Cannabis producer Cronos' Q1 net revenue rises 40% to record, helped by Israel sales

Cronos

11/05/2026 12:39

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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)