Cronos Group Update After Q3 2025 – (NASDAQ: CRON | TSX: CRON)
Disclosure: I own shares in CRON. I am not a professional. Please do your own due diligence.
Price: $2.47 USD
MC: 950 million USD
EV: 128 million USD
1-year performance: +20%
*All numbers in USD unless stated otherwise.
Cronos reported its Q3 2025 results on November 6, 2025. Results were ahead of my expectations, with record revenue, gross profit, and positive adjusted EBITDA reflecting operational momentum in Israel and disciplined cost management.
Quarter Recap
Cronos reported third-quarter results this morning. They achieved record consolidated net revenue, gross profit, and adjusted EBITDA. The results were ahead of my expectations, driven by strong performance in Israel despite headwinds in Canadian flower supply.
Net revenue rose 6% year-over-year to $36.3 million and 9% sequentially, marking the company’s seventh straight quarter of revenue growth.
Gross profit surged to $18.3 million (up from $3.6 million last year) with a gross margin of 50%.
Adjusted EBITDA came in at $5.7 million, up $11.7 million year-over-year and marking Cronos’ second consecutive quarter of profitability.
From a geographic lens, Israel remains the growth engine, while Canada stabilized despite temporary flower supply constraints.
Canada
The Spinach® brand retained its #2 national ranking with 4.5% total market share, #1 in edibles (19.7%), and #3 in vapes (7%). The recent completion of the Cronos GrowCo expansion should resolve flower shortages and support domestic and export volumes in 2026.
International
The standout performer remained Cronos Israel, where the PEACE NATURALS® brand continues to dominate as the #1 medical cannabis brand. Patient count in Israel grew roughly 5% year-to-date as the market returned to expansion, helping lift both pricing and volume.
Across other international markets, results were lighter this quarter due to shipment timing, but management expects a Q4 catch-up as deferred sales are recognized. The PEACE NATURALS® brand also launched in Switzerland, extending global reach to seven markets.
Balance Sheet
The balance sheet remains best-in-class for the sector, with $824 million in cash and short-term investments and no debt, providing significant strategic flexibility for international expansion, R&D, or shareholder returns.
Valuation
This is a big tougher for CRON. Not only is the industry in transition, CRON has a large amount of cash on the balance sheet. I have CRON at 1.1x NCAV and 0.9x tangible book value. I don’t using ttm numbers add much value. At this point, analyst coverage is limited.
Closing Thoughts
Continued improvement in the business. Moving forward it sounds like international will be a significant contributor to the business. Looking for increased revenue in Canada as well as the flower constraint gradually goes away with GrowCo ramping.
Now they need to put the cash to work. I would be surprised to see some acquisitions the industry has stabilized domestically and there contnues to be more opportunities internationally.
Though I am not sure how much cash they will generate, I think the earnings momentum coupled with the eventual deployment of the cash makes this a decent bet.
CRON is in my cannabis basket. I think it is the lowest risk way to get exposure to cannabis here.
Thanks for reading my work.
Long CRON.