Cronos Group Inc.CRON
Cronos Group Inc. Segments Disclosure
Segment Information
Segment reporting is prepared on the same basis that the CODM manages the business, makes operating decisions and assesses the Company’s performance. The CODM is the Company’s Chief Executive Officer. The Company operates as a single segment with the purpose of providing high-quality cannabis products to adult-use, wholesale, and medical market customers globally. The consolidated results are regularly reviewed by the CODM to assess the performance of the Company’s single segment operations and make decisions regarding the allocation of resources. The CODM reviews adjusted earnings (loss) before interest, tax, depreciation and amortization (“Adjusted EBITDA”) as the measure of segment profit or loss to evaluate performance of and allocate resources for its reportable segment. Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and non-cash items and items that do not reflect management’s assessment of ongoing business performance. The CODM believes Adjusted EBITDA provides the most useful insight into underlying business trends and results and provides a more meaningful comparison of period-over-period results. In addition, certain significant expenses are regularly reviewed by the CODM and considered for business decisions and allocation of resources; these significant expenses include: sales and marketing, research and development, general and administrative, depreciation and amortization, and share-based compensation expense, which are presented within operating expenses on the Company’s consolidated statements of net income (loss) and comprehensive income (loss). Furthermore, the CODM regularly reviews total cash and short-term investments to aid in capital allocation decisions.
The tables below set forth consolidated Adjusted EBITDA and significant expenses for our single segment (after adoption of ASU 2023-07):
| Year ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Adjusted EBITDA | $ | 10,110 | $ | (34,942) | $ | (63,746) | ||||||||||||||
| Significant expenses: | ||||||||||||||||||||
| Sales and marketing | 21,764 | 21,603 | 22,701 | |||||||||||||||||
| Research and development | 4,449 | 4,229 | 5,843 | |||||||||||||||||
| General and administrative | 41,999 | 46,514 | 49,475 | |||||||||||||||||
| Share-based compensation | 7,050 | 8,700 | 8,756 | |||||||||||||||||
| Depreciation and amortization | 2,119 | 3,701 | 5,044 | |||||||||||||||||
| Total significant expenses | 77,381 | 84,747 | 91,819 | |||||||||||||||||
| Restructuring costs | 2,037 | 630 | 1,524 | |||||||||||||||||
Impairment loss on goodwill and indefinite-lived intangible assets | 700 | — | — | |||||||||||||||||
| Impairment loss on long-lived assets | 36 | 16,350 | 3,366 | |||||||||||||||||
| Total operating expense | $ | 80,154 | $ | 101,727 | $ | 96,709 | ||||||||||||||
The following tables set forth a reconciliation of net income (loss) as determined in accordance with U.S. GAAP to Adjusted EBITDA for the periods indicated (after adoption of ASU 2023-07):
| (in thousands of U.S. dollars) | For the year ended December 31, 2025 | ||||||||||||||||
| Continuing Operations | Discontinued Operations | Total | |||||||||||||||
| Net loss | $ | (2,929) | $ | — | $ | (2,929) | |||||||||||
| Interest income, net | (39,963) | — | (39,963) | ||||||||||||||
| Income tax benefit | (14,191) | — | (14,191) | ||||||||||||||
| Depreciation and amortization | 14,231 | — | 14,231 | ||||||||||||||
| EBITDA | (42,852) | — | (42,852) | ||||||||||||||
Impairment loss on goodwill and indefinite-lived intangible assets(i) | 700 | — | 700 | ||||||||||||||
Impairment loss on long-lived assets(ii) | 36 | — | 36 | ||||||||||||||
Loss on revaluation of financial instruments(v) | 452 | — | 452 | ||||||||||||||
| Foreign currency transaction loss | 28,588 | — | 28,588 | ||||||||||||||
Transaction costs(vii) | 1,965 | — | 1,965 | ||||||||||||||
Loss on held-for-sale assets(viii) | 5,532 | — | 5,532 | ||||||||||||||
Other, net(ix) | 241 | — | 241 | ||||||||||||||
Restructuring costs(x) | 2,037 | — | 2,037 | ||||||||||||||
Share-based compensation(xi) | 7,050 | — | 7,050 | ||||||||||||||
Restatement litigation costs(xii) | 275 | — | 275 | ||||||||||||||
Inventory step-up recorded to cost of sales(xiii) | 517 | — | 517 | ||||||||||||||
Israel Ministry of Economy and Industry dumping inquiry(xiv) | 694 | — | 694 | ||||||||||||||
Change in allowance for credit loss on non-operating loan(xv) | 4,875 | — | 4,875 | ||||||||||||||
| Adjusted EBITDA | $ | 10,110 | $ | — | $ | 10,110 | |||||||||||
| (in thousands of U.S. dollars) | For the year ended December 31, 2024 | ||||||||||||||||
| Continuing Operations | Discontinued Operations | Total | |||||||||||||||
Net income | $ | 40,022 | $ | — | $ | 40,022 | |||||||||||
| Interest income, net | (52,019) | — | (52,019) | ||||||||||||||
| Income tax benefit | (3,436) | — | (3,436) | ||||||||||||||
| Depreciation and amortization | 9,336 | — | 9,336 | ||||||||||||||
| EBITDA | (6,097) | — | (6,097) | ||||||||||||||
| Share of income from equity method investments | (2,365) | — | (2,365) | ||||||||||||||
Impairment loss on long-lived assets(ii) | 16,350 | — | 16,350 | ||||||||||||||
Revaluation gain on loan receivable(iii) | (11,804) | — | (11,804) | ||||||||||||||
Gain on revaluation of equity method investment(iv) | (32,469) | — | (32,469) | ||||||||||||||
Loss on revaluation of financial instruments(v) | 6,248 | — | 6,248 | ||||||||||||||
Impairment loss on other investments(vi) | 25,650 | — | 25,650 | ||||||||||||||
| Foreign currency transaction gain | (57,859) | — | (57,859) | ||||||||||||||
Transaction costs(vii) | 701 | — | 701 | ||||||||||||||
Loss on held-for-sale assets(viii) | 11,202 | — | 11,202 | ||||||||||||||
Other, net(ix) | 301 | — | 301 | ||||||||||||||
Restructuring costs(x) | 630 | — | 630 | ||||||||||||||
Share-based compensation(xi) | 8,700 | — | 8,700 | ||||||||||||||
Restatement litigation costs(xii) | (1) | — | (1) | ||||||||||||||
Inventory step-up recorded to cost of sales(xiii) | 5,284 | — | 5,284 | ||||||||||||||
Israel Ministry of Economy and Industry dumping inquiry(xiv) | 587 | — | 587 | ||||||||||||||
| Adjusted EBITDA | $ | (34,942) | $ | — | $ | (34,942) | |||||||||||
| (in thousands of U.S. dollars) | For the year ended December 31, 2023 | ||||||||||||||||
| Continuing Operations | Discontinued Operations | Total | |||||||||||||||
| Net loss | $ | (70,439) | $ | (4,114) | $ | (74,553) | |||||||||||
| Interest income, net | (51,235) | (10) | (51,245) | ||||||||||||||
| Income tax benefit | (3,230) | — | (3,230) | ||||||||||||||
| Depreciation and amortization | 7,866 | 244 | 8,110 | ||||||||||||||
| EBITDA | (117,038) | (3,880) | (120,918) | ||||||||||||||
| Share of income from equity method investments | (1,583) | — | (1,583) | ||||||||||||||
Impairment loss on long-lived assets(ii) | 3,366 | 205 | 3,571 | ||||||||||||||
Loss on revaluation of financial instruments(v) | 12,042 | — | 12,042 | ||||||||||||||
Impairment loss on other investments(vi) | 23,350 | — | 23,350 | ||||||||||||||
| Foreign currency transaction loss | 7,324 | — | 7,324 | ||||||||||||||
Other, net(ix) | (1,029) | 118 | (911) | ||||||||||||||
Restructuring costs(x) | 1,524 | 523 | 2,047 | ||||||||||||||
Share-based compensation(xi) | 8,756 | 13 | 8,769 | ||||||||||||||
Restatement litigation costs(xii) | 919 | — | 919 | ||||||||||||||
Inventory write-down(xvi) | 805 | 839 | 1,644 | ||||||||||||||
| Adjusted EBITDA | $ | (61,564) | $ | (2,182) | $ | (63,746) | |||||||||||
(i)For the year ended December 31, 2025, impairment loss on goodwill and indefinite-lived intangible assets related to our Lord Jones® brand intangible asset, which was assessed for impairment in the fourth quarter of 2025. There were no such impairment losses in the years ended December 31, 2024 and 2023. See Note 8 “Goodwill and Intangible Assets, net.”
(ii)For the year ended December 31, 2025, impairment loss on long-lived assets related to equipment no longer in use. For the year ended December 31, 2024, impairment loss on long-lived assets included $14,258 related to the write-down of our Ginkgo Exclusive Licenses and $1,631 related to the winding down of operations at the Cronos Fermentation Facility. For the year ended December 31, 2023, impairment loss on long-lived assets related to certain leased properties associated with the Company’s former U.S. operations and impairment of the Ginkgo Collaboration Agreement’s CBCVA exclusive license. See Note 7 “Property, Plant and Equipment, net” and Note 8 “Goodwill and Intangible Assets, net.”
(iii)For the year ended December 31, 2024, a revaluation gain on loan receivable was recognized as a result of the Cronos GrowCo Transaction on July 1, 2024.
(iv)For the year ended December 31, 2024, a gain on revaluation of equity method investment was recognized as a result of the Cronos GrowCo Transaction on July 1, 2024.
(v)For the year ended December 31, 2025, the loss on revaluation of financial instruments was driven by the Company’s equity securities in Vitura, partially offset by a gain related to the High Tide Warrant. For the years ended December 31, 2024 and 2023, loss on revaluation of financial instruments related primarily to the Company’s equity securities in Vitura. See Note 5 “Investments.”
(vi)For the years ended December 31, 2024 and 2023, impairment loss on other investments represented the fair value change on the PharmaCann Option. See Note 5 “Investments.”
(vii)For the years ended December 31, 2025 and 2024, transaction costs represented legal, financial and other advisory fees and expenses incurred in connection with the Cronos GrowCo Transaction and the pending acquisition of CanAdelaar. These costs are included in general and administrative expenses on the consolidated statements of net income (loss) and comprehensive income (loss).
(viii)For the years ended December 31, 2025 and 2024, a loss on held-for-sale assets related to a revaluation of the Cronos Fermentation Facility held-for-sale asset group.
(ix)For the year ended December 31, 2025, other, net related to (gain) loss on disposal of assets and dividend income. For the years ended 2024 and 2023, other, net primarily related to (gain) loss on disposal of assets and (gain) loss on revaluation of derivative liabilities.
(x)For the year ended December 31, 2025, restructuring costs from continuing operations related to employee-related severance costs and IT infrastructure and finance transformation costs associated with the Realignment, as described in Note 18 “Restructuring.” For the year ended December 31, 2024, restructuring costs from continuing operations related to shutdown costs at the Cronos Fermentation Facility, as well as employee-related severance costs associated with the Realignment, as described in Note 18 “Restructuring.” For the year ended December 31, 2023 restructuring costs related to the employee-related severance costs and other restructuring costs associated with the Realignment.
(xi)For the year ended December 31, 2025, share-based compensation related to the expenses of share-based compensation awarded to employees and our DSUs issued to certain members of our Board of Directors, each under the Company’s share-based award plans, as described in Note 10 “Share-based Compensation.” For the years ended December 31, 2024 and 2023, share-based compensation related to the vesting expenses of share-based compensation awarded to employees under our share-based award plans, as described in Note 10 “Share-based Compensation.”
(xii)For the years ended December 31, 2025, 2024 and 2023, restatement litigation costs included legal costs incurred defending shareholder class action complaints brought against the Company as a result of the 2019 restatement.
(xiii)For the years ended December 31, 2025 and 2024, inventory step-up recorded to cost of sales represented the portion of the inventory step-up from the Cronos GrowCo Transaction that was recorded through the consolidated statements of income (loss) and comprehensive income (loss).
(xiv)For the year ended December 31, 2024, Israel Ministry of Economy and Industry dumping inquiry expense included expenditures relating to the regulatory inquiry about alleged dumping of medical cannabis products in Israel and related litigation and external relations expenses.
(xv)For the year ended December 31, 2025, change in allowance for credit loss on non-operating loan represents the allowance recognized on the High Tide loan receivable and adjustments thereto, as described in Note 6, “Loans Receivable, net.”
(xvi)For the year ended December 31, 2023, inventory write-downs from discontinued operations related to product destruction and obsolescence associated with the exit of our U.S. operations as described in Note 3 “Discontinued Operations” and inventory write-downs from continuing operations related to product destruction and obsolescence associated with the winding down of operations at the Cronos Fermentation Facility, as described in Note 18 “Restructuring.”
The following table presents the Company’s revenue by major product category for our single segment (after adoption of ASU 2023-07):
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cannabis flower | $ | 108,476 | $ | 87,912 | $ | 62,070 | |||||||||||
| Cannabis extracts | 37,700 | 29,168 | 24,569 | ||||||||||||||
| Other | 411 | 535 | 602 | ||||||||||||||
| Net revenue | $ | 146,587 | $ | 117,615 | $ | 87,241 | |||||||||||
Net revenue attributed to a geographic region based on the location of the customer was as follows (after adoption of ASU 2023-07):
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Canada | $ | 90,330 | $ | 82,437 | $ | 64,702 | |||||||||||
| Israel | 41,796 | 28,368 | 21,134 | ||||||||||||||
| Other countries | 14,461 | 6,810 | 1,405 | ||||||||||||||
| Net revenue | $ | 146,587 | $ | 117,615 | $ | 87,241 | |||||||||||
The table below sets forth total cash and cash equivalents and short-term investments for our single segment:
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Total cash and cash equivalents and short-term investments | $ | 831,794 | $ | 858,805 | ||||||||||
Property, plant and equipment, net were physically located in the following geographic regions:
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Canada | $ | 129,352 | $ | 117,329 | |||||||
| Israel | 16,513 | 15,860 | |||||||||
| Total | $ | 145,865 | $ | 133,189 | |||||||
Intangibles, net were physically located in the following geographic regions:
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Canada | $ | 8,551 | $ | 10,887 | |||||||
| Israel | 339 | 370 | |||||||||
| Total | $ | 8,890 | $ | 11,257 | |||||||
For additions to our property, plant and equipment, net and intangibles, net in the years ended December 31, 2025, 2024 and 2023, please see the consolidated statements of cash flows.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.