(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 001-38403 __________________________ CRONOS GROUP INC. (Exact name of registrant as specified in its charter) _______________________ ...

PEACE NATURALS retained its position as the number one cannabis brand in Israel ® 1 Industry-leading balance sheet with $838 million in total cash and cash equivalents and short-term investments TORONTO, May 8, 2025 - Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos" or the "Company"), today announced its 2025 first quarter business results. "2025 is shaping up to be a transformative year for Cronos as we execute our strategic priorities to drive revenue growth, expand margins, and maintain disciplined ...

Core Insights - Cronos Group Inc. reported a 28% year-over-year increase in net revenue for Q1 2025, reaching $32.3 million, with a 33% increase on a constant currency basis [1][11] - The company maintains a strong balance sheet with $838 million in total cash and cash equivalents and short-term investments [1] - PEACE NATURALS remains the leading cannabis brand in Israel, achieving record net revenue and market share [3][19] Financial Performance - Net revenue for Q1 2025 was $32,262 thousand, up from $25,288 thousand in Q1 2024, marking a $6,974 thousand increase [6][11] - Gross profit increased to $13,734 thousand in Q1 2025, a rise of $9,251 thousand from Q1 2024, resulting in a gross margin of 43% compared to 18% in the previous year [6][8] - Net income for Q1 2025 was $7,723 thousand, a significant improvement of $10,207 thousand from a loss of $2,484 thousand in Q1 2024 [8][11] Market Position and Brand Performance - The Spinach brand ranked as the second most popular brand in Canada with a 4.6% market share and third in the flower category with a 5.1% market share [13] - SOURZ by Spinach captured a 20% market share in the gummy category, making it the best-selling gummy brand in Canada [14] - Lord Jones Chocolate Fusions™ achieved a 9.6% market share, ranking as the third best-selling chocolate cannabis edible brand in Canada [16] Strategic Initiatives - Cronos GrowCo's expansion is on track for completion in Q2 2025, which is expected to significantly increase cultivation capacity and meet growing demand [2][22] - The company has authorized a share repurchase program of up to $50 million, expected to commence on May 14, 2025 [10] - New product launches in Q1 2025 include strain-specific cannabis oils under the PEACE NATURALS brand, aimed at enhancing product offerings in international markets [19][20] Regulatory Environment - An anti-dumping duty of up to 165% on Canadian medical cannabis imports into Israel was proposed but later vetoed, although the Ministry of Economy intends to pursue the duty process [23]

Industry Overview - Marijuana stocks have significant potential for high returns, although the market has faced challenges since the initial surge in 2018 [1] - Despite market fluctuations, companies are adapting to demand, with profits and revenues on the rise [1][3] - Current political concerns, particularly regarding Donald Trump's administration, have not significantly impacted the cannabis market [2] Company Highlights - **Aurora Cannabis Inc.**: Engages in the production and sale of cannabis products, recently completed a multimillion-dollar investment in a manufacturing facility, which has doubled yield and potency to a record 33.7% [4][5][6] - **Cronos Group Inc.**: Involved in the cultivation and distribution of cannabis products internationally, with an upcoming virtual Annual Meeting of Shareholders scheduled for April 28, 2025 [8][10] - **SNDL Inc.**: Operates in multiple segments including cannabis retail and reported Q1 2025 financial earnings with net revenue of $204.9 million, reflecting a growth rate of +3.6% [12][13] Financial Performance - Aurora Cannabis reported a significant increase in yield and potency, indicating strong operational performance [6] - SNDL Inc. achieved a gross profit of $56.6 million in Q1 2025, marking a growth of +12.4% and a gross margin of 27.6%, setting a new record for the company [13]

Group 1 - Cronos Group Inc. will hold its 2025 Annual Meeting of Shareholders on June 20, 2025, at 11:00 a.m. ET [1] - The meeting will be conducted in a virtual-only format, allowing registered shareholders and proxyholders to participate online [2] - Detailed instructions for participation and the formal business to be conducted at the meeting are available in the Company's proxy statement on its website [3] Group 2 - Access information for the meeting includes a live audio webcast link and a replay available 24 hours after the meeting [4] - Cronos is a global cannabinoid company focused on cannabis research, technology, and product development, with brands like Spinach®, PEACE NATURALS®, and Lord Jones® [5]

Core Viewpoint - Cronos Group Inc. will hold its first quarter earnings conference call on May 8, 2025, at 8:30 a.m. ET to discuss financial results and answer questions from the investment community [1]. Company Overview - Cronos is a global cannabinoid company focused on advancing cannabis research, technology, and product development, aiming to build a disruptive intellectual property portfolio [3]. - The company is committed to enhancing the consumer experience and developing an iconic brand portfolio, which includes brands like Spinach®, PEACE NATURALS®, and Lord Jones® [3]. Conference Call Details - Participants can register for the conference call or webcast online and are encouraged to join fifteen minutes early to avoid delays [2]. - The webcast will be archived for replay on the company's website [2]. Contact Information - For inquiries, the investor relations contact is Harrison Aaron, reachable at (416) 504-0004 or via email at investor.relations@thecronosgroup.com [5].

Core Insights - Cronos Group Inc. is launching three new 1.2g vape products under its best-selling cannabis brand, Spinach®, featuring premium THC and rare cannabinoids for an enhanced consumer experience [1][2] - The new vape products deliver 1,000mg of THC and are designed for consumers seeking both potency and added value, utilizing winterized, distilled cannabis extract for purity [2] - The company is also expanding its SOURZ by Spinach® edible line with new Fully Blasted flavors, each containing 10mg of THC per gummy, aimed at providing bold, fruit-forward flavors [3][6] Product Details - The new vape lineup includes three flavors, crafted with ceramic heaters and food-grade materials to ensure quality and a smooth experience [2] - The SOURZ by Spinach® Fully Blasted gummies come in three flavors: Mango Lime, Peach Passionfruit, and Strawberry Watermelon, each with specific cannabinoid ratios [6] Company Commitment - Cronos Group emphasizes its commitment to innovation and quality, aiming to meet evolving consumer preferences and enhance the cannabis experience [3][4] - The launch is supported by in-store trade marketing initiatives, including budtender education and enhanced point-of-purchase materials [3]

Industry Overview - The cannabis sector is experiencing volatility due to external factors such as tariffs with China, which are affecting packaging and logistics, leading to uncertainty and caution among investors [1][2] - Despite the current down market, the cannabis industry is showing growth across all sectors, suggesting potential for a future "green rush" moment [2] Company Highlights - High Tide Inc. operates in the cannabis retail business across Canada, the U.S., and internationally, with a new Canna Cabana store set to open in Kitchener, Ontario on April 16, 2025 [4] - Cronos Group Inc. is involved in the cultivation, production, distribution, and marketing of cannabis products in Canada, Israel, and internationally [5] - Cronos Group recently appointed Anna Shlimak as the new Chief Financial Officer, who has been part of the leadership team for seven years [8][9]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to the author's positions and affiliations [1][2]. Group 1 - No stock, option, or similar derivative positions are held by the author in any mentioned companies, nor are there plans to initiate such positions in the next 72 hours [1]. - The article expresses the author's personal opinions and is not receiving compensation from any company mentioned [1]. - Seeking Alpha clarifies that past performance does not guarantee future results and that no investment recommendations are being made [2].

Core Viewpoint - Cronos Group Inc. has appointed Anna Shlimak as Chief Financial Officer, succeeding James Holm, who will assist in the transition until April 18, 2025 [1][4] Group 1: Leadership Transition - Anna Shlimak has been part of Cronos' leadership for seven years, significantly contributing to the company's strategy and operational efficiencies [2] - Mike Gorenstein, President and CEO, expressed confidence in Shlimak's ability to drive financial strategy and growth, highlighting her understanding of the business and track record [3] - James Holm acknowledged the accomplishments during his tenure and expressed confidence in Shlimak's leadership for future growth [4] Group 2: Anna Shlimak's Background - Prior to her CFO role, Shlimak was the Chief Strategy Officer, overseeing corporate strategy, investor relations, and communications [5] - Shlimak has experience in investor relations at Quest Partners LLC and various roles at the New York Stock Exchange [5] - She holds an MBA from Columbia Business School and a Bachelor of Science in Economics from The Wharton School [5] Group 3: Company Overview - Cronos Group is a global cannabinoid company focused on cannabis research, technology, and product development [6] - The company aims to build a diverse brand portfolio, including Spinach®, PEACE NATURALS®, and Lord Jones® [6]