The company expects 2023 net revenue of at least $317 million.
TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) continues to crush it as the company is one of the few cannabis operators raising its revenue guidance. During its investor day at the Toronto Stock Exchange, TerrAscend updated its expectations for the year. The company’s stock jumped by 4% on the news and was lately selling at $1.91.
TerrAscend raised its 2023 guidance for net revenue and adjusted EBITDA from continuing operations to at least $317 million and $63 million, respectively, representing year-over-year growth of 28% in net revenue and 62% in adjusted EBITDA from continuing operations. The company’s previous guidance was at least $305 million and $58 million, respectively.
“We have good visibility and confidence in the remainder of the year as evidenced by the increase in our full-year guidance,” stated Jason Wild, executive chairman. “We expect to drive industry-leading revenue growth, continued improvement across all P&L metrics, and positive free cash flow in the second half of the year.”
In addition to the revenue adjustments, the company expects gross margin to exceed 50% and free cash flow from continuing operations to be positive for the second half of the year.
State Updates
Earlier this week, PA Homepage reported that Chantelle Elsner, the acting president of Terrascend Northeast, spoke about the medical Pennsylvania market.
“So as we see the medical market over this 2023 time frame, we expect it to exceed $1 billion in the Pennsylvania market for 2023,” Elsner said. “We expect about a 40% lift when hopefully the state converts to adult use.”
TerrAscend noted in its investor presentation that it has become the No. 2 operator in New Jersey and has the opportunity to add seven additional retail doors under The Apothecarium banner, which will drive additional scale and profitability to its retail operations in the state.
The company hit its cap of four stores in Maryland, but said that wholesale demand is growing.
In Michigan, the company said it is on track for a positive EBITDA by the end of 2023. It is evaluating multiple opportunities to expand its retail footprint due to Michigan’s unlimited license structure.
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