Cronos Group Inc.

Good morning. My name is Cory and I'll be your conference operator today. I would like to welcome everyone to Kronos Group's 2025 fourth quarter and full year earnings conference call. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising you your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. At this time, I would like to turn the call over to Harrison Aaron, Senior Director, Investor Relations and Corporate Development. Please go ahead.

Thank you, Corey. And thank you for joining us today to review Kronos' fourth quarter and full year financial and business performance in 2025. Today, I am joined by our Chairman, President, and CEO, Mike Gorenstein, and our CFO, Anna Schlemack. Kronos issued a news release announcing our financial results this morning, which is filed on our EDGAR and CDAR profiles. This information and the prepared remarks will also be available on our website under Investor Relations. Before I turn the call over to Mike, let me remind you that we may make forward-looking statements and refer to non-GAAP financial measures during this call. These forward-looking statements are based on management's current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from expectations are detailed in our earnings materials and our SEC filings that are available on our website, by which any forward-looking statements made during this call are qualified in their entirety. Information about non-GAAP financial measures, including reconciliations to U.S. GAAP, can also be found in the earnings materials that are available on our website. Lastly, we will be making statements regarding market share information throughout this conference call, and unless otherwise stated, all market share data is provided by HIFIRE. We will now make prepared remarks, and then we'll move to a question and answer session. With that, I'll pass it over to Kronos' Chairman, President, and CEO, Mike Gorenstein.

Thanks, Harrison. Kronos delivered a record year in 2025, growing net revenue by 25% organically, underscoring the continued strength of our core business and the progress we are making towards our strategic priorities. We achieved record net revenue in the fourth quarter and for the full year, and we delivered record full-year gross profit and adjusted EBITDA. These results reflect strong consumer demand for our leading brands and the growing contribution from Israel and our international platform. In Canada, we delivered record quarterly net revenue, up 42% year over year, with key contributions from flour, vapes, and edibles. Spinach continues to be a standout performer in the Canadian market and the second most popular brand nationally. In vapes, Spinach delivered stellar performance in the quarter. In December, Spinach became the number two overall vape brand in Canada, rising from the number four share position in the first quarter of 2025. Within the vape cartridges subcategory, Spinach achieved number one market share in the fourth quarter, with their Cherry Crush and Blueberry Dynamite flavors as the two best-selling vape cartridges nationwide. This performance in vapes is a testament to our ability to leverage extensive R&D and consumer insights work to develop market-leading products that strongly resonate with consumers. We're looking to build on this momentum, and towards the end of the fourth quarter, we unveiled Spinach Puffers, our newest innovation in the all-in-one vape device category. Puffers offer bold flavors of high-quality liquid diamond-infused cannabis in a modern, palm-style format with a dual ceramic coil for maximum flavor and smooth draws. and a uniquely satisfying tactile grip. Puffer is initially launched in select markets within Canada, with distribution broadening to other Canadian provinces in early 2026. Innovation continues to be one of our biggest competitive advantages, and Puffer is another example of how we raise the bar on product quality, design, and flavor. As we continue building loyalty with consumers, our focus remains on creating products that look, feel, and taste great, delivering the exceptional experiences that define the spinach brand. In edibles, Sours continued to deliver strong growth while maintaining category leadership, with market share approaching 22% for the quarter. Growth was driven by fully blasted multipacts, which, despite having just launched in mid-2025, were four of the top 10 selling edible SKUs in Canada in the fourth quarter, including the number one edible SKU nationwide, reinforcing Spinach's leadership position in edibles and demonstrating the success of our innovation pipelines. In flour, spinach remains the number four brand in the quarter, with supply constraints limiting growth potential. With the expansion of GroCo now complete and the expanded cultivation space continuing to get dialed in, we expect these supply constraints to ease in 2026. Turning to Lord Jones, the brand remains the market leader in Canada in hash and live resin-infused pre-rolls, reinforcing its strength in premium formats where quality and differentiation matter most. Earlier this month, Lord Jones launched in Israel with a lineup of curated premium flower offerings featuring cold-cured large buds available in a series of limited-time drops, marking an important step in broadening the brand's presence. Internationally, Peace Naturals and Lit posted another impressive quarter. In Israel, net revenue grew 52% year-over-year, the eighth consecutive quarter of record net revenue for Kronos in the market. Peace Naturals remained the top-selling brand in the market based on pharmacy data collected by Kronos, continuing to benefit from strong brand equity, consistent product quality, and stellar commercial execution. Outside of Israel, Peace Naturals and Lit drove a strong quarter for other international markets, with net revenue up 68% year-over-year, led by growth in Germany, as shipment timing normalized and demand remained strong. We capped off the year with a December announcement that we entered into a definitive agreement to acquire Canadalar, closing expected in the first half of 2026. Cannadalar is the largest company operating within Netherlands legal adult use cannabis program based on Cannadalar management data and is the only industrial scale greenhouse cultivator within the program. Under the agreement Kronos will acquire Cannadalar for upfront consideration of 57.5 million euros or approximately 67.5 million subject to certain adjustments with additional continued consideration of based on Hafex-Canadalar's normalized EBITDA in 26 and 27. The Netherlands has a deep cannabis heritage, and its coffee shops, which serve as cannabis retailers, are known worldwide to have played a foundational role in the evolution of the legal cannabis industry. The Dutch Legal Adult Use Cannabis Program was enacted in 2020 to establish a closed regulated cannabis supply chain in 10 participating municipalities with the startup phase beginning in the fourth quarter of 2023 and the program officially launching on April 7th, 2025. The program is scheduled to run for four years from that date with the Dutch government retaining the option to extend it by up to an additional 18 months. The program is well designed and regulated to limit cannabis to responsible levels among adult consumers only. serving as a potential model for other countries. We are committed to the continuity of the program in cooperation with regulators, municipalities, and all industry stakeholders to ensure its long-term success. Under the program, all 72 cannabis retailers in the 10 participating municipalities are now required to source their cannabis products exclusively from one of 10 licensed producers, including Ganadalar. Including the 72 cannabis retailers in the program, there are a total of 562 cannabis retailers in the Netherlands, based on data from the Dutch government, allowing for a potentially significant increase in the addressable market should the program be eventually expanded to additional municipalities or nationwide. European expansion is an important area of focus for us, and if completed, acquiring a market leader in Europe's largest adult-use cannabis market will allow us to further leverage our investments in borderless products at scale. Combined with a highly attractive financial profile and the expectation for accretion from the transaction, we're excited to bring Canadalar under the Kronos umbrella and to build upon the foundation that the company has established. Kronos maintains the strongest balance sheet in the industry with no debt and $832 million in cash, cash equivalents and short-term investments, allowing us to continue investing in growth, innovation and global expansion. Now, I'll turn it over to Anna to walk you through our fourth quarter and full year financials.