Canada's Cronos Group Q2 revenue beats estimates on higher cannabis flower sales
CRON•Drivers and outlook
- Higher cannabis flower sales in Israel and Germany, which carry no excise taxes, drove revenue growth
- Higher average sales prices, largely driven by a mix shift to Israel and other countries, and higher sales volumes boosted gross profit
- Strengthening of the New Israeli Shekel versus the U.S. dollar benefited net revenue
- Company expects the CanAdelaar acquisition to close in H2 2026, pending regulatory clearance
- Company says its strong balance sheet supports investment in growth and capital returns
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.
Quarterly results beat estimates
- 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
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $53.007 mln | $44.20 mln (3 Analysts) |
| Q2 Net Income | $35.70 mln | ||
