Monday, August 25, 2025

Cronos Group Posts Another Gross Loss For Q2, Replaces CFO

Cronos Group (TSX: CRON) (NASDAQ: CRON) this morning reported their second quarter financial results. Revenues improved over the first quarter of 2021, with the company posting consolidated net revenue of $15.6 million for the quarter. Despite this, the company still managed to post gross losses, which grew on a quarterly basis.

Revenues for the quarter of $15.6 million were a significant improvement over the net revenue of $12.6 million reported in Q1, with results just barely making consensus estimates. Despite this, the company posted a larger gross loss, with the loss growing from $3.0 million in Q1 to $15.8 million in Q2 – a figure larger than consolidated net revenue itself. Gross margins as a result sat at -101%. The significant gross loss was a result of $12.0 million in inventory write-downs – which means that even before writedowns, the company is running at a gross loss, and that the business is entirely unsustainable.

Operating expenses grew on a quarterly basis as well, climbing to $44.4 million. The largest expense consisted of general and administrative, at $22.4 million, followed by sales and marketing at $13.2 million, and R&D at $5.2 million. Operating expenses as a whole effectively amounted to $2.84 per dollar of consolidated net revenue.

Despite the disastrous results, the company managed to post a net income, which is largely the function of a $115.2 million gain on the revaluation of derivative liabilities. The company managed to post a net income of $56.8 million as a result, while adjusted EBITDA came in at negative $49.8 million.

Also notable is the fact that the company has finally sunk below a billion dollars in cash and cash equivalents, which now sits at $895.2 million, down from $1.0 billion last quarter. Short term investments also declined, from $214.9 million to $201.7 million.

The company this morning also announced the appointment of Bob Madore as CFO, replacing Jerry Barbato. Reasoning for his departure was not provided.

Cronos Group last traded at $9.28 on the TSX.


Information for this briefing was found via Sedar and Cronos Group. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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