Stocktwits - Shares of Cronos (NASDAQ:CRON) Group rose on Thursday after the cannabis company reported a first-quarter (Q1) profit and unveiled a $50 million share repurchase program.
For Q1 2025, Cronos reported earnings per share (EPS) of $0.02, compared to a loss of $0.01 per share in the same period last year.
The company’s net revenue for the quarter increased by 28% year-over-year to $32.3 million. Adjusted EBITDA stood at $2.3 million, reflecting an improvement of $13 million from the prior year’s loss of $10.7 million.
Cronos Group’s stock closed at $2, up 8.11% on Thursday, but dipped 0.5% to $1.99 in after-hours trading.
Cronos also announced the authorization of a share repurchase program of up to $50 million, with repurchases expected to commence on May 14, and continue until May 13, 2026.
The company said it may buy back up to 5% of its outstanding shares, depending on market conditions and other factors.
"We are confident that our Cronos GrowCo expansion, which is set for completion in Q2 2025, will provide the additional capacity necessary to meet rising demand," said Mike Gorenstein, Chairman, President, and CEO.
Cronos is facing potential tariffs on its cannabis imports to Israel, with a proposed anti-dumping duty of up to 165% on Canadian medical cannabis.
Although the duty was vetoed by Israel’s Minister of Finance, the Ministry of Economy plans to move forward.
Cronos disagrees with the proposed tariff, arguing it would raise prices and limit patient choice in the Israeli market.
"We continue to advocate for a fair and equitable medical cannabis market in Israel," said Gorenstein.
Cronos will focus on expanding its operational capacity, with plans for the Cronos GrowCo facility expected to boost production and fuel growth in the second half of the year.
On Stocktwits, Sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume.
Users expressed optimism, highlighting the strong earnings report and a $50 million share buyback program.
One user noted the positive report, emphasizing its potential impact on their broader portfolio, while another congratulated the bullish sentiment, expressing satisfaction with the company’s performance.
The stock has declined nearly 3% so far in 2025.