08:49 AM EDT, 08/07/2025 (MT Newswires) -- Global cannabinoid company Cronos Group ( CRON ) on Thursday reported a much wider loss for the second quarter, despite better than expected revenues.

For Q2, CRON reported net loss of US$38,482 million, much wider than the loss of $8.759 million a year ago.

It said the increase was primarily due to an unrealized foreign exchange loss on its U.S. dollar-denominated cash and cash equivalents and short-term investments held in Canada, driven by the Canadian dollar strengthening against the U.S. dollar, partially offset by higher gross profit and lower operating expenses.

The company reported net revenue of US$33.455 million, up from $27.762 million and beating a forecast at FactSet of $32.9 million. It said the increase was primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, the consolidation of Cronos GrowCo, and higher cannabis extract sales in the Canadian market. Cronos GrowCo contributed $2.2 million of cannabis flower sales in Q2 2025. No such sales were recognized for Q2 2024.

Among other highlights, adjusted EBITDA of $1.7 million in Q2 2025 improved by $12.7 million from Q2 2024. It said the improvement year-over-year was primarily driven by higher revenue, lower cost of sales due to the consolidation of Cronos GrowCo, as well as by lower operating expenses due to a decline in general and administrative costs.

"Our strength abroad has been instrumental in driving meaningful margin improvement, underscoring the benefits of our global strategy. Our results in Israel reflect the strong demand for high-quality medical cannabis and the operational excellence of our team on the ground. Achieving a record quarter there is a testament to our ability to scale efficiently while meeting the needs of patients," said Mike Gorenstein, Chairman, President and CEO of Cronos ( CRON ).

"In Canada, despite near-term flower supply constraints, our long-term fundamentals remain robust, supported by strategic investments and our consistent commitment to innovation. Our Lord Jones and Spinach brands are still delivering, and with our flower capacity expansion, leadership in edibles, a strong position in Israel's medical market with our PEACE NATURALS brand and a growing international footprint, we are well-positioned for accelerated growth in the second half of 2025. Our debt-free balance sheet and $834 million in cash and cash equivalents and short-term investments provide superior flexibility to execute our strategy, expand globally, and deliver value to shareholders."