v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 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: 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 June 30,Six months ended June 30,
2026202520262025
Adjusted EBITDA$13,088 $1,688 $18,167 $3,977 
Significant expenses:
Cost of sales24,168 18,865 49,560 37,393 
Inventory write-down388 86 1,053 86 
Significant operating expenses:
Sales and marketing6,785 5,347 12,400 9,912 
Research and development1,215 929 2,628 1,722 
General and administrative, excluding transaction costs10,222 10,504 20,999 19,773 
Share-based compensation1,557 1,381 2,870 3,469 
Depreciation and amortization379 867 804 1,363 
Total significant operating expenses20,158 19,028 39,701 36,239 
Restructuring costs308 768 792 1,323 
Transaction costs581 32 1,540 72 
Total operating expense$21,047 $19,828 $42,033 $37,634 
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 June 30, 2026
Net income$35,663 
Interest income, net(8,816)
Income tax provision51 
Depreciation and amortization3,374 
EBITDA30,272 
Loss on revaluation of financial instruments(i)
615 
Foreign currency transaction gain(20,219)
Transaction costs(ii)
581 
Other, net(iii)
2 
Restructuring costs(iv)
308 
Share-based compensation(v)
1,557 
Restatement litigation costs(vi)
(144)
Israel Ministry of Economy and Industry dumping inquiry expense(vii)
8 
Change in allowance for credit loss on non-operating loan(viii)
108 
Adjusted EBITDA$13,088 
Three months ended June 30, 2025
Net loss$(38,482)
Interest income, net(8,997)
Income tax benefit(525)
Depreciation and amortization4,202 
EBITDA(43,802)
Loss on revaluation of financial instruments(i)
640 
Foreign currency transaction loss39,538 
Transaction costs(ii)
32 
Other, net(iii)
1 
Restructuring costs(iv)
768 
Share-based compensation(v)
1,381 
Restatement litigation costs(vi)
391 
Israel Ministry of Economy and Industry dumping inquiry expense(vii)
238 
Loss on held-for-sale assets(ix)
2,501 
Adjusted EBITDA$1,688 
Six months ended June 30, 2026
Net income$51,374 
Interest income, net(17,669)
Income tax provision2,479 
Depreciation and amortization7,101 
EBITDA43,285 
Loss on revaluation of financial instruments(i)
3,099 
Foreign currency transaction gain(33,918)
Transaction costs(ii)
1,540 
Other, net(iii)
(8)
Restructuring costs(iv)
792 
Share-based compensation(v)
2,870 
Restatement litigation costs(vi)
267 
Israel Ministry of Economy and Industry dumping inquiry expense(vii)
26 
Change in allowance for credit loss on non-operating loan(viii)
214 
Adjusted EBITDA$18,167 
Six months ended June 30, 2025
Net loss$(30,759)
Interest income, net(18,662)
Income tax benefit(980)
Depreciation and amortization7,042 
EBITDA(43,359)
Loss on revaluation of financial instruments(i)
591 
Foreign currency transaction loss37,955 
Transaction costs(ii)
72 
Other, net(iii)
(42)
Restructuring costs(iv)
1,323 
Share-based compensation(v)
3,469 
Restatement litigation costs(vi)
438 
Israel Ministry of Economy and Industry dumping inquiry expense(vii)
512 
Loss on held-for-sale assets(ix)
2,501 
Inventory step-up recorded to cost of sales(x)
517 
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 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.”
(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 June 30,
20262025
Cannabis flower$39,214 $25,025 
Cannabis extracts13,774 8,360 
Other19 70 
Net revenue$53,007 $33,455 
Six months ended June 30,
20262025
Cannabis flower$72,948 $48,369 
Cannabis extracts25,231 16,968 
Other38 380 
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 June 30,
20262025
Canada$28,710 $19,150 
Israel15,018 9,376 
Other countries9,279 4,929 
Net revenue$53,007 $33,455 
Six months ended June 30,
20262025
Canada$54,061 $39,280 
Israel29,169 18,605 
Other countries14,987 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 June 30, 2026As of December 31, 2025
Total cash and cash equivalents, short-term investments and non-current interest-bearing deposits$827,019 $831,794 
Property, plant and equipment, net were physically located in the following geographic regions:
As of June 30, 2026As of December 31, 2025
Canada$124,640 $129,352 
Israel16,899 16,513 
Total$141,539 $145,865 
Intangibles, net were physically located in the following geographic regions:
As of June 30, 2026As of December 31, 2025
Canada$7,722 $8,551 
Israel328 339 
Total$8,050 $8,890 
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.