Cronos Group Reports Q3 2025 Financial Results

TORONTO – Cronos Group Inc., a Canadian Cannabis producer with a growing international footprint, reported third-quarter results that marked new highs for revenue, profitability, and cash reserves, even as domestic challenges in Canada tempered some gains.

The company posted net revenue of $36.3 million for the period, up 6% from the prior year and 9% from the second quarter. That figure reflected strong performance in Israel, where sales of Cannabis flower [free from excise taxes] drove the bulk of the increase, alongside higher extract volumes in Canada. Offsetting those wins was a dip in Canadian flower shipments, tied to short-term supply limits at production facilities.

Gross profit climbed to $18.3 million, a 14.7 million-dollar jump year over year, pushing the margin to 50% from 19%. Executives attributed the surge to a favorable sales mix skewed toward higher-margin Israeli exports, production tweaks that cut costs, and the absence of a one-time inventory charge from an earlier acquisition. Adjusted gross profit rose 7.6 million dollars on similar drivers.

On the bottom line, net income hit $28.3 million, or about 7 cents per share on a diluted basis, reversing a year-ago loss and topping analyst expectations by a wide margin. Adjusted EBITDA turned positive at $5.7 million, a $11.7 million improvement, thanks to tighter control on administrative spending and the profit boost.

Mike Gorenstein, Cronos’s chairman, president, and CEO, called the quarter a clear step forward. In a statement, he highlighted seven straight periods of revenue growth at the Israeli unit and the enduring appeal of the Peace Naturals brand, which holds the top spot in that market. “Our strength abroad continues to drive robust gross margins,” Gorenstein said, adding that the company’s debt-free setup [with $824 million in cash, equivalents, and short-term investments] gives it room to maneuver on innovation and overseas pushes.

In Canada, where recreational sales have cooled industrywide, Spinach® remained the No. 2 brand overall, buoyed by dominance in edibles via the Sourz line and steady showings in vapes and pre-rolls. Flower constraints, Gorenstein noted, were temporary; a major upgrade at the Cronos GrowCo facility wrapped up this fall, adding 70% more capacity and setting the stage for output ramps into 2026. The company took majority control of GrowCo over the summer, folding its results into consolidated figures for the first time.

Cronos shares rose 4% in Toronto trading following the release, reflecting investor relief over the profitability pivot after years of red ink. The results come as global Cannabis markets diverge: Israel’s medical sector booms with patient demand, while Canada’s mature recreational arena grapples with oversupply and pricing pressure.

To wrap all the deets up, Cronos’s Q3 snapshot illustrates how targeted bets on export markets can offset home-front challenges, a strategy that could prove instructive for peers chasing scale. With ample dry powder and fresh production muscle, the company now faces the test of converting capacity into consistent cash flow – a metric that will define its course in a sector still seeking ultimate profitability.