IM Cannabis (IMCC) Q2 2025 earnings summary

Executive summary

• Achieved strong profit and margin growth despite a 14% year-over-year revenue decline in Q2 2025, mainly due to external challenges in Israel and Germany.

• Management remains focused on sustainable, profitable growth and expects to recover lost revenue in coming quarters.

Financial highlights

• Revenue decreased 14% year-over-year to $12.7M in Q2 2025.

• Gross profit rose 306% to $3.4M, with gross margin up to 27% from 6% year-over-year.

• Net loss narrowed to $0.2M from $3.5M in Q2 2024.

• Adjusted EBITDA improved to a $0.1M profit from a $2.3M loss year-over-year.

• Basic and diluted loss per share was $0.09, compared to $1.36 in Q2 2024.

Outlook and guidance

• Management anticipates recovering approximately $5M in revenue lost due to war and supply chain delays in Israel and Germany in future quarters.

• Focus remains on strengthening the balance sheet and achieving sustainable growth as market conditions normalize.