Cronos Group (CRON) investor relations material

Executive summary

• Q3 net revenue, gross profit and Adjusted EBITDA reached records; revenue increased 75% reported and 73% constant currency YoY.

• Records across Canada, Israel and Germany reflected stronger flower sales and product demand; CanAdelaar’s October acquisition expanded the Netherlands platform.

Financial highlights

• Q3 net revenue was $63.5M, up 75% reported and 73% constant currency; gross profit rose 76% to $32.3M, with gross margin of 50.9%, up 0.5 pp.

• Adjusted EBITDA increased 201% to $17.1M; higher gross profit more than offset higher operating expenses.

• Operating expenses were $23.3M, up $4.4M YoY; expense growth of 23% trailed revenue growth, and OPEX/revenue declined to 37% from 52%.

• Q3 net income was $17.8M versus $28.3M; net income attributable to shareholders was $13.8M, or $0.04 per share, versus $26.0M and $0.07.

• 9M revenue was $161.7M, up 58% reported; gross profit was $79.9M, up 72%, and Adjusted EBITDA was $35.2M, up 265%.

Outlook and guidance

• German growth is expected to continue, but export revenue can be lumpy; management recommends assessing performance over a trailing 12-month period.

• Gross margin can vary with seasonality, mix, production volumes and price compression; trailing 12-month results were cited as the most useful context.

• Further GrowCo expansion remains under review, with investment decisions focused on durable, efficient capacity rather than short-term demand gaps.

• Netherlands product launches will be paced to support retail execution and manufacturing standards; existing development work may enable relatively quick launches.

• Existing cash and short-term investments were expected to fund operations and capital expenditures for the next 12 months.