💸 The Tape

In a cannabis year defined by price compression, tenant drama, and regulatory limbo, TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) quietly delivered the kind of consistent, cash-positive performance that separates operators from opportunists.

The leading North American multi-state company released its fourth-quarter and full-year 2025 results on March 12, 2026, showing net revenue of $260.6 million for the year and $66.1 million in Q4 — essentially flat sequentially and down just 2.8% year-over-year. Gross profit margin from continuing operations held rock-solid at 52.3% for the full year (52.1% in Q4), while adjusted EBITDA reached $67.8 million (26.0% margin). Most impressively, the company generated positive cash flow from continuing operations for the 14th consecutive quarter and positive free cash flow for the 10th straight quarter, ending the year with $33.9 million in operating cash flow and $25.3 million in free cash flow.

Executive Chairman Jason Wild put the results in context: “I am pleased to report another period of strong performance in our core Northeast markets of New Jersey, Maryland, and Pennsylvania. For the full year, we generated approximately $261 million in revenue, $68 million in Adjusted EBITDA, $34 million in positive operating cash flow and $25 million in free cash flow from continuing operations. Importantly, for the fourth quarter and full year periods our gross margin from continuing operations was above 52% and our Adjusted EBITDA margin from continuing operations was above 25%.”

The numbers tell a story of disciplined execution rather than explosive growth. GAAP net loss from continuing operations narrowed to $24.5 million for the year, while Q4 showed a near-breakeven $0.5 million loss — a sharp improvement from prior quarters. The company’s focus on core markets, brand strength, and operational efficiency clearly paid dividends in an environment where many peers struggled to maintain margins.

Geographically, TerrAscend’s Northeast stronghold continued to deliver. In New Jersey, the company expanded its retail footprint to four dispensaries with the closing of the Union Chill transaction in Hunterdon County. All three Apothecarium stores ranked in the top 20 statewide out of more than 260 locations. Maryland operations reached an annualized run rate of approximately $75 million with gross margins approaching 60%, while two Apothecarium stores (Salisbury and Cumberland) cracked the state’s top 10. In Pennsylvania, three Apothecarium locations ranked in the top 10, with Valhalla and Kind Tree posting strong category rankings in edibles and extracts.

Ohio integration of the Ratio Cannabis acquisition progressed smoothly, and the company continues evaluating high-quality store opportunities at attractive prices. Meanwhile, the strategic exit from Michigan advanced materially: the majority of assets (dispensaries and cultivation/processing facilities) have now been sold, with proceeds used to reduce debt and sharpen focus on higher-return markets.

Wild highlighted the portfolio’s resilience: “In New Jersey, we expanded our retail footprint… In Maryland, we are operating at approximately a $75 million annual run rate with gross margins near 60%. In Pennsylvania, retail and wholesale revenue increased sequentially in the fourth quarter. In Ohio, we have fully integrated Ratio Cannabis into our operations… Lastly, we have significantly advanced our strategic exit from the Michigan market with the sale of the majority of the assets completed to date.”

Financial flexibility remains a standout strength. The company closed an upsized $79 million non-dilutive refinancing during the year, adding an uncommitted $35 million term loan facility for future M&A. Debt maturities now stretch comfortably into late 2028, and the balance sheet carries no near-term pressure. Capital expenditures were tightly controlled, and the normal course issuer bid was renewed for up to $10 million in share repurchases through August 2026.

Operationally, brand momentum and licensing deals added tailwinds. TerrAscend entered an exclusive licensing agreement with Tyson 2.0 for Maryland and Pennsylvania, with product launches expected this month. The company also maintained top-tier market share positions across multiple categories and states, underscoring the strength of its Apothecarium, Kind Tree, and Valhalla brands.

Looking ahead, Wild struck a measured yet optimistic tone: “We remain disciplined in our M&A strategy — focusing solely on accretive transactions that align with our strategic goals. With a strong balance sheet, no material debt maturities until late 2028, consistent free cash flow generation, and regulatory momentum at both the state and federal levels, we believe TerrAscend is well equipped to deliver sustainable growth and drive shareholder value in 2026 and beyond.”

Federal catalysts loom large. President Trump’s executive order directing expedited rescheduling from Schedule I to III could unlock banking access, 280E tax relief, and research expansion — developments that would disproportionately benefit scaled, cash-flow-positive operators like TerrAscend. The company’s footprint in New Jersey, Maryland, Pennsylvania, and Ohio positions it to capture upside across multiple reform pathways, while the Michigan exit has already streamlined the portfolio and strengthened the balance sheet.

For investors, 2025 was less about headline revenue growth and more about proving the model works under pressure. Gross margins above 52%, consistent positive free cash flow, and a fortress-like balance sheet demonstrate that TerrAscend has built something durable in a sector that still rewards survival skills as much as vision.

The company enters 2026 with 14 consecutive quarters of positive operating cash flow, a clean debt structure, top-tier brand rankings, and multiple state-level growth levers. Whether rescheduling arrives this year or next, TerrAscend’s disciplined approach — focused M&A, operational efficiency, and brand investment — has it positioned to thrive when the next wave of federal reform finally breaks.

In cannabis, consistency has become the new competitive advantage. TerrAscend’s 2025 results and 2026 setup suggest the company isn’t just surviving the consolidation phase — it’s quietly building the foundation to lead the next one.

📈 Dog Walkers

$AAWH ( ▼ 0.93% ) Surprises

Ascend Wellness Holdings, Inc. (CSE: AAWH-U.CN) (OTCQX: AAWH) wrapped 2025 with a performance that proved resilience still matters in cannabis. The multi-state operator delivered $500.6 million in full-year revenue and $116.9 million in adjusted EBITDA (23.4% margin), while executing a clear densification strategy that expanded its retail footprint to 48 locations.

Fourth-quarter revenue came in at $120.5 million (down 3.4% sequentially), with retail sales rising 1.4% to $85.0 million on new store ramps and higher-margin finished goods. Wholesale dipped 13.1% to $35.5 million as the company continued shifting biomass toward in-house retail production. Adjusted EBITDA held at $30.2 million (25.1% margin), a 20-basis-point sequential improvement despite pricing pressure.

CEO Sam Brill framed the year as foundational: “2025 was a pivotal year for our business, marked by strong progress across our strategic pillars of densification, profitability, and sustainability. Our retail footprint expanded with eight new locations… We exceeded our $30 million annualized cost savings target and strengthened our capital structure through a strategic refinancing that extends our debt obligations to 2029.”

The brand engine accelerated. Ascend launched a record 566 SKUs in 2025, including new category leaders High Wired infused flower and Honor Roll pre-rolls. High Wired quickly ranked among the top performers in New Jersey and across core markets. Following year-end, the company unveiled a full-scale evolution of flagship brand Ozone — new visual identity, elevated product standards, innovative packaging, and the debut of full-spectrum gummies. The relaunch is already underway in Illinois, Massachusetts, and New Jersey.

E-commerce and loyalty also advanced. Ascend Pay transactions jumped 49.4% sequentially, while the Ascenders Club loyalty program grew 56% in membership. Loyalty members drove 88% of retail transactions.

Balance-sheet moves strengthened flexibility. Ascend fully repaid its $60 million term loan via a $50 million senior secured notes placement and cash on hand, while securing $9.3 million in Ohio mortgage financing at 8.5%. The company completed its normal course issuer bid, repurchasing and retiring approximately 15.8 million shares.

CFO Roman Nemchenko noted: “We entered 2026 with a robust balance sheet, a strong cash balance of $85.7 million, and a clear strategy to scale thoughtfully.”

Looking forward, the pipeline includes 12 new locations (targeting 60 total) and continued CPG innovation. Despite near-term pricing headwinds, Ascend expects Q1 2026 revenue to decline modestly while adjusted EBITDA margin holds in the low-20% range.

In a consolidating industry, Ascend’s blend of retail expansion, brand strength, and capital discipline positions it to emerge stronger when the next growth cycle arrives. The numbers may not scream headline growth, but the foundation is clearly being built for the long game.

$LEEEF ( ▼ 2.75% ) Looks To Expand

LEEF Brands, Inc. (CSE: LEEF) (OTCQB: LEEEF) just secured the fuel it needs to turn its flagship California cultivation asset into a low-cost concentrate machine.

The rapidly growing multi-state operator announced today an initial US$4.5 million closing of an up to US$8 million financing led by Mindset Capital and its founder Aaron Edelheit. The deal consists of two concurrent non-brokered private placements: units at CAD $0.25 (one common share plus a warrant exercisable at $0.30 for two years) and preferred shares carrying a 15% annual dividend (10% cash, 5% paid-in-kind) convertible at $0.38.

Proceeds will primarily accelerate the expansion of Salisbury Canyon Ranch, LEEF’s 180-acre permitted cultivation site in California. Once complete in fall 2026, the project is expected to rank among the state’s largest licensed cannabis farms, delivering consistent, high-quality, low-cost biomass for the company’s concentrate production. Construction is slated to begin this spring.

“Our research has led us to believe there is a shortage of low-cost, high-quality cannabis concentrates that are free of pesticides and heavy metals,” said Aaron Edelheit. “We believe that by fully developing Salisbury Canyon Ranch, LEEF can become one of the low-cost producers of high-quality cannabis inputs.”

CEO Micah Anderson echoed the optimism: “This investment is a major step forward, enabling us to expand Salisbury Canyon Ranch to its full 180-acre permit size. Completing this flagship asset in 2026 will provide a consistent supply of our own low-cost, clean biomass for extraction.”

In tandem with the financing, LEEF appointed Jamie Mendola to its Board of Directors. Mendola brings deep cannabis experience as founder and CEO of Pacific Grove Advisors, former Chief Revenue and Business Development Officer at AYR Wellness, and co-founder of a cannabis-focused SPAC.

“I’m excited to join the LEEF Board and partner with a team that has built a genuinely differentiated business,” said Mendola. “LEEF’s low-cost cultivation model at Salisbury Canyon Ranch… produces high-quality oils and extracts that meet strict testing standards, fueling many of the industry’s leading brands.”

With this fresh capital and strengthened governance, LEEF is positioning itself to capture margin upside in a consolidating market. The timing aligns with federal reform momentum, potentially unlocking even greater value for a vertically integrated operator focused on clean, scalable concentrate supply.

🗞️ The News

📺 YouTube

Cannabis Earnings Season: The Biggest Takeaways So Far | TTB Powered by Flowhub

What we will cover:

✅ On the latest Trade To Black podcast powered by Flowhub, hosts Shadd Dales and Anthony Varrell continue their coverage of cannabis earnings season with a closer look at some of the biggest results shaping the sector.

In the first segment, George Archos, CEO of Verano Holdings (CBOE: VRNO | OTCQX: VRNOF), joins the show to break down the company’s latest earnings. Verano reported $821.5 million in 2025 revenue, while maintaining gross margins near 50% and adjusted EBITDA around 28% despite continued price compression across the cannabis industry.

In the second segment, Adam Stettner, CEO of FundCanna, joins the podcast to discuss the biggest takeaways from this latest earnings season and what they mean for the cannabis industry moving forward.

The conversation also touches on broader trends seen from recent reports by Green Thumb Industries (CSE: GTII | OTCQX: GTBIF), Trulieve Cannabis (CSE: TRUL | OTCQX: TCNNF), Curaleaf Holdings (TSX: CURA | OTCQX: CURLF) and others, including margin discipline, capital preservation, efficiency, and the growing importance of scale, cash flow, and balance sheet strength in today’s market.