TerrAscend Corp. (TSX:TSND) (OTCQX:TSNDF), reported its financial results for the third quarter that ended September 30, 2023.

Jason Wild, executive chairman of TerrAscend, stated: "We are pleased to deliver yet another record quarter, exceeding our internal forecasts across virtually all of our financial metrics. This is our 8th consecutive quarter of sequential Net Revenue growth and 5th consecutive quarter of positive Cash Flow from Continuing Operations."

See Also: EXCLUSIVE: Why TerrAscend's Success Doesn't Rely On Federal Cannabis Reform

Third Quarter 2023 Financial Highlights

• Net Revenue was $89.2 million, compared to $72.1 million in Q2 2023 and $66.2 million in Q3 2022, representing an increase of 23.7% sequentially and 34.7% year-over-year.
• Gross Profit Margin was 53.6%, compared to 50.2% in Q2 2023 and 47.0% in Q3 2022.
• GAAP Net loss from continuing operations was $8.4 million, compared to $12.9 million in Q2 2023 and $300.6 million in Q3 2022.
• EBITDA from continuing operations was $20.7 million, compared to $6.5 million in Q2 2023 and ($317.9) million in Q3 2022.
• Adjusted EBITDA from continuing operations was $24.2 million, an increase of 89% sequentially, compared to $12.8 million in Q2 2023 and $12.8 million in Q3 2022. Adjusted EBITDA Margin from continuing operations was 27.1%, compared to 17.8% in Q2 2023 and 19.3% in Q3 2022.

In Q3 2023, net cash from operating activities for continuing operations reached $9.4 million, contrasting with $1.8 million in Q2 2023 and $2.3 million in Q3 2022.

Similarly, free cash flow from continuing operations amounted to $7.7 million in Q3 2023, compared to ($0.2) million in Q2 2023 and ($9.5) million in Q3 2022.

"Sequentially, revenue grew at an industry-leading rate of 23.7%, gross margin expanded 340-basis points to 53.6% and Adjusted EBITDA from continuing operations grew 89%," said Wild. "Our free cash flow generation was driven by the conversion to adult use in Maryland, increased market share in New Jersey, margin expansion in Michigan, and a return to retail and wholesale growth in Pennsylvania. This momentum gives us visibility and confidence to raise our full-year revenue and Adjusted EBITDA from continuing operations guidance to $320 million and $73 million, respectively."

TSNDF Price Action

TerrAscend's shares were trading down at 1.53% at $1.61 per share post-market closing on Thursday.

Read Next: This Psychedelics Co. May IPO With '$100M In Revenue,' Changing Mental Health Forever, Says VC Investor

Image by El Planteo