Financial reports for the fourth quarter and full year 2022 are already being disclosed by many of the companies in the cannabis industry. TerrAscend has been one of the latest firms to release these numbers, delighting a number of stakeholders with record net income.
The leading North American marijuana operator late last week reported its financial results for the fourth quarter and full year ended December 31, 2022. It is important to note that the financial measures are presented as results from continuing operations due to the closure of the licensed producer business in Canada, which is presented as discontinued operations for the full year 2022.
The positive news reported record fourth quarter 2022 net income of $69 million, up 50.3% year-over-year and 4.2% quarter-over-quarter. The gross profit margin was 44.6%, up from 47.0% in Q3 2022 and 49.1% in Q4 2021.
Adjusted EBITDA from continuing operations1 totaled $12.2 million, compared to $13 million in the third quarter of 2022 and $13.2 million in the fourth quarter two years ago. FY2022 highlights indicated that net income totaled $247.8 million, a year-over-year increase of 27.6%.
“I am pleased that despite a challenging environment throughout most of 2022, we delivered record annual revenue of $248 million, an increase of 28% year-over-year. Revenue grew sequentially every quarter throughout the year, culminating in a record fourth quarter of $69 million, an increase of 50% year-over-year,” commented Jason Wild, Executive Chairman of TerrAscend. “Perhaps most noteworthy was that, in addition to an $80 million reduction in debt during the quarter, Q4 2022 also marked our second consecutive quarter of generating positive cashflow from operations. Looking ahead, we expect the distress in the industry to lead to opportunities for us to pivot our deep, not wide strategy to a deep and wide strategy, on our terms.”