IM Cannabis (IMCC) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue remained stable at $13.9 million, matching Q3 2024 levels.

• Gross profit declined 13% year-over-year to $2.7 million, with gross margin dropping to 20% from 23%.

• Net loss increased to $3.9 million in Q3 2025, primarily due to a $3.1 million one-time goodwill and intangible asset impairment.

• Management highlighted ongoing transition and strategic review, with regulatory uncertainty in Germany potentially impacting future sales.

Financial highlights

• Revenue for the first nine months of 2025 was $39 million, down from $40.7 million in the same period of 2024.

• Non-IFRS Adjusted EBITDA loss widened to $0.6 million in Q3 2025 from $0.2 million in Q3 2024.

• Operating expenses rose 68% year-over-year to $6.9 million, mainly due to the impairment charge.

• Cash and restricted cash increased to $2.3 million as of September 30, 2025, from $0.9 million at year-end 2024.

Outlook and guidance

• Management is assessing new business activities to broaden growth avenues and support long-term value creation.

• Regulatory changes in Germany are expected and may negatively affect market conditions, with the impact still uncertain.