TORONTO and GLIL YAM, Israel — IM Cannabis Corp., an international medical cannabis company, reported its financial results for the first quarter ended March 31, 2025. All amounts are reported in Canadian dollars and compared to the quarter ended March 31, 2024, unless otherwise stated.
Q1 2025 Financial Highlights
- Net profit of $175K
- 94% Gross profit increase vs. Q1 2024 of $3.5M vs. $1.8M and 29% Gross profit increase vs. Q4 2024 of $2.7M
- 4% Revenue increase vs. Q1 2024 of $12.5M vs. $12.1M
- 50% decrease in operating expenses vs. Q1 2024 excluding the one-time Oranim revocation related losses of $3.3M vs. $6.6M and 56% decrease including Oranim
- 129% increase of Non-IFRS Adjusted EBITDA profit to $0.6M vs. loss of $2.2M
Management Commentary
“Q1 2025 is a clear inflection point for IMC,” said Oren Shuster, Chief Executive Officer. “Achieving net profitability and an 87% improvement in gross margin year-over-year demonstrates the strength of the strategic and operational groundwork we laid in 2024—and reinforces our trajectory toward sustained, profitable growth”
“IMC’s Q1 2025 results mark a major turning point in our financial performance. We achieved net profitability, driven by a 94% increase in gross profit, a 56% reduction in operating expenses and a 4% increase in revenue year-over-year,” said Uri Birenberg, Chief Financial Officer. “Our operating ratio improved significantly to 26%, down from 77% in Q1 2024, and our Non-IFRS Adjusted EBITDA grew to $0.6 million—up 129% from a $2.2 million loss a year ago. These results reflect the strength of our strategy and the discipline with which we are executing it.”
Operational Highlights
The Company intends to complete a non-brokered private placement of secured convertible debentures of the Company for aggregate proceeds of up to C$2,500,000. The Debentures will mature on the date that is 12 months from the date of issuance and will not incur interest except in the event of default. The Debentures are being issued to holders of debentures that mature on May 26, 2025. The principal of the Debenture may be converted into common shares in the Company at a conversion price to be determined at the time of issuance.
Q1 2025 Financial Results
- Net Profit in Q1 2025 was $0.2 million, compared to net loss of $6 million in Q1 2024.
- Revenues for the first quarter of 2025 were $12.5 million compared to $12.1 million in the first quarter of 2024, an increase of 4%. The increase is mainly due to accelerated growth in Germany of $6.6 million and offset by decreased revenue in Israel of $6.1 million.
- Gross profit for the first quarter of 2025 was $3.4 million, compared to $1.8 million in Q1 2024, an increase of 94%.
- Total operating expenses in Q1 2025 were $3.3 million compared to $7.4 million in Q1 2024, a decrease of 56%.
- G&A Expenses in Q1 2025 were $2 million, compared to $2.3 million in Q1 2024, a decrease of 14%.
- Selling and Marketing Expenses in Q1 2025 were $1.3 million, compared to $2.3 million in Q1 2024, a decrease of 44%.
- Basic and diluted Profit per Share in Q1 2025 was $0.09, compared to a loss of $2.52 per Share in Q1 2024.
- Non-IFRS Adjusted EBITDA Profit in Q1 2025 was $0.6 million, compared to an adjusted EBITDA loss of $2.2 million in Q1 2024, an increase of 129%.
- Cash and Cash Equivalents as of March 31, 2025, were $1.4 million compared to $0.9 million in December 31, 2024.
- Total assets as of March 31, 2025, were $44.9 million, compared to $39.2 million in December 31, 2024, an increase of 15%. The increase is mainly attributed to an increase of $2.9 million in trade receivables and an increase of $2.2 million in Inventory.
- Total Liabilities as of March 31, 2025, were $41.8 million, compared to $36 in December 31, 2024, an increase of 16%. The increase is mainly attributed to an increase of $4.9 million in trade payables, an increase of $3.7 million in other accounts payable and offset by a decrease of $2.4 million due to reduction in Credit from bank institutions and others and long term credit.
The Company’s financial statements as of March 31, 2025 includes a note regarding the Company’s ability to continue as a going concern. The Company’s Q1 2025 financial results do not include any adjustments relating to the recoverability and classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern. For more information, please refer to the “Liquidity and Capital Resources” and “Risk Factors” sections in the Company’s management’s discussion and analysis for the quarter ended March 31, 2025.
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The IMC ecosystem operates in Israel through Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.
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