Shares of Cronos Group Inc. (NASDAQ: CRON) are soaring 10% in pre-market trading on Thursday, following the release of the company's stellar first-quarter financial results. The cannabis company reported earnings that significantly exceeded expectations and demonstrated a remarkable turnaround to profitability.

Cronos Group announced quarterly earnings of $0.02 per share, marking a 300% improvement from the $0.01 loss per share reported in the same period last year. The company's net income reached $7.7 million, compared to a loss of $2.5 million in the previous year. Revenue also showed impressive growth, rising to $32.26 million, a 27.58% increase year-over-year and surpassing analyst estimates of $31.70 million. The revenue boost was primarily attributed to higher cannabis flower sales in Israel and other countries without excise taxes, as well as increased cannabis extract sales in the Canadian market.

Mike Gorenstein, Chairman and CEO of Cronos Group, stated that 2025 is shaping up to be a transformative year for the company as it executes its strategic priorities to drive revenue growth, expand margins, and maintain disciplined cost management. The strong financial performance, driven by higher sales volumes, increased average sales prices, lower direct costs, and production efficiencies, has boosted investor confidence in Cronos Group's business strategy and growth prospects. This positive outlook is likely to attract more interest from both institutional and retail investors in the competitive cannabis sector.