What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-11 · 332 added, 209 removed, 616 unchanged (47% of the section changed)

Financial Statements

Condensed Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 202 5

Condensed Consolidated Statements of Net Income ( Loss ) and Comprehensive Income (Loss) for the three months ended March 31 , 2026 and 202 5 (Unaudited)

Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2026 and 202 5 (Unaudited)

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 202 6 and 2025 (Unaudited)

Condensed Consolidated Balance Sheets as of June 30 , 2026 (Unaudited) and December 31, 202 5

Condensed Consolidated Statements of Net Income ( Loss ) and Comprehensive Income (Loss) for the three and six months ended June 30 , 2026 and 202 5 (Unaudited)

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30 , 2026 and 2025 (Unaudited)

Condensed Consolidated Statements of Cash Flows for the six months ended June 30 , 2026 and 2025 (Unaudited)

Notes to Condensed Consolidated Financial Statements (Unaudited)

3 unchanged sentences

dollars, except share amounts, unaudited)

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Current assets

3 unchanged sentences

Interest receivable 3,982 8,654

Current income tax receivable 14,661 12,431

Other receivables 1,679 2,014

Current portion of loans receivable, net 128 —

Inventory, net 52,701 46,750

1 unchanged sentence

Total current assets 912,030 944,086

Non-current interest-bearing deposits 30,000 —

Other investments 4,527 7,664

18 unchanged sentences

Share capital and additional paid-in capital (no par value;

authorized for issue as of March 31, 2026 and December 31, 2025:

shares outstanding as of March 31, 2026 and December 31, 2025:

authorized for issue as of June 30, 2026 and December 31, 2025:

shares outstanding as of June 30, 2026 and December 31, 2025:

370,726,047 and 381,592,969 , respectively)

11 unchanged sentences

dollars, except share and per share amounts, unaudited)

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Net revenue, before excise taxes $ 70,597 $ 44,252 $ 129,562 $ 86,150

12 unchanged sentences

Total operating expenses 21,047 19,828 42,033 37,634

Operating loss ( 1,833 ) ( 4,072 )

Operating income (loss) 7,404 ( 5,324 ) 5,571 ( 9,396 )

Other income (expense)

Interest income, net 8,816 8,997 17,669 18,662

Gain (loss) on revaluation of financial instruments

Foreign currency gain 13,699 1,583

Loss on revaluation of financial instruments ( 615 ) ( 640 ) ( 3,099 ) ( 591 )

Foreign currency gain (loss) 20,219 ( 39,538 ) 33,918 ( 37,955 )

Loss on held-for-sale assets — ( 2,501 ) — ( 2,501 )

Change in allowance for credit loss on non-operating loan ( 108 ) — ( 214 ) —

Other, net ( 2 ) ( 1 ) 8 42

Total other income

19,972 11,340

Income before income taxes 18,139 7,268

Total other income (expense) 28,310 ( 33,683 ) 48,282 ( 22,343 )

Income (loss) before income taxes 35,714 ( 39,007 ) 53,853 ( 31,739 )

Income tax provision (benefit) 51 ( 525 ) 2,479 ( 980 )

Net income 15,711 7,723

Net income (loss) 35,663 ( 38,482 ) 51,374 ( 30,759 )

Net income attributable to non-controlling interest 3,578 1,229 5,537 2,830

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

Comprehensive income (loss)

Net income $ 15,711 $ 7,723

Other comprehensive loss

Foreign exchange loss on translation ( 17,945 ) ( 3,082 )

Comprehensive income (loss) ( 2,234 ) 4,641

Net income (loss) attributable to Cronos Group $ 32,085 $ ( 39,711 ) $ 45,837 $ ( 33,589 )

Comprehensive income

Net income (loss) $ 35,663 $ ( 38,482 ) $ 51,374 $ ( 30,759 )

Other comprehensive income (loss)

Foreign exchange gain (loss) on translation ( 23,062 ) 60,228 ( 41,007 ) 57,146

Comprehensive income 12,601 21,746 10,367 26,387

Comprehensive income attributable to non-controlling interests 2,319 3,412 3,409 4,855

Comprehensive income (loss) attributable to Cronos Group $ ( 3,324 ) $ 3,198

Net income per share

Basic net income per share attributable to Cronos Group $ 0.04 $ 0.02

Diluted net income per share attributable to Cronos Group $ 0.04 $ 0.02

Comprehensive income attributable to Cronos Group $ 10,282 $ 18,334 $ 6,958 $ 21,532

Net income (loss) per share

Basic net income (loss) per share attributable to Cronos Group $ 0.09 $ ( 0.10 ) $ 0.12 $ ( 0.09 )

Diluted net income (loss) per share attributable to Cronos Group $ 0.09 $ ( 0.10 ) $ 0.12 $ ( 0.09 )

See notes to condensed consolidated interim financial statements.

1 unchanged sentence

Condensed Consolidated Statements of Changes in Equity

For the three months ended March 31, 2026 and 2025

For the six months ended June 30, 2026 and 2025

(In thousands of U.S.

dollars, except share amounts, unaudited)

Number of shares Share capital and additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Non-controlling interests Total shareholders’ equity

Number of shares Share capital and additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total shareholders’ equity

Balance as of December 31, 2025 381,592,969 $ 662,983 $ 447,756 $ ( 16,842 ) $ 49,062 $ 1,142,959

4 unchanged sentences

Balance as of March 31, 2026 376,258,707 $ 647,040 $ 460,540 $ ( 33,918 ) $ 50,152 $ 1,123,814

Number of shares Share capital and additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interests Total shareholders’ equity

Activities relating to share-based compensation 355,510 1,162 ( 306 ) — — 856

Share repurchases ( 5,888,170 ) ( 16,128 ) — — — ( 16,128 )

Dividend paid to non-controlling interest — — — — ( 3,698 ) ( 3,698 )

Net income — — 32,085 — 3,578 35,663

Foreign exchange loss on translation — — — ( 21,803 ) ( 1,259 ) ( 23,062 )

Balance as of June 30, 2026 370,726,047 $ 632,074 $ 492,319 $ ( 55,721 ) $ 48,773 $ 1,117,445

Number of shares Share capital and additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Non-controlling interests Total shareholders’ equity

Balance as of December 31, 2024 382,530,780 $ 669,879 $ 457,709 $ ( 63,525 ) $ 46,919 $ 1,110,982

3 unchanged sentences

Balance as of March 31, 2025 385,406,395 $ 669,036 $ 463,816 $ ( 66,449 ) $ 48,362 $ 1,114,765

Activities relating to share-based compensation 275,468 1,190 ( 25 ) — — 1,165

Share repurchases ( 1,874,951 ) ( 3,612 ) — — — ( 3,612 )

Dividend paid to non-controlling interest — — — — ( 3,858 ) ( 3,858 )

Net income (loss) — — ( 39,711 ) — 1,229 ( 38,482 )

Foreign exchange gain on translation — — — 58,045 2,183 60,228

Balance as of June 30, 2025 383,806,912 $ 666,614 $ 424,080 $ ( 8,404 ) $ 47,916 $ 1,130,206

See notes to condensed consolidated interim financial statements.

3 unchanged sentences

dollars, except share amounts, unaudited) Table of Contents

Three months ended March 31,

Six months ended June 30,

Operating activities

Net income $ 15,711 $ 7,723

Adjustments to reconcile net income to net cash used in operating activities:

Net income (loss) $ 51,374 $ ( 30,759 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Share-based compensation 2,870 3,469

2 unchanged sentences

Changes in expected credit losses on long-term financial assets 202 ( 11 )

Loss on held-for-sale assets

Inventory step-up recorded to cost of sales

Foreign currency gain ( 13,699 ) ( 1,583 )

Foreign currency (gain) loss ( 33,918 ) 37,955

Other non-cash operating activities, net 2,179 1,329

2 unchanged sentences

Interest receivable 3,569 6,240

Current income tax receivable ( 2,676 ) ( 3,047 )

Other receivables 375 ( 1,024 )

4 unchanged sentences

Accrued liabilities ( 479 ) ( 8,013 )

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

Net cash provided by operating activities 34,908 722

Investing activities

1 unchanged sentence

Proceeds from short-term investments 40,000 —

Purchase of non-current interest-bearing deposits ( 30,000 ) —

Proceeds from repayment on loans receivable 3,480 2,855

Purchase of property, plant and equipment ( 3,614 ) ( 19,095 )

Purchase of intangible assets ( 139 ) ( 99 )

Net cash provided by (used in) investing activities

38,029 ( 55,356 )

Net cash used in investing activities ( 320,273 ) ( 56,339 )

Financing activities

Repurchases of common stock ( 32,858 ) ( 3,612 )

Dividend paid to non-controlling interest

( 3,698 ) ( 3,858 )

Withholding taxes paid on share-based awards ( 2,014 ) ( 3,146 )

Other financing activities, net ( 577 ) —

Net cash used in financing activities ( 39,147 ) ( 10,616 )

28 unchanged sentences

In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.

Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for any other reporting period.

Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for any other reporting period.

These condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”).

6 unchanged sentences

The following table presents the Company’s revenue by major product category:

Three months ended March 31,

Three months ended June 30,

Cannabis flower $ 39,214 $ 25,025

1 unchanged sentence

Net revenue $ 53,007 $ 33,455

Net revenues attributed to a geographic region based on the location of the customer were as follows:

Three months ended March 31,

Canada $ 25,351 $ 20,130

Israel 14,151 9,229

Other countries 5,708 2,903

Six months ended June 30,

Cannabis flower $ 72,948 $ 48,369

Cannabis extracts 25,231 16,968

Net revenue $ 98,217 $ 65,717

3 unchanged sentences

dollars, except share amounts) Table of Contents

(e) Short-term Investments

Short-term investments are classified as held-to-maturity and recorded at cost.

Interest earned on short-term investments is recorded in interest receivables on the consolidated balance sheets and interest income, net on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

Cash inflows and outflows related to the purchase and maturity of short-term investments are classified as investing activities in the Company’s condensed consolidated statements of cash flows.

As of March 31, 2026 and December 31, 2025, the Company’s short-term investments of nil and $ 40,000 , respectively, were comprised of Guaranteed Investment Certificates held in Canada.

Net revenues attributed to a geographic region based on the location of the customer were as follows:

Three months ended June 30,

Canada $ 28,710 $ 19,150

Israel 15,018 9,376

Other countries 9,279 4,929

Net revenue $ 53,007 $ 33,455

Six months ended June 30,

Canada $ 54,061 $ 39,280

Israel 29,169 18,605

Other countries 14,987 7,832

Net revenue $ 98,217 $ 65,717

(e) Short-term investments and non-current interest-bearing deposits

Short-term investments and non-current interest-bearing deposits are classified as held-to-maturity and recorded at cost.

Interest earned on short-term investments and non-current interest-bearing deposits is recorded in interest receivables on the consolidated balance sheets and interest income, net on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

Cash inflows and outflows related to the purchase and maturity of short-term investments and non-current interest-bearing deposits are classified as investing activities in the Company’s condensed consolidated statements of cash flows.

The Company’s short-term investments and non-current interest-bearing deposits were $ 330,000 and $ 30,000 , respectively, as of June 30, 2026 and $ 40,000 and nil , respectively, as of December 31, 2025, and were comprised of guaranteed investment certificates held in Canada.

(f) Concentration of risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

The Company is exposed to credit risk from its operating activities, primarily accounts receivable and other receivables, and its investing activities, including cash held with banks and financial institutions, short-term investments and loans receivable.

The Company’s maximum exposure to this risk is equal to the carrying amount of these financial assets, which amounted to $ 895,029 and $ 909,839 as of March 31, 2026 and December 31, 2025, respectively.

The Company’s maximum exposure to this risk is equal to the carrying amount of these financial assets, which amounted to $ 901,439 and $ 909,839 as of June 30, 2026 and December 31, 2025, respectively.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses.

1 unchanged sentence

The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events and current conditions.

Effective January 1, 2026, the Company elected the practical expedient under ASU 2025-05, which permits the assumption that current conditions as of the reporting date remain unchanged for the remaining life of the asset when developing the expected credit loss estimate for current accounts receivable and current contract assets arising from contracts with customers.

Effective January 1, 2026, the Company elected the practical expedient under ASU 2025-05 (as defined below), which permits the assumption that current conditions as of the reporting date remain unchanged for the remaining life of the asset when developing the expected credit loss estimate for current accounts receivable and current contract assets arising from contracts with customers.

Accounts receivable are written off when there is no reasonable expectation of recovery.

Indicators that there is no reasonable expectation of recovery include, among others, the failure of a debtor to engage in a repayment plan, and a failure to make contractual payments for a period of greater than 120 days past due.

As of March 31, 2026 and December 31, 2025, the Company had $ 12 and $ 9 , respectively, in expected credit losses that have been recognized on receivables from contracts with customers.

As of March 31, 2026, the Company assessed that there is a concentration of credit risk, as 21 % of the Company’s accounts receivable were due from one customer with an established credit history with the Company.

As of June 30, 2026 and December 31, 2025, the Company had $ 15 and $ 9 , respectively, in expected credit losses that have been recognized on receivables from contracts with customers.

As of June 30, 2026, the Company assessed that there is a concentration of credit risk, as 36 % of the Company’s accounts receivable were due from two customers with an established credit history with the Company.

As of December 31, 2025, 16 % of the Company’s accounts receivable were due from one customer with an established credit history with the Company.

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

The Company sells products to a limited number of major customers.

Major customers are defined as customers that each individually accounted for greater than 10% of the Company’s net revenue before excise taxes.

During the three months ended March 31, 2026, the Company earned a total net revenue before excise taxes of $ 24,597 from two major customers, together accounting for 42 % of the Company’s total net revenue before excise taxes.

During the three months ended March 31, 2025, the Company earned a total net revenue before excise taxes of $ 17,751 from two major customers, together accounting for 42 % of the Company’s total net revenue before excise taxes.

During the three months ended June 30, 2026, the Company earned a total net revenue before excise taxes of $ 30,804 from two major customers, together accounting for 44 % of the Company’s total net revenue before excise taxes.

During the three months ended June 30, 2025, the Company earned a total net revenue before excise taxes of $ 18,112 from two major customers, together accounting for 41 % of the Company’s total net revenue before excise taxes.

During the six months ended June 30, 2026, the Company earned a total net revenue before excise taxes of $ 55,401 from two major customers, together accounting for 43 % of the Company’s total net revenue before excise taxes.

During the six months ended June 30, 2025, the Company earned a total net revenue before excise taxes of $ 35,856 from two major customers, together accounting for 42 % of the Company’s total net revenue before excise taxes.

(g) Adoption of new accounting pronouncement

6 unchanged sentences

The adoption of ASU 2025-05 did not have a material effect on the Company’s condensed consolidated financial statements.

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

(h) New accounting pronouncements not yet adopted

14 unchanged sentences

In December 2025, the Financial Accounting Standards Board issued ASU 2025-11, Interim Reporting (Topic 270):

Improvements to Interim Disclosure Requirements.

The ASU clarifies and reorganizes existing interim reporting guidance to improve its operability and consistency, primarily by emphasizing that interim disclosures should focus on significant changes since the most recent annual reporting period.

Improvements to Interim Disclosure Requirements (“ASU 2025-11”).

ASU 2025-11 clarifies and reorganizes existing interim reporting guidance to improve its operability and consistency, primarily by emphasizing that interim disclosures should focus on significant changes since the most recent annual reporting period.

The amendments do not change the recognition or measurement of amounts reported in the financial statements.

1 unchanged sentence

The adoption of ASU 2025-11 is not expected to have a material impact on the Company’s consolidated financial statements.

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

Inventory, net

Inventory, net is comprised of the following items:

As of March 31, 2026 December 31, 2025

As of June 30, 2026 December 31, 2025

Raw materials $ 12,208 $ 8,762

3 unchanged sentences

Total $ 52,701 $ 46,750

As a result of the transaction by which we obtained majority control of the board of directors of Cronos GrowCo (the “Cronos GrowCo Transaction”), the Company recorded a step-up to Cronos GrowCo’s existing inventory of $ 5,605 to bring the inventory balance acquired by the Company to its fair value.

For the three months ended March 31, 2026 and 2025, the Company recognized nil and $ 517 , respectively, of this inventory step-up into cost of sales on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

As of both March 31, 2026 and December 31, 2025, none of the inventory step-up was remaining in the Company’s inventory on the condensed consolidated balance sheets.

As a result of the transaction by which we obtained majority control of Cronos Growing Company Inc.’s (“Cronos GrowCo”) board of directors (the “Cronos GrowCo Transaction”), the Company recorded a step-up to Cronos GrowCo’s existing inventory of $ 5,605 to bring the inventory balance acquired by the Company to its fair value.

For the three and six months ended June 30, 2025, the Company recognized nil and $ 517 , respectively, of this inventory step-up into cost of sales on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

No inventory step-up was recognized in cost of sales during 2026.

As of both June 30, 2026 and December 31, 2025, none of the inventory step-up was remaining in the Company’s inventory on the condensed consolidated balance sheets.

Other investments

1 unchanged sentence

On February 12, 2025, Vitura Health Limited (“Vitura”) issued an additional 74,814,757 common shares diluting the Company’s ownership in Vitura from approximately 10 % to approximately 8.3 %.

As of March 31, 2026, the Company’s ownership percentage in Vitura remained at approximately 8.3 % of its outstanding common shares.

As of June 30, 2026, the Company’s ownership percentage in Vitura remained at approximately 8.3 % of its outstanding common shares.

The investment is considered an equity security with a readily determinable fair value.

Changes in the fair value of the investment are recorded as gain (loss) on revaluation of financial instruments on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

High Tide Warrant

7 unchanged sentences

See Note 4 “ Loans Receivable, net ” for discussion of the loan receivable recognized as part of the agreement with High Tide.

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

The following tables summarize the Company’s other investments activity:

As of December 31, 2025 Unrealized loss Foreign exchange effect As of March 31, 2026

As of March 31, 2026 Unrealized loss Foreign exchange effect As of June 30, 2026

Vitura $ 1,447 $ ( 507 ) $ 14 $ 954

1 unchanged sentence

$ 5,199 $ ( 615 ) $ ( 57 ) $ 4,527

As of December 31, 2024 Unrealized loss Foreign exchange effect As of March 31, 2025

As of December 31, 2025 Unrealized loss Foreign exchange effect As of June 30, 2026

Vitura $ 2,253 $ ( 1,395 ) $ 96 $ 954

High Tide Warrant 5,411 ( 1,704 ) ( 134 ) 3,573

$ 7,664 $ ( 3,099 ) $ ( 38 ) $ 4,527

As of March 31, 2025 Unrealized loss Foreign exchange effect As of June 30, 2025

Vitura $ 2,755 $ ( 632 ) $ 128 $ 2,251

$ 2,755 $ ( 632 ) $ 128 $ 2,251

As of December 31, 2024 Unrealized loss Foreign exchange effect As of June 30, 2025

Vitura $ 2,813 $ ( 700 ) $ 138 $ 2,251

$ 2,813 $ ( 700 ) $ 138 $ 2,251

Loans Receivable, net

Loans receivable, net consists of the following:

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Current portion of Mucci Promissory Note accrued interest $ — $ —

8 unchanged sentences

Mucci Promissory Note

On June 28, 2019, the Company entered into a promissory note receivable agreement (the “Mucci Promissory Note”) for C$ 16,350 (approximately $ 11,749 ) with the Cronos GrowCo joint venture partner (“Mucci”).

On June 28, 2019, the Company entered into a promissory note receivable agreement (the “Mucci Promissory Note”) for C$ 16,350 with the Cronos GrowCo joint venture partner (“Mucci”).

The Mucci Promissory Note is secured by a general security agreement covering all the assets of Mucci.

4 unchanged sentences

As of July 1, 2024, interest accruing on the Mucci Promissory Note is required to be paid in cash beginning on July 1, 2025.

For both the three months ended March 31, 2026 and 2025, there were no repayments of principal or interest on the Mucci Promissory Note.

For the three and six months ended June 30, 2026, Mucci made principal repayments of $ 3,480 and interest payments of $ 256 on the Mucci Promissory Note.

For the three and six months ended June 30, 2025, Mucci made principal repayments of $ 2,855 and interest payments of $ 1,003 on the Mucci Promissory Note.

Cronos Group Inc.

12 unchanged sentences

The carrying amount of the Cannasoul Collaboration Loan is recorded under loans receivable and the full amount of the Cannasoul Collaboration Loan, ILS 8,297 , represents the Company’s maximum potential exposure to losses through the Cannasoul Collaboration.

As of both March 31, 2026 and December 31, 2025, CLS has received ILS 8,297 (approximately $ 2,639 and $ 2,604 , respectively), from the Cannasoul Collaboration Loan.

As of both June 30, 2026 and December 31, 2025, CLS has received ILS 8,297 from the Cannasoul Collaboration Loan.

High Tide Loan

6 unchanged sentences

The loan receivable was recorded at a fair value as of the transaction date of C$ 18,591 and will be amortized using the effective interest method over the estimated life of the loan.

For the three months ended March 31, 2026, High Tide paid $ 212 in interest.

As of March 31, 2026, the High Tide loan receivable included an unamortized discount of $ 7,373 and an expected credit loss of $ 4,951 as presented in the tables below.

For the three and six months ended June 30, 2026, High Tide paid $ 213 and $ 425 , respectively, in interest.

As of June 30, 2026, the High Tide loan receivable included an unamortized discount of $ 6,921 and an expected credit loss of $ 4,960 as presented in the tables below.

Credit Quality Indicators

9 unchanged sentences

dollars, except share amounts) Table of Contents

Expected credit loss allowances on the Company’s long-term financial assets for the three months ended March 31, 2026 and 2025 were comprised of the following items:

As of December 31, 2025 Increase (i)

Foreign exchange effect As of March 31, 2026

Expected credit loss allowances on the Company’s long-term financial assets for the three months ended June 30, 2026 and 2025 were comprised of the following items:

As of March 31, 2026 Increase (decrease) (i)

Foreign exchange effect As of June 30, 2026

Mucci Promissory Note $ 59 $ ( 23 ) $ ( 1 ) $ 35

3 unchanged sentences

$ 5,655 $ 90 $ ( 63 ) $ 5,682

As of December 31, 2024 Increase (ii)

Foreign exchange effect As of March 31, 2025

As of December 31, 2025 Increase (decrease) (i)

Foreign exchange effect As of June 30, 2026

Mucci Promissory Note $ 59 $ ( 22 ) $ ( 2 ) $ 35

Cannasoul Collaboration Loan 631 10 46 687

High Tide Loan

4,924 214 ( 178 ) 4,960

(i) During the three months ended March 31, 2026, $ 6 was recorded as an increase to general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our expected credit losses.

During the three months ended March 31, 2026, $ 106 was recorded as a change in allowance for credit loss on non-operating loan on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our allowance for expected credit loss on the High Tide Loan.

(ii) During the three months ended March 31, 2025, $ 9 was recorded as an increase to general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our expected credit losses.

$ 5,614 $ 202 $ ( 134 ) $ 5,682

As of March 31, 2025 Increase (decrease) (ii)

Foreign exchange effect As of June 30, 2025

Mucci Promissory Note $ 93 $ ( 24 ) $ 5 $ 74

Cannasoul Collaboration Loan 529 4 56 589

$ 622 $ ( 20 ) $ 61 $ 663

As of December 31, 2024 Increase (decrease) (ii)

Foreign exchange effect As of June 30, 2025

Mucci Promissory Note $ 88 $ ( 19 ) $ 5 $ 74

Cannasoul Collaboration Loan 535 8 46 589

$ 623 $ ( 11 ) $ 51 $ 663

(i) During the three and six months ended June 30, 2026, $ 18 and $ 12 , respectively, were recorded as decreases to general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our expected credit losses.

During the three and six months ended June 30, 2026, $ 108 and $ 214 , respectively, were recorded as changes in allowance for credit loss on non-operating loan on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our allowance for expected credit loss on the High Tide Loan.

(ii) During the three and six months ended June 30, 2025, $ 20 and $ 11 , respectively, were recorded as decreases to general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss) as a result of adjustments to our expected credit losses.

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

Property, Plant and Equipment, net

Property, plant and equipment, net consisted of the following:

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Land $ 5,308 $ 7,245

7 unchanged sentences

Property, plant and equipment, net $ 141,539 $ 145,865

For the three months ended March 31, 2026, depreciation expense on property, plant and equipment was $ 3,097 .

For the three months ended March 31, 2025, depreciation expense on property, plant and equipment was $ 2,144 .

For the three and six months ended June 30, 2026, depreciation expense on property, plant and equipment was $ 3,015 and $ 6,219 , respectively.

For the three and six months ended June 30, 2025, depreciation expense on property, plant and equipment was $ 3,467 and $ 5,611 , respectively.

This depreciation expense was included in cost of sales as well as depreciation and amortization in operating expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

As of March 31, 2026 and December 31, 2025, the Company had $ 465 and $ 760 , respectively, of unpaid purchases of property, plant and equipment accrued in accounts payable on the condensed consolidated balance sheets.

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

As of June 30, 2026 and December 31, 2025, the Company had $ 3,470 and $ 760 , respectively, of unpaid purchases of property, plant and equipment accrued in accounts payable on the condensed consolidated balance sheets.

Goodwill and Intangible Assets, net

Goodwill is comprised of the following items as of March 31, 2026 and December 31, 2025:

As of March 31, 2026

Goodwill is comprised of the following items as of June 30, 2026 and December 31, 2025:

As of June 30, 2026

Cost Accumulated Impairment Charges Net

7 unchanged sentences

$ 66,478 $ — $ 66,478

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

(b) Intangible assets, net

Intangible assets, net are comprised of the following items as of March 31, 2026 and December 31, 2025:

As of March 31, 2026

Intangible assets, net are comprised of the following items as of June 30, 2026 and December 31, 2025:

As of June 30, 2026

Cost Accumulated amortization Accumulated impairment charges Net

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Amortization costs associated with the know-how intangible asset are recorded to cost of sales on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

As of June 30, 2026, the estimated future amortization of definite-lived intangible assets is as follows:

As of June 30, 2026

Remainder of 2026 (6 months) $ 738

Thereafter 2,861

Cronos Group Inc.

2 unchanged sentences

dollars, except share amounts) Table of Contents

As of March 31, 2026, the estimated future amortization of definite-lived intangible assets is as follows:

As of March 31, 2026

Remainder of 2026 (9 months) $ 1,163

Thereafter 2,908

Restructuring

2 unchanged sentences

On February 27, 2023, the Board approved revisions to the Realignment, under which the Company was maintaining select components of its operations at the Peace Naturals Campus, namely distribution warehousing, certain research and development activities and manufacturing of certain of the Company’s products.

In the third quarter of 2023, the Board approved revisions to the Realignment to wind-down operations at the Company’s Winnipeg, Manitoba facility (the “Cronos Fermentation Facility”), list the Cronos Fermentation Facility assets for sale, and implement additional organization-wide cost reductions as the Company continues its Realignment initiatives.

In the third quarter of 2023, the Board approved revisions to the Realignment to wind-down operations at the Company’s Winnipeg, Manitoba facility (the “Cronos Fermentation Facility”), list the Cronos Fermentation Facility assets for sale (the “Cronos Fermentation Held-For-Sale Assets Group”), and implement additional organization-wide cost reductions as the Company continues its Realignment initiatives.

On November 26, 2023, the Company entered into an agreement for the sale and leaseback of the Peace Naturals Campus, which was subsequently terminated pursuant to its terms during the second quarter of 2024.

3 unchanged sentences

The Realignment initiatives are intended to position the Company to drive profitable and sustainable growth over time.

During the three months ended March 31, 2026, the Company incurred $ 484 of restructuring costs in connection with the Realignment.

During the three months ended March 31, 2025, the Company incurred $ 555 of restructuring costs in connection with the Realignment.

During the three and six months ended June 30, 2026, the Company incurred $ 308 and $ 792 , respectively, of restructuring costs in connection with the Realignment.

During the three and six months ended June 30, 2025, the Company incurred $ 768 and $ 1,323 , respectively, of restructuring costs in connection with the Realignment.

Charges related thereto include employee-related costs such as severance and other termination benefits, as well as IT infrastructure and finance transformation costs associated with the Realignment.

The following tables summarize the Company’s restructuring activity for the three months ended March 31, 2026 and three months ended March 31, 2025:

Accrual as of December 31, 2025 Expenses Payments/Write-offs Accrual as of March 31, 2026

The following tables summarize the Company’s restructuring activity for the three and six months ended June 30, 2026 and three and six months ended June 30, 2025:

Accrual as of March 31, 2026 Expenses Payments/Write-offs Accrual as of June 30, 2026

Employee Termination Benefits $ — $ — $ — $ —

1 unchanged sentence

Total $ 236 $ 308 $ ( 294 ) $ 250

Accrual as of December 31, 2024 Expenses Payments/Write-offs Accrual as of March 31, 2025

Accrual as of December 31, 2025 Expenses Payments/Write-offs Accrual as of June 30, 2026

Employee Termination Benefits $ 104 $ — $ ( 104 ) $ —

1 unchanged sentence

Total $ 315 $ 792 $ ( 857 ) $ 250

Accrual as of March 31, 2025 Expenses Payments/Write-offs Accrual as of June 30, 2025

Employee Termination Benefits $ 257 $ 363 $ ( 516 ) $ 104

Other Restructuring Costs 183 405 ( 480 ) 108

Total $ 440 $ 768 $ ( 996 ) $ 212

Accrual as of December 31, 2024 Expenses Payments/Write-offs Accrual as of June 30, 2025

Employee Termination Benefits $ — $ 620 $ ( 516 ) $ 104

Other Restructuring Costs — 703 ( 595 ) 108

Total $ — $ 1,323 $ ( 1,111 ) $ 212

Cronos Group Inc.

5 unchanged sentences

The Company has granted stock options, restricted share units (“RSUs”) and deferred share units (“DSUs”) to employees and non-employee directors under the 2020 Omnibus Equity Incentive Plan dated March 29, 2020 (the “2020 Omnibus Plan”) and the DSU Plan dated August 10, 2019 (the “DSU Plan”).

The following table summarizes the total share-based compensation expense associated with the Company’s stock options, RSUs and DSUs for the three months ended March 31, 2026 and 2025:

Three months ended March 31,

The following table summarizes the total share-based compensation expense associated with the Company’s stock options, RSUs and DSUs for the three and six months ended June 30, 2026 and 2025:

Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Stock options $ 17 $ 79 $ 35 $ 154

1 unchanged sentence

Total share-based compensation $ 1,557 $ 1,381 $ 2,870 $ 3,469

Share-based compensation for the three months ended March 31, 2026 included a gain of $ 43 associated with the Company’s DSUs.

For the three months ended March 31, 2025, a gain of $ 117 was included in revaluation of financial instruments in the Company’s condensed consolidated statements of net income (loss) and comprehensive income (loss), related to the revaluation of DSUs.

Share-based compensation for the three and six months ended June 30, 2026 included a loss of $ 221 and a loss of $ 178 , respectively, associated with the revaluation of the Company’s DSUs.

For the three and six months ended June 30, 2025, a loss of $ 7 and a gain of $ 109 , respectively, was included in revaluation of financial instruments in the Company’s condensed consolidated statements of net income (loss) and comprehensive income (loss), related to the revaluation of DSUs.

(b) Stock options

2 unchanged sentences

The 2020 Omnibus Plan does not authorize grants of options with an exercise price below fair market value.

The following is a summary of the changes in stock options for the three months ended March 31, 2026 and 2025:

The following is a summary of the changes in stock options for the six months ended June 30, 2026 and 2025:

Weighted-average exercise price (C$) (i)

1 unchanged sentence

Balance as of December 31, 2025 $ 5.68 588,317 2.48

Balance as of March 31, 2026 $ 5.68 588,317 2.24

Exercisable as of March 31, 2026 $ 5.92 541,237 2.09

Balance as of June 30, 2026 $ 5.68 588,317 1.99

Exercisable as of June 30, 2026 $ 5.85 553,007 1.88

Weighted-average exercise price (C$) (i)

1 unchanged sentence

Balance as of December 31, 2024 $ 5.63 717,264 3.65

Balance as of March 31, 2025 $ 5.63 717,264 3.40

Exercisable as of March 31, 2025 $ 6.20 573,253 3.04

Balance as of June 30, 2025 $ 5.63 717,264 2.51

Exercisable as of June 30, 2025 $ 5.98 634,875 2.22

(i) The weighted-average exercise price reflects the conversion of foreign currency-denominated stock options translated into C$ using the average foreign exchange rate as of the date of issuance.

The following table summarizes stock options outstanding:

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

2020 Omnibus Plan 588,317 588,317

5 unchanged sentences

The following is a summary of the changes in RSUs for the three months ended March 31, 2026 and 2025:

The following is a summary of the changes in RSUs for the six months ended June 30, 2026 and 2025:

Weighted-average grant date fair value (C$) (ii)

3 unchanged sentences

Vested and issued 2.72 ( 2,170,748 )

Balance as of March 31, 2026 $ 3.05 5,256,580

Cancellation and forfeitures 3.08 ( 124,144 )

Balance as of June 30, 2026 $ 3.13 5,133,581

Weighted-average grant date fair value (C$) (ii)

4 unchanged sentences

Cancellation and forfeitures 3.34 ( 508,967 )

Balance as of March 31, 2025 $ 2.86 5,563,602

Balance as of June 30, 2025 $ 2.81 5,662,983

(i) RSUs granted in the period vest annually in equal installments over a three-year period from the grant date.

3 unchanged sentences

(d) Deferred share units

The following is a summary of the changes in DSUs for the three months ended March 31, 2026 and 2025:

The following is a summary of the changes in DSUs for the six months ended June 30, 2026 and 2025:

Financial liability Number of DSUs

Balance as of December 31, 2025 $ 1,993 758,499

Gain on revaluation ( 43 ) —

Loss on revaluation 178 —

Foreign exchange effect

Balance as of March 31, 2026 $ 1,919 758,499

Balance as of June 30, 2026 $ 2,094 758,499

Financial liability Number of DSUs

2 unchanged sentences

Foreign exchange effect

Balance as of March 31, 2025 $ 1,009 560,261

Balance as of June 30, 2025 $ 1,075 560,261

Share Repurchase Program

On May 7, 2025, the Board authorized a share repurchase program of up to $ 50,000 .

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

Repurchases under the program may be made from time to time, either through open market purchases at then-prevailing market prices through the facilities of the Nasdaq or other U.S.

published markets, privately negotiated transactions or otherwise.

Open market repurchases will not exceed 19,270,951 common shares, being 5 % of the outstanding common shares as of May 7, 2025.

On May 8, 2026, the Board unanimously authorized a share repurchase program (the “Share Repurchase Program”) of up to $ 50,000 , which succeeded the Company’s prior share repurchase program upon its expiration on May 13, 2026.

The Share Repurchase Program commenced on May 14, 2026 and is expected to expire on May 13, 2027, unless earlier terminated.

Repurchases under the program may be made from time to time, either through open market purchases at then-prevailing market prices through the facilities of the TSX, the Nasdaq or other U.S.

or Canadian published markets, privately negotiated transactions or otherwise.

Open market repurchases will not exceed 18,712,918 common shares, the maximum amount permitted by applicable Canadian securities laws.

The timing and amount of repurchases are subject to market conditions, compliance with applicable laws and regulations and any other factors management of the Company may deem relevant.

The program does not obligate Cronos to acquire any specific dollar amount or number of common shares and may be modified, suspended, or discontinued at any time.

During the three months ended March 31, 2026, the Company repurchased 6,365,700 common shares for $ 16,730 , inclusive of commissions and excise taxes.

All common shares repurchased under this program were retired and cancelled upon settlement.

As a result, the repurchased common shares were removed from issued and outstanding share capital, reducing the number of common shares outstanding.

The value of the retired common shares was charged against share capital and additional paid-in capital.

The Company funded the repurchases using available cash resources.

Cronos Group Inc.

2 unchanged sentences

dollars, except share amounts) Table of Contents

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 .”

During the three months ended June 30, 2026, the Company repurchased 5,888,170 common shares for $ 16,128 , inclusive of commissions and excise taxes.

During the six months ended June 30, 2026, the Company repurchased 12,253,870 common shares for $ 32,858 , inclusive of commissions and excise taxes.

All common shares repurchased under the applicable share repurchase program were retired and cancelled upon settlement.

As a result, the repurchased common shares were removed from issued and outstanding share capital, reducing the number of common shares outstanding.

The value of the retired common shares was charged against share capital and additional paid-in capital.

The Company funded the repurchases using available cash resources.

Commitments and Contingencies

21 unchanged sentences

market during the class period but would not resolve claims of persons who acquired shares on the TSX.

The proposed settlement remains subject to preliminary and final approval by the court and certain other conditions not within the Company’s control.

On July 20, 2026, a magistrate judge to whom the court referred the preliminary approval motion issued a recommendation that the district court preliminarily approve the proposed settlement.

On August 4, the district court entered an order granting preliminary approval of the settlement.

The proposed settlement remains subject to final approval by the court and certain other conditions not within the Company’s control.

One of the shareholder plaintiffs in the Ontario action has informed the court that he intends to oppose approval of the settlement.

24 unchanged sentences

On October 24, 2022, the Ontario Capital Markets Tribunal approved a settlement agreement (the “Settlement Agreement”) between the Company and the staff of the Ontario Securities Commission (the “OSC”), resolving the Restatements.

Pursuant to the terms of the Settlement Agreement, which fully and finally disposed the investigation of the Company by the OSC, Cronos agreed to pay a total of C$ 1.34 million to fully settle the matter, and acknowledged that it had failed to comply with the requirement under Section 77 of the Ontario Securities Act to file interim financial reports in the manner set out therein and had acted in a manner contrary to the public interest.

Pursuant to the terms of the Settlement Agreement, which fully and finally disposed of the investigation of the Company by the OSC, Cronos agreed to pay a total of C$ 1.34 million to fully settle the matter, and acknowledged that it had failed to comply with the requirement under Section 77 of the Ontario Securities Act to file interim financial reports in the manner set out therein and had acted in a manner contrary to the public interest.

Cronos Group Inc.

31 unchanged sentences

The deadline for petitioners to appeal was February 16, 2026.

On June 29, 2026, the Trade Levies Commissioner initiated a new anti-dumping investigation concerning imports of medical cannabis flower from Canada following a complaint filed by two Israeli producers.

The investigation covered alleged dumping during 2025 and alleged injury during 2023 through 2025, and, for purposes of initiating the investigation, the Commissioner identified a prima facie dumping margin of approximately 125 %.

On July 28, 2026, the Commissioner terminated the investigation on procedural grounds.

The termination was not based on a substantive determination of the merits and did not preclude the filing of another complaint or the initiation of a new investigation.

On July 30, 2026, a new complaint concerning imports of medical cannabis from Canada was filed on behalf of the Israeli domestic industry.

On August 2, 2026, the Commissioner notified the Government of Canada that the new complaint contained sufficient prima facie evidence of dumping, material injury to the domestic industry and a causal link between the alleged dumping and injury.

On August 5, 2026, the Commissioner notified the Company of the initiation of a new investigation.

The Company cannot predict the timing or outcome of the new investigation or any related proceeding, or whether any provisional or final anti-dumping duty or other import restriction will ultimately be imposed.

We expect litigation and regulatory proceedings relating to the marketing, distribution, import and sale of our products to increase.

13 unchanged sentences

these significant expenses include:

sales and marketing, research and development, general and administrative, depreciation and amortization, and share-based compensation expense, which are presented within operating expenses on the Company’s condensed consolidated statements of net income (loss) and comprehensive income (loss).

Furthermore, the CODM regularly reviews total cash and short-term investments to aid in capital allocation decisions.

cost of sales and inventory write-down, which are presented in determining gross profit, and sales and marketing, research and development, general and administrative, depreciation and amortization, and share-based compensation expense, which are presented within operating expenses on the Company’s condensed consolidated statements of net income (loss) and comprehensive income (loss).

Furthermore, the CODM regularly reviews total cash and cash equivalents, short-term investments and non-current interest-bearing deposits to aid in capital allocation decisions.

The table below sets forth consolidated Adjusted EBITDA and significant expenses for our single segment:

Three months ended March 31,

Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Adjusted EBITDA $ 13,088 $ 1,688 $ 18,167 $ 3,977

Significant expenses:

Cost of sales 24,168 18,865 49,560 37,393

Inventory write-down 388 86 1,053 86

Significant operating expenses:

Sales and marketing 6,785 5,347 12,400 9,912

3 unchanged sentences

Depreciation and amortization 379 867 804 1,363

Total significant expenses 19,543 17,211

Total significant operating expenses 20,158 19,028 39,701 36,239

Restructuring costs 308 768 792 1,323

7 unchanged sentences

GAAP to Adjusted EBITDA for the periods indicated:

Three months ended March 31, 2026

Three months ended June 30, 2026

Net income $ 35,663

13 unchanged sentences

Adjusted EBITDA $ 13,088

Three months ended March 31, 2025

Net income $ 7,723

Three months ended June 30, 2025

Net loss $ ( 38,482 )

Interest income, net ( 8,997 )

1 unchanged sentence

Depreciation and amortization 4,202

Gain on revaluation of financial instruments (i)

EBITDA ( 43,802 )

Loss on revaluation of financial instruments (i)

Foreign currency transaction loss 39,538

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)

Loss on held-for-sale assets (ix)

Adjusted EBITDA $ 1,688

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

Six months ended June 30, 2026

Net income $ 51,374

Interest income, net ( 17,669 )

Income tax provision 2,479

Depreciation and amortization 7,101

EBITDA 43,285

Loss on revaluation of financial instruments (i)

Foreign currency transaction gain ( 33,918 )

4 unchanged sentences

Restatement litigation costs (vi)

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

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

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

Adjusted EBITDA $ 18,167

(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 B.V.

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.

Six months ended June 30, 2025

Net loss $ ( 30,759 )

Interest income, net ( 18,662 )

Income tax benefit ( 980 )

Depreciation and amortization 7,042

EBITDA ( 43,359 )

Loss on revaluation of financial instruments (i)

Foreign currency transaction loss 37,955

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)

Loss on held-for-sale assets (ix)

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

Adjusted EBITDA $ 3,977

(i) For the three and six months ended June 30, 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 and six months ended June 30, 2025, the loss on revaluation of financial instruments related primarily to the Company’s equity securities in Vitura.

(ii) For the three and six months ended June 30, 2026, transaction costs represented fees related to the pending acquisition of CanAdelaar B.V.

For the three and six months ended June 30, 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.

(iii) For the three months ended June 30, 2026, other, net related to a loss on disposal of fixed assets.

For the six months ended June 30, 2026, other, net related primarily to rental income.

For the three and six months ended June 30, 2025, other, net related to (gain) loss on disposal of assets and (gain) loss on revaluation of derivative liabilities.

(iv) For the three and six months ended June 30, 2026, restructuring costs related to IT infrastructure and finance transformation costs associated with the Realignment, as described in Note 7 “ Restructuring .” For the three and six months ended June 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 7 “ Restructuring .”

Cronos Group Inc.

2 unchanged sentences

dollars, except share amounts) Table of Contents

(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 net income (loss) and comprehensive income (loss).

(v) For the three and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 2026 and 2025, Israel Ministry of Economy and Industry dumping inquiry expense included expenditures relating to regulatory investigations and proceedings about alleged dumping of medical cannabis imports from Canada into Israel and related litigation and external relations expenses.

(viii) For the three and six months ended June 30, 2026, change in allowance for credit loss on non-operating loan related to the allowance recognized on the High Tide loan receivable, as described in Note 4, “Loans Receivable, net.”

(ix) For the three and six months ended June 30, 2025, loss on held-for-sale assets related to a revaluation of the Cronos Fermentation Held-For-Sale Assets Group.

(x) For the six months ended June 30, 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 net income (loss) and comprehensive income (loss).

The following tables present the Company’s revenue by major product category for our single segment:

Three months ended March 31,

Three months ended June 30,

Cannabis flower $ 39,214 $ 25,025

1 unchanged sentence

Net revenue $ 53,007 $ 33,455

Six months ended June 30,

Cannabis flower $ 72,948 $ 48,369

Cannabis extracts 25,231 16,968

Net revenue $ 98,217 $ 65,717

Net revenue attributed to a geographic region based on the location of the customer was as follows:

Three months ended March 31,

Three months ended June 30,

Canada $ 28,710 $ 19,150

2 unchanged sentences

Net revenue $ 53,007 $ 33,455

Six months ended June 30,

Canada $ 54,061 $ 39,280

Israel 29,169 18,605

Other countries 14,987 7,832

Net revenue $ 98,217 $ 65,717

The table below sets forth total cash and cash equivalents and short-term investments for our single segment:

As of March 31, 2026 As of December 31, 2025

Total cash and cash equivalents and short-term investments $ 821,856 $ 831,794

As of June 30, 2026 As of December 31, 2025

Total cash and cash equivalents, short-term investments and non-current interest-bearing deposits $ 827,019 $ 831,794

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

Property, plant and equipment, net were physically located in the following geographic regions:

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Canada $ 124,640 $ 129,352

2 unchanged sentences

Intangibles, net were physically located in the following geographic regions:

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Canada $ 7,722 $ 8,551

1 unchanged sentence

Total $ 8,050 $ 8,890

For additions to our property, plant and equipment, net and intangibles, net for the three months ended March 31, 2026 and March 31, 2025, please see Note 5 “ Property, Plant and Equipment, net ” and the condensed consolidated statements of cash flows.

For additions to our property, plant and equipment, net and intangibles, net for the six months ended June 30, 2026 and 2025, please see Note 5 “ Property, Plant and Equipment, net ” and the condensed consolidated statements of cash flows.

Cronos Group Inc.

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dollars, except share amounts) Table of Contents

Income per Share

Income (Loss) per Share

Basic and diluted income (loss) per share are calculated as follows (in thousands, except share and per share amounts):

Three months ended March 31,

Basic income per share computation

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

Weighted-average number of common shares outstanding for computation for basic income per share 379,374,109 382,958,797

Basic income per share $ 0.04 $ 0.02

Diluted income per share computation

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

Weighted-average number of common shares outstanding used in the computation of basic income per share 379,374,109 382,958,797

Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Basic income (loss) per share computation

Net income (loss) attributable to the shareholders of Cronos Group $ 32,085 $ ( 39,711 ) $ 45,837 $ ( 33,589 )

Weighted-average number of common shares outstanding for computation for basic income (loss) per share 373,609,102 385,306,213 376,475,683 384,138,987

Basic income (loss) per share $ 0.09 $ ( 0.10 ) $ 0.12 $ ( 0.09 )

Diluted income (loss) per share computation

Net income (loss) attributable to the shareholders of Cronos Group $ 32,085 $ ( 39,711 ) $ 45,837 $ ( 33,589 )

Weighted-average number of common shares outstanding used in the computation of basic income (loss) per share 373,609,102 385,306,213 376,475,683 384,138,987

Dilutive effect of stock options 17,837 — 11,030 —

2 unchanged sentences

Weighted-average number of common shares for computation of diluted income from continuing operations per share 375,061,482 385,306,213 378,414,463 384,138,987

Diluted income per share $ 0.04 $ 0.02

For the three months ended March 31, 2026 and 2025, total securities of 1,288,578 and 18,273,597 , respectively, were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive.

Diluted income (loss) per share $ 0.09 $ ( 0.10 ) $ 0.12 $ ( 0.09 )

For the three months ended June 30, 2026 and 2025, total securities of 4,589,300 and 15,812,953 , respectively, were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive.

For the six months ended June 30, 2026 and 2025, total securities of 2,938,940 and 19,045,720 , respectively, were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive.

Fair Value Measurements

9 unchanged sentences

The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis:

March 31, 2026

June 30, 2026

Level 1 Level 2 Level 3 Total

7 unchanged sentences

2,253 5,411 — 7,664

(i) As of March 31, 2026 and December 31, 2025, the Company’s influence on Vitura is deemed non-significant and the investment is considered an equity security with a readily determinable fair value.

(i) As of June 30, 2026 and December 31, 2025, the Company’s influence on Vitura is deemed non-significant and the investment is considered an equity security with a readily determinable fair value.

See Note 3 “ Investments ” for further information.

(ii) As of March 31, 2026 and December 31, 2025, the fair value of the Company’s warrants in High Tide is estimated using a Black-Scholes model with key inputs including share price and volatility of High Tide common shares, the risk-free rate and the remaining term of the High Tide Warrant.

(ii) As of June 30, 2026 and December 31, 2025, the fair value of the High Tide Warrant is estimated using a Black-Scholes model with key inputs including share price and volatility of High Tide’s common shares, the risk-free rate and the remaining term of the High Tide Warrant.

See Note 3 “ Investments ” for further information.

5 unchanged sentences

In November 2023, the Company negotiated a direct contract with the related-party vendor.

In April 2026, subsequent to the period end, this vendor restructured its management team and, as a result, the vendor no longer meets the definition of a related party to the Company.

Three months ended March 31,

In April 2026, this vendor restructured its management team and, as a result, the vendor no longer met the definition of a related party to the Company as of June 30, 2026.

Three months ended June 30, Six months ended June 30,

2026 2025 2026 2025

Related party – purchases of products and services $ 100 $ 173 $ 657 $ 362

The Company had outstanding accounts payable related to the agreement of $ 248 and $ 208 as of March 31, 2026 and December 31, 2025, respectively.

The Company had outstanding accounts payable related to the agreement of $ 208 as of December 31, 2025.

(b) Consulting Agreement

In connection with the Cronos GrowCo Transaction, Cronos GrowCo entered into a consulting services agreement with a consulting firm managed by a member of the group of investors holding the remaining 50 % ownership of Cronos GrowCo, pursuant to which the consulting firm provides management services to Cronos GrowCo.

During the three months ended March 31, 2026 and 2025, the Company incurred $ 437 and $ 209 of expense under this agreement.

As of both March 31, 2026 and December 31, 2025, the Company had no outstanding payables related to this agreement.

Cronos Group Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(In thousands of U.S.

dollars, except share amounts) Table of Contents

Subsequent Events

Share Repurchase Authorization

On May 8, 2026, the Board unanimously authorized a share repurchase program of up to $ 50,000 , which is intended to succeed the Company’s existing share repurchase program upon its scheduled expiration on May 13, 2026.

The share repurchase program is expected to commence on May 14, 2026, and terminate on May 13, 2027, unless earlier terminated.

Repurchases under the program may be made from time to time, either through open market purchases at then-prevailing market prices through the facilities of the Nasdaq Global Market or other U.S.

published markets, privately negotiated transactions or otherwise.

Open market repurchases will be limited to 5 % of the number of common shares outstanding as of the applicable measurement time, the maximum amount permitted by applicable Canadian securities laws.

The timing and amount of repurchases are subject to market conditions, compliance with applicable laws and regulations and any other factors management of the Company may deem relevant.

The program does not obligate Cronos to acquire any specific dollar amount or number of shares and may be modified, suspended, or discontinued at any time.

The Company intends to fund repurchases using available cash resources.

All shares repurchased under this program will be retired and cancelled upon settlement.

As a result, the repurchased shares will be removed from issued and outstanding share capital, reducing the number of shares outstanding.

The value of the retired shares will be charged against share capital and additional paid-in capital and, if necessary, to retained earnings, in accordance with ASC 505-30.

Pending 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.

During the three and six months ended June 30, 2026, respectively, the Company incurred $ 434 and $ 871 of expense under this agreement.

During the three and six months ended June 30, 2025, respectively, the Company incurred $ 362 and $ 571 of expense under this agreement.

As of both June 30, 2026 and December 31, 2025, the Company had no outstanding payables related to this agreement.

On June 30, 2026, Cronos GrowCo made a dividend payment of $ 3,698 to its non-controlling shareholder.

The dividend was funded from excess operating cash flows and is presented in the financing section of the condensed consolidated statement of cash flows.

On June 30, 2025, Cronos GrowCo made a dividend payment of $ 3,858 to its non-controlling shareholders.

The dividend was funded from excess operating cash flows and is presented in the financing section of the condensed consolidated statement of cash flows.

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 1. Financial Statements