Business
IM Cannabis Reports First Quarter Financial Results
IMC Delivers Net Profit and 87% Gross Margin Improvement in Q1, Reflecting Strategic and Operational Progress TORONTO and GLIL YAM, Israel, May 15, 2025
About this update from Im Cannabis Corp.
[{"type":"text","content":"IMC Delivers Net Profit and 87% Gross Margin Improvement in Q1, Reflecting Strategic and Operational Progress\nTORONTO and GLIL YAM, Israel, May 15, 2025 /PRNewswire/ -- IM Cannabis Corp. (the \"Company\" or \"IMC\") (NASDAQ: IMCC) (CSE: IMCC), an international medical cannabis company, announced its financial results today for the first quarter ended March 31, 2025. All amounts are reported in Canadian dollars and compared to the quarter ended March 31, 2024, unless otherwise stated.\n\nIMC also announces the intention to complete a non-brokered private placement of secured debentures.\nQ1 2025 Financial Highlights\nNet profit of $175K94% Gross profit increase vs. Q1 2024 of $3.5M vs. $1.8M and 29% Gross profit increase vs. Q4 2024 of $2.7M4% Revenue increase vs. Q1 2024 of $12.5M vs. $12.1M50% decrease in operating expenses vs. Q1 2024 excluding the one-time Oranim revocation related losses of $3.3M vs. $6.6M and 56% decrease including Oranim129% increase of Non-IFRS Adjusted EBITDA profit to $0.6M vs. loss of $2.2M \nManagement Commentary \n\"Q1 2025 is a clear inflection point for IMC,\" said Oren Shuster, Chief Executive Officer of IMC. \"Achieving net profitability and an 87% improvement in gross margin year-over-year demonstrates the strength of the strategic and operational groundwork we laid in 2024—and reinforces our trajectory toward sustained, profitable growth\"\n\"IMC's Q1 2025 results mark a major turning point in our financial performance. We achieved net profitability, driven by a 94% increase in gross profit, a 56% reduction in operating expenses and a 4% increase in revenue year-over-year,\" said Uri Birenberg, Chief Financial Officer of IMC. \"Our operating ratio improved significantly to 26%, down from 77% in Q1 2024, and our Non-IFRS Adjusted EBITDA grew to $0.6 million—up 129% from a $2.2 million loss a year ago. These results reflect the strength of our strategy and the discipline with which we are executing it.\"\nOperational Highlights\nThe Company intends to complete a non-brokered private placement (the \"Offering\") of secured convertible debentures of the Company (each, a \"Debenture\") for aggregate proceeds of up to C$2,500,000. The Debentures will mature on the date that is 12 months from the date of issuance and will not incur interest except in the event of default. The Debentures are being iss...