Cronos Group (NASDAQ:CRON) Issues Earnings Results, Meets Estimates

Cronos Group (NASDAQ:CRON) released its earnings results on Monday. The company reported $0.01 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.01, Zacks reports. Cronos Group had a negative return on equity of 1.41% and a negative net margin of 1.14%.The firm had revenue of $58.97 million during the quarter, compared to analysts’ expectations of $42.20 million.

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 Stock Down 0.5%

Shares of CRON traded down $0.02 during midday trading on Wednesday, reaching $2.76. 817,088 shares of the stock were exchanged, compared to its average volume of 1,425,160. The stock’s 50 day simple moving average is $2.59 and its 200 day simple moving average is $2.61. Cronos Group has a twelve month low of $1.84 and a twelve month high of $3.43. The company has a market cap of $1.04 billion, a P/E ratio of 275.78 and a beta of 0.87.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CRON. Pillsbury Lake Capital LLC bought a new position in Cronos Group during the 4th quarter worth $4,837,000. Arrowstreet Capital Limited Partnership increased its position in shares of Cronos Group by 1,135.6% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,108,131 shares of the company’s stock worth $3,075,000 after purchasing an additional 1,018,448 shares during the period. Two Sigma Investments LP raised its stake in Cronos Group by 229.6% in the third quarter. Two Sigma Investments LP now owns 1,310,386 shares of the company’s stock valued at $3,643,000 after purchasing an additional 912,773 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Cronos Group by 84.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,076,405 shares of the company’s stock worth $1,948,000 after purchasing an additional 493,161 shares during the period. Finally, Millennium Management LLC grew its stake in Cronos Group by 56.0% during the third quarter. Millennium Management LLC now owns 1,056,445 shares of the company’s stock worth $2,935,000 after buying an additional 379,250 shares in the last quarter. 8.71% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have commented on the company. TD Securities restated a “buy” rating on shares of Cronos Group in a research note on Tuesday. Canaccord Genuity Group began coverage on shares of Cronos Group in a report on Tuesday, January 27th. They set a “buy” rating for the company. Wall Street Zen upgraded shares of Cronos Group from a “sell” rating to a “hold” rating in a research note on Sunday, March 8th. Weiss Ratings downgraded shares of Cronos Group from a “hold (c)” rating to a “sell (d+)” rating in a research note on Monday, March 2nd. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $2.30 price target on shares of Cronos Group in a research report on Wednesday, January 14th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price 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.