Cronos Group Reports 2025 Fourth Quarter and Full-Year Results

Core Insights - Cronos Group Inc. achieved record net revenue in Q4 2025 and FY 2025, with Q4 revenue increasing by 47% year-over-year to $44.5 million and FY revenue increasing by 25% year-over-year to $146.6 million [1][2][16] - The company reported strong performance driven by consumer demand, expansion at Cronos GrowCo, and contributions from international markets [2][3] - The company maintains a robust balance sheet with $832 million in cash and cash equivalents and short-term investments [1] Financial Performance - Q4 2025 net revenue of $44.5 million increased by $14.2 million from Q4 2024, primarily due to higher cannabis flower sales in Israel and other countries [10] - Gross profit for Q4 2025 was $16.2 million, an increase of $5.4 million from Q4 2024, driven by higher average sales prices and sales volumes [10] - For FY 2025, gross profit reached $62.8 million, up $37.6 million from FY 2024, attributed to lower inventory step-up costs and higher sales prices [16] Brand and Market Position - The Spinach brand maintained a strong position in Canada, ranking 2 overall and 4 in the flower category with a market share of 5.1% [11] - SOURZ by Spinach led the edibles category with a market share of 21.7% in Q4 2025, continuing to innovate with new product launches [12] - PEACE NATURALS consistently ranked as the top cannabis brand in Israel, achieving record sales volume and revenue throughout 2025 [15] International Expansion - The PEACE NATURALS brand expanded into new international markets, including Australia, Malta, and Switzerland, significantly increasing its global footprint [17] - International revenue outside Israel grew by 68% year-over-year in Q4 2025, reflecting strong demand and normalized shipment timing [17] Strategic Acquisition - Cronos Group entered into an agreement to acquire CanAdelaar B.V. for approximately $67 million, which will enhance its strategic footprint in Europe and leverage its borderless product strategy [22][24] - CanAdelaar operates a significant greenhouse facility and has rapidly grown its market share in the Dutch cannabis market, achieving net revenue of $47.3 million in the twelve months ended September 30, 2025 [23] Operational Updates - The company reported a net loss of $0.5 million in Q4 2025, a significant decrease from net income of $43.9 million in Q4 2024, primarily due to foreign currency transaction losses [10] - Adjusted EBITDA for FY 2025 improved by $45.1 million to $10.1 million, driven by higher adjusted gross profit and lower operating expenses [16]