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Cannabis Stock CRON Trades Near 52-Week High: How to Play
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Key Takeaways
Cronos revenues rose 21% year over year in Q2 2025 to $33.5 million.
Strong demand in Germany and Israel lifted gross margins to 43%.
Net loss widened to $40M, pressured by currency and regulatory costs.
One of the leading Canadian cannabis producers, Cronos Group’s (CRON - Free Report) stock hit $2.50 apiece on Thursday, close to its 52-week high of $2.77.
This growth in share price was primarily driven by hopes of federal reforms in the United States and robust international sales growth. Signs of margin improvement and operational efficiencies in recent quarters have also renewed investor interest in this cannabis stock.
In the past year, shares of Cronos have risen 17% compared with the industry’s 4% growth, as shown in the chart below. The stock is also currently trading above its 200-day and 50-day moving averages.
Image Source: Zacks Investment Research
The stock’s price performance has left investors wondering whether to buy, hold or sell it. Let’s delve into the company’s fundamentals to gain a better understanding of how to play the stock amid this price surge.
International Business Drives Cronos’ Growth
In the second quarter of 2025, Cronos’ total revenues rose 21% year over year and 4% sequentially to $33.5 million. This growth was largely fueled by robust international performance, particularly in Germany and Israel, where demand for premium flowers and oils continues to expand. These markets are central to Cronos’ long-term strategy, offering higher average selling prices and more favorable margin structures than in Canada.
However, these gains were partially offset by underwhelming sales performance in the Canadian recreational market, where pricing pressure and heightened competition continue to weigh on results. Despite this softness, Cronos’ brands continue to hold strong positions in Canada. The Spinach label ranks #2 with a 4.7% market share, while the Lord Jones label is the market leader in the hash-infused pre-roll segment with an impressive 28.5% market share.
The company’s margin performance further underlined the strength of its international shift. Gross margin expanded to 43%, nearly doubling from 23% in the year-ago period, driven by international mix and operational streamlining. Operating expenses fell 9% year over year to $19.8 million, reflecting efficiency improvements across the business.
Based on these factors, the company accumulated a robust cash balance of $834 million as of June 2025-end and no debt. This strong financial position has also allowed Cronos to invest in adjacent opportunities, such as the recent $18.5 million investment in High Tide through a five-year junior secured convertible loan.
Regulatory & Currency Headwinds Put Pressure on CRON’s Profitability
Despite improving gross margins, Cronos continues to post bottom-line losses, limiting its ability to deliver near-term shareholder returns.
While international sales are helping Cronos achieve higher margins, they are also indirectly weighing on the company’s profitability. Despite increasing revenues and improving margins, the company reported a net loss of nearly $40 million, which was significantly wider than the $8.8 million loss in the year-ago period. A major portion of this loss was attributed to unfavorable currency movements, which significantly weighed on results.
Regulatory complexities in overseas markets also increased costs. Earlier this year, Cronos faced an Israeli probe over allegations of dumping Canadian medical cannabis into Israel. Though the issue was subsequently resolved, the company faced threats of an anti-dumping duty of 165%. Such episodes highlight the uncertainties of operating in fragmented international markets where rules are still evolving.
Stiff Competition From Other Cannabis Players
Cronos competes in an overcrowded market. It faces stiff competition from its peers, like Curaleaf Holdings (CURLF - Free Report) and Tilray Brands (TLRY - Free Report) , both of which are also pursuing international expansion and cost optimization strategies. As CRON gains ground in international markets, competitive responses from Curaleaf and Tilray could intensify.
With most Canadian and international cannabis producers chasing the same limited growth opportunities, the competitive landscape remains challenging and could cap Cronos’ ability to sustain outsized market share gains.
Declining Estimate Movements for CRON
Loss estimates for 2025 have widened significantly over the past 60 days, even amid the encouraging share price rally.
Image Source: Zacks Investment Research
How to Play CRON Stock
Cronos’ international strength, improving margins and cash-rich balance sheet are undeniable advantages that distinguish it from many peers. Yet, the company remains exposed to currency headwinds and rising competition that impact its profitability prospects in the near term. The widening loss estimates suggest a more pessimistic outlook from analysts.
Though listed in the United States, Cronos has no operating presence in the market, limiting its ability to benefit directly from potential federal reform. The stock currently carries a Zacks Rank #4 (Sell), indicating limited upside and elevated risk for conservative investors.
Image: Bigstock
Cannabis Stock CRON Trades Near 52-Week High: How to Play
Key Takeaways
One of the leading Canadian cannabis producers, Cronos Group’s (CRON - Free Report) stock hit $2.50 apiece on Thursday, close to its 52-week high of $2.77.
This growth in share price was primarily driven by hopes of federal reforms in the United States and robust international sales growth. Signs of margin improvement and operational efficiencies in recent quarters have also renewed investor interest in this cannabis stock.
In the past year, shares of Cronos have risen 17% compared with the industry’s 4% growth, as shown in the chart below. The stock is also currently trading above its 200-day and 50-day moving averages.
Image Source: Zacks Investment Research
The stock’s price performance has left investors wondering whether to buy, hold or sell it. Let’s delve into the company’s fundamentals to gain a better understanding of how to play the stock amid this price surge.
International Business Drives Cronos’ Growth
In the second quarter of 2025, Cronos’ total revenues rose 21% year over year and 4% sequentially to $33.5 million. This growth was largely fueled by robust international performance, particularly in Germany and Israel, where demand for premium flowers and oils continues to expand. These markets are central to Cronos’ long-term strategy, offering higher average selling prices and more favorable margin structures than in Canada.
However, these gains were partially offset by underwhelming sales performance in the Canadian recreational market, where pricing pressure and heightened competition continue to weigh on results. Despite this softness, Cronos’ brands continue to hold strong positions in Canada. The Spinach label ranks #2 with a 4.7% market share, while the Lord Jones label is the market leader in the hash-infused pre-roll segment with an impressive 28.5% market share.
The company’s margin performance further underlined the strength of its international shift. Gross margin expanded to 43%, nearly doubling from 23% in the year-ago period, driven by international mix and operational streamlining. Operating expenses fell 9% year over year to $19.8 million, reflecting efficiency improvements across the business.
Based on these factors, the company accumulated a robust cash balance of $834 million as of June 2025-end and no debt. This strong financial position has also allowed Cronos to invest in adjacent opportunities, such as the recent $18.5 million investment in High Tide through a five-year junior secured convertible loan.
Regulatory & Currency Headwinds Put Pressure on CRON’s Profitability
Despite improving gross margins, Cronos continues to post bottom-line losses, limiting its ability to deliver near-term shareholder returns.
While international sales are helping Cronos achieve higher margins, they are also indirectly weighing on the company’s profitability. Despite increasing revenues and improving margins, the company reported a net loss of nearly $40 million, which was significantly wider than the $8.8 million loss in the year-ago period. A major portion of this loss was attributed to unfavorable currency movements, which significantly weighed on results.
Regulatory complexities in overseas markets also increased costs. Earlier this year, Cronos faced an Israeli probe over allegations of dumping Canadian medical cannabis into Israel. Though the issue was subsequently resolved, the company faced threats of an anti-dumping duty of 165%. Such episodes highlight the uncertainties of operating in fragmented international markets where rules are still evolving.
Stiff Competition From Other Cannabis Players
Cronos competes in an overcrowded market. It faces stiff competition from its peers, like Curaleaf Holdings (CURLF - Free Report) and Tilray Brands (TLRY - Free Report) , both of which are also pursuing international expansion and cost optimization strategies. As CRON gains ground in international markets, competitive responses from Curaleaf and Tilray could intensify.
With most Canadian and international cannabis producers chasing the same limited growth opportunities, the competitive landscape remains challenging and could cap Cronos’ ability to sustain outsized market share gains.
Declining Estimate Movements for CRON
Loss estimates for 2025 have widened significantly over the past 60 days, even amid the encouraging share price rally.
Image Source: Zacks Investment Research
How to Play CRON Stock
Cronos’ international strength, improving margins and cash-rich balance sheet are undeniable advantages that distinguish it from many peers. Yet, the company remains exposed to currency headwinds and rising competition that impact its profitability prospects in the near term. The widening loss estimates suggest a more pessimistic outlook from analysts.
Though listed in the United States, Cronos has no operating presence in the market, limiting its ability to benefit directly from potential federal reform. The stock currently carries a Zacks Rank #4 (Sell), indicating limited upside and elevated risk for conservative investors.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.