Canada's Cronos Group Q2 revenue beats estimates on higher cannabis flower sales

Cronos

06/08/2026 12:56

Overview
Canada cannabis producer's Q2 revenue rose 58% yr/yr, beating analyst expectations
Net income turned positive, helped by higher gross profit and foreign currency gains
Company repurchased 12.3 mln shares in the first half of 2026

Outlook
Company expects CanAdelaar acquisition to close in H2 2026, pending regulatory clearance
Company says strong balance sheet supports investment in growth and capital returns

Result Drivers
ISRAEL & GERMANY SALES - Higher cannabis flower sales in Israel and Germany, which carry no excise taxes, drove revenue growth
SALES MIX & VOLUME - Higher average sales prices, largely driven by a mix shift to Israel and other countries, and higher sales volumes boosted gross profit
CURRENCY IMPACT - Strengthening of the New Israeli Shekel versus the U.S. dollar benefited net revenue

Company press release: ID:nGNX1ps22m

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$53.007 mln
$44.20 mln (3 Analysts)
Q2 Net Income
 
$35.70 mln
 
Q2 Adjusted EBITDA
Beat
$13.10 mln
$4.05 mln (2 Analysts)
Q2 Gross Profit
 
$28.50 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"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Cronos Group Inc. is C$5.00, about 31.6% above its August 5 closing price of C$3.80
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 47 three months ago

Reuters Recommended Reads
Aug 4 - Green Thumb Q2 revenue beats estimates on Minnesota adult-use launch
Aug 5 - Verano Q2 revenue tops estimates on retail expansion
Aug 4 - Cannabis firm Grown Rogue Q2 revenue rises 41%, lifts outlook

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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.)