Net revenue in Q1 2026 increased by 40% year-over-year to
Achieved record net revenue and gross profit in Q1 2026
Reached #1 market share in vapes in
Ninth consecutive quarter of record net revenue in
Industry-leading balance sheet with
“Cronos delivered record net revenue and gross profit in the first quarter, as we continue to execute against our borderless products strategy and as additional supply from the expansion at Cronos GrowCo fuels our next phase of growth. Cronos Israel delivered another record quarter, further cementing PEACE NATURALS® as the #1 cannabis brand in the country. In other international markets, we achieved record quarterly net revenue, and we continue to see robust growth potential for our products in
“We are executing on a clear and focused growth strategy. We are benefitting from increased volume following Cronos GrowCo’s expansion and sustained growth in our proprietary products across categories, with significant momentum in international markets, positioning Cronos to deliver sustainable net revenue and Adjusted EBITDA growth. Our pending acquisition of CanAdelaar, the leading operator in the Netherlands’ legal market, is expected to establish a strategic footprint for Cronos in
Consolidated Financial Results
The tables below set forth our condensed consolidated results of operations, expressed in thousands of
| (in thousands of USD) | Three months ended | Change | ||||||||||||
| 2026 | 2025 | $ | % | |||||||||||
| Net revenue | $ | 45,210 | $ | 32,262 | $ | 12,948 | 40 | % | ||||||
| Cost of sales | 25,392 | 18,528 | 6,864 | 37 | % | |||||||||
| Inventory write-down | 665 | — | 665 | N/A | ||||||||||
| Gross profit | $ | 19,153 | $ | 13,734 | $ | 5,419 | 39 | % | ||||||
| Gross margin(i) | 42 | % | 43 | % | N/A | (1)pp | ||||||||
| Inventory step-up recorded to cost of sales | — | 517 | (517 | ) | N/A | |||||||||
| Adjusted Gross Profit(ii) | $ | 19,153 | $ | 14,251 | $ | 4,902 | 34 | % | ||||||
| Adjusted Gross Margin(iii) | 42 | % | 44 | % | N/A | (2)pp | ||||||||
| Net income | $ | 15,711 | $ | 7,723 | $ | 7,988 | 103 | % | ||||||
| Adjusted EBITDA(ii) | $ | 5,079 | $ | 2,289 | $ | 2,790 | 122 | % | ||||||
| Other Data | ||||||||||||||
| Cash and cash equivalents(iv) | $ | 821,856 | $ | 797,819 | $ | 24,037 | 3 | % | ||||||
| Short-term investments(iv) | — | 40,000 | (40,000 | ) | N/A | |||||||||
| Capital expenditures(v) | 1,971 | 15,356 | (13,385 | ) | (87 | )% | ||||||||
(i) Gross margin is defined as gross profit divided by net revenue.
(ii) See “Non-GAAP Measures” for more information, including a reconciliation of adjusted earnings (loss) before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) to net income (loss) and a reconciliation of Adjusted Gross Profit to gross profit.
(iii) Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue. See Non-GAAP Measures for more information.
(iv) Dollar amounts are as of the last day of the period indicated.
(v) Capital expenditures represent component information of investing activities and is defined as the sum of purchase of property, plant and equipment, and purchase of intangible assets.
First Quarter 2026
- Net revenue of
$45.2 million in Q1 2026 increased by$12.9 million from Q1 2025. The increase was primarily due to higher cannabis flower sales inIsrael and other countries, which carry no excise taxes, and higher cannabis extract and flower sales in the Canadian market. - Gross profit of
$19.2 million in Q1 2026 increased by$5.4 million from Q1 2025. The increase was primarily due to higher average sales prices, largely driven by a mix shift toIsrael and other countries, which carry no excise taxes, and higher sales volumes. For the three months endedMarch 31, 2025 , gross profit was reduced by$0.5 million as a result of the impact of the inventory step-up from the transaction (the “Cronos GrowCo Transaction”) by which we obtained majority control of the board of directors ofCronos Growing Company Inc. (“Cronos GrowCo”) that was recorded into cost of sales. No such costs were recognized for the three months endedMarch 31, 2026 . - Adjusted Gross Profit of
$19.2 million in Q1 2026 increased by$4.9 million from Q1 2025. The increase was primarily due to higher average sales prices, largely driven by a mix shift toIsrael and other countries, which carry no excise taxes, and higher sales volumes. - Net income of
$15.7 million in Q1 2026 increased by$8.0 million from Q1 2025. The increase was primarily due to higher gross profit and other income, partially offset by higher operating expenses. - Adjusted EBITDA of
$5.1 million in Q1 2026 improved by$2.8 million from Q1 2025. The improvement was primarily driven by higher gross profit, partially offset by higher operating expenses due to higher sales and marketing, general and administrative, and research and development (“R&D”) costs.
Business Updates
Renewed Share Repurchase Authorization
On
From
Brand and Product Portfolio
Spinach®3
The Spinach® brand delivered outstanding results in Q1 2026, reinforcing its standing among Canada’s favorite cannabis brands. The brand held 5.5% total market share nationally, maintaining its position as the #2 brand in
The Spinach® brand’s most significant achievement in Q1 2026 was reaching #1 in the vape category for the first time in the brand’s history, capturing 9.8% total vape market share across all formats in
In edibles, Spinach® retained its outstanding #1 position with a 20.8% share of the Canadian market, powered by the continued success of SOURZ by Spinach® gummies, which held 22.7% of the gummies segment. In Q1 2026, four SOURZ by Spinach® gummies products ranked among the top 10 edibles nationally, including the top-selling edibles SKU in
During Q1 2026, Cronos launched a series of new pre-roll products for the Canadian market, including limited edition Sour Chem and Space Cake 10 x 0.4g Spinach® STIX and Sour Chem and GMO Cookies 2 x 1g Spinach® pre-rolls, offering consumers distinctive and accessible ways to experience the brand’s most popular genetics.
PEACE NATURALS®4
Cronos Israel delivered another record quarter in Q1 2026, with the PEACE NATURALS® brand expanding its lead in the Israeli medical cannabis market, resulting in net revenue growth of 53% year-over-year. The sustained leadership of PEACE NATURALS® products reflects the strength of Cronos’ advanced genetic breeding program, and industry-leading cultivation capabilities.
Cronos continued to build on its international presence in Q1 2026, with net revenue in international markets outside
LIT™
In Q1 2026, Cronos further expanded sales of its value-focused medical brand LIT™ across
The
The
CanAdelaar Acquisition
On
On
The Company expects the acquisition to close in the summer of 2026.
Conference Call
The Company will host a conference call and live audio webcast on
About Cronos
Cronos is a global cannabis company focused on scaling leading consumer goods products through research and development and innovation. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos’ diverse international brand portfolio includes Spinach®, PEACE NATURALS®, LIT™ and
Forward-Looking Statements
This press release contains information that may constitute forward-looking information and forward-looking statements within the meaning of applicable
Forward-Looking Statements include, but are not limited to, statements with respect to:
- the ongoing impact of the public investigation into Canadian licensed producers of alleged dumping of medical cannabis imports from
Canada intoIsrael by the Trade Levies Commissioner of theIsrael Ministry of Economy and Industry (the “Anti-Dumping Investigation”) and the proposed anti-dumping duty to which the Company’s imports would be subject; - expectations related to the conflict involving
the United States ,Israel ,Hamas ,Hezbollah ,Houthis ,Iran , Iran’s proxies and other stakeholders in the region (the “Middle East Conflict”) and its impact on our operations inIsrael , the supply of product in the market and the demand for product by medical patients inIsrael , as well as any regional or global escalations and their impact to global commerce and stability; - expectations related to markets outside of
Canada andIsrael , and our ability to successfully distribute the PEACE NATURALS® brand in those markets; - expectations related to the impact of our decision to exit our
U.S. hemp-derived cannabinoid product operations and any future plans to re-enter the U.S. market; - the ongoing impact of our announced realignment (inclusive of any revisions thereto, the “Realignment”) and any progress, challenges and effects related thereto as well as changes in strategy, metrics, investments, reporting structure, costs, operating expenses, employee turnover and other changes with respect thereto;
- our expectations as to the use and expansion of our facility in
Stayner, Ontario (the “Peace Naturals Campus”); - our ability to acquire raw materials from suppliers, including Cronos GrowCo, and the costs and timing associated therewith;
- expectations regarding the potential success of, and the costs and benefits associated with, our joint ventures, strategic alliances and equity investments;
- expectations related to the expansion of Cronos GrowCo’s purpose-built cultivation and processing facilities and any additional supply or growth opportunities (including in the wholesale market) provided thereby;
- expectations related to the transaction by which we, as lender, obtained junior secured convertible debt (the “High Tide Loan”) from High Tide Inc. (“High Tide”), as borrower, and a warrant (the “High Tide Warrant”) to purchase common shares of High Tide, the performance of the High Tide Loan and the High Tide Warrant, and High Tide’s ability to repay the High Tide Loan;
- expectations related to our agreement to acquire CanAdelaar, including the timing and completion of the transaction, and the anticipated costs, benefits and integration matters associated therewith and the performance of the business from and following closing;
- expectations related to the impact of the renewed share repurchase program that was authorized on
May 8, 2026 , including the timing and amount of repurchases; - our ability or plans to identify, develop, commercialize or expand our technology and R&D initiatives in cannabinoids, or the success thereof;
- expectations regarding revenues, expenses, gross margins and capital expenditures;
- expectations regarding our future production and manufacturing strategy and operations, the costs and timing associated therewith and the receipt of applicable production and sale licenses;
- the ongoing impact of the legalization of additional cannabis product types and forms for adult-use in
Canada , including federal, provincial, territorial and municipal regulations pertaining thereto, the related timing and impact thereof and our intentions to participate in such markets; - the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of
Canada , the related timing and impact thereof and our intentions to participate in such markets, if, when and to the extent such use is legalized; - the grant, renewal, withdrawal, suspension, delay and impact of any license or supplemental license to conduct activities with cannabis or any amendments thereof;
- our ability to successfully create, launch and scale brands and cannabis products;
- expectations related to the differentiation of our products, including through the utilization of rare cannabinoids;
- the benefits, viability, safety, efficacy, dosing and social acceptance of cannabis, including CBD and other cannabinoids;
- laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of
U.S. state and federal law to cannabis andU.S. hemp (including CBD and otherU.S. hemp-derived cannabinoids) products and the scope of any regulations by theU.S. Department of Health and Human Services ,U.S. Food and Drug Administration , theU.S. Drug Enforcement Administration , theU.S. Federal Trade Commission , theU.S. Patent and Trademark Office and any state equivalent regulatory agencies over cannabis andU.S. hemp (including CBD and otherU.S. hemp-derived cannabinoids) products, including the final order issued by theU.S. Department of Justice (the “DOJ”) moving certain categories of marijuana products from Schedule I to Schedule III under theU.S. Controlled Substances Act and any future actions that may be taken or considered by the DOJ or other government agencies; - the anticipated benefits and impact of Altria Group, Inc.’s investment in the Company (the “Altria Investment”), pursuant to a subscription agreement dated
December 7, 2018 ; - expectations regarding the implementation and effectiveness of key personnel changes;
- expectations regarding business combinations and dispositions and the anticipated benefits therefrom;
- expectations of the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill;
- the impact of the ongoing military conflict between
Russia andUkraine (and resulting sanctions) on our business, financial condition and results of operations or cash flows; - our compliance with the terms of the settlement (the “Settlement Order”) with the
SEC and the settlement agreement with theOntario Securities Commission (the “OSC”); and - the impact of the loss of our ability to rely on private offering exemptions under Regulation A and Regulation D of the Securities Act of 1933, as amended, as a result of the Settlement Order.
Certain of the Forward-Looking Statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The Forward-Looking Statements contained herein are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including: (i) our ability to effectively navigate developments related to the Anti-Dumping Investigation and the proposed anti-dumping duty to which the Company’s imports would be subject and its impact on our operations in
By their nature, Forward-Looking Statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the Forward-Looking Statements in this press release and other reports we file with, or furnish to, the
Forward-Looking Statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these Forward-Looking Statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While we believe that the assumptions and expectations reflected in the Forward-Looking Statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-Looking Statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such Forward-Looking Statements. The Forward-Looking Statements contained in this press release and other reports we file with, or furnish to, the
As used in this press release, “CBD” means cannabidiol and “U.S. hemp” has the meaning given to the term “hemp” in the
Condensed Consolidated Balance Sheets (In thousands of | |||||||
| As of 2026 | As of 2025 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 821,856 | $ | 791,794 | |||
| Short-term investments | — | 40,000 | |||||
| Accounts receivable, net | 32,962 | 34,099 | |||||
| Interest receivable | 5,734 | 8,654 | |||||
| Other receivables | 13,546 | 14,445 | |||||
| Current portion of loans receivable, net | 128 | — | |||||
| Inventory, net | 48,676 | 46,750 | |||||
| Prepaids and other current assets | 4,974 | 8,344 | |||||
| Total current assets | 927,876 | 944,086 | |||||
| Other investments | 5,199 | 7,664 | |||||
| Non-current portion of loans receivable, net | 20,803 | 20,847 | |||||
| Property, plant and equipment, net | 142,102 | 145,865 | |||||
| Right-of-use assets | 1,303 | 1,422 | |||||
| 65,436 | 66,478 | ||||||
| Intangible assets, net | 8,549 | 8,890 | |||||
| Deferred tax assets | 841 | 1,888 | |||||
| Total assets | $ | 1,172,109 | $ | 1,197,140 | |||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 10,281 | $ | 11,640 | |||
| Income taxes payable | 1,369 | — | |||||
| Accrued liabilities | 30,601 | 36,210 | |||||
| Current portion of lease obligation | 169 | 337 | |||||
| Total current liabilities | 42,420 | 48,187 | |||||
| Non-current portion due to non-controlling interests | 749 | 733 | |||||
| Non-current portion of lease obligation | 1,142 | 1,172 | |||||
| Deferred tax liabilities | 3,984 | 4,089 | |||||
| Total liabilities | 48,295 | 54,181 | |||||
| Shareholders’ equity | |||||||
| Share capital and additional paid-in capital (no par value; authorized for issue as of | 647,040 | 662,983 | |||||
| Retained earnings | 460,540 | 447,756 | |||||
| Accumulated other comprehensive loss | (33,918 | ) | (16,842 | ) | |||
| Total equity attributable to shareholders of | 1,073,662 | 1,093,897 | |||||
| Non-controlling interests | 50,152 | 49,062 | |||||
| Total shareholders’ equity | 1,123,814 | 1,142,959 | |||||
| Total liabilities and shareholders’ equity | $ | 1,172,109 | $ | 1,197,140 | |||
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) | |||||||
| Three months ended | |||||||
| (In thousands of | 2026 | 2025 | |||||
| Net revenue, before excise taxes | $ | 58,965 | $ | 41,898 | |||
| Excise taxes | (13,755 | ) | (9,636 | ) | |||
| Net revenue | 45,210 | 32,262 | |||||
| Cost of sales | 25,392 | 18,528 | |||||
| Inventory write-down | 665 | — | |||||
| Gross profit | 19,153 | 13,734 | |||||
| Operating expenses | |||||||
| Sales and marketing | 5,615 | 4,565 | |||||
| Research and development | 1,413 | 793 | |||||
| General and administrative | 11,736 | 9,309 | |||||
| Restructuring costs | 484 | 555 | |||||
| Share-based compensation | 1,313 | 2,088 | |||||
| Depreciation and amortization | 425 | 496 | |||||
| Total operating expenses | 20,986 | 17,806 | |||||
| Operating loss | (1,833 | ) | (4,072 | ) | |||
| Other income (expense) | |||||||
| Interest income, net | 8,853 | 9,665 | |||||
| Gain (loss) on revaluation of financial instruments | (2,484 | ) | 49 | ||||
| Foreign currency gain | 13,699 | 1,583 | |||||
| Change in allowance for credit loss on non-operating loan | (106 | ) | — | ||||
| Other, net | 10 | 43 | |||||
| Total other income | 19,972 | 11,340 | |||||
| Income before income taxes | 18,139 | 7,268 | |||||
| Income tax provision (benefit) | 2,428 | (455 | ) | ||||
| Net income | 15,711 | 7,723 | |||||
| Net income attributable to non-controlling interest | 1,959 | 1,601 | |||||
| Net income attributable to | $ | 13,752 | $ | 6,122 | |||
| Comprehensive income (loss) | |||||||
| Net income | $ | 15,711 | $ | 7,723 | |||
| Other comprehensive loss | |||||||
| Foreign exchange loss on translation | (17,945 | ) | (3,082 | ) | |||
| Comprehensive income (loss) | (2,234 | ) | 4,641 | ||||
| Comprehensive income attributable to non-controlling interests | 1,090 | 1,443 | |||||
| Comprehensive income (loss) attributable to | $ | (3,324 | ) | $ | 3,198 | ||
| Net income per share | |||||||
| Basic net income per share attributable to | $ | 0.04 | $ | 0.02 | |||
| Diluted net income per share attributable to | $ | 0.04 | $ | 0.02 | |||
Condensed Consolidated Statements of Cash Flows (In thousands of | |||||||
| Three months ended | |||||||
| 2026 | 2025 | ||||||
| Operating activities | |||||||
| Net income | $ | 15,711 | $ | 7,723 | |||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||
| Share-based compensation | 1,313 | 2,088 | |||||
| Depreciation and amortization | 3,727 | 2,840 | |||||
| Loss from investments | 2,484 | 68 | |||||
| Changes in expected credit losses on long-term financial assets | 107 | 9 | |||||
| Inventory step-up recorded to cost of sales | — | 517 | |||||
| Foreign currency gain | (13,699 | ) | (1,583 | ) | |||
| Other non-cash operating activities, net | 979 | 779 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable, net | 879 | (3,409 | ) | ||||
| Interest receivable | 2,360 | 3,453 | |||||
| Other receivables | 724 | (2,379 | ) | ||||
| Prepaids and other current assets | 3,310 | (60 | ) | ||||
| Inventory, net | (2,039 | ) | (1,631 | ) | |||
| Accounts payable | (1,206 | ) | (1,637 | ) | |||
| Income taxes payable | 1,387 | 4 | |||||
| Accrued liabilities | (5,139 | ) | (8,878 | ) | |||
| Net cash provided by (used in) operating activities | 10,898 | (2,096 | ) | ||||
| Investing activities | |||||||
| Purchase of short-term investments | — | (40,000 | ) | ||||
| Proceeds from short-term investments | 40,000 | — | |||||
| Purchase of property, plant and equipment | (1,875 | ) | (15,258 | ) | |||
| Purchase of intangible assets | (96 | ) | (98 | ) | |||
| Net cash provided by (used in) investing activities | 38,029 | (55,356 | ) | ||||
| Financing activities | |||||||
| Repurchases of common stock | (16,730 | ) | — | ||||
| Withholding taxes paid on share-based awards | (1,538 | ) | (2,930 | ) | |||
| Net cash used in financing activities | (18,268 | ) | (2,930 | ) | |||
| Effect of foreign currency translation on cash and cash equivalents | (597 | ) | (604 | ) | |||
| Net change in cash and cash equivalents | 30,062 | (60,986 | ) | ||||
| Cash and cash equivalents, beginning of period | 791,794 | 858,805 | |||||
| Cash and cash equivalents, end of period | $ | 821,856 | $ | 797,819 | |||
| Supplemental cash flow information | |||||||
| Interest paid | $ | — | $ | — | |||
| Interest received | $ | 9,370 | $ | 13,052 | |||
| Income taxes paid | $ | 8 | $ | 50 | |||
Non-GAAP Measures
Cronos reports its financial results in accordance with Generally Accepted Accounting Principles in
Adjusted EBITDA
Management reviews Adjusted EBITDA, a non-GAAP measure, which excludes non-cash items and items that do not reflect management’s assessment of ongoing business performance. Management defines Adjusted EBITDA as net income (loss) before interest, tax expense (benefit), depreciation and amortization adjusted for: share of (income) loss from equity method investments; impairment loss on goodwill and intangible assets; impairment loss on long-lived assets; (gain) loss on revaluation of derivative liabilities; (gain) loss on revaluation of financial instruments; gain on revaluation of loan receivable; gain on revaluation of equity method investment; transaction costs related to strategic projects; loss on held-for-sale assets; impairment loss on other investments; foreign currency transaction (gain) loss; other, net; loss from discontinued operations; change in allowance for credit loss on non-operating loan; restructuring costs; inventory write-downs resulting from restructuring actions; share-based compensation; costs related to the
Management believes that Adjusted EBITDA provides useful insight into underlying business trends and results and facilitates comparison of period-over-period results. Management uses Adjusted EBITDA for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets.
Beginning in 2025, the Company modified the composition of Adjusted EBITDA to exclude the impact of the provision for expected credit losses recognized under ASC 326 solely with respect to the High Tide Loan (see Note 4 “Loans Receivable, net” to the condensed consolidated financial statements under Item 1 of our Quarterly Report for further information). Management determined that excluding this non-cash provision provides investors with additional insight into period-over-period operating performance by isolating credit-risk movements unrelated to the Company’s core operations.
Management believes that this change provides additional information regarding the Company’s ongoing operational results and enhances comparability with peers that do not routinely extend credit to third parties. This change does not affect the Company’s GAAP financial statements.
The following tables set forth a reconciliation of Net income as determined in accordance with
| Three months ended | |||
| Net income | $ | 15,711 | |
| Interest income, net | (8,853 | ) | |
| Income tax provision | 2,428 | ||
| Depreciation and amortization | 3,727 | ||
| EBITDA | 13,013 | ||
| Loss on revaluation of financial instruments(i) | 2,484 | ||
| Foreign currency transaction gain | (13,699 | ) | |
| Transaction costs(ii) | 959 | ||
| Other, net(iii) | (10 | ) | |
| Restructuring costs(iv) | 484 | ||
| Share-based compensation(v) | 1,313 | ||
| Restatement litigation costs(vi) | 411 | ||
| 18 | |||
| Change in allowance for credit loss on non-operating loan(viii) | 106 | ||
| Adjusted EBITDA | $ | 5,079 | |
| Three months ended | |||
| Net income | $ | 7,723 | |
| Interest income, net | (9,665 | ) | |
| Income tax benefit | (455 | ) | |
| Depreciation and amortization | 2,840 | ||
| EBITDA | 443 | ||
| Gain on revaluation of financial instruments(i) | (49 | ) | |
| Foreign currency transaction gain | (1,583 | ) | |
| Transaction costs(ii) | 40 | ||
| Other, net(iii) | (43 | ) | |
| Restructuring costs(iv) | 555 | ||
| Share-based compensation(v) | 2,088 | ||
| Restatement litigation costs(vi) | 47 | ||
| 274 | |||
| Inventory step-up recorded to cost of sales(ix) | 517 | ||
| Adjusted EBITDA | $ | 2,289 | |
(i) For the three months ended
(ii) For the three months ended
(iii) For the three months ended
(iv) For the three months ended
(v) For the three months ended
(vi) For the three months ended
(vii) For the three months ended
(viii) For the three months ended
(ix) For the three months ended
For the three months ended
Adjusted Gross Profit and Adjusted Gross Margin
To supplement the consolidated financial statements presented in accordance with
Management believes that Adjusted Gross Profit and Adjusted Gross Margin provide useful insight into underlying business trends to facilitate comparisons of period-over-period results by removing the impacts of inventory-related purchase accounting adjustments resulting from the Cronos GrowCo Transaction, which reflect a one-time event and do not reflect management’s assessment of ongoing business performance.
The following table sets forth a reconciliation of Gross profit and Gross margin, each as determined in accordance with
| (in thousands of USD) | Three months ended | Change | ||||||||||||
| 2026 | 2025 | $ | % | |||||||||||
| Net revenue | $ | 45,210 | $ | 32,262 | $ | 12,948 | 40 | % | ||||||
| Gross profit | $ | 19,153 | $ | 13,734 | $ | 5,419 | 39 | % | ||||||
| Inventory step-up recorded to cost of sales | — | 517 | (517 | ) | N/A | |||||||||
| Adjusted Gross Profit | $ | 19,153 | $ | 14,251 | $ | 4,902 | 34 | % | ||||||
| Gross margin(i) | 42 | % | 43 | % | N/A | (1)pp | ||||||||
| Adjusted Gross Margin(ii) | 42 | % | 44 | % | N/A | (2)pp | ||||||||
(i) Gross margin is defined as gross profit divided by net revenue.
(ii) Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue.
For the three months ended
Constant Currency
To supplement the consolidated financial statements presented in accordance with
The table below sets forth certain measures of consolidated results from continuing operations on a constant currency basis for the three months ended
| As Reported | As Adjusted for Constant Currency | ||||||||||||||||||||||||
| Three months ended | As Reported Change | Three months ended | Constant Currency Change | ||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | $ | % | |||||||||||||||||||
| Net revenue | $ | 45,210 | $ | 32,262 | $ | 12,948 | 40 | % | $ | 41,913 | $ | 9,651 | 30 | % | |||||||||||
| Gross profit | 19,153 | 13,734 | 5,419 | 39 | % | 17,588 | 3,854 | 28 | % | ||||||||||||||||
| Gross margin | 42 | % | 43 | % | N/A | (1)pp | 42 | % | N/A | (1)pp | |||||||||||||||
| Operating expenses | 20,986 | 17,806 | 3,180 | 18 | % | 20,005 | 2,199 | 12 | % | ||||||||||||||||
| Net income | 15,711 | 7,723 | 7,988 | 103 | % | 14,809 | 7,086 | 92 | % | ||||||||||||||||
| Adjusted EBITDA | $ | 5,079 | $ | 2,289 | $ | 2,790 | 122 | % | $ | 4,153 | $ | 1,864 | 81 | % | |||||||||||
| As of | As of | As Reported Change | As of | Constant Currency Change | |||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | $ | % | |||||||||||||||||||
| Cash and cash equivalents | $ | 821,856 | $ | 791,794 | $ | 30,062 | 4 | % | $ | 822,316 | $ | 30,522 | 4 | % | |||||||||||
| Short-term investments | — | 40,000 | (40,000 | ) | N/A | — | (40,000 | ) | N/A | ||||||||||||||||
| Total cash and cash equivalents and short-term investments | $ | 821,856 | $ | 831,794 | $ | (9,938 | ) | (1 | )% | $ | 822,316 | $ | (9,478 | ) | (1 | )% | |||||||||
Net revenue
| As Reported | As Adjusted for Constant Currency | |||||||||||||||||||||
| Three months ended | As Reported Change | Three months ended | Constant Currency Change | |||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | $ | % | ||||||||||||||||
| Cannabis flower | $ | 33,734 | $ | 23,344 | $ | 10,390 | 45 | % | $ | 30,972 | $ | 7,628 | 33 | % | ||||||||
| Cannabis extracts | 11,457 | 8,608 | 2,849 | 33 | % | 10,923 | 2,315 | 27 | % | |||||||||||||
| Other | 19 | 310 | (291 | ) | (94 | )% | 18 | (292 | ) | (94 | )% | |||||||||||
| Net revenue | $ | 45,210 | $ | 32,262 | $ | 12,948 | 40 | % | $ | 41,913 | $ | 9,651 | 30 | % | ||||||||
| As Reported | As Adjusted for Constant Currency | |||||||||||||||||||
| Three months ended | As Reported Change | Three months ended | Constant Currency Change | |||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | $ | % | ||||||||||||||
| $ | 25,351 | $ | 20,130 | $ | 5,221 | 26 | % | $ | 24,221 | $ | 4,091 | 20 | % | |||||||
| 14,151 | 9,229 | 4,922 | 53 | % | 12,240 | 3,011 | 33 | % | ||||||||||||
| Other countries | 5,708 | 2,903 | 2,805 | 97 | % | 5,452 | 2,549 | 88 | % | |||||||||||
| Net revenue | $ | 45,210 | $ | 32,262 | $ | 12,948 | 40 | % | $ | 41,913 | $ | 9,651 | 30 | % | ||||||
For the three months ended
Gross profit
For the three months ended
Operating expenses
For the three months ended
Net income
For the three months ended
Adjusted EBITDA
For the three months ended
Cash and cash equivalents & short-term investments
Cash and cash equivalents and short-term investments on a constant currency basis decreased 1% to
Foreign currency exchange rates
All currency amounts in this press release are stated in
The exchange rates used to translate from Canadian dollars (“C$”) to dollars are shown below:
| (Exchange rates are shown as C$ per $) | As of | ||||
2026 | 2025 | 2025 | |||
| Spot rate | 1.3916 | 1.4393 | 1.3698 | ||
| Year-to-date average rate | 1.3720 | 1.4356 | N/A | ||
The exchange rates used to translate from Israeli New Shekels (“ILS”) to dollars are shown below:
| (Exchange rates are shown as ILS per $) | As of | ||||
2026 | 2025 | 2025 | |||
| Spot rate | 3.1441 | 3.7191 | 3.1863 | ||
| Year-to-date average rate | 3.1240 | 3.6145 | N/A | ||
For further information, please contact:
Investor Relations
Tel: (416) 504-0004
investor.relations@thecronosgroup.com
1 Hifyre Retail Analytics - National Retail Dollar by Brand in
2 Market share and ranking information from pharmacy data collected by Cronos - Q1 2026.
3 Hifyre Retail Analytics - National Retail Dollar by Brand in
4 Market share and ranking information from pharmacy data collected by Cronos - Q1 2026.
5 Hifyre Retail Analytics - National Retail Dollar by Brand in
