IM Cannabis (IMCC) Q1 2025 earnings summary

Executive summary

• Achieved net profit in Q1 2025, reversing previous losses and marking a significant financial turnaround.

• Focused on operational efficiencies, integration, and cost-cutting, especially in supply chain management.

• Shifted resources to the German market, resulting in significant growth and offsetting declines in Israel.

Financial highlights

• Q1 2025 revenue was $12.5M (EUR 12.5M), up 4% year-over-year, driven by German market growth.

• Gross profit increased 94% to $3.4M, with gross margin improving by 87%.

• Adjusted EBITDA turned positive at $0.6M, up from a $2.2M loss in Q1 2024.

• Net profit reached $0.2M, compared to a $6M loss in Q1 2024.

• Diluted income per share was $0.09, versus a loss of $2.52 per share a year ago.

Outlook and guidance

• Strategy remains focused on execution, leveraging integration, and maintaining profitability in key markets.

• Management expects continued profitable growth, with opportunities from German cannabis legalization and ongoing cost discipline.