InterCure Reports First Half 2025 Results with NIS 130 Million in Revenue and Positive Operating Cash Flow

Rhea-AI Summary

InterCure (NASDAQ: INCR) reported first half 2025 results: NIS 130 million revenue, NIS 12.6 million Adjusted EBITDA (10% margin) and NIS 12 million positive operating cash flow. Revenue rose 15% versus H2 2024 and 3% year‑over‑year. Net loss was NIS 1.8 million. Cash on hand improved to NIS 54 million from NIS 21 million a year earlier. The company resumed production at its Nir Oz facility, launched 40+ SKUs, received NIS 81 million in compensation advances against submitted damages of NIS 251 million, and signed a share purchase agreement to acquire ISHI to expand U.S. genetics and supply.

Positive

• Revenue of NIS 130 million
• Adjusted EBITDA NIS 12.6 million (10% margin)
• Positive operating cash flow of NIS 12 million
• Cash on hand increased to NIS 54 million
• Signed share purchase agreement to acquire ISHI

Negative

• Net loss of NIS 1.8 million
• Submitted war-related damages of NIS 251 million
• Recovery dependent on compensation advances (received NIS 81 million)

Insights

Senior Corporate Finance Analyst

Solid operational recovery, improving cash and recurring positive Adjusted EBITDA; strategic U.S. acquisition could drive incremental revenue.

InterCure reported NIS 130 million in revenue for the first half of 2025 and delivered its eleventh consecutive half of positive Adjusted EBITDA of NIS 12.6 million (about 10% of revenue). The business returned to positive operating cash flow of NIS 12 million and increased cash on hand to NIS 54 million, which together improve near‑term liquidity and operational runway.

The company shows concrete recovery actions: resumption of production at the Nir Oz facility, launch of over 40 new SKUs, and receipt of NIS 81 million in advances tied to submitted war‑damage claims totaling NIS 251 million. A reported net loss of NIS 1.8 million contrasts with near break‑even a year earlier, so profitability metrics are mixed despite recurring positive Adjusted EBITDA.

Strategically, the ISHI (Botanico Ltd.) purchase agreement and exclusive supply of The Flowery™ and U.S. brands are described as expected to contribute "tens of millions of shekels" to revenues; that positions the company to benefit from reported regulatory developments in the U.S. The purchase agreement and stated revenue contribution are material items to monitor over the next 6–18 months, along with finalization of the ISHI transaction, actual post‑close sales from those brands, receipt of remaining compensation for damages, and quarterly trends in net income versus Adjusted EBITDA.

The Company reports NIS 130 million in revenue and NIS 12 million in positive operating cash flow, demonstrating resilience and sustained profitability with its eleventh consecutive half of positive Adjusted EBITDA amidst ongoing recovery in Israel

InterCure is encouraged by recent regulatory momentum in the U.S. and believes that it is well positioned to capitalize on evolving U.S. cannabis rescheduling, especially following its recent signing of an agreement to acquire ISHI

NEW YORK and HERZLIYA, Oct. 08, 2025 (GLOBE NEWSWIRE) -- InterCure Ltd. (NASDAQ: INCR) (TASE: INCR) (“InterCure” or the “Company”), today announced its financial and operating results for the first half of 2025.

Alexander Rabinovitch, CEO of InterCure, stated: “In the first half of 2025, InterCure delivered revenues of NIS 130 million, achieving positive Adjusted EBITDA for the eleventh consecutive half year period and generating NIS 12 million in positive operating cash flow. This performance underscores the strength of our vertically integrated business model and our ability to navigate a challenging environment, including the impact of the October 7 attack and the ongoing war in Gaza. We continue to work closely with Israeli authorities to secure full compensation for damages to our southern facility.

Looking ahead, we are confident in our ability to continue our recovery growth trajectory, expanding our international footprint, and strengthen our leadership in the pharmaceutical cannabis industry, particularly with the strategic acquisition of ISHI, which positions us to capitalize on evolving opportunities in the global cannabis market. At the same time, we are closely monitoring regulatory developments in the U.S. regarding potential rescheduling of cannabis.”

First Half 2025 Financial Highlights
(All amounts are expressed in New Israeli Shekels (NIS), unless otherwise noted)

• Revenue of NIS 130 million, an increase of 15% compared to the second half of 2024, and an increase of 3% compared to NIS 126 million in the first half of 2024.
• Net loss of NIS 1.8 million, compared to near break-even in the first half of 2024.
• Adjusted EBITDA of NIS 12.6 million, representing 10% of revenue, marking the Company’s eleventh consecutive half of positive Adjusted EBITDA.¹
• Positive cash flow from operations of NIS 12 million, compared to negative cash flow of NIS 43 million in the same period last year.
• Cash on hand of NIS 54 million as of June 30, 2025, compared to NIS 21 million as of June 30, 2024.²
• Shareholders’ equity of NIS 432 million as of June 30, 2025.

Operational and Strategic Highlights

• As the recovery process progresses, the Company resumed production, importation and sales from the Nir Oz facility, delivering first batches since the October 7, 2023 attack and the ongoing war in Gaza.
• Launched more than 40 new SKUs during the first half of 2025, marking the first major product launches since October 2023.
• Received NIS 81 million in compensation advances from Israeli authorities for war-related damages, as part of a total submitted damages³ of NIS 251 million.
• Continued expansion of Canndoc’s medical cannabis pharmacy chain and growing global demand for InterCure’s pharmaceutical-grade cannabis products.
• In September 2025, the Company entered into a share purchase agreement to acquire Botanico Ltd. (ISHI), a strategic acquisition expected to strengthen InterCure’s access to premium U.S. genetics, advanced cultivation technologies, and international market opportunities.
• The Company is closely monitoring regulatory developments in the U.S. regarding potential rescheduling of cannabis and believes that it is well positioned to capitalize on evolving U.S. cannabis landscape, especially following its recent signing of an agreement to acquire ISHI.
• The Company is closely monitoring regulatory developments in the U.S. regarding potential rescheduling of cannabis and believes that it is well positioned to capitalize on evolving U.S. cannabis landscape, especially following its recent signing of an agreement to acquire ISHI.
• Under the purchase agreement with respect to ISHI, the Company obtained exclusive supply of premium products under The Flowery™ and leading American brands, which are expected to contribute tens of millions of shekels to the Company’s revenues.

About InterCure (dba Canndoc)
InterCure (dba Canndoc) (NASDAQ: INCR) (TASE: INCR) is the leading, profitable, and fastest growing cannabis company outside of North America. Canndoc, a wholly owned subsidiary of InterCure, is Israel’s largest licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its market leading distribution network, best in class international partnerships and a high-margin vertically integrated “seed-to-sale” model to lead the fastest growing cannabis global market outside of North America.

For more information, visit: https://www.intercure.co

Non-IFRS Measures
This press release makes reference to certain non-IFRS financial measures. Adjusted EBITDA, as defined by InterCure, means earnings before interest, income taxes, depreciation, and amortization, adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, and other income, net which included war-related damage compensation from the tax authorities, changes to allowance for credit risk, and impairment of inventory. This measure is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. InterCure’s method of calculating this measure may differ from methods used by other entities and accordingly, this measure may not be comparable to similarly titled measures used by other entities or in other jurisdictions. InterCure uses this measure because it believes it provides useful information to both management and investors with respect to the operating and financial performance of the Company.

Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements may include, but are not limited to, the Company’s expected growth, including in Adjusted EBITDA, success of its global expansion plans, its expansion strategy to major markets worldwide, expected receipt of additional compensation from the Israeli government, and the expected completion of the acquisition of ISHI, as well as statements, other than historical facts, that address activities, events or developments that InterCure intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as “believes,” “hopes,” “may,” “anticipates,” “should,” “intends,” “plans,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy” and similar expressions and are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many factors could cause InterCure’s actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the Company’s success in executing its global expansion plans (including the pending acquisition of Botanico Ltd. (ISHI)), its continued growth, expected operations and financial results, business strategy, competitive strengths, goals and expansion into major markets worldwide, the impact of the war in Israel and the war in Ukraine, and the conditions of the markets generally. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond InterCure’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. regulatory landscape and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, and reliance on the expertise and judgment of our senior management. More detailed information about the risks and uncertainties affecting us is contained under the heading “Risk Factors” included in the Company’s most recent Annual Report on Form 20-F, as well as in the Company’s Form 6-K containing the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and in other filings that we have made and may make with the Securities and Exchange Commission in the future.

Company Contact:
InterCure Ltd.
Amos Cohen, Chief Financial Officer
amos@intercure.co

Investor Relations Contact:
Arx Investor Relations
North American & Israeli Equities Desks
intercure@arxhq.com

Condensed Consolidated Interim Statements of Financial Position (Unaudited)
As of June 30, 2025

		As of June 30
		NIS in thousands
		2025				2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			51,334				19,899
Restricted cash and deposits			2,436				948
Trade receivables, net			46,931				61,672
Other receivables			119,604				158,045
Inventory			148,174				126,466
Biological assets			5,269				3,388
Financial assets measured at fair value through profit or loss			250				399
Total current assets			373,998				370,817
NON-CURRENT ASSETS:
Other receivables			5,824				439
Property, plant and equipment and right-of-use asset			105,046				98,611
Goodwill			224,778				223,609
Deferred tax assets			39,970				27,042
Financial assets measured at fair value through profit or loss			2,147				1,922
Investment in associate and loan			-				18,447
Total non-current assets			377,765				370,070
TOTAL ASSETS			751,763				740,887
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short term loan and current maturities			62,767				81,755
Trade payables			90,785				83,071
Other payables			44,454				39,965
Contingent consideration			3,966				4,082
Total current liabilities			201,972				208,873
LONG-TERM LIABILITIES:
Long term loans			94,917				51,317
Liabilities in respect of employee benefits			973				841
Lease liability			21,657				17,741
Total long-term liabilities			117,547				69,899
EQUITY:
Share capital, premium and other reserves			675,393				649,013
Capital reserve for transactions with controlling shareholder			2,388				2,388
Receipts on account of shares			19,591				-
Capital reserve for transactions with non-controlling interests			13,561				13,561
Accumulated losses			(279,786	)			(204,518
Equity attributable to owners of the Company			431,147				460,444
Non-controlling interests			1,097				1,671
TOTAL EQUITY			432,244				462,115
TOTAL LIABILITIES AND EQUITY			751,763				740,887

Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income (Unaudited)

		For the 6-months ended on June 30								Year ended December 31
		NIS in thousands
		2025				2024				2024
Revenue			130,011				125,733				238,845
Cost of revenue before fair value adjustments			91,449				85,291				203,252
Gross income before impact of changes in fair value			38,562				40,442				35,593
Unrealized changes to fair value adjustments of biological assets			1,661				1,218				6,458
Loss from fair value changes realized in the current year			2,005				1,029				11,818
Gross Profit			38,218				40,631				30,233
Research and development expenses			191				219				414
General and administrative expenses			14,302				18,374				53,669
Sales and marketing expenses			26,115				27,454				54,225
Other expenses, net			(9,074	)			(16,414	)			(12,807
Changes in the fair value of financial assets through profit or loss, net.			83				(201	)			(341
Share based payments			885				686				2,281
Operating Profit			5,716				10,513				(67,208
Financing income			2,356				1,031				2,747
Financing expenses			10,369				10,070				22,862
Financing expenses (income), net			8,013				9,039				20,115
Profit before tax on income			(2,297	)			1,474				(87,323
Tax (expense) benefit			485				(1,480	)			14,530
Total comprehensive Profit (loss)			(1,812	)			(6	)			(72,793
Profit (loss) attributable to:
Owners of the Company			(1,704	)			1,433				(67,795
Non-controlling interests			(108	)			(1,439	)			(4,998
Total			(1,812	)			(6	)			(72,793
Earnings per share
Basic earnings (loss)			(0.03	)			0.03				(1.48
Diluted earnings (loss)			(0.03	)			0.03				(1.48

Non-IFRS Financial Measures

Total comprehensive Profit (loss)			(1,812	)			(6	)			(72,793	)
Interest / Financing expense (income) net			8,013				9,039				20,115
Tax expenses (benefit)			(485	)			1,480				(14,530	)
Depreciation and amortization			8,451				6,337				15,371
EBITDA			14,167				16,850				(51,837	)
Share-based payment expenses			885				686				2,281
Other income, net			(9,074	)			(16,414	)			(12,807	)
War-related damage compensation from the tax authorities			9,019				16,830				42,468
Changes to allowance for credit risk			(2,844	)							16,878
Impairment of inventory			-				-				15,960
Changes in the fair value of financial assets through profit or loss, net			83				(201	)			(341	)
Fair value adjustment to inventory			344				(189	)			5,360
Adjusted EBITDA			12,580				17,562				17,962

For More Financial Information:
For a comprehensive understanding of the Company’s financial reports and related management’s discussion and analysis for applicable periods, please review the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2024, and the Company’s Form 6-K containing the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, both available on the Company’s EDGAR profile at https://www.sec.gov/edgar

¹ Adjusted EBITDA means net income (loss) before interest, taxes, depreciation and amortization adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, and other expenses (or income). Other income, net includes war-related damage compensation from the tax authorities, changes to allowance for credit risk and impairment of inventory.
² Including restricted cash and deposits.
³ The claim is not final and remains subject to adjustment. The total amount claimed may be increased as further information becomes available.

FAQ

What were InterCure's H1 2025 revenues and margin (INCR)?

InterCure reported NIS 130 million revenue and 10% Adjusted EBITDA margin (NIS 12.6 million).

Did InterCure generate positive operating cash flow in H1 2025 (INCR)?

Yes. Operating cash flow was NIS 12 million in H1 2025 versus negative NIS 43 million prior year.

How much cash did InterCure hold as of June 30, 2025 (INCR)?

Cash on hand was NIS 54 million as of June 30, 2025, up from NIS 21 million a year earlier.

What is the financial impact of InterCure's ISHI acquisition (INCR)?

InterCure signed a share purchase agreement to acquire ISHI to access U.S. genetics and supply; the deal is expected to support future revenue growth.

What war-related compensation has InterCure received and claimed (INCR)?

The company received NIS 81 million in compensation advances and submitted total damages of NIS 251 million.

Did InterCure resume production after the October 7, 2023 attack (INCR)?

Yes. Production, importation and sales resumed from the Nir Oz facility, with first batches delivered since the attack.