Cronos Group Inc.

Previous wording

•expectations related to the transaction by which we obtained majority control of the board of directors of Cronos GrowCo (the “Cronos GrowCo Transaction”), which qualified as a business combination under Accounting Standards Codification (“ASC”) 805, and the expansion of Cronos GrowCo’s purpose-built cultivation and processing facilities and any additional supply or growth opportunities (including in the wholesale market) provided thereby;

Current wording

•expectations related to the transaction by which we obtained majority control of the board of directors of Cronos GrowCo (the “Cronos GrowCo Transaction”), which qualified as a business combination under Accounting Standards Codification (“ASC”) 805, and the anticipated benefits of the completed expansion of Cronos GrowCo’s purpose-built cultivation and processing facilities and any additional supply or growth opportunities (including in the wholesale market) provided thereby;

Previous wording

•expectations related to our agreement to acquire CanAdelaar B.V. (“CanAdelaar”), including the timing and completion of the transaction, and the anticipated costs, benefits and integration matters associated therewith and the performance of the business from and following closing;

Current wording

•expectations related to our acquisition of CanAdelaar B.V. (“CanAdelaar”), including the anticipated costs, benefits and integration matters associated therewith and the performance of the business from and following closing, the outcome of regulatory and judicial proceedings involving CanAdelaar, potential penalties and the operation of contractual indemnities and resulting payments;

Previous wording

•laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of U.S. state and federal law to cannabis and U.S. hemp (including CBD and other U.S. hemp-derived cannabinoids) products and the scope of any regulations by the U.S. Department of Health and Human Services (“HHS”), U.S. Food and Drug Administration (the “FDA”), the U.S. Drug Enforcement Administration (the “DEA”), the U.S. Federal Trade Commission (the “FTC”), the U.S. Patent and Trademark Office (the “PTO”) and any state equivalent regulatory agencies over cannabis and U.S. hemp (including CBD and other U.S. hemp-derived cannabinoids) products, including the final order issued by the U.S. Department of Justice (the “DOJ”) in April 2026, which moved certain categories of medical marijuana products from Schedule I to Schedule III of the U.S. Controlled Substances Act and any future actions that may be taken or considered by the DOJ or other government agencies;

Current wording

•laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of U.S. state and federal law to cannabis and U.S. hemp (including CBD and other U.S. hemp-derived cannabinoids) products and the scope of any regulations by the U.S. Department of Health and Human Services (“HHS”), U.S. Food and Drug Administration (the “FDA”), the U.S. Drug Enforcement Administration (the “DEA”), the U.S. Federal Trade Commission (the “FTC”), the U.S. Patent and Trademark Office (the “PTO”) and any state equivalent regulatory agencies over cannabis and U.S. hemp (including CBD and other U.S. hemp-derived cannabinoids) products, including the final order issued by the U.S. Department of Justice (the “DOJ”) in April 2026, which moved certain categories of medical marijuana products from Schedule I to Schedule III of the U.S. Controlled Substances Act, the timing and outcome of the pending broader marijuana rescheduling proceedings, the implementation and impact of amendments to the federal definition of hemp, and any future actions that may be taken or considered by the DOJ or other government agencies;

Previous wording

The Forward-Looking Statements contained herein are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including: (i) our ability to effectively navigate developments related to the Anti-Dumping Matters, any anti-dumping duty or other measure that may be imposed and the impact thereof on our operations in Israel; (ii) our ability to effectively navigate developments related to the Middle East Conflict and its impact on our employees, facilities and operations in Israel, the supply of product in the market and demand for product by medical patients in Israel, and our operating costs; (iii) our ability to efficiently and effectively maintain and expand our distribution of our PEACE NATURALS® brand in markets outside of Canada and Israel; (iv) our ability to identify and execute legally permissible opportunities to re-enter the U.S. market; (v) our ability to realize the expected cost-savings, efficiencies and other benefits of our Realignment and other announced cost-cutting measures and employee turnover related thereto; (vi) our ability to efficiently and effectively manage our operations at our Peace Naturals Campus; (vii) our ability to efficiently and effectively acquire raw materials on a timely and cost-effective basis from third parties or Cronos GrowCo; (viii) our ability to realize the expected benefits related to the expansion of Cronos GrowCo’s purpose-built cannabis facility (including the quantity and quality of any additional supply provided thereby and the stability of pricing and demand with respect to such supply) and the ability of Cronos GrowCo to repay the credit facility provided by Cronos; (ix) High Tide’s ability to repay the High Tide Loan, the performance of the High Tide Loan and the High Tide Warrant, and our ability to realize benefits related to the performance of the High Tide Warrant; (x) our ability to complete the acquisition of CanAdelaar on the terms and within the timelines anticipated, including the timely receipt of required regulatory approvals and the satisfaction of other closing conditions, and our ability to realize any expected benefits, synergies and operational performance associated with such acquisition; (xi) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our business combinations and strategic investments; (xii) the production and manufacturing capabilities and output from our facilities and our joint ventures, strategic alliances and equity investments; (xiii) government regulation of our activities and products including, but not limited to, the areas of cannabis taxation and environmental protection; (xiv) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (xv) consumer interest in and the scalability of our products; (xvi) our ability to differentiate our products, including through the utilization of rare cannabinoids; (xv…

Excerpt shortened here; the source contains the full paragraph.

Current wording

The Forward-Looking Statements contained herein are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including: (i) our ability to effectively navigate developments related to the Anti-Dumping Matters, any anti-dumping duty or other measure that may be imposed and the impact thereof on our operations in Israel; (ii) our ability to effectively navigate developments related to the Middle East Conflict and its impact on our employees, facilities and operations in Israel, the supply of product in the market and demand for product by medical patients in Israel, and our operating costs; (iii) our ability to efficiently and effectively maintain and expand our distribution of our PEACE NATURALS® brand in markets outside of Canada and Israel; (iv) our ability to identify and execute legally permissible opportunities to re-enter the U.S. market; (v) our ability to realize the expected cost-savings, efficiencies and other benefits of our Realignment and other announced cost-cutting measures and employee turnover related thereto; (vi) our ability to efficiently and effectively manage our operations at our Peace Naturals Campus; (vii) our ability to efficiently and effectively acquire raw materials on a timely and cost-effective basis from third parties or Cronos GrowCo; (viii) our ability to realize the expected benefits related to the completed expansion of Cronos GrowCo’s purpose-built cannabis facility (including the quantity and quality of any additional supply provided thereby and the stability of pricing and demand with respect to such supply) and the ability of Cronos GrowCo to repay the credit facility provided by Cronos; (ix) High Tide’s ability to repay the High Tide Loan, the performance of the High Tide Loan and the High Tide Warrant, and our ability to realize benefits related to the performance of the High Tide Warrant; (x) our ability to integrate CanAdelaar, maintain its regulatory authorizations and operations, address regulatory proceedings and potential penalties, and realize any expected benefits, synergies and operational performance associated with the acquisition; (xi) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our business combinations and strategic investments; (xii) the production and manufacturing capabilities and output from our facilities and our joint ventures, strategic alliances and equity investments; (xiii) government regulation of our activities and products including, but not limited to, the areas of cannabis taxation and environmental protection; (xiv) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (xv) consumer interest in and the scalability of our products; (xvi) our ability to differentiate our products, including through the utilization of rare cannabinoids; (xvii) competition; (xviii) anticipated and unanticipated costs; (xix) our abi…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

By their nature, Forward-Looking Statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the Forward-Looking Statements in this Quarterly Report and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, negative impacts on our business and operations in Israel due to the Anti-Dumping Matters, including that we may not be able to produce, import or sell our products in Israel as a result thereof; negative impacts on our employees, business, facilities and operations in Israel due to the Middle East Conflict, including that we may not be able to produce, import or sell our products or protect our people or facilities in Israel during the Middle East Conflict, the supply of product in the market and the demand for product by medical patients in Israel, and inflationary pressures and related increases in input, production, transportation and other operating costs, as well as potential impacts on consumer purchasing power; that we may not be able to successfully maintain or expand distribution of our products in our markets outside of Canada or Israel or generate meaningful revenue in those markets; that we may be unable to further streamline our operations and expenses; that we may not be able to effectively and efficiently re-enter the U.S. market in the future; that we may not be able to access raw materials on a timely and cost-effective basis from third parties or Cronos GrowCo; that the expected benefits of the expansion of Cronos GrowCo’s purpose-built cannabis facility (including any additional supply provided thereby) may not be fully realized within a reasonable time or at all or that Cronos GrowCo may not be able to repay its borrowings under the credit facility provided by Cronos; that the expected benefits of the High Tide Warrant and the High Tide Loan may not be fully realized within a reasonable time or at all or that High Tide may not be able to repay its borrowings under the High Tide Loan; that we may not be able to consummate our planned acquisition of CanAdelaar on the anticipated timeline or at all; the military conflict between Russia and Ukraine may disrupt our operations and those of our suppliers and distribution channels and negatively impact the demand for and use of our products; the risk that cost savings and any other synergies from the Altria Investment may not be fully realized or may take longer to realize than expected;…

Excerpt shortened here; the source contains the full paragraph.

Current wording

By their nature, Forward-Looking Statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the Forward-Looking Statements in this Quarterly Report and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, negative impacts on our business and operations in Israel due to the Anti-Dumping Matters, including that we may not be able to produce, import or sell our products in Israel as a result thereof; negative impacts on our employees, business, facilities and operations in Israel due to the Middle East Conflict, including that we may not be able to produce, import or sell our products or protect our people or facilities in Israel during the Middle East Conflict, the supply of product in the market and the demand for product by medical patients in Israel, and inflationary pressures and related increases in input, production, transportation and other operating costs, as well as potential impacts on consumer purchasing power; that we may not be able to successfully maintain or expand distribution of our products in our markets outside of Canada or Israel or generate meaningful revenue in those markets; that we may be unable to further streamline our operations and expenses; that we may not be able to effectively and efficiently re-enter the U.S. market in the future; that we may not be able to access raw materials on a timely and cost-effective basis from third parties or Cronos GrowCo; that the expected benefits of the completed expansion of Cronos GrowCo’s purpose-built cannabis facility (including any additional supply provided thereby) may not be fully realized within a reasonable time or at all or that Cronos GrowCo may not be able to repay its borrowings under the credit facility provided by Cronos; that the expected benefits of the High Tide Warrant and the High Tide Loan may not be fully realized within a reasonable time or at all or that High Tide may not be able to repay its borrowings under the High Tide Loan; that we may not successfully integrate CanAdelaar or realize the anticipated benefits of the acquisition, and that adverse outcomes of regulatory proceedings, or changes to, suspension, termination or non-extension of the Dutch Controlled Cannabis Supply Chain Experiment, could disrupt CanAdelaar’s operations, increase costs or reduce the value of our investment; the military conflict between Russia and Ukraine may disrupt our operations an…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

(either within the expected timeframe or at all), fund our operations, acquisitions, strategic investments, share repurchases or capital expenditures; difficulty raising capital; the potential adverse effects of judicial, regulatory or other proceedings, or threatened litigation or proceedings, on our business, financial condition, results of operations and cash flows; volatility in and/or degradation of general economic, market, industry or business conditions; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis and U.S. hemp products in vaping devices; the unexpected effects of actions of third parties such as competitors, activist investors or federal (including U.S. federal), state, provincial, territorial or local regulatory authorities or self-regulatory organizations; adverse changes in regulatory requirements in relation to our business and products; our failure to improve our internal control environment and our systems, processes and procedures; and the factors discussed under Part II, Item 1A “Risk Factors” in this Quarterly Report. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on Forward-Looking Statements.

Current wording

difficulty raising capital; the potential adverse effects of judicial, regulatory or other proceedings, or threatened litigation or proceedings, on our business, financial condition, results of operations and cash flows; volatility in and/or degradation of general economic, market, industry or business conditions; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis and U.S. hemp products in vaping devices; the unexpected effects of actions of third parties such as competitors, activist investors or federal (including U.S. federal), state, provincial, territorial or local regulatory authorities or self-regulatory organizations; adverse changes in regulatory requirements in relation to our business and products; our failure to improve our internal control environment and our systems, processes and procedures; and the factors discussed under Part II, Item 1A “Risk Factors” in this Quarterly Report. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on Forward-Looking Statements.

Previous wording

All currency amounts in this Quarterly Report are stated in U.S. dollars, which is our reporting currency, unless otherwise noted. All references to “dollars” or “$” are to U.S. dollars. The assets and liabilities of our foreign operations are translated into dollars at the exchange rate in effect as of June 30, 2026, June 30, 2025, and December 31, 2025. Transactions affecting the shareholders’ equity (deficit) are translated at historical foreign exchange rates. The condensed consolidated statements of net income (loss) and comprehensive income (loss) and condensed consolidated statements of cash flows of our foreign operations are translated into dollars by applying the average foreign exchange rate in effect for the reporting period as reported on Bloomberg.

Current wording

All currency amounts in this Quarterly Report are stated in U.S. dollars, which is our reporting currency, unless otherwise noted. All references to “dollars” or “$” are to U.S. dollars. The assets and liabilities of our foreign operations are translated into dollars at the exchange rate in effect as of September 30, 2026, September 30, 2025, and December 31, 2025. Transactions affecting the shareholders’ equity are translated at historical foreign exchange rates. The condensed consolidated statements of net income (loss) and comprehensive income (loss) and condensed consolidated statements of cash flows of our foreign operations are translated into dollars by applying the average foreign exchange rate in effect for the reporting period as reported on Bloomberg.

Previous wording

On December 9, 2025, the Company entered into a definitive share sale and purchase agreement (the “SPA”) to acquire all of the issued and outstanding shares of CanAdelaar, one of ten licensed cannabis producers participating in the Dutch Controlled Cannabis Supply Chain Experiment.

Current wording

On October 15, 2026, the Company and its wholly owned subsidiary, CGM B.V. (“CGM”), completed the acquisition of all of the issued and outstanding shares of CanAdelaar, one of ten licensed cannabis growers in the Dutch Controlled Cannabis Supply Chain Experiment. At closing, CGM waived all of its conditions to closing under the purchase agreement, including the condition relating to the final, non-appealable decision from the Minister of Health, Welfare, and Sport in relation to the Bibob review (a background check conducted by Dutch authorities) and related advice of the National Bibob Office, which remained outstanding. See Note 15 “Subsequent Events,” for further information. In connection with the acquisition, the Company appointed Christopher Martens, former CEO of CanAdelaar, as General Manager, Cronos Netherlands.

Previous wording

For the three months ended June 30, 2026, we reported consolidated net revenue of $53.0 million, representing an increase of $19.6 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, we reported consolidated net revenue of $98.2 million, representing an increase of $32.5 million from the six months ended June 30, 2025. For both the three and six month comparative periods, the increase was primarily due to higher cannabis flower sales in Israel and other countries, specifically Germany, which carry no excise taxes, and higher cannabis flower and extract sales in the Canadian market. In addition, net revenue for both comparative periods benefited from the strengthening of the New Israeli Shekel versus the U.S. dollar in the current period.

Current wording

For the three months ended September 30, 2026, we reported consolidated net revenue of $63.5 million, representing an increase of $27.1 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, we reported consolidated net revenue of $161.7 million, representing an increase of $59.6 million from the nine months ended September 30, 2025. For both the three and nine month comparative periods, the increase was primarily due to higher cannabis flower sales in Israel and other countries, specifically Germany, which carry no excise taxes, and higher cannabis flower and extract sales in the Canadian market. In addition, net revenue for both comparative periods benefited from the strengthening of the New Israeli Shekel versus the U.S. dollar in the current period.

Previous wording

For the three months ended June 30, 2026, we reported consolidated cost of sales of $24.2 million, representing an increase of $5.3 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, we reported consolidated cost of sales of $49.6 million, representing an increase of $12.2 million from the six months ended June 30, 2025. For both the three and six month comparative periods, the increase was primarily due to higher sales volumes in the period. For the six months ended June 30, 2025, we recognized $0.5 million of inventory step-up from the Cronos GrowCo Transaction into cost of sales. No such costs were recognized for the three months ended June 30, 2025 or the three and six months ended June 30, 2026.

Current wording

For the three months ended September 30, 2026, we reported consolidated cost of sales of $29.5 million, representing an increase of $12.0 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, we reported consolidated cost of sales of $79.1 million, representing an increase of $24.2 million from the nine months ended September 30, 2025. For both the three and nine month comparative periods, the increase was primarily due to higher sales volumes in the period. For the nine months ended September 30, 2025, we recognized $0.5 million of inventory step-up from the Cronos GrowCo Transaction into cost of sales. No such costs were recognized for the three months ended September 30, 2025 or the three and nine months ended September 30, 2026.

Previous wording

For the three months ended June 30, 2026, we reported inventory write-downs of $0.4 million, representing an increase of $0.3 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, we reported inventory write-downs of $1.1 million, representing an increase of $1.0 million from the six months ended June 30, 2025. Inventory write-downs for both the three and six months ended June 30, 2026 and 2025, relate to unusable inventory that was scrapped in the period.

Current wording

For the three months ended September 30, 2026, we reported inventory write-downs of $1.6 million, representing an increase of $1.1 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, we reported inventory write-downs of $2.7 million, representing an increase of $2.1 million from the nine months ended September 30, 2025. Inventory write-downs for both the three and nine months ended September 30, 2026, relate primarily to discontinued product lines as well as unusable inventory that was scrapped in the period. Inventory write-downs for both the three and nine months ended September 30, 2025 related to unusable inventory that was scrapped in the period.

Previous wording

For the three months ended June 30, 2026, we reported gross profit of $28.5 million, representing an increase of $13.9 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, we reported gross profit of $47.6 million, representing an increase of $19.4 million from the six months ended June 30, 2025. For both the three and six month comparative periods, the increase was primarily due to higher average sales prices, largely driven by a mix shift to Israel and other countries, which carry no excise taxes, and higher sales volumes. Higher sales volumes led to higher net revenue and efficiencies as fixed overhead costs were spread over greater volumes. For the six months ended June 30, 2025, gross profit was reduced by $0.5 million as a result of the impact of the inventory step-up from the Cronos GrowCo Transaction that was recorded into cost of sales. No such costs were recognized for the three months ended June 30, 2025 or the three and six months ended June 30, 2026.

Current wording

For the three months ended September 30, 2026, we reported gross profit of $32.3 million, representing an increase of $14.0 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, we reported gross profit of $79.9 million, representing an increase of $33.3 million from the nine months ended September 30, 2025. For both the three and nine month comparative periods, the increase was primarily due to higher average sales prices, largely driven by a mix shift to Israel and other countries, which carry no excise taxes, and higher sales volumes. Higher sales volumes led to higher net revenue and efficiencies as fixed overhead costs were spread over greater volumes. For the nine months ended September 30, 2025, gross profit was reduced by $0.5 million as a result of the impact of the inventory step-up from the Cronos GrowCo Transaction that was recorded into cost of sales. No such costs were recognized for the three months ended September 30, 2025 or the three and nine months ended September 30, 2026.

Previous wording

For the three months ended June 30, 2026, sales and marketing expenses were $6.8 million, representing an increase of $1.4 million compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, sales and marketing expenses were $12.4 million, representing an increase of $2.5 million from the six months ended June 30, 2025. For both the three and six month comparative periods, the increase was primarily due to higher trade marketing expenses and higher salaries and benefits.

Current wording

For the three months ended September 30, 2026, sales and marketing expenses were $7.1 million, representing an increase of $1.8 million compared to the three months ended September 30, 2025. For the nine months ended September 30, 2026, sales and marketing expenses were $19.5 million, representing an increase of $4.3 million from the nine months ended September 30, 2025. For both the three and nine month comparative periods, the increase was primarily due to higher trade marketing expenses and higher salaries and benefits.

Previous wording

For the three months ended June 30, 2026, research and development expenses were $1.2 million, representing an increase of $0.3 million compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, research and development expenses were $2.6 million, representing an increase of $0.9 million from the six months ended June 30, 2025. For both the three and six month comparative periods, the increase was primarily due to increased testing, clinical study and other product development activity, as well as higher salaries and benefits.

Current wording

For the three months ended September 30, 2026, research and development expenses were $1.3 million, essentially flat compared to the three months ended September 30, 2025. For the nine months ended September 30, 2026, research and development expenses were $4.0 million, representing an increase of $0.9 million from the nine months ended September 30, 2025. For the nine month comparative period, the increase was primarily due to higher salaries and benefits and increased testing, clinical study and other product development activity.

Previous wording

For the three months ended June 30, 2026, general and administrative expenses were $10.8 million, representing an increase of $0.3 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, general and administrative expenses were $22.5 million, representing an increase of $2.7 million from the six months ended June 30, 2025. For the three month comparative period, the increase was primarily due to higher transaction costs related to the pending CanAdelaar acquisition and higher professional fees, partially offset by the recovery of previously assessed excise tax stamp penalties as well as lower anti-dumping and restatement litigation costs. For the six month comparative period, the increase was primarily due to higher transaction costs related to the pending CanAdelaar acquisition, higher salaries and benefits, and higher professional fees, partially offset by the recovery of excise tax stamp penalties as well as lower anti-dumping costs and restatement litigation costs.

Current wording

For the three months ended September 30, 2026, general and administrative expenses were $12.0 million, representing an increase of $2.7 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, general and administrative expenses were $34.5 million, representing an increase of $5.4 million from the nine months ended September 30, 2025. For the three month comparative period, the increase was primarily due to higher salaries and benefits, restatement litigation costs, professional fees, and anti-dumping costs. For the nine month comparative period, the increase was primarily due to higher salaries and benefits, transaction costs related to the CanAdelaar acquisition, restatement litigation costs, and professional fees, partially offset by the recovery of excise tax stamp penalties as well as lower anti-dumping costs. The three and nine months ended September 30, 2025, included certain cost recoveries on the Company’s previously incurred restatement litigation costs that did not recur in the current year.

Previous wording

For the three months ended June 30, 2026, restructuring costs were $0.3 million, representing a decrease of $0.5 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, restructuring costs were $0.8 million, representing a decrease of $0.5 million from the six months ended June 30, 2025. For further information, see Note 7 “Restructuring” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Current wording

For the three months ended September 30, 2026, restructuring costs were $0.1 million, representing a decrease of $0.1 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, restructuring costs were $0.9 million, representing a decrease of $0.6 million from the nine months ended September 30, 2025. For further information, see Note 7 “Restructuring” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Previous wording

For the three months ended June 30, 2026, share-based compensation expense was $1.6 million, representing an increase of $0.2 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, share-based compensation expense was $2.9 million, representing a decrease of $0.6 million from the six months ended June 30, 2025. For the three month comparative period, the increase was primarily due to the inclusion of revaluation expense on our deferred share units in share-based compensation in the current period. For the six month comparative period, the decrease was primarily due to lower average amounts of share-based compensation awards outstanding, partially offset by the inclusion of revaluation expense on our deferred share units in share-based compensation in the current period.

Current wording

For the three months ended September 30, 2026, share-based compensation expense was $2.3 million, essentially flat from the three months ended September 30, 2025. For the nine months ended September 30, 2026, share-based compensation expense was $5.2 million, representing a decrease of $0.6 million from the nine months ended September 30, 2025. For the nine month comparative period, the decrease was primarily due to lower average amounts of share-based compensation awards outstanding, partially offset by higher revaluation expense on our deferred share units in share-based compensation in the current period.

Previous wording

For the three months ended June 30, 2026, depreciation and amortization expenses were $0.4 million, representing a decrease of $0.5 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, depreciation and amortization expenses were $0.8 million, representing a decrease of $0.6 million from the six months ended June 30, 2025. For both the three and six month comparative periods, the decrease was primarily due to lower amortization of intangible assets and depreciation of property, plant and equipment.

Current wording

For the three months ended September 30, 2026, depreciation and amortization expenses were $0.4 million, essentially flat from the three months ended September 30, 2025. For the nine months ended September 30, 2026, depreciation and amortization expenses were $1.2 million, representing a decrease of $0.6 million from the nine months ended September 30, 2025. For the nine month comparative period, the decrease was primarily due to lower amortization of intangible assets and depreciation of property, plant and equipment.

Previous wording

For the three months ended June 30, 2026, interest income, net was $8.8 million, representing a decrease of $0.2 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, interest income, net was $17.7 million, representing a decrease of $1.0 million from the six months ended June 30, 2025. For both the three and six month comparative periods, the decrease in interest income, net was primarily due to lower interest rates in the current period, partially offset by interest on our High Tide Loan in the current period.

Current wording

For the three months ended September 30, 2026, interest income, net was $9.2 million, representing a decrease of $2.5 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, interest income, net was $26.9 million, representing a decrease of $3.5 million from the nine months ended September 30, 2025. For the three month comparative period, the decrease in interest income, net was primarily due to lower interest rates in the current period. For the nine month comparative period, the decrease in interest income, net was primarily due to lower interest rates in the current period, partially offset by higher interest on our High Tide Loan in the current period.

Previous wording

For the three months ended June 30, 2026, the loss on revaluation of financial instruments was $0.6 million, essentially flat from the three months ended June 30, 2025. For the six months ended June 30, 2026, the loss on revaluation of financial instruments was $3.1 million, representing a deterioration of $2.5 million from the six months ended June 30, 2025. For the six month comparative period, the increased loss was primarily related to the change in fair value of our High Tide Warrant and our investment in Vitura Health Limited (“Vitura”). For further information, see Note 3 “Investments” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Current wording

For the three months ended September 30, 2026, the gain on revaluation of financial instruments was $0.9 million, a decrease of $3.1 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, the loss on revaluation of financial instruments was $2.2 million, representing a deterioration of $5.7 million from the nine months ended September 30, 2025. For the three month comparative period, the decreased gain was primarily related to the change in fair value of our High Tide Warrant and our investment in Vitura Health Limited (“Vitura”). For the nine month comparative period, the deterioration was primarily related to the change in fair value of our High Tide Warrant and our investment in Vitura. For further information, see Note 3 “Investments” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Previous wording

For the three months ended June 30, 2026, foreign currency gain was $20.2 million, representing an improvement of $59.8 million from the three months ended June 30, 2025. For the six months ended June 30, 2026, foreign currency gain was $33.9 million, representing an improvement of $71.9 million from the six months ended June 30, 2025. The change was primarily due to the strengthening of the U.S. dollar compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated cash equivalents and short-term investments held in Canada, as well as the strengthening of the New Israeli Shekel compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated intercompany loans anticipated to be settled in the foreseeable future.

Current wording

For the three months ended September 30, 2026, foreign currency loss was $0.2 million, representing a deterioration of $20.0 million from the three months ended September 30, 2025. For the nine months ended September 30, 2026, foreign currency gain was $33.7 million, representing an improvement of $51.9 million from the nine months ended September 30, 2025. For the three month comparative period, the change was primarily due to the weakening of the U.S. dollar compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated cash equivalents and short-term investments held in Canada and the weakening of the New Israeli Shekel compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated intercompany loans anticipated to be settled in the foreseeable future. For the nine month comparative period, the change was primarily due to the strengthening of the U.S. dollar compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated cash equivalents and short-term investments held in Canada, as well as the strengthening of the New Israeli Shekel compared to the Canadian dollar impacting the revaluation of certain foreign currency-denominated intercompany loans anticipated to be settled in the foreseeable future.

Previous wording

For both the three and six months ended June 30, 2025, we recognized a loss on held-for-sale assets of $2.5 million, relating to a decrease in the fair value of the Cronos Fermentation Facility held-for-sale assets group (the “Cronos Fermentation Held-For-Sale Assets Group”). There were no such losses on held-for-sale assets for the three and six months ended June 30, 2026. For further information, see Note 7 “Restructuring” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Current wording

For the three and nine months ended September 30, 2025, we recognized a loss on held-for-sale assets of $3.0 million and $5.5 million, respectively, relating to a decrease in the fair value of the Cronos Fermentation Facility held-for-sale assets group (the “Cronos Fermentation Held-For-Sale Assets Group”). There were no such losses on held-for-sale assets for the three and nine months ended September 30, 2026. For further information, see Note 7 “Restructuring” to the condensed consolidated interim financial statements under Item 1 of this Quarterly Report.

Previous wording

Change in allowance for credit loss on non-operating loan

Current wording

Change in allowance for credit loss on non-operating loan and interest-bearing deposits

Previous wording

For the three and six months ended June 30, 2026, change in allowance for credit loss on non-operating loan was $0.1 million and $0.2 million, respectively. There was no such activity during the three and six months ended June 30, 2025. The expense relates to the change in the allowance for credit loss on the High Tide Loan. For further information, see Note 4 “Loans Receivable, net.”

Current wording

For the three and nine months ended September 30, 2026, change in allowance for credit loss on non-operating loan and interest-bearing deposits was $0.2 million and $0.4 million, respectively, compared to $4.8 million for both the three and nine months ended September 30, 2025. For both the three and nine months ended September 30, 2026, the expense relates primarily to the change in the allowance for credit loss on the High Tide Loan, as well as allowance for credit losses recognized on the Company’s cash equivalents, short-term investments, and non-current interest-bearing deposits. For both the three and nine months ended September 30, 2025, the expense relates to the allowance for credit loss on the High Tide Loan. For further information, see Note 4 “Loans Receivable, net.”

Previous wording

For the three months ended June 30, 2026 and 2025, other, net was essentially nil. For the six months ended June 30, 2026, other, net primarily related to non-operating rental income, partially offset by a loss on disposal of assets. For the six months ended June 30, 2025, other, net primarily related to gains and losses on the disposal of assets.

Current wording

For the three months ended September 30, 2026, other, net was essentially nil, representing an improvement of $0.3 million compared to the three months ended September 30, 2025. For the nine months ended September 30, 2026, other, net was essentially nil, representing an improvement of $0.2 million compared to the nine months ended September 30, 2025. For the three and nine months ended September 30, 2026, other, net primarily related to non-operating rental income. For the three and nine months ended September 30, 2025, other, net primarily related to gains and losses on the disposal of assets.

Previous wording

For the three months ended June 30, 2026, income tax provision was $0.1 million, compared to a benefit of $0.5 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, income tax provision was $2.5 million, compared to a benefit of $1.0 million for the six months ended June 30, 2025. For both the three and six month comparative periods, the increased expense was primarily due to decreased net operating loss utilization in the current period.

Current wording

For the three months ended September 30, 2026, income tax provision was $0.9 million, compared to a benefit of $1.3 million for the three months ended September 30, 2025. For the nine months ended September 30, 2026, income tax provision was $3.4 million, compared to a benefit of $2.3 million for the nine months ended September 30, 2025. For both the three and nine month comparative periods, the increased expense was primarily due to decreased net operating loss utilization in the current period.

Previous wording

For the three months ended June 30, 2026, net income was $35.7 million, compared to a net loss of $38.5 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, net income was $51.4 million, compared to a net loss of $30.8 million for the six months ended June 30, 2025. For both the three and six month comparative periods, the improvement in net income was primarily due to higher gross profit and other income, partially offset by higher operating expenses.

Current wording

For the three months ended September 30, 2026, net income was $17.8 million, compared to net income of $28.3 million for the three months ended September 30, 2025. For the nine months ended September 30, 2026, net income was $69.2 million, compared to a net loss of $2.4 million for the nine months ended September 30, 2025. For the three month comparative period, the lower net income was primarily due to lower other income, higher operating expenses, and income tax provision compared to a benefit in the prior year period, partially offset by higher gross profit. For the nine month comparative period, the improvement in net income was primarily due to higher gross profit and other income, partially offset by higher operating expenses and income tax provision compared to a benefit in the prior year period.

Previous wording

Management reviews Adjusted EBITDA, a non-GAAP measure, which excludes non-cash items and items that do not reflect management’s assessment of ongoing business performance. Management defines Adjusted EBITDA as net income (loss) before interest, tax expense (benefit), depreciation and amortization adjusted for: share of (income) loss from equity method investments; impairment loss on goodwill and intangible assets; impairment loss on long-lived assets; (gain) loss on revaluation of derivative liabilities; (gain) loss on revaluation of financial instruments; gain on revaluation of loan receivable; gain on revaluation of equity method investment; transaction costs related to strategic projects; loss on held-for-sale assets; impairment loss on other investments; foreign currency transaction (gain) loss; other, net; loss from discontinued operations; change in allowance for credit loss on non-operating loan; restructuring costs; inventory write-downs resulting from restructuring actions; share-based compensation; costs related to the Israel Ministry of Economy and Industry dumping inquiry; purchase accounting adjustment-related inventory step-up adjustments recorded through cost of sales; and restatement litigation costs and reserves related to the restatements of our 2019 and 2021 interim financial statements (the “Restatements”), including the costs related to the settlement of the SEC’s and the OSC’s investigations of the Restatements and legal costs of defending shareholder class action complaints brought against us as a result of the 2019 restatement (see Note 10(b) “Contingencies,” to the condensed consolidated financial statements under Item 1 of this Quarterly Report for a discussion of the shareholder class action complaints relating to the restatement of the 2019 interim financial statements and the settlement of the SEC’s and the OSC’s investigations of the Restatements). Results are reported as total consolidated results, reflecting our reporting structure of one reportable segment.

Current wording

Management reviews Adjusted EBITDA, a non-GAAP measure, which excludes non-cash items and items that do not reflect management’s assessment of ongoing business performance. Management defines Adjusted EBITDA as net income (loss) before interest, tax expense (benefit), depreciation and amortization adjusted for: share of (income) loss from equity method investments; impairment loss on goodwill and intangible assets; impairment loss on long-lived assets; (gain) loss on revaluation of derivative liabilities; (gain) loss on revaluation of financial instruments; gain on revaluation of loan receivable; gain on revaluation of equity method investment; transaction costs related to strategic projects; loss on held-for-sale assets; impairment loss on other investments; foreign currency transaction (gain) loss; other, net; loss from discontinued operations; change in allowance for credit loss on non-operating loan and interest-bearing deposits; restructuring costs; inventory write-downs resulting from restructuring actions; share-based compensation; costs related to the Israel Ministry of Economy and Industry dumping inquiry; purchase accounting adjustment-related inventory step-up adjustments recorded through cost of sales; and restatement litigation costs and reserves related to the restatements of our 2019 and 2021 interim financial statements (the “Restatements”), including the costs related to the settlement of the SEC’s and the OSC’s investigations of the Restatements and legal costs of defending shareholder class action complaints brought against us as a result of the 2019 restatement (see Note 10(b) “Contingencies,” to the condensed consolidated financial statements under Item 1 of this Quarterly Report for a discussion of the shareholder class action complaints relating to the restatement of the 2019 interim financial statements and the settlement of the SEC’s and the OSC’s investigations of the Restatements). Results are reported as total consolidated results, reflecting our reporting structure of one reportable segment.

Previous wording

Beginning in 2025, the Company modified the composition of Adjusted EBITDA to exclude the impact of the provision for expected credit losses recognized under ASC 326 solely with respect to the High Tide Loan (see Note 4 “Loans Receivable, net” to the condensed consolidated financial statements under Item 1 of this Quarterly Report for further information). Management determined that excluding this non-cash provision provides investors with additional insight into period-over-period operating performance by isolating credit-risk movements unrelated to the Company’s core operations.

Current wording

Beginning in 2025, the Company modified the composition of Adjusted EBITDA to exclude the impact of the provision for expected credit losses recognized under ASC 326 with respect to the High Tide Loan (see Note 4 “Loans Receivable, net” to the condensed consolidated financial statements under Item 1 of this Quarterly Report for further information). Management believes that this change provides additional information regarding the Company’s ongoing operational results and enhances comparability with peers that do not routinely extend credit to third parties. Beginning in the third quarter of 2026, the Company modified the composition of Adjusted EBITDA to exclude the impact of the provision for expected credit losses recognized under ASC 326 related to the Company’s guaranteed investment certificates held in cash equivalents, short-term investments, and non-current interest-bearing deposits (see Note 1 “Background, Basis of Presentation, and Summary of Significant Accounting Policies” to the condensed consolidated financial statements under Item 1 of this Quarterly Report for further information). Management determined that excluding these non-cash provisions provide investors with additional insight into period-over-period operating performance by isolating credit-risk movements unrelated to the Company’s core operations.

Previous wording

Management believes that this change provides additional information regarding the Company’s ongoing operational results and enhances comparability with peers that do not routinely extend credit to third parties. This change does not affect the Company’s GAAP financial statements.

Current wording

These changes do not affect the Company’s GAAP financial statements.

Previous wording

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:

Current wording

The following tables set forth a reconciliation of Net income (loss) as determined in accordance with U.S. GAAP to Adjusted EBITDA for the periods indicated:

Previous wording

(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.

Current wording

(i)For the three months ended September 30, 2026, the gain on revaluation of financial instruments was driven by a gain related to the Company’s High Tide Warrant, partially offset by a loss related to the Company’s equity securities in Vitura. For the nine months ended September 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 months ended September 30, 2025, the gain on revaluation of financial instruments was driven by gains related to the Company’s High Tide Warrant and its equity securities in Vitura. For the nine months ended September 30, 2025, the gain related to the High Tide Warrant was partially offset by a loss related to the Company’s equity securities in Vitura.

Previous wording

(ii)For the three and six months ended June 30, 2026, transaction costs represented fees related to the pending acquisition of CanAdelaar. 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).

Current wording

(ii)For the three and nine months ended September 30, 2026, transaction costs represented fees related to the acquisition of CanAdelaar B.V. and other discrete strategic initiatives. For the three and nine months ended September 30, 2025, transaction costs represented legal, financial and other advisory fees and expenses incurred in connection with the Cronos GrowCo Transaction and discrete strategic initiatives. These costs are included in general and administrative expenses on the condensed consolidated statements of net income (loss) and comprehensive income (loss).

Previous wording

(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.

Current wording

(iii)For the nine months ended September 30, 2026, other, net related primarily to rental income. For the three and nine months ended September 30, 2025, other, net related to (gain) loss on disposal of assets and dividend income.

Previous wording

(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.”

Current wording

(iv)For the three and nine months ended September 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 nine months ended September 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.”

Previous wording

(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.”

Current wording

(v)For the three and nine months ended September 30, 2026 and 2025, share-based compensation related to the expenses of share-based compensation awarded to employees and deferred share units issued to our Board of Directors, each under the Company’s share-based award plans, as described in Note 8 “Share-based Compensation.”

Previous wording

(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.

Current wording

(vi)For the three and nine months ended September 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. In addition, the three and nine months ended September 30, 2025, include certain cost recoveries associated with previously incurred restatement litigation costs.

Previous wording

(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.

Current wording

(vii)For the three and nine months ended September 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.

Previous wording

(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.”

Current wording

(viii)For the three and nine months ended September 30, 2026 and 2025, change in allowance for credit loss on non-operating loan and interest-bearing deposits related primarily to the allowance recognized on the High Tide loan receivable, as described in Note 4, “Loans Receivable, net.” The three and nine months ended September 30, 2026, also include expected credit losses on the Company’s cash equivalents, short-term investments, and non-current interest-bearing deposits.

Previous wording

(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.

Current wording

(x)For the three and nine months ended September 30, 2025, loss on held-for-sale assets related to a revaluation of the Cronos Fermentation Held-For-Sale Assets Group.