Download PDF

1. Company Snapshot

1.a. 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 in the United States.


The company is also involved in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for the medical and adult-use markets.It sells cannabis and cannabis products, including dried cannabis, pre-rolls, edibles, concentrates, and cannabis extracts through wholesale and direct-to-client channels under its wellness platform, PEACE NATURALS; and operates under adult-use brands, Spinach.It also exports dried cannabis and cannabis oils to Germany, Israel, and Australia.


Cronos Group Inc.was founded in 2012 and is based in Toronto, Canada.

Show Full description

1.b. Last Insights on CRON

Cronos Group Inc.'s recent performance was positively driven by a 21% year-over-year increase in net revenue, reaching $33.5 million in Q2 2025. This growth was fueled by strong cannabis flower sales in Israel and international markets, as well as the consolidation of Cronos GrowCo. The company's PEACE NATURALS brand retained its position as the number one cannabis brand in Israel. Additionally, Cronos Group's inclusion in the S&P Global BMI Index increased its visibility and potential demand from passive funds.

1.c. Company Highlights

2. Cronos Group's Q2 2025 Earnings: A Strong Performance Amidst Supply Constraints

Cronos Group reported consolidated net revenue of $33.5 million, a 21% increase from the prior year period, with net revenue excluding GrowCo growing 13% year-over-year to $31.2 million. The company's gross profit was $14.5 million, equating to a 43% gross margin, a significant improvement from 23% in Q2 2024. The actual EPS came out at -$0.13615, matching estimates. The company's financial performance was characterized by robust demand across key markets and product categories, despite flower supply constraints.

Publication Date: Aug -22

📋 Highlights
  • Revenue Growth:: Consolidated net revenue reached $33.5M, up 21% YoY, driven by Spinach's performance and GrowCo consolidation.
  • Spinach Market Share:: Spinach ranked #2 cannabis brand in Canada (4.7% share) and #3 in flower (4.9% share) despite supply constraints.
  • Vape Category Strength:: Spinach secured #4 overall in vapes (6.5% share) and #2 in vape cartridges (8.4% share).
  • Financial Margins:: Gross margin improved to 43% ($14.5M) from 23% in Q2 2024, with adjusted EBITDA rising $12.7M YoY to $1.7M.
  • International Expansion:: Cronos Israel achieved 36% YoY revenue growth, with PEACE NATURALS as #1 flower brand in Israel (over 20% share).

Brand Performance and Product Innovation

The Spinach brand continued to be a standout performer, ending Q2 as the #2 cannabis brand in Canada with a 4.7% market share across formats. In the flower category, Spinach ranked #3 with 4.9% market share, while in the vape category, it achieved the #4 position overall with 6.5% share. The Lord Jones brand has strengthened its premium positioning with the launch of concentrates, including Lord Jones Live Resin Caviar. As Mike Gorenstein noted, "We're incredibly pleased with our strength in vapes and look forward to launching innovative products in this category."

International Business and Growth Prospects

Cronos Israel posted another record quarter, growing revenue by 36% year-over-year, with PEACE NATURALS ending the quarter as the #1 flower brand in Israel with well over 20% market share. The company's international business continues to demonstrate strong growth prospects, driven by the success of its core medical brand and value brand Lit.

Valuation and Outlook

With a P/S Ratio of 7.67 and an EV/EBITDA of -8.08, the market appears to be pricing in significant growth prospects for Cronos Group. Analysts estimate next year's revenue growth at 30.6%, which may justify the current valuation. However, the company's negative ROIC (%) of -5.21 and ROE (%) of 1.72 suggest that there are still challenges to be addressed. The company's cash position, with $834 million in cash, cash equivalents, and short-term investments, provides a solid foundation for future growth.

3. NewsRoom

Card image cap

Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Nov -10

Source:

Card image cap

Aurora Cannabis: Medical Sales Boom Worldwide, Cash Flow to Swing Positive – Quarterly Update Report

Nov -10

Source:

Card image cap

TSX Opportunities: Lion Copper and Gold Among 3 Promising Penny Stocks

Nov -07

Source:

Card image cap

Cronos: Q3 Earnings Snapshot

Nov -06

Source:

Card image cap

Cronos Group Reports 2025 Third Quarter Results

Nov -06

Source:

Card image cap

Cronos Brings Back Popular, Limited-Edition Spinach® Green Apple-Flavored Products for the Fall Season

Oct -28

Source:

Card image cap

Cronos Group Inc. to Hold 2025 Third Quarter Earnings Conference Call on November 6, 2025

Oct -23

Source:

Card image cap

Weekly Roundup on the Cannabis Sector & Psychedelic Sector

Oct -13

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (21.88%)

6. Segments

Cannabis Flower

Expected Growth: 21.97%

Cronos Group Inc.'s Cannabis Flower segment growth of 21.97% is driven by increasing demand for recreational cannabis, strategic partnerships, and expansion into new markets. Additionally, the company's focus on product innovation, quality, and branding has contributed to its market share growth.

Cannabis Extracts

Expected Growth: 21.97%

Cronos Group Inc.'s Cannabis Extracts segment growth of 21.97% is driven by increasing demand for vaporizable products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on R&D and innovation in extraction technologies has improved efficiency and quality, leading to higher sales volumes and revenue growth.

Other

Expected Growth: 11.6%

Cronos Group Inc.'s 11.6% growth is driven by increasing demand for cannabis products, strategic partnerships, and expansion into new markets. The company's diversified product portfolio, including vaporizers and edibles, also contributes to its growth. Additionally, Cronos' strong brand recognition and marketing efforts have helped to increase sales and revenue.

7. Detailed Products

Cannabis Flowers

High-quality, indoor-grown cannabis flowers for recreational and medicinal use

Vapes and Concentrates

Portable and convenient cannabis products for on-the-go consumption

Edibles and Beverages

Cannabis-infused food and drink products for a unique consumption experience

Topicals and Tinctures

Cannabis-based products for localized relief and wellness

CBD Products

Non-psychoactive cannabis products for wellness and self-care

Cannabis Oils

High-quality cannabis oils for medicinal and recreational use

8. Cronos Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Cronos Group Inc. operates in the cannabis industry, which has a moderate threat of substitutes. While there are alternative products available, such as pharmaceuticals and recreational drugs, cannabis has a unique value proposition that differentiates it from substitutes.

Bargaining Power Of Customers

Cronos Group Inc. has a diverse customer base, including recreational and medical cannabis users. However, the company's products are differentiated, and customers have limited bargaining power due to the regulated nature of the industry.

Bargaining Power Of Suppliers

Cronos Group Inc. relies on suppliers for inputs such as seeds, fertilizers, and equipment. While the company has some bargaining power due to its size, suppliers also have some leverage due to the specialized nature of the industry.

Threat Of New Entrants

The cannabis industry has a high threat of new entrants due to the growing demand and the relatively low barriers to entry. However, Cronos Group Inc. has a strong brand and established operations, which provide some protection against new entrants.

Intensity Of Rivalry

The cannabis industry is highly competitive, with many established players and new entrants vying for market share. Cronos Group Inc. faces intense competition from other licensed producers, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.23%
Debt Cost 3.95%
Equity Weight 99.77%
Equity Cost 9.33%
WACC 9.32%
Leverage 0.23%

11. Quality Control: Cronos Group Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Pacira BioSciences

A-Score: 5.3/10

Value: 8.1

Growth: 4.6

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Cronos Group

A-Score: 4.9/10

Value: 5.8

Growth: 8.0

Quality: 4.0

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Radius Health

A-Score: 4.9/10

Value: 6.8

Growth: 3.4

Quality: 1.4

Yield: 5.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Journey Medical

A-Score: 4.0/10

Value: 6.6

Growth: 3.3

Quality: 4.3

Yield: 0.0

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
ProPhase Labs

A-Score: 3.3/10

Value: 7.6

Growth: 0.3

Quality: 3.8

Yield: 3.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Alimera Sciences

A-Score: 2.5/10

Value: 2.4

Growth: 4.7

Quality: 2.3

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.51$

Current Price

3.51$

Potential

-0.00%

Expected Cash-Flows