Cronos' Earnings: Respectable Progress on Narrowing Losses but Positive EBITDA Remains Years Away

Cronos’ full-year 2022 net revenue after excise taxes and adjusted EBITDA loss of $92 million and $81 million, respectively, weren’t far from our forecast revenue of $93 million and adjusted EBITDA loss of 77 million. With few surprises during the quarter, we’ve largely maintained our long-term forecasts and hold our fair value estimates of $4 and CAD 5.50 for no-moat Cronos. The stock looks undervalued in 4-star territory, but we see 5-star opportunities elsewhere among American multistate operators and Canadian licensed producers.