IM Cannabis Sees Flat Revenue YoY In Q3, CEO Warns Of German Regulatory Impact

IM Cannabis Corp. (NASDAQ: IMCC) reported consistent revenue year-over-year, totaling CA$13.9 million ($9.9 million) in the third quarter.

For the nine months ended Sept. 30, revenue totaled CA$39 million, slightly down from CA$40.7 million in the same period of fiscal 2024.

“The first nine months of 2025 have been part of a transition year for the Company,” Oren Shuster, CEO of IM Cannabis Corp., said. “In Germany, expected regulatory changes may have a negative effect on the market for our sales, and the impact of these regulatory changes on us is not yet known. In the third quarter of 2025 we recorded a non-cash impairment to align asset values with current conditions. In parallel, as part of our strategic review, we are assessing selective new business activities to broaden our growth avenues and support long-term value creation.”

Q3 2025 Financial Highlights

• Gross profit totaled CA$2.7 million, down from CA$3.1 million in the prior year’s period.
• Net loss amounted to CA$3.9 million, compared to a net loss of CA$1.1 million in the third quarter of fiscal 2024.
• Gross margin was 20%, down from 23% in the corresponding period of 2024, a 13% year-over-year decrease.
• Total operating expenses were CA$6.9 million, up from CA$4.1 million in the third quarter of 2024, an increase of 68%.
• Non-IFRS adjusted EBITDA came in negative at CA$0.6 million, representing a year-over-year decline of 143%.
• Cash and restricted cash on hand as of Sept. 30 were CA$2.3 million compared to CA$0.9 million on Dec. 31, 2024.
• Total assets as of Sept. 30 were CA$44.3 million, compared to CA$39.2 million on Dec. 31, 2024, an increase of 13%.
• Total liabilities as of Sept. 30 were CA$40 million, compared to CA$36 million on Dec. 31, 2024, representing an increase of 11%.

IMCC Price Action

IM Cannabis’ shares traded 4.58% lower at $1.25 per share at the time of writing on Friday morning.