Cronos Group Inc.

Good morning. My name is Hailey, and I will be your conference operator today. I would like to welcome everyone to Kronos' 2026 second quarter conference call. Today's call is being recorded. At this time, I'd like to turn the call over to Harrison Aaron, Senior Director of Investor Relations and Corporate Development. Please go ahead.

Thank you, Hailey, and thank you for joining us today to review Kronos' 2026 Q2 Financial and Business Performance. Today, I am joined by our Chairman, President, and CEO, Mike Gorenstein, and our CFO, Anna Shlimak. Goren was 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 posted 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 reconciliation Thank you, Harrison.

Kronos delivered a stellar second quarter, organically achieving records across net revenue, gross profit, and adjusted EBITDA, as our borderless product strategy continues to gain momentum across each region in which we operate. Yesterday, the Trade Levies Commissioner of the Israeli Minister of Economy and Industry announced that it had opened a new investigation into alleged dumping of medical cannabis imports from Canada. This announcement follows the previous investigation by the commissioner, which did not result in the imposition of an anti-dumping duty. We dispute the allegations underlying the investigation. We will cooperate fully with the Ministry and are confident the facts support us. Our position has not changed. Kronos does not engage in dumping. During the last investigation of these same allegations, we provided the Trade Commissioner with comprehensive pricing and cost data that demonstrated that our pricing in the Israeli market was not below our pricing in Canada. We stand behind that evidence fully. Over the last few years, there have been a number of geopolitical and regulatory issues that have made operating in Israel uniquely difficult. However, we will stay committed to Kronos Israel, as we have been since 2017, when we obtained our medical cannabis license. We have built strong infrastructure in Israel, investing over 100 million new Israeli shekels in building a greenhouse manufacturing facility and a cannabinoid R&D lab. And we are one of the largest cannabis manufacturers in Israel, with a team of approximately 80 people. and that team has been incredibly resilient, consistently delivering record results despite the aforementioned challenges. And this quarter was no different, with Kronos Israel delivering our 10th consecutive quarter of record net revenue, growing 60% year-over-year or 32% growth on a constant currency basis. The Peace Naturals brand continues to expand its lead in the Israeli medical cannabis market, based on pharmacy data collected by Kronos. This is the second quarter of Lord Jones sales in Israel, with the brand gaining momentum in the premium flower space. Turning to Canada, we delivered record net revenue, with our brands generating 25% year-over-year retail sales growth relative to industry-wide sales growth of 1% according to HiFire. The Sprintage brand had another excellent quarter, with our product portfolio continuing to demonstrate the success of our innovation efforts through significant share gains. In Canada, Spinach held its number one position in vapes for the second consecutive quarter, with total vape market share expanding to 10.6%. And within the vape cartridge category specifically, Spinach remained number one for the third consecutive quarter, with market share expanding to 11.8%. In the disposable vape category, Spinach ranked number two in Q2, with share expanding to 8.2%, driven by our Puppers all-in-one innovation, which launched in late Q4 of 2025. We launched three new puffers flavors in the second quarter, strawberry burst, peach iced tea, and grape gas. We also introduced the Spinach Orange Vanilla Twist 1 gram cartridge, the brand's first limited time vape cartridge offering for the summer season. In edibles, Spinach remained Canada's number one brand for the eighth consecutive quarter, with market share steady at 20.8% and share within gummies of 22.5%. In Q2, Sours by Spinach fully blasted offerings were five of the top ten edible SKUs in Canada, including the number one edible nationwide, the fully blasted Blue Raspberry Watermelon 10-pack. In flour, spinach ranked number three in Canada, with market share expanding to 5.4%. Two spinach flour strains, GMO Cookies and OG Kush, were among the top six selling flour products nationally in the quarter. In pre-rolls, spinach rose to number seven in Canada, with market share rising to 3.1%. Within infused pre-rolls, spinach climbed to number 6, with market share increasing to 3.5%. In traditional pre-rolls, spinach also rose to number 6, with market share increasing to 2.9%. This quarter, spinach sticks, the brand's first cylindrical-style pre-roll, became more widely available across additional provinces in Canada. Turning to our other international markets outside Israel, we delivered record net revenue, which increased 88% year-over-year, led by strong demand in Germany. The breadth of our international footprint continues to provide meaningful growth as we execute our borderless product strategy. Building on our international momentum, this week I had the opportunity to meet with the Canadalar team in the Netherlands and the businesses performing in line with their expectations. We are prepared to close the acquisition of Canadalar upon receipt of regulatory clearance in the Netherlands in satisfaction or waiver of the remaining closing conditions. We expect the acquisition to close in the second half of 2026. We have not been informed of any specific issues with our regulatory clearance submission, and while it's taken longer to close than we had hoped, based on the information available to us, the timing appears to reflect the ordinary course of the Dutch regulatory review process for a transaction of this nature. As a reminder, Canadalar is the largest company operating within the Netherlands legal adult use cannabis program. We're excited and eager for Canadalar to join the Kronos family. We continue to execute on our capital allocation priorities and remain active under our share repurchase program, which we believe represents an attractive use of capital. Backed by an industry-leading balance sheet and positive cash flow from operations, we are well positioned to invest in our growth strategy while returning capital to shareholders and maintaining optionality to be opportunistic as attractive opportunities arise. Now, I'll turn it over to Anna to walk me through our second quarter financials.