Andrew Semple's questions to TerrAscend (TSNDF) leadership • Q1 2025
Question
Andrew Semple of Echelon Wealth Partners asked about the sustainability of the strong Q1 gross margin profile for the remainder of the year and questioned how the company balances capital allocation between share repurchases and M&A opportunities.
Answer
Executive Keith Stauffer addressed both questions, stating that while Q1's 51.8% margin may not be sustainable every quarter, the company expects to remain in the 50% range, driven by strong performance in Maryland. On capital allocation, Stauffer explained the need to balance CapEx, M&A, and share buybacks. Executive Jason Wild added that the stock is significantly undervalued, and the company intends to actively execute its buyback program.