TerrAscend Corp. (OTC: TSNDF) displayed significant growth in the third quarter, with expectations of maintaining this momentum into the fourth quarter. This growth is attributed primarily to the adult-use conversion in Maryland and increased efficiency, leading to an improvement in EBITDA margins. In a recent note, Needham analysts Matt McGinley and Chad Britnell broke down the earnings report.

Strong Financial Performance In 3Q

TerrAscend's revenue saw a notable increase, growing 24% quarter-over-quarter and 35% year-over-year, reaching $89.2 million. This surpasses the consensus estimate of $82.6 million.

Growth was driven by the acquisition and conversion of Maryland assets to adult use legalization, along with a rise in wholesale revenue in New Jersey and Pennsylvania. The gross margin improved to 53.3%, exceeding the consensus of 50%, propelled by sales leverage and efficiency gains.

Needham analysts applauded TerrAscend's strategic moves, emphasizing how the company's effective …

Full story available on Benzinga.com

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