CRON

Cronos is finally showing operating progress: FY2025 revenue grew 24.6% to $147M and gross profit jumped 149% to $62.8M, lifting gross margin from 21% to 42.8%. MD&A attributes this to a mix shift toward Israel and other international markets (no excise tax), a full year of consolidated Cronos GrowCo flower sales, and lower inventory step-up charges — these are structural drivers, not one-offs. Operating loss narrowed 77% to -$17.4M, G&A fell 10%, and operating cash flow turned meaningfully positive at $25.9M. The balance sheet remains the standout: $792M cash against only $54.2M total liabilities (L/E of 0.05x), giving the company multi-year runway and optionality to fund the CanAdelaar Dutch acquisition and Cronos GrowCo expansion without dilution.

That said, the headline net loss of -$9.45M (vs. +$41.1M in FY2024) and -0.9% ROE underscore that this is not yet a profitable business. The FY2024 'profit' was largely an Other Income line of $113M (one-time), not operating earnings — operating loss was -$76.5M last year. Capex doubled to $25.7M, essentially absorbing all operating cash flow, so free cash flow is roughly breakeven. R&D is a token $4.45M, and the Ginkgo collaboration termination removes a biosynthesis IP angle the bull case once leaned on. The market cap of ~$1.02B implies P/S of 7.0x — rich for a sub-scale, loss-making cannabis name where ~$792M of that cap is essentially cash, valuing the operating business at ~$230M (~1.6x sales).