Cronos Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the three months ended September 30, 2026, was $63.45 million, a 75% increase year-over-year (YoY) and a 73% increase on an organic, constant-currency basis.
• Net revenue for the nine months ended September 30, 2026, was $161.67 million, a 58% increase YoY and a 52% increase on a constant-currency basis.
• Gross profit for the three months ended September 30, 2026, was $32.28 million, a 76% increase YoY; gross margin was 50.9% (up 0.5 percentage points from 50.4% in Q3 2025).
• Gross profit for the nine months ended September 30, 2026, was $79.89 million, a 72% increase YoY; gross margin was 49.4% (up 3.8 percentage points from 45.6% in the prior period).
• Adjusted EBITDA for the three months ended September 30, 2026, was $17.08 million, a 201% increase YoY; on a constant-currency basis, it was $16.27 million (up 187% YoY).
• Adjusted EBITDA for the nine months ended September 30, 2026, was $35.24 million, a 265% increase YoY; on a constant-currency basis, it was $32.31 million (up 235% YoY).
• Net income for the three months ended September 30, 2026, was $17.83 million compared to $28.32 million in Q3 2025.
• Net income for the nine months ended September 30, 2026, was $69.20 million compared to a net loss of $2.44 million in the prior period.
• Cash and cash equivalents, restricted cash, short-term investments, and non-current interest-bearing deposits totaled $840.63 million as of September 30, 2026, up 2% from $824.17 million in Q3 2025.
• Capital expenditures for the three months ended September 30, 2026, were $9.95 million (up 117% YoY); for the nine months ended September 30, 2026, were $13.70 million (down 42% YoY).
• Inventory write-downs for the three months ended September 30, 2026, were $1.64 million (up 225% YoY); for the nine months ended September 30, 2026, were $2.70 million (up 355% YoY).

Guidance and Future Outlook:

• Management stated they maintain an industry-leading balance sheet and positive operating cash flow for the first nine months of 2026, enabling investment in growth strategies, capital returns, and flexibility for acquisitions.
• The company remains active under its share repurchase program and views repurchases as an attractive use of capital.
• Integration of the CanAdelaar acquisition, including IP transfer, is underway with plans to bring innovative products to Dutch consumers.
• The company continues to focus on the development and production of market-leading borderless products.

Business Segments and Product Lines:

• Canada: Spinach® maintained the #1 market share in vapes for the third consecutive quarter (11.4% total vape market share) and in edibles for the ninth consecutive quarter (21.8% market share). Spinach® ranked #2 overall cannabis brand in Canada with 6.3% market share.
• Israel: Cronos Israel delivered its eleventh consecutive quarter of record net revenue, growing 33% YoY (19% on a constant-currency basis). PEACE NATURALS® remains the #1 cannabis brand in the country.
• International (ex-Israel): International business delivered record net revenue, increasing 614% YoY, led by strong demand for flower products in Germany.
• Product Launches: In September 2026, Cronos launched SOURZ by Spinach® Fully Blasted Blue Raspberry Lemonade gummies, the brand's first gummy infused with 100% live resin. In October 2026, a seasonal Caramel Green Apple flavor was added to the SOURZ Fully Blasted portfolio.
• Vape Portfolio: New flavors launched in Q3 2026 included Spinach® Strawberry Banana 1.2g vape and Spinach® Sweet Citrus Punch 1g liquid diamonds vape. The Spinach® PUFFERZ™ all-in-one vape continues to gain share (10.2%).
• Flower and Pre-rolls: Spinach® remained #3 in flower (6.1% market share) and rose to #5 in pre-rolls (3.3% market share).

Market and Competitive Landscape:

• Spinach® ranked #2 overall cannabis brand in Canada with national market share expanding to 6.3%.
• In edibles, four SOURZ by Spinach® gummies products ranked among the top 7 edibles nationally, including the top-selling edibles SKU in Canada.
• During Q3 2026, six of the eight best-selling vape SKUs nationwide across all formats were Spinach® vape products.
• The company's advanced genetic breeding program and industry-leading cultivation capabilities are driving robust growth in flower sales.

Risks and Challenges:

• Anti-Dumping Matters: Ongoing investigations by the Israel Ministry of Economy and Industry concerning alleged dumping of medical cannabis imports from Canada into Israel, including potential anti-dumping duties.
• Middle East Conflict: Potential negative impacts on employees, facilities, and operations in Israel, as well as supply and demand for medical cannabis products in the region.
• Regulatory and Legal: Risks related to the Realignment, potential penalties from regulatory proceedings involving CanAdelaar, and compliance with SEC and OSC settlement orders.
• Financial Instruments: Performance of the High Tide Loan and High Tide Warrant, including High Tide's ability to repay.
• Supply Chain: Ability to acquire raw materials from suppliers, including Cronos GrowCo, on a timely and cost-effective basis.
• Market Expansion: Ability to successfully maintain, expand, and distribute the PEACE NATURALS® brand in markets outside of Canada and Israel, and potential re-entry into the U.S. market.

Management Commentary and Tone:

• Mike Gorenstein, Chairman, President and CEO, stated the company "organically achieved records across net revenue, gross profit, and Adjusted EBITDA for the second consecutive quarter, while at the same time reducing shares outstanding."
• Management highlighted that the strategic focus on borderless products is paying off and noted the establishment of a leadership position in Europe's largest adult-use cannabis market via the CanAdelaar acquisition.
• The tone is confident regarding the company's balance sheet, cash flow generation, and ability to execute on growth and acquisition opportunities.

Other Key Points:

• Acquisition: Completed the acquisition of CanAdelaar B.V. on October 15, 2026. Christopher Martens, former CEO of CanAdelaar, was appointed General Manager of Cronos Netherlands.
• Share Repurchases: During Q3 2026, the company repurchased 3.2 million shares for $9.4 million. In the first nine months of 2026, the company repurchased 15.5 million shares for $42.3 million.
• Cash Flow: The company generated positive operating cash flow for the first nine months of 2026.
• Investor Relations: A conference call and live audio webcast were scheduled for November 5, 2026, at 8:30 a.m. ET.