continued focus on retail expansion and strategic M&A in core and select new markets.