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Cronos Group posted record Q1 2026 results, with consolidated net revenue of CAD 45.2 million, up 40% year over year, and adjusted EBITDA rising to CAD 5.1 million. Gross profit also improved, helped by stronger sales volumes and higher prices, especially in international markets.
Israel and other overseas markets were the main growth engines, with Cronos Israel delivering its ninth straight record quarter and international revenue up 97% year over year. Management said Peace Naturals, LIT and the newly launched Lord Jones are strengthening the company’s position abroad.
In Canada, Spinach and other brands gained meaningful share, including Spinach becoming the No. 1 vape brand and Cronos holding the top edible position. The company also ended the quarter with CAD 822 million in cash and no debt, and its board approved a new CAD 50 million share buyback program.
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Cronos Group (NASDAQ:CRON) reported record first-quarter 2026 net revenue and gross profit, with management pointing to growth in Israel, gains for its Spinach brand in Canada and continued international expansion as key drivers of the quarter.
Chairman, President and CEO Mike Gorenstein said Cronos “delivered record net revenue and gross profit in Q1 2026” as the company continued to execute on its strategic plan. He highlighted record net revenue from international markets and market share gains for Canadian brands, including Spinach reaching the No. 1 market share position in vapes.
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CFO Anna Shlimak said consolidated net revenue totaled CAD 45.2 million, up 40% year over year. She attributed the increase to higher cannabis flower sales in Israel, Canada and other countries, along with higher cannabis extract sales in Canada.
Shlimak said gross profit and adjusted gross profit were CAD 19.2 million in the quarter, representing 39% growth from adjusted gross profit in the first quarter of 2025. The increase was primarily due to higher sales volumes and higher average selling prices, which she said were largely driven by a mix shift toward Israel and other international markets that carry no excise tax.
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Operating expenses, excluding restructuring costs and impairments, were CAD 20.5 million, up CAD 3.3 million year over year. Shlimak said the increase was driven by higher general and administrative, sales and marketing, and research and development expenses. She noted that CAD 1.3 million of the increase in G&A was related primarily to transaction costs connected to the pending CanAdelaar acquisition.
Adjusted EBITDA was CAD 5.1 million, an improvement of CAD 2.8 million from the prior-year quarter. Shlimak said the gain reflected higher gross profit, partially offset by higher operating expenses. She described the quarter’s adjusted EBITDA as the second-highest in company history.
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Gorenstein said Cronos Israel delivered its ninth consecutive quarter of record net revenue, growing 53% year over year. He said the company extended its market share lead in Israel, with Peace Naturals ranking as the No. 1 brand in the country based on pharmacy data collected by Cronos.
The company also launched Lord Jones in Israel with a lineup of premium flower offerings, including cold-cured large flower buds in limited-time drops. Gorenstein said the initial reception was strong and showed that the brand’s premium positioning can translate across markets. He said Peace Naturals, LIT and Lord Jones now give Cronos a tiered product portfolio for Israeli pharmacies across multiple patient price points.
Outside Israel, Gorenstein said other international markets delivered 97% year-over-year growth and record quarterly net revenue, driven by continued momentum in Germany. He said Peace Naturals and LIT remain the “engine” of Cronos’s international performance.
In Canada, Gorenstein said Cronos brands generated 18% year-over-year retail sales growth, compared with industrywide sales growth of 2%, citing Hifyre data. Spinach ranked No. 1 across all vape formats in the first quarter with 9.8% market share, and also held the top position in vape cartridges with 11.1% share. Gorenstein said the three best-selling vape SKUs in Canada during the quarter were all Spinach cartridges.
Spinach PUFFERZ, the company’s all-in-one vape product, continued expanding distribution after an initial launch in select markets late last year. Gorenstein said PUFFERZ reached the No. 2 market share position in the all-in-one vape category in March 2026, four months after launch.
In edibles, Cronos maintained the No. 1 position with 20.8% market share, including 22.7% in gummies. Gorenstein said SOURZ by Spinach remained the category leader, with Fully Blasted multipacks occupying four of the top 10 edible SKUs in Canada, including the No. 1 SKU nationwide in the quarter.
In flower, Cronos moved from No. 4 to No. 3 quarter over quarter, which Gorenstein attributed to easing supply constraints following completion of the Cronos GrowCo expansion. In pre-rolls, the company introduced Spinach STIX, its first cylindrical-style pre-rolls, which helped Spinach climb to the No. 8 market share position in non-infused pre-rolls.
Shlimak said Cronos ended the quarter with CAD 822 million in cash, cash equivalents and short-term investments, down CAD 10 million from the fourth quarter of 2025. The decline reflected CAD 17 million of share repurchases, CAD 2 million of capital expenditures and CAD 2 million of withholding taxes paid on share-based compensation, partially offset by CAD 11 million of positive cash flow from operations before changes in working capital.
Gorenstein said the company has no debt and maintains what he called “the strongest balance sheet in the industry.” Cronos also announced that its board authorized a renewed CAD 50 million share repurchase program. Gorenstein said the authorization reflects the board’s belief in the long-term value of the business and the company’s ability to invest in organic growth, M&A and buybacks.
Cronos also remains focused on its pending acquisition of CanAdelaar, which Gorenstein described as the largest company operating in the Netherlands’ legal adult-use cannabis program and the only industrial-scale greenhouse cultivator in that market. He said completion of the transaction is expected in summer 2026, subject to closing conditions.
During the question-and-answer session, Gorenstein said the GrowCo expansion is now planted and has the necessary throughput, though additional efficiencies are expected over coming quarters. He said future gains are likely to be incremental rather than a “dramatic step change.”
Asked about U.S. rescheduling developments, Gorenstein called the announcement “one of the most significant milestones” in the U.S. regulatory environment in the past decade. He said Cronos is monitoring details, including potential interstate and international implications, before determining where it may participate.
Gorenstein also said competitive dynamics in Canada are not as difficult as in prior periods, in part because of demand from Europe. He said Cronos’s scale and improved fixed-cost absorption give the company flexibility to compete while protecting margins.
Looking ahead, Gorenstein said Cronos enters the rest of 2026 with momentum, financial flexibility and an expanding production platform, supported by the GrowCo expansion and the expected CanAdelaar acquisition.
Cronos Group Inc is a Canadian cannabinoid company dedicated to the cultivation, production and distribution of cannabis and cannabidiol (CBD) products for both medical and adult-use markets. Headquartered in Toronto, Ontario, the company manages operations that span the full cannabis value chain, including breeding, greenhouse cultivation, extraction, product formulation and packaging. Cronos Group's business model emphasizes innovation in product development and scalability in manufacturing to meet evolving regulatory and consumer demands.
The company's branded portfolio includes Peace Naturals, which focuses on pharmaceutical-grade medical cannabis; Spinach, a line of adult-use cannabis oils and tinctures; and Cove, a range of wellness-oriented CBD offerings.
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The article "Cronos Group Q1 Earnings Call Highlights" was originally published by MarketBeat.
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