TORONTO and GLIL YAM, Israel — IM Cannabis Corp., an international medical cannabis company, announced its financial results today for the second quarter ended June 30, 2025. All amounts are reported in Canadian dollars and compared to the quarter ended June 30, 2024, unless otherwise stated.
Q2 2025 Financial Highlights
- 14% Revenue decrease vs. Q2 2024 of $12.7M vs. $14.8M
- 306% Gross profit increase vs. Q2 2024 of $3.4M vs. $0.8M ($1.9M in Q2 2024 is due to inventory clearing and accruals)
- 371% Gross Margin increase vs. Q2 2024 of 27% vs. 6%
- Stable Operating Expenses with a 2% Operating Expenses increase vs. Q2 2024 of $3.8M vs. $3.7M
- EBITDA profit of $0.1M in Q2 2025 vs. EBITDA loss of $2.3M in Q2 2024
Management Commentary
“The ongoing war in Israel and supply chain delays have created real challenges for our revenue in both Israel and Germany, the impact on our Q2 revenue was approximately $5 million — a figure we expect to recover in the coming quarters,” said Oren Shuster, Chief Executive Officer of IMC. “In spite of these obstacles, we are encouraged by the strong profitability and margin growth we’ve achieved. These results underscore the strength of our long-term strategy and the resilience of our team, positioning us well for sustainable growth.”
“In Q2, we achieved a 306% increase in gross profit to $3.4 million compared to $0.8 million last year, alongside a 105% improvement in Non-IFRS Adjusted EBITDA to a profit of $0.1 million from a $2.3 million loss. These results reflect disciplined cost management, operational efficiency, and margin expansion, even amid a 14% revenue decline driven by the ongoing war in Israel and supply chain delays. We remain focused on strengthening our balance sheet and positioning the company for sustainable, profitable growth as market conditions normalize,” added Uri Birenberg, Chief Financial Officer of IMC.
Q2 2025 Financial Results
- Net loss in Q2 2025 was $0.2 million, compared to net loss of $3.5 million in Q2 2024.
- Revenues for the second quarter of 2025 were $12.7 million compared to $14.8 million in the second quarter of 2024, a decrease of 14%. The decrease is mainly due to accelerated growth in Germany of $3.3 million and offset by decreased revenue in Israel of $5.3 million.
- Gross profit for the second quarter of 2025 was $3.4 million, compared to $0.8 million in Q2 2024, an increase of 306%.
- Gross margin for the second quarter of 2025 was 27%, compared to 6% in Q2 2024, an increase of 371%.
- Total operating expenses in Q2 2025 were $3.8 million compared to $3.7 million in Q2 2024, an increase of 2%.
- G&A Expenses in Q2 2025 were $2.5 million, compared to $2.2 million in Q2 2024, an increase of 15%.
- Selling and Marketing Expenses in Q2 2025 were $1.3 million, compared to $1.5 million in Q2 2024, a decrease of 13%.
- Basic and diluted Loss per Share in Q2 2025 was $0.09, compared to a loss of $1.36 per Share in Q2 2024.
- Non-IFRS Adjusted EBITDA Profit in Q2 2025 was $0.1 million, compared to an adjusted EBITDA loss of $2.3 million in Q2 2024, an improvement of 105%.
- Cash and Cash Equivalents as of June 30, 2025, were $0.8 million compared to $0.9 million in December 31, 2024.
- Total assets as of June 30, 2025, were $41.1 million, compared to $39.2 million in December 31, 2024, an increase of 5%. The increase is mainly attributed to an increase of $2.3 million in advances to suppliers and a decrease of $1.3 million in trade receivables.
- Total Liabilities as of June 30, 2025, were $37 million, compared to $36 in December 31, 2024, an increase of 3%. The increase is mainly attributed to an increase of $1.0 million in trade payables, an increase of $3 million in other accounts payable and offset by a decrease of $1 million due to a net reduction in Credit from bank institutions and a decrease of $1.4 million in convertible debt.
The Company’s financial statements as of June 30, 2025 includes a note regarding the Company’s ability to continue as a going concern. The Company’s Q2 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.
About IM Cannabis Corp.
IMC (Nasdaq: 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.
