Cronos Group (CRON) investor relations material

Executive summary

• Achieved record Q1 2026 net revenue of $45.2M (CAD 45.2M), up 40% year-over-year, driven by strong cannabis flower and extract sales in Canada and international markets, especially Israel and Germany.

• Gross profit rose 39% to $19.2M, with gross margin at 42%, reflecting a favorable sales mix and higher average prices.

• Net income more than doubled to $15.7M from $7.7M in Q1 2025, primarily due to higher gross profit and other income.

• Canadian brands, led by Spinach, posted significant market share gains, including number one in vapes and edibles.

• Announced the pending acquisition of CanAdelaar, the largest operator in the Netherlands' legal adult-use cannabis market, with closing extended to September 2026.

Financial highlights

• Net revenue: $45.2M (+40% YoY); gross profit: $19.2M (+39% YoY); gross margin: 42%.

• Adjusted EBITDA was $5.1M, up $2.8M year-over-year, marking the second-highest in company history.

• Operating expenses increased 18% year-over-year to $21.0M, mainly due to higher G&A, sales, marketing, and R&D.

• Net income: $15.7M (+103% YoY); EPS: $0.04 (basic and diluted).

• Cash and cash equivalents stood at $822M as of March 31, 2026.

Outlook and guidance

• Entering the remainder of 2026 with strong momentum, financial flexibility, and an efficient production platform.

• Expect to close the CanAdelaar acquisition in summer 2026, expanding the European footprint; closing extended to September 2026.

• Anticipate continued efficiency gains and incremental yield improvements from the GrowCo expansion.

• Management expects continued sustainable net revenue and Adjusted EBITDA growth, supported by international momentum.

• Focus on supply chain optimization and cost reduction to mitigate inflationary pressures.