TerrAscend Corp. reported a net loss of $72.7 million for the year ended December 31, 2024, compared to a net loss of $86.7 million in 2023. Revenue for 2024 was $306.7 million, a decrease of $10.6 million from the $317.3 million reported in 2023. The decrease in revenue was attributed to lower retail sales in Michigan and New Jersey, partially offset by growth in Maryland and wholesale revenue in New Jersey and Pennsylvania. The company's gross profit margin for 2024 was 48.9%, compared to 50.3% in 2023.
Significant changes in 2024 included a $11.9 million decrease in impairment of intangible assets, primarily due to declining revenue expectations in Michigan leading to the write-off of intangible assets associated with that market. The company also completed several acquisitions, including Herbiculture Inc. in Maryland for $7.7 million and the remaining equity interest in State Flower and three Apothecarium dispensaries in California for a total consideration of $3.7 million in cash and shares. Additionally, the company initiated a share repurchase program, authorizing the repurchase of up to 10 million common shares.
Operational developments during the year included the continued operation of 38 dispensaries across North America and seven cultivation and processing facilities. The company's product portfolio includes six premium brands across various product types. TerrAscend also produces and sells products under three premium licensed brands: Wana, Cookies, and Lemonnade. As of December 31, 2024, the company employed 1,163 people, 134 of whom were covered by a collective bargaining agreement.
The company's financial position showed a decrease in total shareholders' equity from $240.7 million at the end of 2023 to $176.8 million at the end of 2024. Total debt principal outstanding increased from $206.1 million in 2023 to $204.5 million in 2024. The company's liquidity improved significantly during the year, with management concluding that substantial doubt no longer exists regarding its ability to continue as a going concern, primarily due to a new term loan used to retire maturing debt.
Looking ahead, TerrAscend anticipates funding future capital requirements through cash flow from operations, equity and debt offerings, and potential asset sales. The company also highlighted several ongoing risks, including those related to U.S. federal cannabis laws, regulatory changes, competition, and the inherent uncertainties in the cannabis industry. The company's forward-looking statements include projections for business performance, revenue, expenses, and the need for additional financing.
About TerrAscend Corp.
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