Cronos Group Inc Reports Q2 2025 Financial Results

TORONTO – Cronos Group Inc., a Canadian cannabinoid company with an international outreach, reported its Q2 2025 financial results, showcasing a 21% year-over-year increase in net revenue, reaching $33.5 million.

The growth was primarily driven by robust Cannabis flower sales in Israel, contributions from the newly consolidated Cronos Growing Company Inc. (Cronos GrowCo), and higher Cannabis extract sales in Canada, according to the company’s earnings release.

Financially, Cronos reported a gross profit of $14.5 million, up 130% from Q2 2024, with a gross margin of 43%, a 20-percentage-point improvement driven by higher sales volumes, better pricing in international markets, and production efficiencies. Adjusted EBITDA improved to $1.7 million, a $12.7 million increase from the prior year, reflecting higher revenue and lower operating expenses. However, a net loss of $38.5 million was recorded, primarily due to an unrealized foreign exchange loss from U.S. dollar-denominated cash holdings in Canada, prompted by a stronger Canadian dollar. Cronos maintained an industry-leading balance sheet with $834 million in cash and short-term investments, providing significant financial flexibility.

A notable development was the resolution of a proposed 165% anti-dumping duty on Canadian Cannabis imports in Israel. On July 3, 2025, Israel’s Ministry of Justice upheld the Finance Minister’s veto of the duty, a decision Cronos welcomed, emphasizing its commitment to fair market competition and patient access.

The company’s flagship PEACE NATURALS® brand maintained its position as the leading Cannabis brand in Israel, achieving record revenue and sales volume in Q2 2025, fueled by strong demand for its proprietary genetics of GMO and Wedding Cake strains. Internationally, PEACE NATURALS® expanded into Australia and Malta during the quarter, with a post-quarter launch in Switzerland, bringing its presence to seven global medical Cannabis markets, including Canada, Germany, and the United Kingdom.

In Canada, Cronos’ Spinach® brand secured the second-highest market share at 4.7%, despite supply constraints, while its Lord Jones® brand led the hash-infused pre-roll segment with a 28.5% share and ranked third in chocolate edibles. The completion of Cronos GrowCo’s cultivation expansion, with sales expected to begin in Fall 2025, is anticipated to alleviate these supply challenges and support growth in both domestic and international markets.

Additionally, Cronos invested CAD 25.2 million in High Tide Inc., Canada’s largest Cannabis retailer, through a convertible loan and share purchase warrants, aiming to strengthen its retail presence and ensure competitive distribution for its brands. The company also appointed Lloyd Wilson as its Principal Accounting Officer, bringing extensive financial expertise to the leadership team.

Cronos Group’s Q2 2025 financial statements highlight its ability to capitalize on global demand for medical Cannabis internationally, while navigating supply challenges in Canada. The company’s strong financial position and strategic investments, such as the Cronos GrowCo expansion and the High Tide partnership, position it well for sustained growth. However, the significant net loss due to foreign exchange impacts underscores the need for careful currency risk management. As the global Cannabis market continues to mature, Cronos’ focus on premium brands and international expansion will be critical to maintaining its competitive edge.