What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-11 compared with 2025-11-06 · 216 added, 343 removed, 290 unchanged (66% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read together with other information, including the Company’s condensed consolidated interim financial statements and the related notes to those statements, included in Part I, Item 1 of this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 (this “Quarterly Report”), consolidated financial statements appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “Annual Report”), Part I, Item 1A, Risk Factors, of the Annual Report and Part II, Item 1A, Risk Factors, of this Quarterly Report.

The following discussion and analysis should be read together with other information, including the Company’s condensed consolidated financial statements and the related notes to those statements, included in Part I, Item 1 of this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 (this “Quarterly Report”), consolidated financial statements appearing in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”), Part I, Item 1A, Risk Factors, of the Annual Report and Part II, Item 1A, Risk Factors, of this Quarterly Report.

Forward-Looking Statements

This Quarterly Report, the documents incorporated into this Quarterly Report by reference, other reports we file with, or furnish to, the SEC and other regulatory agencies, and statements by our directors, officers, other employees and other persons authorized to speak on our behalf contain information that may constitute forward-looking information and forward-looking statements within the meaning of applicable U.S.

This Quarterly Report, the documents incorporated into this Quarterly Report by reference, other reports we file with, or furnish to, the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and other regulatory agencies, and statements by our directors, officers, other employees and other persons authorized to speak on our behalf contain information that may constitute forward-looking information and forward-looking statements within the meaning of applicable U.S.

and Canadian securities laws and court decisions (collectively, “Forward-Looking Statements”), which are based upon our current internal expectations, estimates, projections, assumptions and beliefs.

All information that is not clearly historical in nature may constitute Forward-Looking Statements.

In some cases, Forward-Looking Statements can be identified by the use of forward-looking terminology, such as “expect,” “likely,” “may,” “will,” “should,” “intend,” “anticipate,” “potential,” “proposed,” “estimate” and other similar words, expressions and phrases, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussion of strategy.

Information that is not clearly historical in nature may constitute Forward-Looking Statements.

In some cases, Forward-Looking Statements can be identified by the use of forward-looking terminology, such as “expect,” “likely,” “may,” “will,” “should,” “intend,” “anticipate,” “potential,” “proposed,” “estimate,” “believe,” “plan” and other similar words, expressions and phrases, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussion of strategy.

Forward-Looking Statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of historical fact.

1 unchanged sentence

• the ongoing impact of the public investigation into Canadian licensed producers of alleged dumping of medical cannabis imports from Canada into Israel by the Trade Levies Commissioner of the Israel Ministry of Economy and Industry (the “Anti-Dumping Investigation”) and the proposed anti-dumping duty to which the Company’s imports would be subject;

• expectations related to the conflict involving Israel, Hamas, Hezbollah, Houthis, Iran, Iran’s proxies and other stakeholders in the region (the “Middle East Conflict”) and its impact on our operations in Israel, the supply of product in the market and the demand for product by medical patients in Israel, as well as any regional or global escalations and their impact to global commerce and stability;

• expectations related to the German, Australian, United Kingdom (“UK”), Swiss, and Malta markets and our ability to successfully distribute the PEACE NATURALS ® brand in our overseas markets;

• expectations related to our announcement of cost-cutting measures, including our decision to wind down operations at our Winnipeg, Manitoba facility (the “Cronos Fermentation Facility”) the expected costs and benefits from the wind-down of production activities, and the pending the sale of the Cronos Fermentation Facility, as well as changes in strategy, metrics, investments, costs, operating expenses, employee turnover and other changes with respect thereto;

• expectations related to the conflict involving the United States, Israel, Hamas, Hezbollah, Houthis, Iran, Iran’s proxies and other stakeholders in the region (the “Middle East Conflict”) and its impact on our operations in Israel, the supply of product in the market and the demand for product by medical patients in Israel, as well as any regional or global escalations and their impact to global commerce and stability;

• expectations related to markets outside of Canada and Israel, and our ability to successfully distribute the PEACE NATURALS ® brand in those markets;

• expectations related to the impact of our decision to exit our U.S.

5 unchanged sentences

• expectations regarding the potential success of, and the costs and benefits associated with, our joint ventures, strategic alliances and equity investments;

• expectations related to the transaction by which we obtained majority control of the board of directors of Cronos GrowCo (the “Cronos GrowCo Transaction”), which qualified as a business combination under Accounting Standards Codification (“ASC”) 805, the expansion of Cronos GrowCo’s purpose-built cultivation and processing facilities and any additional supply provided, and growth (including in the wholesale market) driven, thereby;

• expectations related to transaction by which we obtained majority control of the board of directors of Cronos GrowCo (the “Cronos GrowCo Transaction”), which qualified as a business combination under Accounting Standards Codification (“ASC”) 805, and the expansion of Cronos GrowCo’s purpose-built cultivation and processing facilities and any additional supply or growth opportunities (including in the wholesale market) provided thereby;

• expectations related to the transaction by which we, as lender, obtained junior secured convertible debt (the “High Tide Loan”) from High Tide Inc.

(“High Tide”), as borrower, and a warrant (the “High Tide Warrant”) to purchase common shares of High Tide, the performance of the High Tide Loan and the High Tide Warrant, and High Tide’s ability to repay the High Tide Loan;

• expectations related to our agreement to acquire CanAdelaar B.V.

(“CanAdelaar”), including the timing and completion of the transaction, and the anticipated costs, benefits and integration matters associated therewith and the performance of the business from and following closing;

• expectations related to the impact of the renewed share repurchase program that was authorized on May 8, 2026, including the timing and amount of repurchases;

• our ability or plans to identify, develop, commercialize or expand our technology and research and development (“R&D”) initiatives in cannabinoids, or the success thereof;

2 unchanged sentences

• the ongoing impact of the legalization of additional cannabis product types and forms for adult-use in Canada, including federal, provincial, territorial and municipal regulations pertaining thereto, the related timing and impact thereof and our intentions to participate in such markets;

• the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of Canada, including the U.S.

and Germany, the related timing and impact thereof and our intentions to participate in such markets, if and when such use is legalized;

• the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of Canada, the related timing and impact thereof and our intentions to participate in such markets, if, when and to the extent such use is legalized;

• the grant, renewal, withdrawal, suspension, delay and impact of any license or supplemental license to conduct activities with cannabis or any amendments thereof;

• our ability to successfully create and launch brands and cannabis products;

• our ability to successfully create, launch and scale brands and cannabis products;

• expectations related to the differentiation of our products, including through the utilization of rare cannabinoids;

4 unchanged sentences

hemp-derived cannabinoids) products and the scope of any regulations by the U.S.

Department of Health and Human Services (“HHS”), U.S.

Food and Drug Administration (the “FDA”), the U.S.

3 unchanged sentences

hemp (including CBD and other U.S.

hemp-derived cannabinoids) products, including the possibility marijuana is moved from Schedule I to Schedule III under the U.S.

Controlled Substances Act;

hemp-derived cannabinoids) products, including the final order issued by the U.S.

Department of Justice (the “DOJ”) in April 2026, which moved certain categories of medical marijuana products from Schedule I to Schedule III of the U.S.

Controlled Substances Act and any future actions that may be taken or considered by the DOJ or other government agencies;

• the anticipated benefits and impact of Altria Group, Inc.’s investment in the Company (the “Altria Investment”), pursuant to a subscription agreement dated December 7, 2018;

4 unchanged sentences

• our compliance with the terms of the settlement (the “Settlement Order”) with the SEC and the settlement agreement (the “Settlement Agreement”) with the Ontario Securities Commission (the “OSC”);

• the impact of the loss of our ability to rely on private offering exemptions under Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), and the loss of our status as a well-known seasoned issuer, each as a result of the Settlement Order.

• the impact of the loss of our ability to rely on private offering exemptions under Regulation A and Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), as a result of the Settlement Order.

Certain of the Forward-Looking Statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable.

4 unchanged sentences

(ii) our ability to effectively navigate developments related to the Middle East Conflict and its impact on our employees and operations in Israel, the supply of product in the market and demand for product by medical patients in Israel;

(iii) our ability to efficiently and effectively distribute our PEACE NATURALS ® brand in our overseas markets;

(iv) our ability to realize the expected cost-savings and other benefits related to the wind-down of our operations and pending sale of the Cronos Fermentation Facility;

(v) expectations related to the impact of our decision to exit our U.S.

(iii) our ability to efficiently and effectively distribute our PEACE NATURALS ® brand in markets outside of Canada and Israel;

(iv) expectations related to the impact of our decision to exit our U.S.

hemp-derived cannabinoid product operations;

(vi) our ability to realize the expected cost-savings, efficiencies and other benefits of our Realignment and other announced cost-cutting measures and employee turnover related thereto;

(vii) our ability to efficiently and effectively manage our operations at our Peace Naturals Campus;

(viii) our ability to efficiently and effectively acquire raw materials on a timely and cost-effective basis from third parties or Cronos GrowCo;

(ix) our ability to realize the expected benefits related to the expansion of Cronos GrowCo’s purpose-built cannabis facility (including the quality of any additional supply provided thereby and the stability of pricing and demand with respect to such supply) and the ability of Cronos GrowCo to repay the credit facility provided by Cronos;

(x) High Tide’s ability to repay the High Tide Loan, the performance of the High Tide Loan and the High Tide Warrant, and our ability to realize benefits related to the performance of the High Tide Warrant;

(v) our ability to realize the expected cost-savings, efficiencies and other benefits of our Realignment and other announced cost-cutting measures and employee turnover related thereto;

(vi) our ability to efficiently and effectively manage our operations at our Peace Naturals Campus;

(vii) our ability to efficiently and effectively acquire raw materials on a timely and cost-effective basis from third parties or Cronos GrowCo;

(viii) our ability to realize the expected benefits related to the expansion of Cronos GrowCo’s purpose-built cannabis facility (including the quantity and quality of any additional supply provided thereby and the stability of pricing and demand with respect to such supply) and the ability of Cronos GrowCo to repay the credit facility provided by Cronos;

(ix) High Tide’s ability to repay the High Tide Loan, the performance of the High Tide Loan and the High Tide Warrant, and our ability to realize benefits related to the performance of the High Tide Warrant;

(x) our ability to complete the acquisition of CanAdelaar on the terms and within the timelines anticipated, including the timely receipt of required regulatory approvals and the satisfaction of other closing conditions, and our ability to realize any expected benefits, synergies and operational performance associated with such acquisition;

(xi) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our business combinations and strategic investments;

2 unchanged sentences

(xiv) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses;

(xv) consumer interest in our products;

(xv) consumer interest in and the scalability of our products;

(xvi) our ability to differentiate our products, including through the utilization of rare cannabinoids;

12 unchanged sentences

Such factors include, without limitation, negative impacts on our business and operations in Israel due to the Anti-Dumping Investigation, including that we may not be able to produce, import or sell our products in Israel as a result thereof;

that we may not be able to successfully continue to distribute our products in Germany, Australia, the UK, Switzerland and Malta or generate material revenue from sales in those markets;

that we may not be able to achieve the anticipated benefits of the wind-down of our operations or pending sale of the Cronos Fermentation Facility;

that we may be unable to further streamline our operations and reduce expenses;

negative impacts on our employees, business and operations in Israel due to the Middle East Conflict, including that we may not be able to produce, import or sell our products or protect our people or facilities in Israel during the Middle East Conflict, the supply of product in the market and the demand for product by medical patients in Israel, and inflationary pressures and related increases in input, production, transportation and other operating costs, as well as potential impacts on consumer purchasing power;

that we may not be able to successfully maintain or expand distribution of our products in our markets outside of Canada or Israel or generate meaningful revenue in those markets;

that we may be unable to further streamline our operations and expenses;

that we may not be able to effectively and efficiently re-enter the U.S.

3 unchanged sentences

that the expected benefits of the High Tide Warrant and the High Tide Loan may not be fully realized within a reasonable time or at all or that High Tide may not be able to repay its borrowings under the High Tide Loan;

that we may not be able to consummate our planned acquisition of CanAdelaar on the anticipated timeline or at all;

the military conflict between Russia and Ukraine may disrupt our operations and those of our suppliers and distribution channels and negatively impact the demand for and use of our products;

4 unchanged sentences

lower levels of revenues;

the lack of consumer demand for our products;

the lack of consumer demand for or our inability or challenges in successfully scaling our products;

our inability to manage disruptions in credit markets;

1 unchanged sentence

failure to realize expected growth opportunities;

the lack of cash flow necessary to execute our business plan (either within the expected timeframe or at all);

the lack of cash flow necessary to execute our business plan (either within the expected timeframe or at

difficulty raising capital;

7 unchanged sentences

our failure to improve our internal control environment and our systems, processes and procedures;

and the factors discussed

under Part I, Item 1A “Risk Factors” in our Annual Report and under Part II, Item 1A “Risk Factors” in this Quarterly Report.

and the factors discussed under Part II, Item 1A “Risk Factors” in this Quarterly Report.

Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on Forward-Looking Statements.

8 unchanged sentences

All references to “dollars” or “$” are to U.S.

The assets and liabilities of our foreign operations are translated into dollars at the exchange rate in effect as of September 30, 2025, September 30, 2024, and December 31, 2024.

The assets and liabilities of our foreign operations are translated into dollars at the exchange rate in effect as of March 31, 2026, March 31, 2025, and December 31, 2025.

Transactions affecting the shareholders’ equity (deficit) are translated at historical foreign exchange rates.

The condensed consolidated statements of net income (loss) and comprehensive income (loss) and condensed consolidated statements of cash flows of our foreign operations are translated into dollars by applying the average foreign exchange rate in effect for the reporting period as reported on Bloomberg.

The exchange rates used to translate from Canadian dollars (“C$”) to dollars is shown below:

The exchange rates used to translate from Canadian dollars (“C$”) to dollars are shown below:

(Exchange rates are shown as C$ per $) As of

September 30, 2025 September 30, 2024 December 31, 2024

March 31, 2026 March 31, 2025 December 31, 2025

Spot rate 1.3916 1.4393 1.3698

1 unchanged sentence

1.3720 1.4356 N/A

The exchange rates used to translate from New Israeli Shekels (“ILS”) to dollars is shown below:

The exchange rates used to translate from New Israeli Shekels (“ILS”) to dollars are shown below:

(Exchange rates are shown as ILS per $) As of

September 30, 2025 September 30, 2024 December 31, 2024

March 31, 2026 March 31, 2025 December 31, 2025

Spot rate 3.1441 3.7191 3.1863

2 unchanged sentences

Business Overview

Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development.

Cronos is a global cannabis company focused on scaling leading consumer goods products through research and development and innovation.

With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio.

Cronos’ diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® and Lord Jones ® .

Cronos’ diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® , LIT™ and Lord Jones ® .

Cronos seeks to create value for shareholders by focusing on four core strategic priorities:

6 unchanged sentences

In Canada, Cronos operates one wholly owned license holder under the Cannabis Act (Canada) (the “Cannabis Act”), Peace Naturals Project Inc.

(“Peace Naturals”), which has production facilities near Stayner, Ontario (the “Peace Naturals Campus”).

On July 1, 2024, the Company obtained majority control of the board of directors of Cronos GrowCo, a license holder under the Cannabis Act, which qualified as a business combination under ASC 805.

As a result, the Company now consolidates the results of operations of Cronos GrowCo in its consolidated financial statements.

(“Peace Naturals”), which has production facilities in Stayner, Ontario (the “Peace Naturals Campus”).

Cronos also consolidates the results of operations of Cronos GrowCo in its consolidated financial statements.

Cronos maintains its 50% equity interest in Cronos GrowCo.

In Israel, the Company operates under the IMC-GAP, IMC-GMP and IMC-GDP certifications required for the cultivation, production, distribution and marketing of medical cannabis products in Israel.

Cronos GrowCo’s production facilities are licensed under the Cannabis Act and represent the Company’s principal source of cannabis.

In Israel, the Company operates under the Good Agricultural Practices (“IMC-GAP”), Good Manufacturing Practices (“IMC-GMP”) and Good Distribution Practices (“IMC-GDP”) certifications required for the cultivation, production, distribution and marketing of medical cannabis products in Israel.

Recent Developments

Cronos GrowCo Expansion

The Cronos GrowCo expansion is now complete and sales from the expansion commenced in Fall 2025.

The Company believes this additional supply will fuel growth internationally and within the domestic Canadian market and the wholesale market in 2026.

As with any cultivation expansion, it typically takes time to fully optimize the new facility, and while we are on-schedule and making great progress, we expect improvement over time.

CanAdelaar Acquisition

On December 9, 2025, the Company entered into a definitive share sale and purchase agreement (the “SPA”) to acquire all of the issued and outstanding shares of CanAdelaar, one of ten licensed cannabis producers participating in the Dutch Controlled Cannabis Supply Chain Experiment.

On May 8, 2026, the Company entered into an amendment to the SPA pursuant to which the parties agreed to extend the Long Stop Date (as defined in the SPA) for closing of the acquisition from June 9, 2026 to September 9, 2026.

The extension provides additional time to satisfy certain closing conditions, including obtaining required regulatory clearances in the Netherlands, receipt of confirmations relating to CanAdelaar’s licenses and completion of the Bibob review (a background check conducted by Dutch authorities).

No other material changes were made to the terms of the transaction.

The Company expects the acquisition to close in the summer of 2026.

Conflict in Middle East

The Middle East Conflict, including the recent escalation involving the United States, Israel and Iran, has contributed to increased energy and shipping costs.

While the impact of these cost increases on the Company’s results for the three months ended March 31, 2026, was not material, the Company expects such cost pressures to have an adverse effect on gross margins in the second quarter of 2026.

The Company is monitoring these impacts and pursuing mitigation efforts through supply chain optimization and cost reduction initiatives.

Marijuana Scheduling Developments

In April 2026, the DOJ announced a final rule placing certain FDA-approved marijuana products and marijuana products subject to qualifying state medical marijuana licenses in Schedule III of the U.S.

Controlled Substances Act and announced a new administrative hearing process regarding the broader proposed rescheduling of marijuana.

The Company continues to monitor these developments and assess whether they may have any implications for its business.

Consolidated Results of Operations

2 unchanged sentences

Our condensed consolidated financial results for these periods are not necessarily indicative of the consolidated financial results that we will achieve in future periods .

Three months ended September 30, Nine months ended September 30,

2025 2024 2025 2024

Three months ended March 31,

Net revenue, before excise taxes $ 58,965 $ 41,898

11 unchanged sentences

Depreciation and amortization 425 496

Impairment loss on long-lived assets 36 14,376 36 16,350

Total operating expenses 20,986 17,806

1 unchanged sentence

19,972 11,340

Income tax benefit (1,316) (2,708) (2,296) (5,440)

Net income (loss) 28,321 7,324 (2,438) (3,919)

Net income (loss) attributable to non-controlling interest 2,363 (1,025) 5,193 (1,270)

Net income (loss) attributable to Cronos Group $ 25,958 $ 8,349 $ (7,631) $ (2,649)

Income tax provision (benefit) 2,428 (455)

Net income 15,711 7,723

Net income attributable to non-controlling interest 1,959 1,601

Net income attributable to Cronos Group $ 13,752 $ 6,122

Summary of select financial results

Three months ended September 30, Change Nine months ended September 30, Change

Three months ended March 31, Change

2026 2025 $ %

1 unchanged sentence

Cost of sales 25,392 18,528 6,864 37 %

Inventory write-down 506 312 194 62 % 592 707 (115) (16) %

Inventory write-down 665 — 665 N/A

Gross profit 19,153 $ 13,734 5,419 39 %

Gross margin (i)

50 % 11 % N/A 39 pp 46 % 16 % N/A 30 pp

42 % 43 % N/A (1) pp

(i) Gross margin is defined as gross profit divided by net revenue.

For the three months ended September 30, 2025, we reported consolidated net revenue of $36.3 million, representing an increase of $2.1 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, we reported consolidated net revenue of $102.1 million, representing an increase of $14.7 million from the nine months ended September 30, 2024.

For the three month comparative period, the increase was primarily due to higher cannabis flower sales in Israel, which carry no excise taxes, and higher cannabis extract sales in the Canadian market, partially offset by a decrease in cannabis flower sales in the Canadian market.

For the nine month comparative period, the increase was primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, the inclusion of a full nine months of Cronos GrowCo sales in the current period and higher cannabis extract sales in the Canadian market, partially offset by lower cannabis flower sales in the Canadian market.

Due to the consolidation of Cronos GrowCo’s results of operations in our financial statements beginning July 1, 2024, Cronos GrowCo contributed $7.0 million of cannabis flower sales in the nine months ended September 30, 2025, compared to $4.3 million of cannabis flower sales in the nine months ended September 30, 2024.

For the three months ended March 31, 2026, we reported consolidated net revenue of $45.2 million, representing an increase of $12.9 million from the three months ended March 31, 2025.

The increase was primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, and higher cannabis extract and flower sales in the Canadian market.

Cost of sales

For the three months ended September 30, 2025, we reported consolidated cost of sales of $17.5 million, representing a decrease of $12.8 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, we reported consolidated cost of sales of $54.9 million, representing a decrease of $17.3 million from the nine months ended September 30, 2024.

For both the three and nine month comparative periods, the decrease was primarily due to lower amounts of inventory step-up from the Cronos GrowCo Transaction recognized into cost of sales.

For the three month comparative period, the decrease was also driven by production efficiencies and favorable inventory dynamics during the third quarter of 2025, partially offset by higher sales volumes.

For the nine month comparative period, the decrease was also driven by the consolidation of Cronos GrowCo, production efficiencies and favorable inventory dynamics during the nine months ended September 30, 2025, partially offset by higher sales volumes.

For the nine months ended September 30, 2025, we recognized $0.5 million of inventory step-up from the Cronos GrowCo Transaction into cost of sales.

No such costs were recognized for the three months ended September 30, 2025.

For both the three and nine months ended September 30, 2024, we recognized $7.1 million of inventory step-up from the Cronos GrowCo Transaction into cost of sales.

For the three months ended March 31, 2026, we reported consolidated cost of sales of $25.4 million, representing an increase of $6.9 million from the three months ended March 31, 2025.

The increase was primarily due to higher sales volumes in the period.

For the three months ended March 31, 2025, we recognized $0.5 million of inventory step-up from the Cronos GrowCo Transaction into cost of sales.

No such costs were recognized for the three months ended March 31, 2026.

Inventory write-down

For the three and nine months ended September 30, 2025, we reported inventory write-downs of $0.5 million and $0.6 million, respectively, due to write-downs resulting from unusable inventory that was scrapped in the period.

For the three and nine months ended September 30, 2024, we reported inventory write-downs of $0.3 million and $0.7 million, respectively, due to write-downs resulting from unusable inventory that was scrapped in the period.

For the three months ended September 30, 2025, we reported gross profit of $18.3 million, representing an increase of $14.7 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, we reported gross profit of $46.6 million, representing an increase of $32.2 million from the nine months ended September 30, 2024.

For both the three and nine month comparative periods, the increase was primarily due to lower amounts of inventory step-up from the Cronos GrowCo Transaction recognized into cost of sales.

For the three month comparative period, the increase was also driven by higher average sales prices driven primarily by a mix shift to Israel, higher sales volumes, production efficiencies and favorable inventory dynamics during the third quarter of 2025.

For the nine month comparative period, the increase was also driven by the consolidation of Cronos GrowCo, higher average sales prices driven primarily by a mix shift to Israel and other countries, higher sales volumes, production efficiencies and favorable inventory dynamics during the nine months ended September 30, 2025.

For the nine months ended September 30, 2025, gross profit was reduced by $0.5 million as a result of the impact of the inventory step-up from the Cronos GrowCo Transaction that was recorded into cost of sales.

No such costs were recognized for the three months ended September 30, 2025.

For both the three and nine months ended September 30, 2024, gross profit was reduced by $7.1 million as a result of the impact of the inventory step-up from the Cronos GrowCo Transaction that was recorded into cost of sales.

For the three months ended March 31, 2026, we reported inventory write-down of $0.7 million, representing an increase of $0.7 million from the three months ended March 31, 2025.

The current year write-downs relate to unusable inventory that was scrapped in the period.

There were no such write-downs for the three months ended March 31, 2025.

For the three months ended March 31, 2026, we reported gross profit of $19.2 million, representing an increase of $5.4 million from the three months ended March 31, 2025.

The increase was primarily due to higher average sales prices, largely driven by a mix shift to Israel and other countries, which carry no excise taxes, and higher sales volumes.

For the three months ended March 31, 2025, gross profit was reduced by $0.5 million as a result of the impact of the inventory step-up from the Cronos GrowCo Transaction that was recorded into cost of sales.

No such costs were recognized for the three months ended March 31, 2026.

Operating expenses

Three months ended September 30, Change Nine months ended September 30, Change

Three months ended March 31, Change

2026 2025 $ %

2 unchanged sentences

General and administrative 11,736 9,309 2,427 26 %

Restructuring costs 212 — 212 N/A 1,535 630 905 144 %

Restructuring costs 484 555 (71) (13) %

Share-based compensation 1,313 2,088 (775) (37) %

Depreciation and amortization 425 496 (71) (14) %

Impairment loss on long-lived assets 36 14,376 (14,340) (100) % 36 16,350 (16,314) (100) %

Total operating expenses $ 20,986 $ 17,806 $ 3,180 18 %

Sales and marketing

For the three months ended September 30, 2025, sales and marketing expenses were $5.3 million, representing a decrease of $0.2 million compared to the three months ended September 30, 2024.

For the nine months ended September 30, 2025, sales and marketing expenses were $15.2 million, essentially flat from the nine months ended September 30, 2024.

For the three month comparative period, the decrease was primarily due to lower marketing expenses, partially offset by higher salaries and benefits.

For the three months ended March 31, 2026, sales and marketing expenses were $5.6 million, representing an increase of $1.1 million compared to the three months ended March 31, 2025.

The increase was primarily due to higher marketing expenses and salaries and benefits.

Research and development

For the three months ended September 30, 2025, research and development expenses were $1.3 million, essentially flat compared to the three months ended September 30, 2024.

For the nine months ended September 30, 2025, research and development expenses were $3.1 million, essentially flat from the nine months ended September 30, 2024.

For the three months ended March 31, 2026, research and development expenses were $1.4 million, representing an increase of $0.6 million compared to the three months ended March 31, 2025.

The increase was primarily due to higher product development costs and salaries and benefits.

General and administrative

For the three months ended September 30, 2025, general and administrative expenses were $9.3 million, representing a decrease of $3.5 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, general and administrative expenses were $29.1 million, representing a decrease of $5.3 million from the nine months ended September 30, 2024.

For the three month comparative period, the decrease was primarily due to lower salaries and benefits and restatement litigation costs.

For the nine month comparative period, the decrease was primarily due to lower salaries and benefits and lower expected credit loss allowances on loans receivable, partially offset by the consolidation of Cronos GrowCo.

For the nine months ended September 30, 2025, changes in expected credit loss allowances on loans receivable increased general and administrative expenses by nil.

For the nine months ended September 30, 2024, changes in expected credit loss allowances on loans receivable increased general and administrative expenses by $1.0 million.

For the nine months ended September 30, 2025, the impact of the consolidation of Cronos GrowCo increased general and administrative expenses by $2.6 million.

For the nine months ended September 30, 2024, the impact of the consolidation of Cronos GrowCo increased general and administrative expenses by $1.6 million.

For the three months ended March 31, 2026, general and administrative expenses were $11.7 million, representing an increase of $2.4 million from the three months ended March 31, 2025.

The increase was primarily due to higher salaries and benefits, transaction costs related to the pending CanAdelaar acquisition, and restatement litigation costs, partially offset by lower anti-dumping costs.

Restructuring costs

For the three months ended September 30, 2025, restructuring costs were $0.2 million, representing an increase of $0.2 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, restructuring costs were $1.5 million, representing an increase of $0.9 million from the nine months ended September 30, 2024.

For the three months ended March 31, 2026, restructuring costs were $0.5 million, representing a decrease of $0.1 million from the three months ended March 31, 2025.

For further information, see Note 7 “ Restructuring ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Share-based compensation

For the three months ended September 30, 2025, share-based compensation expense was $2.3 million, representing an increase of $0.1 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, share-based compensation expense was $5.8 million, representing a decrease of $0.7 million from the nine months ended September 30, 2024.

For the three month comparative period, the increase was primarily due to the inclusion of expense related to deferred share units (“DSUs”) in share-based compensation in the current period, partially offset by lower amounts of share-based compensation awards outstanding.

For the nine month comparative periods, the decrease was primarily due to lower amounts of share-based compensation awards outstanding, partially offset by the inclusion of expense related to DSUs in share-based compensation in the current period.

For the three months ended March 31, 2026, share-based compensation expense was $1.3 million, representing a decrease of $0.8 million from the three months ended March 31, 2025.

The decrease was primarily due to lower average amounts of share-based compensation awards outstanding.

Depreciation and amortization

For the three months ended September 30, 2025, depreciation and amortization expenses were $0.4 million, representing a decrease of $0.7 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, depreciation and

amortization expenses were $1.7 million, representing a decrease of $1.5 million from the nine months ended September 30, 2024.

For both the three and nine month comparative periods, the decrease was primarily due to lower amortization of intangible assets.

Impairment loss on long-lived assets

For the three and nine months ended September 30, 2025, impairment loss on long-lived assets was $36 thousand.

For the three months ended September 30, 2024, impairment loss on long-lived assets was $14.4 million and was primarily due to the impairment of Ginkgo exclusive licenses.

For the nine months ended September 30, 2024, impairment loss on long-lived assets was $16.4 million and was primarily due to the impairment of Ginkgo exclusive licenses and the cessation of operations at the Cronos Fermentation Facility during the first quarter of 2024.

For further information, see Note 8 “ Restructuring ” and Note 7 “ Goodwill and Intangible Assets, net ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

For the three months ended March 31, 2026, depreciation and amortization expenses were $0.4 million, representing a decrease of $0.1 million from the three months ended March 31, 2025.

The decrease was primarily due to lower amortization of intangible assets, partially offset by higher depreciation of property, plant and equipment.

Other income and income tax expense (benefit)

Three months ended September 30, Change Nine months ended September 30, Change

Three months ended March 31, Change

2026 2025 $ %

Interest income, net $ 8,853 $ 9,665 $ (812) (8) %

Share of income from equity method investments — — — N/A — 2,365 (2,365) (100) %

Gain on revaluation of loan receivable — 11,804 (11,804) (100) % — 11,804 (11,804) (100) %

Gain on revaluation of equity method investment — 32,469 (32,469) (100) % — 32,469 (32,469) (100) %

Gain (loss) on revaluation of financial instruments

4,066 (293) 4,359 N/M 3,475 (6,550) 10,025 N/M

Impairment loss on other investments — — — N/A — (25,650) 25,650 100 %

Foreign currency gain (loss) 19,785 (7,432) 27,217 N/M (18,170) 12,370 (30,540) N/M

Loss on held-for-sale assets (3,031) (10,422) 7,391 71 % (5,532) (10,422) 4,890 47 %

Change in allowance for credit loss on non-operating loan (4,771) — (4,771) N/A (4,771) — (4,771) N/A

(2,484) 49 (2,533) N/M

Foreign currency gain 13,699 1,583 12,116 765 %

Change in allowance for credit loss on non-operating loan (106) — (106) N/A

Other, net 10 43 (33) (77) %

Total other income 19,972 11,340 8,632 76 %

Income tax benefit (1,316) (2,708) 1,392 51 % (2,296) (5,440) 3,144 58 %

Net income (loss) 28,321 7,324 20,997 287 % (2,438) (3,919) 1,481 38 %

Income tax provision (benefit) 2,428 (455) 2,883 N/M

Net income 15,711 $ 7,723 7,988 103 %

(i) “N/M” is defined as not meaningful.

Interest income, net

For the three months ended September 30, 2025, interest income, net was $11.7 million, representing a decrease of $0.7 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, interest income, net was $30.4 million, representing a decrease of $9.8 million from the nine months ended September 30, 2024.

For the three month comparative period, the decrease in net interest income was primarily due to lower interest rates in the current period, partially offset by interest on our High Tide Loan.

For the nine month comparative period, the decrease in net interest income was primarily due to lower interest rates in the current period and the absence of income recognized on the Cronos GrowCo loan receivable, which is eliminated in consolidation, effective from and after July 1, 2024.

Share of income from equity method investments

For both the three months ended September 30, 2025 and 2024, we had no income from equity method investments.

For the nine months ended September 30, 2025, we had no income from equity method investments, compared to $2.4 million for the nine months ended September 30, 2024.

As a result of the Cronos GrowCo Transaction on July 1, 2024, we now consolidate Cronos GrowCo and no longer account for our investment in Cronos GrowCo as an equity method investment.

For further information, see Note 4 “ Investments ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Gain on revaluation of loans receivable

For both the three and nine months ended September 30, 2024, we recognized $11.8 million of gain on revaluation of loans receivable related to the remeasurement of the existing loans receivable under the credit facility with Cronos GrowCo as a result of the Cronos

GrowCo Transaction.

No such gain was recognized for either the three or nine months ended September 30, 2025.

For further information, see Note 5 “ Loans Receivable, net ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Gain on revaluation of equity method investment

For both the three and nine months ended September 30, 2024, we recognized $32.5 million of gain on revaluation of equity method investment related to the remeasurement of the existing investment in Cronos GrowCo as a result of the Cronos GrowCo Transaction.

No such gain was recognized for either the three or nine months ended September 30, 2025.

For further information, see Note 4 “ Investments ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

For the three months ended March 31, 2026, interest income, net was $8.9 million, representing a decrease of $0.8 million from the three months ended March 31, 2025.

The decrease in net interest income was primarily due to lower interest rates in the current period, partially offset by interest on our High Tide Loan.

Gain (loss) on revaluation of financial instruments

For the three months ended September 30, 2025, the gain on revaluation of financial instruments was $4.1 million, representing an improvement of $4.4 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, the gain on revaluation of financial instruments was $3.5 million, representing an improvement of $10.0 million from the nine months ended September 30, 2024.

For both the three and nine month comparative periods, the change was primarily related to the change in fair value of our High Tide Warrant and our investment in Vitura Health Limited (“Vitura”).

For further information, see Note 4 “ Investments ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Impairment loss on other investments

For the nine months ended September 30, 2024, we recognized $25.7 million of impairment loss on other investments, driven by impairment charges recorded on our PharmaCann Option for the difference between its estimated fair value and its carrying amount.

There was no such impairment loss on other investments for the three and nine months ended September 30, 2025 or the three months ended September 30, 2024.

For the three months ended March 31, 2026, the loss on revaluation of financial instruments was $2.5 million, representing a deterioration of $2.5 million from the three months ended March 31, 2025.

The change was primarily related to the change in fair value of our High Tide Warrant and our investment in Vitura Health Limited (“Vitura”).

For further information, see Note 3 “ Investments ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Foreign currency gain (loss)

For the three months ended September 30, 2025, foreign currency gain was $19.8 million, representing an improvement of $27.2 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, foreign currency loss was $18.2 million, representing a deterioration of $30.5 million from the nine months ended September 30, 2024.

For the three month comparative period, the change was primarily due to the strengthening of the U.S.

dollar compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated cash equivalents and short-term investments held in Canada.

For the nine month comparative period, the change was primarily due to the weakening of the U.S.

dollar compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated cash equivalents and short-term investments held in Canada.

Loss on held-for-sale assets

For three and nine months ended September 30, 2025, we recognized a loss on held-for-sale assets of $3.0 million and $5.5 million, respectively.

For both the three and nine months ended September 30, 2024, we recognized a loss on held-for-sale assets of $10.4 million.

The losses in both 2025 and 2024 relate to decreases in the fair value of the Cronos Fermentation Facility assets.

For further information, see Note 8 “ Restructuring ” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Foreign currency gain

For the three months ended March 31, 2026, foreign currency gain was $13.7 million, representing an improvement of $12.1 million from the three months ended March 31, 2025.

The change was primarily due to the strengthening of the U.S.

dollar compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated cash equivalents and short-term investments held in Canada, as well as the strengthening of the New Israeli Shekel compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated intercompany loans anticipated to be settled in the foreseeable future.

Change in allowance for credit loss on non-operating loan

For both the three and nine months ended September 30, 2025, change in allowance for credit loss on non-operating loan was $4.8 million.

For the three months ended March 31, 2026, change in allowance for credit loss on non-operating loan was $0.1 million.

There was no such activity during the three months ended March 31, 2025.

The expense relates to the change in the allowance for credit loss on the High Tide Loan.

For further information, see Note 4 “ Loans Receivable, net .”

Other, net primarily includes gains and losses on the disposal of assets.

Income tax benefit

For the three months ended September 30, 2025, income tax benefit was $1.3 million, compared to a benefit of $2.7 million for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, income tax benefit was $2.3 million, compared to a benefit of $5.4 million for the nine months ended September 30, 2024.

For the three month comparative period, the lower benefit was primarily due to recoveries related to our inventory step-up amortization in the prior year period that did not recur in the current period.

For the nine month comparative period, the decrease in benefit was mainly driven by deferred tax expense that was recorded in connection with the utilization of the loss carryforward balances.

Net income (loss)

For the three months ended September 30, 2025, net income was $28.3 million, compared to net income of $7.3 million for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, net loss was $2.4 million, compared to a net loss of $3.9 million for the nine months ended September 30, 2024.

For both the three and nine month comparative periods, the improvement in net income was primarily due to lower operating expenses and higher gross profit, partially offset by lower other income.

For the three months ended March 31, 2026, other, net primarily related to non-operating rental income.

For the three months ended March 31, 2025, other, net primarily related to gains and losses on the disposal of assets.

Income tax provision (benefit)

For the three months ended March 31, 2026, income tax provision was $2.4 million, compared to a benefit of $0.5 million for the three months ended March 31, 2025.

The increased expense was primarily due to decreased net operating loss utilization compared to the three months ended March 31, 2025.

For the three months ended March 31, 2026, net income was $15.7 million, compared to net income of $7.7 million for the three months ended March 31, 2025.

The improvement in net income was primarily due to higher gross profit and other income, partially offset by higher operating expenses.

Non-GAAP Measures

5 unchanged sentences

Rather, these non-GAAP measures are provided as a supplement to corresponding U.S.

GAAP measures to provide additional information regarding the results of operations from management’s perspective.

GAAP measures to provide additional information regarding our results of operations from management’s perspective.

Accordingly, non-GAAP measures should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S.

16 unchanged sentences

impairment loss on other investments;

foreign currency (gain) loss;

foreign currency transaction (gain) loss;

loss from discontinued operations;

change in allowance for credit loss on non-operating loan;

restructuring costs;

inventory write-downs resulting from restructuring actions;

share-based compensation;

1 unchanged sentence

purchase accounting adjustment-related inventory step-up adjustments recorded through cost of sales;

and legal costs of defending shareholder class action complaints brought against us as a result of the 2019 restatement.

and restatement litigation costs and reserves related to the restatements of our 2019 and 2021 interim financial statements (the “Restatements”), including the costs related to the settlement of the SEC’s and the OSC’s investigations of the Restatements and legal costs of defending shareholder class action complaints brought against us as a result of the 2019 restatement (see Note 10(b) “Contingencies,” to the condensed consolidated financial statements under Item 1 of this Quarterly Report for a discussion of the shareholder class action complaints relating to the restatement of the 2019 interim financial statements and the settlement of the SEC’s and the OSC’s investigations of the Restatements).

Results are reported as total consolidated results, reflecting our reporting structure of one reportable segment.

Management believes that Adjusted EBITDA provides the most useful insight into underlying business trends and results and provides a more meaningful comparison of period-over-period results.

Management believes that Adjusted EBITDA provides useful insight into underlying business trends and results and facilitates comparison of period-over-period results.

Management uses Adjusted EBITDA for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets.

Beginning in the third quarter of 2025, the Company modified the composition of Adjusted EBITDA to exclude the impact of the provision for expected credit losses recognized under ASC 326 solely with respect to the High Tide Loan (for further information, see Part I, Note 5 – Loans Receivable, net in this Quarterly Report on Form 10-Q for the period ended September 30, 2025).

Beginning in 2025, the Company modified the composition of Adjusted EBITDA to exclude the impact of the provision for expected credit losses recognized under ASC 326 solely with respect to the High Tide Loan (see Note 4 “Loans Receivable, net” to the condensed consolidated financial statements under Item 1 of this Quarterly Report for further information).

Management determined that excluding this non-cash provision provides investors with additional insight into period-over-period operating performance by isolating credit-risk movements unrelated to the Company’s core operations.

1 unchanged sentence

This change does not affect the Company’s GAAP financial statements.

The following tables set forth a reconciliation of Net income (loss) as determined in accordance with U.S.

The following tables set forth a reconciliation of Net income as determined in accordance with U.S.

GAAP to Adjusted EBITDA for the periods indicated:

Three months ended September 30, 2025

Three months ended March 31, 2026

Net income $ 15,711

Interest income, net (8,853)

Income tax benefit (1,316)

Income tax provision 2,428

Depreciation and amortization 3,727

EBITDA 13,013

Impairment loss on long-lived assets (i)

Gain on revaluation of financial instruments (iv)

Foreign currency gain (19,785)

Transaction costs (vi)

Loss on held-for-sale assets (vii)

Other, net (viii)

Restructuring costs (ix)

Share-based compensation (x)

Restatement litigation costs (xi)

Israel Ministry of Economy and Industry dumping inquiry expense (xiii)

Change in allowance for credit loss on non-operating loan (xiv)

Loss on revaluation of financial instruments (i)

Foreign currency transaction gain (13,699)

Transaction costs (ii)

Other, net (iii)

Restructuring costs (iv)

Share-based compensation (v)

Restatement litigation costs (vi)

Israel Ministry of Economy and Industry dumping inquiry expense (vii)

Change in allowance for credit loss on non-operating loan (viii)

Adjusted EBITDA $ 5,079

Three months ended September 30, 2024

Three months ended March 31, 2025

Net income $ 7,723

2 unchanged sentences

Depreciation and amortization 2,840

EBITDA (4,277)

Impairment loss on long-lived assets (i)

Revaluation gain on loan receivable (ii)

Gain on revaluation of equity method investment (iii)

Loss on revaluation of financial instruments (iv)

Foreign currency loss 7,432

Transaction costs (vi)

Loss on held-for-sale assets (vii)

Other, net (viii)

Share-based compensation (x)

Restatement litigation costs (xi)

Inventory step-up recorded to cost of sales (xii)

Adjusted EBITDA $ (6,019)

Nine months ended September 30, 2025

Net loss $ (2,438)

Interest income, net (30,404)

Income tax benefit (2,296)

Depreciation and amortization 10,574

EBITDA (24,564)

Impairment loss on long-lived assets (i)

Gain on revaluation of financial instruments (iv)

Foreign currency loss 18,170

Transaction costs (vi)

Loss on held-for-sale assets (vii)

Other, net (viii)

Restructuring costs (ix)

Share-based compensation (x)

Restatement litigation costs (xi)

Inventory step-up recorded to cost of sales (xii)

Israel Ministry of Economy and Industry dumping inquiry expense (xiii)

Change in allowance for credit loss on non-operating loan (xiv)

Adjusted EBITDA $ 9,654

Nine months ended September 30, 2024

Net loss $ (3,919)

Interest income, net (40,156)

Income tax benefit (5,440)

Depreciation and amortization 6,811

EBITDA (42,704)

Share of income from equity method investment (2,365)

Impairment loss on long-lived assets (i)

Revaluation gain on loan receivable (ii)

Gain on revaluation of equity method investment (iii)

Loss on revaluation of financial instruments (iv)

Impairment loss on other investments (v)

Foreign currency gain (12,370)

Transaction costs (vi)

Loss on held-for-sale assets (vii)

Other, net (viii)

Restructuring costs (ix)

Share-based compensation (x)

Restatement litigation costs (xi)

Inventory step-up recorded to cost of sales (xii)

Gain on revaluation of financial instruments (i)

Foreign currency transaction gain (1,583)

Transaction costs (ii)

Other, net (iii)

Restructuring costs (iv)

Share-based compensation (v)

Restatement litigation costs (vi)

Israel Ministry of Economy and Industry dumping inquiry expense (vii)

Inventory step-up recorded to cost of sales (ix)

Adjusted EBITDA $ 2,289

(i) For the three and nine months ended September 30, 2025, impairment loss on long-lived assets related to equipment no longer in use.

For the three and nine months ended September 30, 2024, impairment loss on long-lived assets included $14,258 related to the write-down of our Ginkgo exclusive licenses.

For the nine months ended September 30, 2024, impairment loss on long-lived assets included $1,631 related to the winding down of operations at the Cronos Fermentation Facility.

(ii) For the three and nine months ended September 30, 2024, a revaluation gain on loan receivable was recognized as a result of the Cronos GrowCo Transaction on July 1, 2024.

(iii) For the three and nine months ended September 30, 2024, the gain on revaluation of equity method investment was recognized as a result of the Cronos GrowCo Transaction on July 1, 2024.

(iv) For the three months ended September 30, 2025, the gain on revaluation of financial instruments was driven by a gain related to the Company’s High Tide Warrant and the Company’s equity securities in Vitura.

For the nine months ended September 30, 2025, the gain on revaluation of financial instruments related to the Company’s High Tide Warrant, partially offset by a loss related to the Company’s equity securities in Vitura.

For the three and nine months ended 2024, the loss on revaluation of financial instruments related primarily to the Company’s equity securities in Vitura.

(v) For the nine months ended September 30, 2024, impairment loss on other investments represents the fair value change on the PharmaCann Option.

(vi) For the three and nine months ended September 30, 2025 and 2024, transaction costs represented legal, financial and other advisory fees and expenses incurred in connection with the Cronos GrowCo Transaction and discrete strategic initiatives.

These costs are included in general and administrative expenses on the condensed consolidated statement of net income (loss) and comprehensive income (loss).

(vii) For the three and nine months ended September 30, 2025 and 2024, loss on held-for-sale assets related to a revaluation of the Cronos Fermentation Facility held-for-sale asset group.

(viii) For the three and nine months ended September 30, 2025, other, net related to (gain) loss on disposal of assets and dividend income.

For the three and nine months ended September 30, 2024, other, net related to (gain) loss on disposal of assets and (gain) loss on revaluation of derivative liabilities.

(ix) For the three and nine months ended September 30, 2025, restructuring costs related to employee-related severance costs and IT infrastructure and finance transformation costs associated with the Realignment, as described in Note 8 “ Restructuring .” For the nine months ended September 30, 2024, restructuring costs related to employee-related severance costs and other restructuring costs associated with the Realignment, as described in Note 8 “ Restructuring .”

(x) For the three and nine months ended September 30, 2025 and 2024, share-based compensation related to the expenses of share-based compensation awarded to employees and, for the three and nine months ended September 30, 2025, our DSUs issued to our Board of Directors, each under the Company’s share-based award plans, as described in Note 9 “ Share-based Compensation.

(xi) For the three and nine months ended September 30, 2025 and 2024, restatement litigation costs included legal costs incurred defending shareholder class action complaints brought against the Company as a result of the 2019 restatement.

(xii) For the nine months ended September 30, 2025 and the three and nine months ended September 30, 2024, inventory step-up recorded to cost of sales represents the portion of the inventory step-up from the Cronos GrowCo Transaction that was recorded through the condensed consolidated statements of loss and comprehensive income (loss).

(xiii) For the three and nine months ended September 30, 2025, 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.

(xiv) For the three and nine months ended September 30, 2025, change in allowance for credit loss on non-operating loan represents the allowance recognized on the High Tide loan receivable, as described in Note 5, “ Loans Receivable, net .”

For the three months ended September 30, 2025, Adjusted EBITDA was $5.7 million, representing an improvement of $11.7 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, Adjusted EBITDA was $9.7 million, representing an improvement of $37.4 million from the nine months ended September 30, 2024.

For both the three and nine month comparative periods, the improvement was primarily due to higher gross profit and lower operating expenses due to a decline in general and administrative costs.

(i) For the three months ended March 31, 2026, the loss on revaluation of financial instruments was driven by a loss related to the Company’s High Tide Warrant and the Company’s equity securities in Vitura.

For the three months ended March 31, 2025, the gain on revaluation of financial instruments related primarily to the revaluation of the Company’s DSU liability, partially offset by a loss on the Company’s equity securities in Vitura.

(ii) For the three months ended March 31, 2026, transaction costs represented fees related to the pending acquisition of CanAdelaar.

For the three months ended March 31, 2025, transaction costs represented legal, financial and other advisory fees and expenses incurred in connection with the Cronos GrowCo Transaction.

These costs are included in general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

(iii) For the three months ended March 31, 2026, other, net related to rental income.

For the three months ended March 31, 2025 other, net related to (gain) loss on disposal of assets and (gain) loss on revaluation of derivative liabilities.

(iv) For the three months ended March 31, 2026 and 2025, restructuring costs related to employee-related severance costs and IT infrastructure and finance transformation costs associated with the Realignment, as described in Note 7 “ Restructuring .”

(v) For the three months ended March 31, 2026, share-based compensation related to the expenses of share-based compensation awarded to employees and DSUs issued to our Board of Directors, each under the Company’s share-based award plans, as described in Note 8 “ Share-based Compensation.

” For the three months ended March 31, 2025, share-based compensation related to the expenses of share-based compensation awarded to employees under the Company’s share-based award plans, as described in Note 8 “ Share-based Compensation.

(vi) For the three months ended March 31, 2026 and 2025, restatement litigation costs included legal costs incurred defending shareholder class action complaints brought against the Company as a result of the 2019 restatement.

(vii) For the three months ended March 31, 2026 and 2025, 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.

(viii) For the three months ended March 31, 2026, change in allowance for credit loss on non-operating loan represents the allowance recognized on the High Tide loan receivable, as described in Note 4, “Loans Receivable, net.”

(ix) For the three months ended March 31, 2025, inventory step-up recorded to cost of sales represents the portion of the inventory step-up from the Cronos GrowCo Transaction that was recorded through the condensed consolidated statements of income (loss) and comprehensive income (loss).

For the three months ended March 31, 2026, Adjusted EBITDA was $5.1 million, representing an improvement of $2.8 million from the three months ended March 31, 2025.

The improvement was primarily due to higher gross profit, partially offset by higher operating expenses due to higher sales and marketing, general and administrative, and research and development costs.

Adjusted Gross Profit and Adjusted Gross Margin

5 unchanged sentences

GAAP, to Adjusted Gross Profit and Adjusted Gross Margin, respectively, for the periods indicated:

(in thousands of USD) Three months ended September 30, Change Nine months ended September 30, Change

(in thousands of USD) Three months ended March 31, Change

2026 2025 $ %

1 unchanged sentence

Gross profit $ 19,153 $ 13,734 $ 5,419 39 %

Inventory step-up recorded to cost of sales — 7,116 (7,116) N/A 517 7,116 (6,599) N/A

Inventory step-up recorded to cost of sales — 517 (517) N/A

Adjusted Gross Profit

1 unchanged sentence

Gross margin (i)

50 % 11 % N/A 39 pp 46 % 16 % N/A 30 pp

42 % 43 % N/A (1) pp

Adjusted Gross Margin (ii)

50 % 31 % N/A 19 pp 46 % 25 % N/A 21 pp

42 % 44 % N/A (2) pp

(i) Gross margin is defined as gross profit divided by net revenue.

(ii) Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue.

For the three months ended September 30, 2025, Adjusted Gross Profit was $18.3 million, representing an increase of $7.6 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, Adjusted Gross Profit was $47.1 million, representing an increase of $25.6 million from the nine months ended September 30, 2024.

For the three month comparative period, the increase was primarily due to higher average sales prices driven primarily by a mix shift to Israel, higher sales volumes, production efficiencies and favorable inventory dynamics during the third quarter of 2025.

For the nine month comparative period, the increase was primarily due to the consolidation of Cronos GrowCo, higher average sales prices driven primarily by a mix shift to Israel and other countries, higher sales volumes, production efficiencies and favorable inventory dynamics during the nine months ended September 30, 2025.

For the three months ended March 31, 2026, Adjusted Gross Profit was $19.2 million, representing an increase of $4.9 million from the three months ended March 31, 2025.

The increase was primarily due to higher average sales prices, largely driven by a mix shift to Israel and other countries, which carry no excise taxes, and higher sales volumes.

Constant Currency

To supplement the consolidated financial statements presented in accordance with U.S.

GAAP, we have presented constant currency adjusted financial measures for net revenue, gross profit, gross profit margin, operating expenses, net income (loss) and Adjusted EBITDA for the three and nine months ended September 30, 2025, as well as cash and cash equivalents and short-term investment balances as of September 30, 2025 compared to December 31, 2024, which are considered non-GAAP financial measures.

GAAP, we have presented constant currency adjusted financial measures for net revenue, gross profit, gross profit margin, operating expenses, net income (loss) and Adjusted EBITDA for the three months ended March 31, 2026, as well as cash and cash equivalents and short-term investment balances as of March 31, 2026 compared to December 31, 2025, which are considered non-GAAP financial measures.

We present constant currency information to provide a framework for assessing how our underlying operations performed excluding the effect of foreign currency rate fluctuations.

1 unchanged sentence

dollars are converted into U.S.

dollars using the average exchange rates from the three and nine month comparative periods in 2024 rather than the actual average exchange rates in effect during the respective current period;

dollars using the average exchange rates from the three month comparative period in 2025, rather than the actual average exchange rates in effect during the respective current period;

constant currency current and prior comparative balance sheet information is translated at the prior year-end spot rate rather than the current period spot rate.

3 unchanged sentences

See further discussion on foreign currency risk as noted in Item 3 “Quantitative and Qualitative Disclosures About Market Risk.”

The table below sets forth certain measures of consolidated results from continuing operations on a constant currency basis for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 as well as cash and cash equivalents and short-term investments as of September 30, 2025 and December 31, 2024, both on an as-reported and constant currency basis (in thousands):

The table below sets forth certain measures of consolidated results from continuing operations on a constant currency basis for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 as well as cash and cash equivalents and short-term investments as of March 31, 2026 and December 31, 2025, both on an as-reported and constant currency basis (in thousands):

As Reported As Adjusted for Constant Currency

Three months ended September 30, As Reported Change Three months ended September 30, Constant Currency Change

2025 2024 $ % 2025 $ %

Net revenue $ 36,339 $ 34,264 $ 2,075 6 % $ 35,522 $ 1,258 4 %

Gross profit 18,332 3,611 14,721 408 % 17,884 14,273 395 %

Gross margin 50 % 11 % N/A 39 pp 50 % N/A 39 pp

Operating expenses 18,835 37,266 (18,431) (49) % 18,743 (18,523) (50) %

Net income (loss)

28,321 7,324 20,997 287 % 28,957 21,633 295 %

Adjusted EBITDA $ 5,677 $ (6,019) $ 11,696 N/M $ 4,733 $ 10,752 N/M

Nine months ended September 30, As Reported Change Nine months ended September 30, Constant Currency Change

Three months ended March 31, As Reported Change Three months ended March 31, Constant Currency Change

2026 2025 $ % 2026 $ %

4 unchanged sentences

15,711 7,723 7,988 103 % 14,809 7,086 92 %

Adjusted EBITDA $ 9,654 $ (27,739) $ 37,393 N/M $ 8,653 $ 36,392 N/M

As of September 30, As of December 31, As Reported Change As of September 30, Constant Currency Change

Adjusted EBITDA $ 5,079 $ 2,289 $ 2,790 122 % $ 4,153 $ 1,864 81 %

As of March 31, As of December 31, As Reported Change As of March 31, Constant Currency Change

2026 2025 $ % 2026 $ %

3 unchanged sentences

As Reported As Adjusted for Constant Currency

Three months ended September 30, As Reported Change Three months ended September 30, Constant Currency Change

2025 2024 $ % 2025 $ %

Cannabis flower $ 26,362 $ 26,328 $ 34 — % $ 25,466 $ (862) (3) %

Cannabis extracts 9,964 7,789 2,175 28 % 10,042 2,253 29 %

Other 13 147 (134) (91) % 14 (133) (90) %

Net revenue $ 36,339 $ 34,264 $ 2,075 6 % $ 35,522 $ 1,258 4 %

As Reported As Adjusted for Constant Currency

Nine months ended September 30, As Reported Change Nine months ended September 30, Constant Currency Change

Three months ended March 31, As Reported Change Three months ended March 31, Constant Currency Change

2026 2025 $ % 2026 $ %

4 unchanged sentences

As Reported As Adjusted for Constant Currency

Three months ended September 30, As Reported Change Three months ended September 30, Constant Currency Change

2025 2024 $ % 2025 $ %

Canada $ 23,132 $ 24,067 $ (935) (4) % $ 23,424 $ (643) (3) %

Israel 11,353 7,259 4,094 56 % 10,293 3,034 42 %

Other countries 1,854 2,938 (1,084) (37) % 1,805 (1,133) (39) %

Net revenue $ 36,339 $ 34,264 $ 2,075 6 % $ 35,522 $ 1,258 4 %

As Reported As Adjusted for Constant Currency

Nine months ended September 30, As Reported Change Nine months ended September 30, Constant Currency Change

Three months ended March 31, As Reported Change Three months ended March 31, Constant Currency Change

2026 2025 $ % 2026 $ %

3 unchanged sentences

Net revenue $ 45,210 $ 32,262 $ 12,948 40 % $ 41,913 $ 9,651 30 %

For the three months ended September 30, 2025, net revenue on a constant currency basis was $35.5 million, representing a 4% increase from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, net revenue on a constant currency basis was $102.5 million, representing a 17% increase from the nine months ended September 30, 2024.

On a constant currency basis, net revenue increased for the three months ended September 30, 2025, primarily due to higher cannabis flower sales in Israel, which carry no excise taxes, and higher cannabis extract sales in the Canadian market, partially offset by a decrease in cannabis flower sales in the Canadian market.

On a constant currency basis, net revenue increased for the nine months ended September 30, 2025, primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, the inclusion of a full nine months of Cronos GrowCo sales in the current period and higher cannabis extract sales in the Canadian market, partially offset by lower cannabis flower sales in the Canadian market.

On a constant currency basis, the consolidation of Cronos GrowCo as a result of the Cronos GrowCo Transaction contributed $7.2 million and $4.3 million of cannabis flower sales in the nine months ended September 30, 2025 and 2024, respectively.

For the three months ended September 30, 2025, gross profit on a constant currency basis was $17.9 million, representing a 395% increase from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, gross profit on a constant currency basis was $46.5 million, representing a 223% increase from the nine months ended September 30, 2024.

On a constant currency basis, gross profit increased for the three and nine months ended September 30, 2025, primarily due to lower amounts of inventory step-up from the Cronos GrowCo Transaction recognized into cost of sales.

For the three month comparative periods, the increase was also driven by higher average sales prices driven primarily by a mix shift to Israel, higher sales volumes, production efficiencies and favorable inventory dynamics during the third quarter of 2025.

For the nine month comparative period, the increase was also driven by the consolidation of Cronos GrowCo, higher average sales prices driven primarily by a mix shift to Israel and other countries, higher sales volume, production efficiencies and favorable inventory dynamics during the nine months ended September 30, 2025.

On a constant currency basis, for the nine months ended September 30, 2025, we recognized $0.6 million of inventory step-up from the Cronos GrowCo Transaction in cost of sales.

No such costs were recognized for the three months ended September 30, 2025.

On a constant currency basis, for both the three and nine months ended September 30, 2024, we recognized $7.2 million of inventory step-up from the Cronos GrowCo Transaction in cost of sales.

For the three months ended March 31, 2026, net revenue on a constant currency basis was $41.9 million, representing a 30% increase from the three months ended March 31, 2025.

On a constant currency basis, net revenue increased for the three months ended March 31, 2026, primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, and higher cannabis extract and flower sales in the Canadian market.

For the three months ended March 31, 2026, gross profit on a constant currency basis was $17.6 million, representing a 28% increase from the three months ended March 31, 2025.

On a constant currency basis, gross profit increased for the three months ended March 31, 2026, primarily due to higher average sales prices, largely driven by a mix shift to Israel and other countries, which carry no excise tax, higher sales volumes, and the impact of the inventory step-up from the Cronos GrowCo Transaction recognized in the three months ended March 31, 2025.

For the three months ended March 31, 2025, we recognized $0.5 million of inventory step-up from the Cronos GrowCo Transaction in cost of sales.

No such costs were recognized for the three months ended March 31, 2026.

Operating expenses

For the three months ended September 30, 2025, operating expenses on a constant currency basis were $18.7 million, representing a 50% decrease from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, operating expenses on a constant currency basis were $57.1 million, representing a 28% decrease from the nine months ended September 30, 2024.

On a constant currency basis, operating expenses decreased for the three months ended September 30, 2025, primarily due to lower impairment loss on long-lived assets, lower amortization of intangible assets and lower salaries and benefits, partially offset by higher restructuring costs.

On a constant currency basis, operating expenses decreased for the nine months ended September 30, 2025, primarily due to lower impairment loss on long-lived assets, lower amortization of intangible assets and lower salaries and benefits, partially offset by higher restructuring costs.

Net income (loss)

For the three months ended September 30, 2025, net income on a constant currency basis was $29.0 million, representing a higher net income of $21.6 million from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, net loss on a constant currency basis was $3.5 million, representing a lower net loss of $0.4 million from nine months ended September 30, 2024.

On a constant currency basis, the improvement in net income for both the three and nine months ended September 30, 2025, was primarily due to lower operating expenses and higher gross profit, partially offset by lower other income.

For the three months ended March 31, 2026, operating expenses on a constant currency basis were $20.0 million, representing a 12% increase from the three months ended March 31, 2025.

On a constant currency basis, operating expenses increased for the three months ended March 31, 2026, primarily due to higher salaries and benefits, transaction costs and product development costs, partially offset by lower share-based compensation expense.

For the three months ended March 31, 2026, net income on a constant currency basis was $14.8 million, representing an increase in net income of $7.1 million from the three months ended March 31, 2025.

On a constant currency basis, the improvement in net income for the three months ended March 31, 2026, was primarily due to higher gross profit and other income, partially offset by higher operating expenses.

Adjusted EBITDA

For the three months ended September 30, 2025, Adjusted EBITDA on a constant currency basis was $4.7 million, representing an $10.8 million improvement from the three months ended September 30, 2024.

For the nine months ended September 30, 2025, Adjusted EBITDA on a constant currency basis was $8.7 million, representing a $36.4 million improvement from the nine months ended September 30, 2024.

The improvement in Adjusted EBITDA for both the three and nine months ended September 30, 2025 on a constant currency basis was driven by higher gross profit and lower operating expenses due to a decline in general and administrative costs.

For the three months ended March 31, 2026, Adjusted EBITDA on a constant currency basis was $4.2 million, representing a $1.9 million improvement from the three months ended March 31, 2025.

The improvement in Adjusted EBITDA for the three months ended March 31, 2026 on a constant currency basis was driven by higher gross profit, partially offset by higher operating expenses due to higher sales and marketing, general and administrative, and research and development costs.

Cash and cash equivalents & short-term investments

Cash and cash equivalents and short-term investments on a constant currency basis decreased 4% to $821.6 million as of September 30, 2025, from $858.8 million as of December 31, 2024.

The decrease in cash and cash equivalents and short-term investments on a constant currency basis is primarily due to purchases of property, plant and equipment, advances on loans receivable, repurchases of common stock, purchases of other investments, dividend payments to non-controlling interests and withholding taxes paid on share-based awards, partially offset by positive cash from operating activities and proceeds from the repayment of loans receivable.

Cash and cash equivalents and short-term investments on a constant currency basis decreased 1% to $822.3 million as of March 31, 2026, from $831.8 million as of December 31, 2025.

The decrease in cash and cash equivalents and short-term investments on a constant currency basis is primarily due to repurchases of common stock, purchases of property, plant and equipment, and withholding taxes paid on share-based awards, partially offset by positive cash from operating activities.

Liquidity and Capital Resources

As of September 30, 2025, we had $784 million in cash and cash equivalents and $40 million in short-term investments.

We believe that the existing cash and cash equivalents and short-term investments will be sufficient to fund the business operations and capital expenditures over the next twelve months.

As of March 31, 2026, we had $822 million in cash and cash equivalents and no short-term investments.

We believe that the existing cash and cash equivalents will be sufficient to fund the business operations and capital expenditures over the next twelve months.

The following table summarizes the cash flows from operating, investing and financing activities:

(In thousands of U.S.

dollars) Nine months ended September 30,

Net cash provided by operating activities

$ 14,031 $ 11,123

dollars) Three months ended March 31,

Net cash provided by (used in) operating activities $ 10,898 $ (2,096)

Net cash provided by (used in) investing activities

38,029 (55,356)

Net cash used in financing activities (18,268) (2,930)

1 unchanged sentence

Net change in cash $ 30,062 $ (60,986)

Comparison of cash flows between the nine months ended September 30, 2025 and the nine months ended September 30, 2024

Comparison of cash flows between the three months ended March 31, 2026 and the three months ended March 31, 2025

Operating activities

During the nine months ended September 30, 2025, we generated $14.0 million of cash from operating activities as compared to $11.1 million in the nine months ended September 30, 2024, representing an increase in cash provided of $2.9 million.

This change is primarily driven by a $24.4 million increase in net income after adjusting for non-cash items during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, higher accounts payable and lower interest receivable, partially offset by increases in inventory and accounts receivable and decreases in accrued liabilities.

During the three months ended March 31, 2026, we generated $10.9 million of cash from operating activities as compared to $2.1 million of cash used in the three months ended March 31, 2025, representing an increase in cash generated of $13.0 million.

This change is primarily driven by decreases in accounts receivable, prepaids and other current assets, and other receivables, as well as a lower decrease in accrued liabilities compared to the three months ended March 31, 2025.

These were partially offset by a $1.8 million decrease in net income after adjusting for non-cash items during the three months ended March 31, 2026, compared to the three months ended March 31, 2025, and a lower decrease to interest receivable.

Investing activities

During the nine months ended September 30, 2025, we used $79.3 million of cash in investing activities, compared to $180.2 million of cash provided by investing activities during the nine months ended September 30, 2024, representing a change of $259.5 million.

This change was driven by the purchase of $40.0 million of short-term investments and higher capital expenditures, advances on loans receivable and purchases of other investments during the nine months ended September 30, 2025, compared to the maturity of certain short-term investments, which were reinvested as cash equivalents upon maturity during the nine months ended September 30, 2024.

During the three months ended March 31, 2026, we generated $38.0 million of cash from investing activities, compared to $55.4 million of cash used in investing activities during the three months ended March 31, 2025, representing a change of $93.4 million.

This change was driven by the maturity of $40.0 million of short-term investments and lower capital expenditures during the three months ended March 31, 2026, compared to the purchase of $40.0 million of short-term investments during the three months ended March 31, 2025.

Financing activities

During the nine months ended September 30, 2025, cash used in financing activities was $12.5 million, compared to $0.9 million of cash used in financing activities during the nine months ended September 30, 2024, representing an increase of $11.6 million.

This change is primarily driven by repurchases of common stock, dividends paid to non-controlling interests, and an increase in withholding taxes paid on share-based awards during the nine months ended September 30, 2025 compared to nine months ended September 30, 2024.

During the three months ended March 31, 2026, cash used in financing activities was $18.3 million, compared to $2.9 million of cash used in financing activities during the three months ended March 31, 2025, representing an increase in cash used of $15.3 million.

This change is primarily driven by $16.7 million of share repurchases, partially offset by a decrease in withholding taxes paid on share-based awards during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Share Repurchase Program

1 unchanged sentence

The repurchase program commenced on May 14, 2025 and is expected to terminate on May 13, 2026 unless earlier terminated.

In the three and nine months ended September 30, 2025, we repurchased 917,862 and 2,792,813 common shares, respectively, at costs of approximately $1.9 million and $5.5 million, respectively.

As of September 30, 2025, the Company has remaining authorization to repurchase up to $44.5 million of additional common shares, not to exceed the remaining 16,478,138 common shares authorized by the Board.

In the three months ended March 31, 2026, we repurchased 6,365,700 common shares at costs of approximately $16.7 million, inclusive of commissions and excise taxes.

As of March 31, 2026, the Company has repurchased a total of 10,785,181 common shares at costs of approximately $26.5 million, inclusive of commissions and excise taxes, under the repurchase program.

Commissions and excise taxes do not reduce the Company’s remaining repurchase authorization.

Accordingly, the Company has remaining authorization to repurchase up to $23.9 million of additional common shares, not to exceed the remaining 8,485,770 common shares authorized by the Board.

Subsequent to March 31, 2026, the Board authorized a new share repurchase program intended to succeed the Company’s existing share repurchase program.

See Note 15, “Subsequent Events.”

Cash Requirements

The Company’s cash requirements have not changed significantly since the filing of the Annual Report.

Cronos GrowCo Credit Facility

On August 23, 2019, the Company, as lender, and Cronos GrowCo, as borrower, entered into a senior secured credit agreement for an aggregate principal amount of C$100.0 million (as amended, the “GrowCo Credit Facility”).

The GrowCo Credit Facility is secured by substantially all present and after-acquired personal and real property of Cronos GrowCo.

In August 2021, the GrowCo Credit Facility was amended to increase the aggregate principal amount available to C$105.0 million, and in June 2024, the GrowCo Credit Facility was amended to increase the aggregate principal amount available by C$70.0 million to C$175.0 million by providing a second secured non-revolving credit facility.

As a result of the Cronos GrowCo Transaction on July 1, 2024, the existing loans receivable under the GrowCo Credit Facility were remeasured at their fair value and effectively settled for accounting purposes.

Beginning in the third quarter of 2024, the GrowCo Credit Facility has been treated as an intercompany loan and eliminated upon consolidation.

For the three months ended March 31, 2026, Cronos GrowCo repaid an aggregate C$3.4 million ($2.5 million) and C$1.8 million ($1.3 million) in principal and interest, respectively, under the terms of the GrowCo Credit Facility.

As of March 31, 2026, Cronos GrowCo had repaid an aggregate C$39.3 million ($28.6 million) and C$38.2 million ($27.8 million) in principal and interest, respectively, under the terms of the GrowCo Credit Facility.

As of March 31, 2026, the closing balance of the GrowCo Credit Facility was C$127.7 million ($91.8 million).

Critical Accounting Policies and Estimates

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis