TSND has done very well in the last year up nearly 60%. The company is not forecasted to be profitable in the next two years, but revenues are expected to grow nicely. Revenues saw solid growth and margins improved positively in 2023. Cash from operations has also been a small positive over the last three quarters. The balance sheet is quite levered however with a net debt position at $235.8M and debt-to-equity at 0.92x. We think the sector needs to consolidate still as there is no clear top player yet and many companies are still small and not profitable. Additionally, policy and regulations are a huge factor impacting the sector and although it appears regulatory changes are on the horizon in the US, but when this will occur is difficult to predict.
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