TerrAscend Rides Legal Weed Wave Despite Q4 Dip As New Markets Offset Revenue Slide
Portfolio Pulse from Maureen Meehan
TerrAscend Corp. (OTCQX:TSNDF) reported a 28% year-over-year revenue increase for 2023, totaling $317.3 million, driven by sales in Maryland and New Jersey. Q4 revenue rose 25.5% to $86.6 million. Despite a Q4 GAAP net loss of $41.8 million due to non-cash impairment charges, the company achieved positive cash flow for the first time in its history, with $31.1 million from continuing operations and $23.4 million in free cash flow. The company's gross profit margin improved significantly, reaching 50.3% for the year. TerrAscend aims for expansion in 2024, leveraging its strong operational foundation.
March 15, 2024 | 2:13 am
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POSITIVE IMPACT
TerrAscend Corp. reported a significant year-over-year revenue growth and achieved positive cash flow for the first time, despite a Q4 net loss due to impairment charges.
The positive revenue growth and achievement of positive cash flow for the first time in TerrAscend's history are strong indicators of the company's improving financial health and operational efficiency. Despite the Q4 net loss, which was largely due to non-cash impairment charges, the overall positive financial performance and strategic focus on expansion in 2024 are likely to be viewed favorably by investors. The company's improved gross profit margin and successful revenue gains in key markets like Maryland and New Jersey further underscore its growth potential.
CONFIDENCE 90
IMPORTANCE 90
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