v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Segment reporting is prepared on the same basis that the CODM manages the business, makes operating decisions and assesses the Company’s performance. The CODM is the Company’s Chief Executive Officer. The Company operates as a single segment with the purpose of providing high-quality cannabis products to adult-use, wholesale, and medical market customers globally. The consolidated results are regularly reviewed by the CODM to assess the performance of the Company’s single segment operations and make decisions regarding the allocation of resources. The CODM reviews adjusted earnings (loss) before interest, tax, depreciation and amortization (“Adjusted EBITDA”) as the measure of segment profit or loss to evaluate performance of and allocate resources for its reportable segment. Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and non-cash items and items that do not reflect management’s assessment of ongoing business performance. The CODM believes Adjusted EBITDA provides useful insight into underlying business trends and results and facilitates comparison of period-over-period results. In addition, certain significant expenses are regularly reviewed by the CODM and considered for business decisions and allocation of resources; these significant expenses include: sales and marketing, research and development, general and administrative, depreciation and amortization, and share-based compensation expense, which are presented within operating expenses on the Company’s 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.
The table below sets forth consolidated Adjusted EBITDA and significant expenses for our single segment:
Three months ended March 31,
20262025
Adjusted EBITDA$5,079 $2,289 
Significant expenses:
Sales and marketing5,615 4,565 
Research and development1,413 793 
General and administrative, excluding transaction costs10,777 9,269 
Share-based compensation1,313 2,088 
Depreciation and amortization425 496 
Total significant expenses19,543 17,211 
Restructuring costs484 555 
Transaction costs
959 40 
Total operating expense$20,986 $17,806 
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 March 31, 2026
Net income$15,711 
Interest income, net(8,853)
Income tax provision2,428 
Depreciation and amortization3,727 
EBITDA13,013 
Loss on revaluation of financial instruments(i)
2,484 
Foreign currency transaction gain(13,699)
Transaction costs(ii)
959 
Other, net(iii)
(10)
Restructuring costs(iv)
484 
Share-based compensation(v)
1,313 
Restatement litigation costs(vi)
411 
Israel Ministry of Economy and Industry dumping inquiry expense(vii)
18 
Change in allowance for credit loss on non-operating loan(viii)
106 
Adjusted EBITDA$5,079 
Three months ended March 31, 2025
Net income$7,723 
Interest income, net(9,665)
Income tax benefit(455)
Depreciation and amortization2,840 
EBITDA443 
Gain on revaluation of financial instruments(i)
(49)
Foreign currency transaction gain(1,583)
Transaction costs(ii)
40 
Other, net(iii)
(43)
Restructuring costs(iv)
555 
Share-based compensation(v)
2,088 
Restatement litigation costs(vi)
47 
Inventory step-up recorded to cost of sales(ix)
517 
Israel Ministry of Economy and Industry dumping inquiry expense(vii)
274 
Adjusted EBITDA$2,289 
(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. 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 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,
20262025
Cannabis flower$33,734 $23,344 
Cannabis extracts11,457 8,608 
Other19 310 
Net revenue$45,210 $32,262 
Net revenue attributed to a geographic region based on the location of the customer was as follows:
Three months ended March 31,
20262025
Canada$25,351 $20,130 
Israel14,151 9,229 
Other countries5,708 2,903 
Net revenue$45,210 $32,262 
The table below sets forth total cash and cash equivalents and short-term investments for our single segment:
As of March 31, 2026As of December 31, 2025
Total cash and cash equivalents and short-term investments$821,856 $831,794 
Property, plant and equipment, net were physically located in the following geographic regions:
As of March 31, 2026As of December 31, 2025
Canada$125,776 $129,352 
Israel16,326 16,513 
Total$142,102 $145,865 
Intangibles, net were physically located in the following geographic regions:
As of March 31, 2026As of December 31, 2025
Canada$8,219 $8,551 
Israel330 339 
Total$8,549 $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.