#Canada #Toronto #cannabis industry #IM Cannabis #Nasdaq IMCC

IM Cannabis Corp. Reports Third Quarter 2025 Financial Results

On November 13, 2025, IM Cannabis Corp. (NASDAQ: IMCC) announced its financial performance for the third quarter as well as nine months ending on September 30, 2025. The company, known for its medical cannabis offerings primarily in Israel and Germany, reported consistent revenue figures amidst ongoing market changes.

Financial Highlights

• - Revenue for Q3 2025 remained stable at $13.9 million, consistent with the same quarter of the previous year.
• - Gross profit for the third quarter dropped to $2.7 million, marking a 13% decrease compared to $3.1 million in Q3 2024.
• - The gross margin also fell from 23% to 20%, indicating challenges in maintaining profitability.
• - A notable factor contributing to the financial shift was the recognition of a $3.1 million impairment related to goodwill and intangible assets during Q3 2025, categorizing it as a one-time operating expense.

The company reported a net loss of $3.9 million in Q3 2025, which represents a significant increase from the $1.1 million loss experienced in Q3 2024. After adjusting for the impairment, the net loss excluding these one-time expenses was $0.8 million.

Operational Insights

Oren Shuster, the CEO of IM Cannabis, provided an overview of the company's strategic direction. He elaborated, "The initial nine months of 2025 have ushered in a transition period. Anticipated regulatory changes in Germany could adversely affect our market positioning, adding unpredictability to our sales landscape. In response, we are conducting a thorough strategic review to evaluate new business opportunities to facilitate future growth and value generation."

Detailed Financial Analysis

• - Total operating expenses surged to $6.9 million, a 68% increase compared to the $4.1 million reported in Q3 2024, attributable mainly to the aforementioned impairment.
• - IM Cannabis' selling and marketing expenses decreased by 7%, stabilizing at $1.4 million, compared to $1.5 million in the previous year.
• - As of September 30, 2025, the company's cash reserves amounted to $2.3 million, reflecting a significant growth from $0.9 million at the end of the prior year, marking improvement in liquidity management.
• - IM Cannabis noted an increase in total assets, which climbed to $44.3 million from $39.2 million, influenced by heightened inventory levels of $10 million and advances to suppliers.

Future Considerations

Looking forward, IM Cannabis acknowledges the necessity to navigate a shifting regulatory environment while focusing on long-term sustainability. As the medical cannabis market evolves, especially in Germany, adapting business strategies becomes crucial for the company's growth trajectory.

In conclusion, while IM Cannabis Corp. faces immediate financial challenges, the company’s commitment to restructure and innovate positions it for potential breakthroughs and expanded markets. The insights from these financial results provide a basis for understanding both the straightforward challenges and the structural changes underway within IM Cannabis as it aims to solidify its market presence in the medical cannabis industry.