IM Cannabis Reports 2025 Results: Revenue of C$54.7 Million with Over 134% Growth in Germany and Positive Operating Cash Flow

IM Cannabis (Nasdaq: IMCC) reported audited 2025 results with revenue of C$54.7 million and a strong operational turnaround.

Rhea-AI Summary

IM Cannabis (Nasdaq: IMCC) reported audited 2025 results with revenue of C$54.7 million and a strong operational turnaround. Germany revenue surged >134% to C$36.3 million, representing over 66% of group revenue. Gross profit rose ~15% to C$9.7 million. Operating cash flow turned positive at C$4.7 million, and cash and restricted cash increased to C$3.3 million following financings including net proceeds of C$5.1 million.

The company also signed a non-binding LOI on March 17, 2026, to acquire 51% of Black Axe Technologies, marking a proposed strategic entry into defense and homeland security technology sectors.

Positive

• Germany revenue +134% to C$36.3M
• Operating cash flow turned positive at C$4.7M
• Gross profit increased ~15% to C$9.7M
• Cash and restricted cash rose to C$3.3M
• Private placement net proceeds of C$5.1M

Negative

• Revenue concentration: Germany now >66% of group revenue

Argus Mar 31 session

-9.31% close to close Open Argus

Details

News Market Reaction – IMCC

On Mar 31, the day this news came out, IMCC closed 9.31% below the previous close.

Data tracked by StockTitan Argus for the Mar 31 session.

Market Context

On Mar 31, the day this news came out, the stock closed 9.3% below the previous close. A negative re...

Analysis

On Mar 31, the day this news came out, the stock closed 9.3% below the previous close. A negative reaction despite improved 2025 metrics fits a pattern where financing and strategic shifts have sometimes met selling pressure. The company reported revenue of C$54,731 thousand, Germany sales of C$36,348 thousand, and positive operating cash flow of C$4,716 thousand, alongside higher cash of C$3,309 thousand. Yet an effective F-3 registering 9,788,966 shares tied to convertible securities and the move into defense-tech through a planned 51% Black Axe stake may heighten dilution and strategic uncertainty concerns.

Key Figures

2025 Revenue: C$54,731 thousand Germany Revenue 2025: C$36,348 thousand Gross Profit 2025: C$9,686 thousand +5 more

2025 Revenue

C$54,731 thousand

Full year ended December 31, 2025

Germany Revenue 2025

C$36,348 thousand

More than 134% growth vs 2024, over 66% of group revenue

Gross Profit 2025

C$9,686 thousand

Approx. 15% increase year over year

Operating Cash Flow 2025

C$4,716 thousand

Turned positive vs negative C$1,077 thousand in 2024

Cash & Restricted Cash

C$3,309 thousand

At December 31, 2025 vs C$927 thousand at year-end 2024

Private Placement Proceeds

C$5,065 thousand

Net proceeds from a private placement offering

Germany Revenue Growth

Over 134%

Increase in German revenue vs 2024

Black Axe Stake

51%

Intended ownership in Black Axe under non-binding LOI

Historical Context

5 past events · Latest: Mar 17

5 events

1. Mar 17

   Defense-tech LOI

   24h Move

   -26.7%

   Announced LOI to acquire 51% of Blackaxe, entering defense-tech markets.

2. Jan 26

   Convertible financing

   24h Move

   -0.7%

   Raised US$2.17M via convertible notes and warrants to support liquidity.

3. Jan 05

   Board appointment

   24h Move

   -2.7%

   Added a director with homeland security and intelligence systems experience.

4. Dec 30

   U.S. expansion review

   24h Move

   +4.3%

   Began evaluating strategic options for U.S. cannabis market entry post order.

5. Dec 12

   CFO change

   24h Move

   -19.1%

   Appointed new CFO, replacing prior finance chief after transition notice.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

private placement offering, convertible debentures, letter of intent, counter-uas

4 terms

private placement offering financial

"Strengthened cash position through a private placement offering yielding net proceeds"

A private placement offering is when a company sells its stock or bonds directly to a small group of investors instead of offering them to the general public. This allows the company to raise money quickly and privately, often for specific projects or needs, without going through a public stock exchange.

convertible debentures financial

"as well as the extension and partial conversion of convertible debentures."

Convertible debentures are loans a company issues that pay interest like a bond but can be swapped later for the company’s shares at a set price. For investors they act like a safety-net plus a shortcut: you get regular interest payments while retaining the option to join ownership if the share price rises, which offers upside potential but can dilute existing shareholders if conversion occurs.

letter of intent financial

"announced the signing of a non-binding letter of intent to acquire 51%"

A letter of intent is a document that shows an agreement in principle between parties to work towards a future deal or transaction. It outlines their intentions and key terms, acting like a roadmap before a formal contract is signed. For investors, it signals serious interest and helps clarify expectations early in the process.

counter-uas technical

"targeting cyber drone interception (counter-UAS), satellite intelligence, imagery"

Counter-UAS (counter-unmanned aircraft systems) are tools and tactics used to detect, track, and disable or divert drones that pose a threat to people, property, or operations. Think of them as a combination of a security camera, alarm system, and net that can find an unwanted flying device and stop it before it causes harm. Investors care because demand, regulation, and deployment of these systems affect revenue, contract opportunities, legal risk, and the valuation of companies that build or use them.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TORONTO and GLIL YAM, Israel, March 31, 2026 /PRNewswire/ -- IM Cannabis Corp. ("IMC" or the "Company") (Nasdaq: IMCC), a medical cannabis company with operations in Israel and Germany, today reported its audited consolidated financial results as of and for the full year ended December 31, 2025. The Company achieved a major operational milestone by generating positive cash flow from operating activities of C$4.7 million for the year ended December 31, 2025, a significant turnaround from negative cash flow in 2024, while delivering high revenue growth in Germany, completing financing transactions, and strengthening its cash position.

2025 Key Highlights (All figures in CAD thousands):

• Revenue totaled $54,731, reflecting stability and demonstrating resilience despite ongoing challenges in Israel.
• Germany revenue surged more than 134% to $36,348 (up from $15,508 in 2024), now accounting for over 66% of total Group revenue. This growth underscores the success of the Company's EU-GMP-certified production and distribution platform following Germany's medical cannabis legalization.
• Gross profit increased approximately 15% to $9,686, driven by cost efficiencies, optimized supply chains, and higher-margin German sales.
• Cash flow from operating activities turned strongly positive at $4,716 (compared to negative cash flow of $1,077 in 2024), representing the first full year of positive operating cash flow in recent history and reflecting improved working capital management and operational discipline.
• Cash and restricted cash rose sharply to $3,309 (from $927 at year-end 2024), bolstered by strategic financings.
• Strengthened cash position through a private placement offering yielding net proceeds of $5,065, as well as the extension and partial conversion of convertible debentures.

In line with its previously announced strategy to explore and introduce additional business activities aimed at enhancing long-term growth opportunities, the Company recently took a step toward diversification of its businesses. On March 17, 2026, IMCannabis announced the signing of a non-binding letter of intent to acquire 51% of Black Axe Technologies Spolka z Organiczona. ("Black Axe"), a Polish technology company specializing in advanced defense and intelligence solutions. This proposed transaction marks the Company's strategic entry into the high-growth defense and homeland security technology sectors, specifically targeting cyber drone interception (counter-UAS), satellite intelligence, imagery, and AI analytics.

About IMC

IMC (Nasdaq: IMCC) is an international company focused on building and scaling innovative businesses and technologies across global markets. The Company currently operates a medical cannabis platform serving patients in Israel and Germany while evaluating opportunities to expand into additional technology-driven sectors.

The IMC ecosystem operates in Israel through its subsidiaries, which import and distribute cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies and online platforms, in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.

Disclaimer for Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements under applicable Canadian and United States securities laws (collectively, "forward-looking statements"). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to: the proposed acquisition of 51% of Black Axe and the Company's potential strategic expansion into defense and homeland security technology markets; and the Company's expectation to continue executing on its strategy to explore and introduce additional business activities. The proposed transaction with Black Axe is subject to completion of due diligence, execution of definitive agreements and customary closing conditions and regulatory approvals. There can be no assurance that the parties will enter into a definitive agreement or that the proposed transaction will be completed. The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company's ability to continue to meet the listing requirements of the Nasdaq Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and its subsidiaries (collectively, the "Group") to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group's obligations; the Group's possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group's cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the multi front war Israel is facing on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the Company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; and the Company's inability to take advantage of the legalization of medicinal cannabis in Germany..

Please see the other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual report dated March 31, 2025, which is available on the Company's issuer profile on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov/edgar. Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Company does not undertake any obligation to update forward-looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Company Contact:

Michal Efraty
Investor & Public Relations
michal@efraty.com

Oren Shuster, CEO
IM Cannabis Corp.
info@imcannabis.com

Logo : https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg

View original content:https://www.prnewswire.com/news-releases/im-cannabis-reports-2025-results-revenue-of-c54-7-million-with-over-134-growth-in-germany-and-positive-operating-cash-flow-302729953.html

SOURCE IM Cannabis Corp.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were IM Cannabis (IMCC) full-year 2025 revenues and key profitability metrics?

IM Cannabis reported C$54.7 million revenue for 2025 with gross profit ~C$9.7 million and operating cash flow of C$4.7 million. According to the company, these metrics reflect higher-margin German sales and improved working capital management.

How much did IM Cannabis revenue in Germany grow in 2025 and why does it matter for IMCC investors?

Germany revenue grew by over 134% to C$36.3 million in 2025, now >66% of group revenue. According to the company, this growth reflects EU-GMP production and Germany's medical cannabis legalization, materially shifting geographic revenue mix.

What financing actions did IM Cannabis (IMCC) complete to strengthen its balance sheet in 2025?

IM Cannabis completed a private placement yielding net proceeds of C$5.1 million and extended/partially converted convertible debentures. According to the company, these transactions bolstered cash to C$3.3 million at year-end 2025.

What does IM Cannabis' positive operating cash flow in 2025 mean for shareholders of IMCC?

Positive operating cash flow of C$4.7 million indicates improved operational discipline and working capital management. According to the company, this represents the first full year of positive operating cash flow in recent history and a meaningful liquidity inflection.

What is the significance of IM Cannabis' March 17, 2026 LOI to acquire 51% of Black Axe for IMCC?

The LOI proposes IM Cannabis acquire a 51% stake in Black Axe Technologies to enter defense and homeland security technology sectors. According to the company, this is a non-binding step toward diversification into counter-UAS, satellite intelligence, and AI analytics.