#USA #Toronto #medical cannabis #IM Cannabis #profitability growth

IM Cannabis Reports Strong Financial Performance in Q2 2025

IM Cannabis Corp. (NASDAQ: IMCC), an international player in the medical cannabis sector, has announced its financial results for the second quarter of 2025, revealing strong profit and margin growth despite a decline in revenue influenced by external challenges. On August 12, 2025, the Company published its financial report reflecting the dynamics of the market and their impressive performance metrics.

Q2 2025 Financial Highlights

During Q2 2025, IM Cannabis experienced significant shifts in their financial landscape:

• - Revenue: The Company reported a revenue of CAD 12.7 million, marking a decrease of 14% compared to CAD 14.8 million in Q2 2024. This decline was largely attributed to a substantial revenue drop of CAD 5.3 million in Israel, counterbalanced by growth in Germany amounting to CAD 3.3 million.
• - Gross Profit: IMC achieved a remarkable gross profit increase of 306%, climbing from CAD 0.8 million in the previous year to CAD 3.4 million this year, showcasing a robust focus on improving operational efficiencies.
• - Gross Margin: The Company's gross margin surged to 27%, representing a significant increase of 371% compared to 6% in Q2 2024, demonstrating effective cost management practices.
• - Operating Expenses: Operating expenses remained stable, with only a 2% increase year-over-year, pegged at CAD 3.8 million.
• - Net Loss: IMC's net loss narrowed to CAD 0.2 million, a significant improvement from a loss of CAD 3.5 million in Q2 2024.
• - Adjusted EBITDA: Notably, the Company reported a profit of CAD 0.1 million in Adjusted EBITDA, a marked turnaround from a CAD 2.3 million loss last year, reflecting strong operational discipline.

Challenges and Forward Outlook

Oren Shuster, CEO of IM Cannabis, emphasized the ongoing geopolitical tensions in Israel and resulting supply chain disruptions as key challenges that impacted revenue in both Israel and Germany, estimating a financial shortfall of approximately CAD 5 million in Q2. However, management remains optimistic, pointing towards the recovery and the Company’s long-term strategic resilience.

Uri Birenberg, CFO, highlighted that despite these challenges, the focus on disciplined cost management contributed to the dramatic increase in profitability. The stable growth trajectory is being carefully nurtured as IM Cannabis navigates the complexities of the medical cannabis landscape.

Business Strategy and Market Position

IMC primarily operates within the burgeoning medical cannabis markets of Israel and Germany, utilizing a unique data-driven approach to enhance its operations. The Company’s ecosystem is supported by Focus Medical Herbs Ltd. and Adjupharm GmbH, ensuring effective distribution channels and high-quality product availability for medical patients.

IM Cannabis emphasizes compliance within the strict regulatory frameworks they operate in, which positions them favorably in the market, ensuring that they remain a trusted provider of medical cannabis products.

Looking ahead, IM Cannabis aims to leverage its operational efficiencies to capitalize on market stabilizations in the wake of current challenges, setting the stage for recovery and sustained profitability.

Conclusion

The financial results for Q2 2025 reaffirm IM Cannabis Corp.'s dedication to maintaining strong operational practices, ensuring they are well-equipped to face prevailing market challenges. As they look to the future, the management sees potential for market recovery and growth, driven by their commitment to quality and compliance in the medical cannabis industry.

Despite immediate challenges, IM Cannabis continues to lay a solid foundation for sustained growth, aiming for a resilient return to form in the upcoming quarters.