Cronos Group Inc. Q2 FY2025 earnings call

• Core business performed well with robust demand across key markets and product categories, net revenue grew 21% year-over-year including GrowCo consolidation. - Spinach brand was a standout performer with strong market shares in various categories. - GrowCo's expanded cultivation capacity is set to start selling flower this fall, which will help meet demand and reaccelerate growth. - PEACE NATURALS continued to grow internationally, with Germany being a key growth driver and expansion into new markets like Malta. - Cronos maintains a strong balance sheet with $834 million in cash, cash equivalents and short-term investments.

Cronos Group's consolidated net revenue was $33.5 million, a 21% year-over-year increase, including the consolidation of GrowCo. Net revenue excluding GrowCo was $31.2 million, up 13% year-over-year. GrowCo's net revenue for Q2 2025 was $2.2 million. Spinach brand ended Q2 as the #2 cannabis brand in Canada with a 4.7% market share across formats; in the flower category, it ranked #3 with 4.9% market share; in the vape category, it was #4 overall with 6.5% share, and #2 in the vape cartridge category with 8.4% share. PEACE NATURALS in Israel grew revenue by 36% year-over-year, and Germany was the largest contributor to year-over-year revenue growth for the business overall. PEACE NATURALS is available in 7 key global markets including Canada, Israel, Germany, etc.

• Operating expenses are expected to be relatively flat year-over-year for the second half of 2025. - Initial flower sales from GrowCo's expansion are expected to begin this fall.

• Forward-looking statements are subject to risks and uncertainties detailed in earnings materials and SEC filings. - Factors causing actual results to differ from projections are detailed in earnings materials and SEC filings mentioned.

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