Cronos Group Reports 2025 Fourth Quarter and Full-Year Results
Net revenue in Q4 2025 increased by 47% year-over-year to $44.5 million; Net revenue in FY 2025 increased by 25% year-over-year to $146.6 millionAchieved record net revenue in Q4 2025 and FY 2025Eighth consecutive quarter of record net revenue in Israel, where PEACE NATURALS® continues to be the number one cannabis brand1Industry leading balance sheet with $832 million in cash and cash equivalents and short-term investments TORONTO, Feb. 26, 2026 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos” or the "Company”), today announced its 2025 fourth quarter and full-year business results."Cronos delivered record net revenue, gross profit and Adjusted EBITDA in 2025, reflecting the continued strength of our core business and the progress we are making towards our strategic priorities. We achieved record net revenue for both the fourth quarter and the full year, driven by strong consumer demand for our leading brands, the completion of the expansion at Cronos GrowCo, and the increasing contribution from our international markets,” said Mike Gorenstein, Chairman, President and CEO of Cronos."Looking ahead, we are excited about the opportunities in front of us as we enter 2026,” continued Gorenstein. "Once completed, our pending acquisition of CanAdelaar will establish a strategic footprint in Europe and enable us to leverage our borderless product strategy in the Netherlands’ legal adult-use cannabis market. Outside the Netherlands, with the scale benefits expected from Cronos GrowCo’s expansion, continued growth in our proprietary products, and the strength of our international presence, we believe Cronos is well-positioned to deliver sustainable net revenue and Adjusted EBITDA growth and to create long-term shareholder value.”Consolidated Financial ResultsOn June 20, 2024 the Company made an additional investment (the "Cronos GrowCo Transaction”) in Cronos Growing Company Inc. ("Cronos GrowCo”) to fund the expansion of cultivation operations. Cronos also obtained majority control of the board of directors of Cronos GrowCo and began consolidating Cronos GrowCo's results from July 1, 2024. Prior to this date, the Company's investment in Cronos GrowCo consisted of an investment accounted for under the equity method and loans receivable from Cronos GrowCo.The tables below set forth our condensed consolidated results of continuing operations, expressed in thousands of United States ("U.S.”) dollars for the periods presented. Our condensed consolidated financial results for these periods are not necessarily indicative of the consolidated financial results that we will achieve in future periods.(in thousands of USD) Three Months Ended December 31, Change Year ended December 31, Change 2025 2024 $ % 2025 2024 $ %Cronos net revenue, excluding Cronos GrowCo net revenue(i) $41,231 $28,195 $13,036 46% $136,289 $111,241 $25,048 23%Cronos GrowCo net revenue(ii) 3,300 2,106 1,194 57% 10,298 6,374 3,924 62%Net Revenue $44,531 $30,301 $14,230 47% $146,587 $117,615 $28,972 25% Cost of sales 28,280 19,494 8,786 45% 83,174 91,710 (8,536) (9)%Inventory write-down 62 - 62 N/A 654 707 (53) (7)%Gross profit $16,189 $10,807 $5,382 50% $62,759 $25,198 $37,561 149%Gross margin(iii) 36% 36% N/A -pp 43% 21% N/A 22pp Inventory step-up recorded to cost of sales - (1,832) 1,832 N/A 517 5,284 (4,767) N/AAdjusted Gross Profit(iv) $16,189 $8,975 $7,214 80% $63,276 $30,482 $32,794 108%Adjusted Gross Margin(v) 36% 30% N/A 6pp 43% 26% N/A 1pp Net income (loss) $(491) $43,941 $(44,432) (101)% $(2,929) $40,022 $(42,951) N/M Adjusted EBITDA(iv) $456 $(7,203) $7,659 N/M $10,110 $(34,942) $45,052 N/M Other Data Cash and cash equivalents(vi) $791,794 $858,805 $(67,011) (8)% Short-term investments(vi) 40,000 - 40,000 N/M Capital expenditures(vii) 2,274 3,708 (1,434) (39) % 26,056 13,154 12,902 98%(i) Cronos net revenue, excluding Cronos GrowCo net revenue is net revenue less Cronos GrowCo net revenue and is after intercompany eliminations. (ii) Cronos GrowCo net revenue is Cronos GrowCo's net revenue after intercompany eliminations.(iii) Gross margin is defined as gross profit divided by net revenue.(iv) 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.(v) Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue. See "Non-GAAP Measures” for more information.(vi) Dollar amounts are as of the last day of the period indicated.(vii) 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.Fourth Quarter2025Net revenue of $44.5 million in Q4 2025 increased by $14.2 million from Q4 2024. The increase was primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, and higher cannabis flower and extract sales in the Canadian market.Gross profit of $16.2 million in Q4 2025 increased by $5.4 million from Q4 2024. The increase was primarily due to higher average sales prices driven primarily by a mix shift to Israel and other countries and higher sales volumes. Gross profit was positively impacted by $1.8 million in the fourth quarter of 2024 in connection with the finalization of the purchase accounting for the Cronos GrowCo Transaction. No such benefit was recognized in the fourth quarter of 2025.Adjusted Gross Profit of $16.2 million in Q4 2025 improved by $7.2 million from Q4 2024. The improvement was primarily driven by higher average sales prices driven primarily by a mix shift to Israel and other countries and higher sales volumes.Net loss of $0.5 million in Q4 2025, compared to net income of $43.9 million from Q4 2024. The change was primarily driven by foreign currency transaction losses in the current period compared with gains in the prior-year period, partially offset by higher gross profit.Adjusted EBITDA of $0.5 million in Q4 2025 improved by $7.7 million from Q4 2024. The improvement was primarily driven by higher Adjusted Gross Profit.Full-Year 2025Net revenue of $146.6 million in full-year 2025 increased by $29.0 million from full-year 2024. The increase was primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, the inclusion of a full year of Cronos GrowCo sales in the current period, and higher cannabis extract sales in the Canadian market, partially offset by a decrease in cannabis flower sales in the Canadian market due to supply constraints. Cronos GrowCo contributed $10.3 million of cannabis flower sales in the year ended December 31, 2025, an increase of $6.4 million from 2024.Gross profit of $62.8 million in full-year 2025 increased by $37.6 million from full-year 2024. The increase was primarily due to lower amounts of inventory step-up from the Cronos GrowCo Transaction recognized into cost of sales, the consolidation of Cronos GrowCo, higher average sales prices driven primarily by a mix shift to Israel and other countries, higher sales volumes, and production efficiencies. For 2025 and 2024, gross profit was reduced $0.5 million and $5.3 million, respectively, as a result of the impact of the inventory step-up from the Cronos GrowCo Transaction that was recorded into cost of sales.Adjusted Gross Profit of $63.3 million in full-year 2025 increased by $32.8 million from full-year 2024. The increase year-over-year was primarily due to the consolidation of Cronos GrowCo, higher average sales prices driven primarily by a mix shift to Israel and other countries, higher sales volumes, and production efficiencies.Net loss of $2.9 million in full-year 2025, compared to net income of $40.0 million from full-year 2024. The change was primarily driven by foreign currency transaction losses in the current period compared with gains in the prior-year period, partially offset by higher gross profit and lower operating expenses.Adjusted EBITDA of $10.1 million in full-year 2025 improved by $45.1 million from full-year 2024. The improvement was primarily driven by higher Adjusted Gross Profit and lower operating expenses due to a decline in general and administrative costs.Business UpdatesBrand and Product PortfolioSpinach®2Spinach® maintained its position as one of Canada’s leading cannabis brands throughout 2025, consistently ranking #2 overall despite flower supply constraints that limited growth. In Q4 2025, Spinach® remained the #4 flower brand in Canada, with market share expanding modestly to 5.1%.SOURZ by Spinach® edibles continued to lead the edibles category, holding the #1 national market position each quarter. Achieving market share of 21.7% for the fourth quarter and over 20% for the full year, the brand continued to innovate, highlighted by the launch of SOURZ by Spinach® Fully Blasted formulations and various multipack launches. In Q4 2025, four SOURZ by Spinach® gummies products ranked among the top 10 edibles nationally, including the top-selling edibles SKU in Canada, the Fully Blasted Blue Raspberry Watermelon 10 Pack.Throughout 2025, the Spinach
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