Overview

• Canada cannabis producer's Q1 net revenue grew 40% yr/yr to record levels

• Net income for Q1 more than doubled yr/yr, driven by higher sales volumes and prices

• Company authorized $50 mln share repurchase program, succeeding previous buyback plan

Outlook

• Company expects CanAdelaar acquisition to close in summer 2026, expanding European footprint

• Cronos says international markets, especially Europe, present robust growth potential

• Company expects sustained net revenue and adjusted EBITDA growth driven by international momentum

Result Drivers

• ISRAEL AND INTERNATIONAL SALES - Higher cannabis flower sales in Israel and other countries, which do not carry excise taxes, drove revenue growth

• SALES MIX AND PRICING - Higher average sales prices, largely driven by a mix shift to Israel and other countries, contributed to increased gross profit

• CANADIAN BRAND PERFORMANCE - Spinach brand reached #1 in vapes and retained #1 in edibles, supported by expanded supply from Cronos GrowCo

Company press release: ID:nGNXbX0l7V

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		$15.7 mln
Q1 Adjusted EBITDA	Beat	$5.1 mln	$1.95 mln (2 Analysts)
Q1 Gross Profit		$19.2 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Cronos Group Inc is C$4.50, about 29.7% above its May 8 closing price of C$3.47

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 34 three months ago

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