Cronos Group (US) (TSE:CRON)
NASDAQ:CRON
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Cronos Group
(NASDAQ:CRON)
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Rating:69Neutral
Price Target:
C$4.00
▲(8.11% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improving financial performance (positive EBITDA and free cash flow) supported by an exceptionally strong, low-debt balance sheet. The earnings call reinforces the recovery narrative with constructive margin/EBITDA outlook, while the overall score is tempered by still-inconsistent bottom-line profitability/ROE, only moderate technical momentum, and a mid-range valuation with no dividend.
Positive Factors
Very strong balance sheet and low leverage
Exceptionally low leverage and a large cash position materially reduce financial risk and provide durable optionality: funds for M&A, share repurchases, modest CapEx, and working capital. This capital flexibility supports multi‑quarter strategic initiatives without funding strain.
Negative Factors
Inconsistent bottom-line profitability and ROE
Despite positive EBITDA and improving revenues, net profitability and returns remain inconsistent. Negative ROE and historical swings imply operating leverage and expense control are not yet fully stable, meaning multi‑quarter earnings durability and shareholder return generation remain uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet and low leverage
Exceptionally low leverage and a large cash position materially reduce financial risk and provide durable optionality: funds for M&A, share repurchases, modest CapEx, and working capital. This capital flexibility supports multi‑quarter strategic initiatives without funding strain.
Read all positive factors
Cronos Group (CRON) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.40B
Dividend YieldN/A
Average Volume (3M)234.38K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth27.16%
EPS Growth-103.47%
CountryCA
Employees459
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.07
Shares Outstanding373,662,050
10 Day Avg. Volume224,656
30 Day Avg. Volume234,379
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)0.92
Price to Sales (P/S)6.74
P/FCF Ratio6.63K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.25Price Target Upside41.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.06
Revenue Forecast (FY)C$192.57M
Cronos Group Business Overview & Revenue Model
Company Description
Cronos Group Inc. operates as a cannabinoid company. It manufactures, markets, and distributes hemp-derived supplements and cosmetic products through e-commerce, retail, and hospitality partner channels under the Lord Jones and Happy Dance brands ...
How the Company Makes Money
Cronos Group makes money primarily by selling cannabis and cannabinoid-based products in jurisdictions where they are legal and regulated. Its core revenue stream is product sales to provincial/territorial wholesalers, distributors, retailers, and...
Cronos Group Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive tone driven by record annual and quarterly results, strong organic revenue growth (25% full year; Q4 +47%), product and brand momentum in Canada (Spinach, edibles, vapes) and robust international performance (Israel +52%, other international +68%). The company emphasized a strong balance sheet (no debt, $832M cash), disciplined capital allocation (share repurchases, modest CapEx) and strategic expansion via the accretive CanAdelaar acquisition. Near-term operational challenges tied to GrowCo expansion caused Q4 margin and adjusted EBITDA pressures as well as some shipment timing effects, but management expects these to normalize and views full-year 2025 margins (43%) as a reasonable run rate. Overall, highlights meaningfully outweigh the lowlights, with manageable operational issues and clear levers for margin recovery and growth.Positive Updates
Record Annual and Quarterly Results
Delivered a record year in 2025 with organic net revenue growth of 25% year-over-year; achieved record net revenue in Q4 and for the full year, and record full year gross profit and adjusted EBITDA.
Negative Updates
Q4 Margin and Production Disruption from GrowCo Expansion
Adjusted gross margin in Q4 (36%) declined from the stronger margins seen in the first three quarters of 2025 due to adverse production quality mix and expense timing related to GrowCo expansion ramp-up; company expects these to normalize in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Results
Delivered a record year in 2025 with organic net revenue growth of 25% year-over-year; achieved record net revenue in Q4 and for the full year, and record full year gross profit and adjusted EBITDA.
Read all positive updates
Company Guidance
The company guided to sustaining 2025 full‑year operating performance, targeting a go‑forward adjusted gross margin around 43% (Q4 gross profit $16.2M, 36% margin; Q4 adj. gross margin improved 670 bps vs. Q4 2024), and reiterated that adjusted EBITDA should strengthen as GrowCo production stabilizes and scale efficiencies materialize (Q4 adj. EBITDA $0.5M, +$7.7M YoY; 2025 organic net revenue growth +25% YoY with consolidated Q4 net revenue $44.5M, +47% YoY). Management expects supply constraints to ease in 2026 with expanded GrowCo capacity, Puffers distribution to broaden in early 2026, continued share repurchases, opportunistic M&A (CanAdelaar agreed for EUR57.5M / ~$67.5M upfront plus contingent consideration at 0.5x normalized EBITDA in ’26 and ’27, expected to close H1 2026), and disciplined capital deployment (cash balance $832M, ~$18M cash from operations before working capital in Q4, CapEx run‑rate < $10M indicated), while noting potential margin upside from the accretive CanAdelaar business and ongoing international growth (Canada +42% YoY, Israel +52% YoY, international ex‑Israel +68% YoY).Cronos Group Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 159.47M | 149.15M | 117.50M | 87.03M | 87.54M | 64.02M |
| Gross Profit | 67.28M | 61.70M | 30.45M | 11.88M | 15.58M | -17.45M |
| EBITDA | 36.00M | -3.36M | -45.37M | -72.28M | -93.81M | -150.79M |
| Net Income | -2.06M | -9.61M | 41.04M | -73.79M | -170.26M | -392.81M |
Balance Sheet | ||||||
| Total Assets | 1.17B | 1.19B | 1.17B | 1.14B | 1.21B | 1.40B |
| Cash, Cash Equivalents and Short-Term Investments | 822.44M | 830.28M | 858.80M | 861.53M | 877.72M | 1.00B |
| Total Debt | 1.31M | 2.68M | 2.02M | 2.55M | 3.88M | 9.81M |
| Total Liabilities | 48.33M | 54.08M | 55.33M | 43.96M | 72.05M | 63.46M |
| Stockholders Equity | 1.07B | 1.09B | 1.06B | 1.10B | 1.14B | 1.34B |
Cash Flow | ||||||
| Free Cash Flow | 26.45M | 151.61K | 5.69M | -46.26M | -93.98M | -165.88M |
| Operating Cash Flow | 38.88M | 26.32M | 18.84M | -42.84M | -88.95M | -153.62M |
| Investing Cash Flow | 16.31M | -77.90M | 175.15M | -59.50M | -1.84M | -28.90M |
| Financing Cash Flow | -35.06M | -20.25M | -1.23M | -1.03M | -2.90M | -13.44M |
Cronos Group Technical Analysis
Positive
3.70
Price Trends
3.66
Positive
3.61
Positive
3.61
Positive
Market Momentum
0.06
Negative
58.34
Neutral
36.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRON, the sentiment is Positive. The current price of 3.7 is below the 20-day moving average (MA) of 3.75, above the 50-day MA of 3.66, and above the 200-day MA of 3.61, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 36.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRON.
Cronos Group Risk Analysis
Cronos Group disclosed 92 risk factors in its most recent earnings report. Cronos Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cronos Group Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.31B | 15.34 | 6.59% | ― | 4.14% | 146.77% | |
69 Neutral | C$1.40B | -516.27 | -0.19% | ― | 27.16% | -103.47% | |
63 Neutral | C$2.30B | -23.36 | -6.88% | ― | -2.05% | 52.34% | |
56 Neutral | C$3.75B | -27.64 | -12.61% | ― | -2.25% | 55.22% | |
53 Neutral | C$646.50M | -1.55 | -52.88% | ― | 0.59% | 64.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | C$558.90M | -2.45 | -35.26% | ― | -9.65% | -55.41% |
* Healthcare Sector Average
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Cronos Group Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Cronos Group Posts Record 2025 Revenue and Eyes European Cannabis Expansion
Positive
Feb 26, 2026
Cronos Group reported record fourth-quarter and full-year 2025 net revenue, with Q4 sales rising 47% year over year to $44.5 million and full-year revenue up 25% to $146.6 million, driven by strong demand for its leading brands, expanded output fr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.