TerrAscend’s earnings peek shows drop in revenue | How to order Skittles Moonrock online

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Last week, TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) was too excited to keep its earnings to itself and gave investors a peek last Friday at the company’s upcoming fourth-quarter financials. The company released some preliminary and unaudited financial results for its quarter ending December 31, 2024. The fourth quarter and full year 2024 earnings conference call is scheduled for March 6, 2025.

TerrAscend said it anticipates it will report net revenue of $74.4 million, up 0.3% from $74.2 million in the third quarter of 2024. This would beat the Yahoo Finance average analyst estimate for revenues of $72 million.

The company said it expects a gross profit margin of 50.2%, up 140 basis points from 48.8% in the third quarter of 2024. The general and administrative expenses decreased quarter-over-quarter and the company says it generated positive cashflow from operations in the quarter.

Revenues fall

However, last year TerrAscend reported fourth-quarter revenue of $86.6 million up 25.5% from the same period a year ago. So while the revenue may be up sequentially in 2024, it looks to be lower than the fourth quarter of 2023. Plus TerrAscend reported that its 12-month revenue for 2023 was $317 million. The nine-month revenue for 2024 was $232,324,000 putting 2024’s 12-month revenue at an estimated $306,724,000 which would be a drop from 2023.

“Despite a challenging environment, the business performed ahead of our expectations during the fourth quarter of 2024, delivering positive sequential revenue growth with an expansion of gross margin to 50.2% and a reduction in operating expenses.   With our recent refinancing completed, which extended the vast majority of our debt maturities to late 2028, the team was able to fully focus on operational improvements in the fourth quarter. We are excited about a possible adult-use bill passing in Pennsylvania, which will enable us to fully utilize our large scale 150k square foot cultivation and manufacturing facility in the state. We look forward to the Governor’s budget address next week where we believe he will outline his strongest case yet for a state recreational program. The fourth quarter results give us confidence in 2025 as we focus on driving operational efficiencies and growth in our core business while judiciously pursuing multiple greenfield expansion opportunities at increasingly attractive prices,” stated Jason Wild, Executive Chairman of TerrAscend.

TerrAscend was asked to comment on the revenue figures but did not respond.