Cronos Group Reports 2026 First Quarter Results
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos” or the “Company”), today announced its 2026 first quarter business results.
“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 Europe. In Canada, the Spinach® brand claimed the #1 position in vapes for the first time, while maintaining its outstanding #1 ranking in edibles,1 a testament to the strength of our brand portfolio and our innovation platform,” said Mike Gorenstein, Chairman, President and CEO of Cronos.
“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 Europe and enable us to leverage our borderless product strategy in a scaled adult-use market. Backed by an industry-leading balance sheet, we have the financial strength and flexibility to invest with discipline and deliver value to our shareholders.”
Consolidated Financial Results
The tables below set forth our condensed consolidated results of 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 March 31,
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 in Israel 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 to Israel and other countries, which carry no excise taxes, and higher sales volumes. For the three months ended March 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 of Cronos Growing Company Inc. (“Cronos GrowCo”) that was recorded into cost of sales. No such costs were recognized for the three months ended March 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 to Israel 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 May 8, 2026, the Board unanimously authorized a share repurchase program of up to $50 million, which is intended to succeed the Company’s existing share repurchase program upon its scheduled expiration on May 13, 2026. The share repurchase program is expected to commence on May 14, 2026 and terminate on May 13, 2027, unless earlier terminated. Repurchases under the program may be made from time to time, either through open market purchases at then-prevailing market prices through the facilities of the Nasdaq Global Market or other U.S. published markets, privately negotiated transactions or otherwise. Open market repurchases will be limited to 5% of the number of common shares outstanding as of the applicable measurement time, the maximum amount permitted by applicable securities laws. The timing and amount of repurchases are subject to market conditions, compliance with applicable laws and regulations and any other factors management of the Company may deem relevant. The program does not obligate Cronos to acquire any specific dollar amount or number of shares and may be modified, suspended, or discontinued at any time.
From May 14, 2025 through May 6, 2026, Cronos repurchased a total of 13,394,475 shares at a cost of approximately $33.5 million, inclusive of commissions and excise taxes.
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 Canada. In flower, the Spinach® brand rose to #3 with 5.0% market share, reflecting increased product availability following the Cronos GrowCo expansion and continued consumer demand for the brand’s core offerings.
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 Canada, a milestone that underscores the brand’s growing strength in one of Canada’s fastest-growing cannabis categories. In vape cartridges specifically, Spinach® reached 11.1% market share in the quarter, also ranking #1, and the three best-selling vape SKUs nationwide across all formats were Spinach® vape cartridges. Canadian distribution of Spinach® PUFFERZTM all-in-one vapes broadened in the quarter, with PUFFERZTM reaching the #2 market share position in all-in-one vapes in March 2026, just four months after launch.
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 Canada, the Fully Blasted Blue Raspberry Watermelon 10 Pack.
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 Israel growing 97% year-over-year, reaching record levels in the quarter. The Company’s global platform continues to be a key differentiator, enabling Cronos to leverage its genetics, cultivation expertise, and brand equity across multiple regulatory environments and patient populations.
LIT™
In Q1 2026, Cronos further expanded sales of its value-focused medical brand LIT™ across Israel and Europe, reflecting the Company’s strategy of building a tiered product portfolio, from premium to accessible price points, that serves the spectrum of medical cannabis patients.
Lord Jones®5
The Lord Jones® brand continued to serve the premium cannabis consumer in Q1 2026, with a focused presence across several key categories. The brand held a 9.1% market share in chocolate cannabis edibles, ranking #3 in Canada.
The Lord Jones® brand also made its entry into the Israeli medical cannabis market in Q1 2026, where its five premium flower strains were met with strong demand from patients. The brand’s expansion into Israel underscores Cronos’ commitment to thoughtful international growth driven by disciplined execution and differentiated brand experiences.
CanAdelaar Acquisition
On December 9, 2025, the Company entered into a definitive share sale and purchase agreement (the “SPA”) to acquire all of the issued and outstanding shares of CanAdelaar B.V. (“CanAdelaar”), one of ten licensed cannabis producers participating in the Dutch Controlled Cannabis Supply Chain Experiment.
On May 8, 2026, the Company entered into an amendment to the SPA pursuant to which the parties agreed to extend the Long Stop Date (as defined in the SPA) for closing of the acquisition from June 9, 2026 to September 9, 2026. The extension provides additional time to satisfy certain closing conditions, including obtaining required regulatory clearances in the Netherlands, receipt of confirmations relating to CanAdelaar’s licenses and completion of the Bibob review (a background check conducted by Dutch authorities). No other material changes were made to the terms of the transaction.
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 Monday, May 11, 2026, at 8:30 a.m. ET to discuss 2026 first quarter business results. An audio replay of the call will be archived on the Company’s website for replay. Instructions for the live audio webcast are provided on the Company’s website at https://ir.thecronosgroup.com/events-presentations.
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 Lord Jones®. For more information about Cronos and its brands, please visit: thecronosgroup.com.
Forward-Looking Statements
This press release contains information that may constitute forward-looking information and forward-looking statements within the meaning of applicable U.S. and Canadian securities laws and court decisions (collectively, “Forward-Looking Statements”), which are based upon our current internal expectations, estimates, projections, assumptions and beliefs. Information that is not clearly historical in nature may constitute Forward-Looking Statements. In some cases, Forward-Looking Statements can be identified by the use of forward-looking terminology, such as “expect,” “likely,” “may,” “will,” “should,” “intend,” “anticipate,” “potential,” “proposed,” “estimate,” “believe,” “plan” and other similar words, expressions and phrases, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussion of strategy. Forward-Looking Statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of historical fact.
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