Cronos Group (NASDAQ:CRON) Releases Quarterly Earnings Results, Hits Estimates

Cronos Group (NASDAQ:CRON) released its earnings results on Monday. The company reported $0.01 EPS for the quarter, hitting the consensus estimate of $0.01, Zacks reports. Cronos Group had a negative net margin of 6.44% and a negative return on equity of 1.12%.

Here are the key takeaways from Cronos Group’s conference call:

• Record financial performance: Cronos reported Q1 net revenue of CAD 45.2M (+40% YoY) and record gross profit of CAD 19.2M (+39% YoY) with adjusted EBITDA of CAD 5.1M, the second-highest in company history.
• Spinach market leadership: The Spinach brand captured #1 positions in vapes (9.8% total vape share and 11.1% cartridge share) and edibles (20.8% total, gummies 22.7%), with PUFFERZ reaching #2 in all-in-one vapes just four months after launch.
• Strong international momentum and M&A: Cronos Israel grew 53% YoY (ninth consecutive record quarter) and other international markets grew 97% YoY, and management expects the CanAdelaar acquisition (Netherlands market leader) to close in summer 2026 to scale its European footprint.
• Robust balance sheet and capital return: The company has no debt, CAD 822M in cash and equivalents, and the board authorized a renewed CAD 50M share repurchase program to deploy capital across growth, buybacks, and M&A.
• Cost and timing pressures: Operating expenses rose to CAD 20.5M (up CAD 3.3M YoY) partly due to CanAdelaar transaction costs, cash decreased CAD 10M in the quarter after CAD 17M of repurchases, and the CanAdelaar long-stop date was extended as a precaution, introducing execution and timing risk.

Cronos Group Trading Up 6.9%

Shares of NASDAQ CRON traded up $0.18 during mid-day trading on Monday, reaching $2.72. The company had a trading volume of 3,018,896 shares, compared to its average volume of 1,408,573. The business’s 50-day moving average is $2.59 and its 200-day moving average is $2.60. The stock has a market cap of $1.02 billion, a price-to-earnings ratio of -269.23 and a beta of 0.87. Cronos Group has a 52 week low of $1.84 and a 52 week high of $3.43.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CRON. Jones Financial Companies Lllp grew its holdings in Cronos Group by 291.6% during the 1st quarter. Jones Financial Companies Lllp now owns 65,099 shares of the company’s stock worth $118,000 after acquiring an additional 48,476 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in Cronos Group by 84.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,076,405 shares of the company’s stock worth $1,948,000 after acquiring an additional 493,161 shares in the last quarter. Envestnet Asset Management Inc. bought a new position in Cronos Group during the 2nd quarter worth about $36,000. Legal & General Group Plc grew its holdings in Cronos Group by 16.1% during the 2nd quarter. Legal & General Group Plc now owns 195,368 shares of the company’s stock worth $374,000 after acquiring an additional 27,111 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Cronos Group by 192.4% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 89,683 shares of the company’s stock worth $171,000 after acquiring an additional 59,013 shares in the last quarter. 8.71% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CRON has been the topic of a number of recent research reports. Wall Street Zen raised shares of Cronos Group from a “sell” rating to a “hold” rating in a research note on Sunday, March 8th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $2.30 price target on shares of Cronos Group in a research note on Wednesday, January 14th. TD Securities initiated coverage on shares of Cronos Group in a research note on Tuesday, February 24th. They set a “buy” rating on the stock. Weiss Ratings cut shares of Cronos Group from a “hold (c)” rating to a “sell (d+)” rating in a research report on Monday, March 2nd. Finally, Canaccord Genuity Group initiated coverage on shares of Cronos Group in a report on Tuesday, January 27th. They issued a “buy” rating on the stock. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $2.30.

Cronos Group Company Profile

Cronos Group Inc is a Canadian cannabinoid company dedicated to the cultivation, production and distribution of cannabis and cannabidiol (CBD) products for both medical and adult-use markets. Headquartered in Toronto, Ontario, the company manages operations that span the full cannabis value chain, including breeding, greenhouse cultivation, extraction, product formulation and packaging. Cronos Group’s business model emphasizes innovation in product development and scalability in manufacturing to meet evolving regulatory and consumer demands.

The company’s branded portfolio includes Peace Naturals, which focuses on pharmaceutical-grade medical cannabis; Spinach, a line of adult-use cannabis oils and tinctures; and Cove, a range of wellness-oriented CBD offerings.