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IM Cannabis Corp
(NASDAQ:IMCC)
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Rating:44Neutral
Price Target:
$2.00
▲(1718.18% Upside)
Action:Reiterated
Date:09/25/26
The score is primarily held down by weak financial performance (declining revenue, ongoing losses, negative equity, and negative TTM operating/free cash flow). Technicals are mixed but not supportive on a longer-term basis (price below the 50/100/200-day averages), and valuation is constrained by negative earnings (negative P/E) with no dividend yield provided.
Positive Factors
European Divestiture
The European divestiture is intended to simplify the corporate structure while improving equity and working capital. Refocusing resources on the Israeli medical cannabis platform could reduce organizational complexity and provide a clearer basis for operational execution over the coming quarters.
Negative Factors
Revenue and Profitability Decline
The sharp decline in first-half revenue, alongside a wider net loss and lower gross profit, indicates weakening demand or execution across the business. Continued top-line contraction makes it harder to absorb fixed costs, sustain investment and reach durable profitability in the near term.
Read all positive and negative factors
Positive Factors
Negative Factors
European Divestiture
The European divestiture is intended to simplify the corporate structure while improving equity and working capital. Refocusing resources on the Israeli medical cannabis platform could reduce organizational complexity and provide a clearer basis for operational execution over the coming quarters.
Read all positive factors
IM Cannabis Corp (IMCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.58M
Dividend YieldN/A
Average Volume (3M)5.68M
Price to Earnings (P/E)―
Beta (1Y)1.67
Revenue Growth-11.91%
EPS Growth-285.26%
CountryUS
Employees44
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-34.37
Shares Outstanding1,647,494
10 Day Avg. Volume16,913,166
30 Day Avg. Volume5,682,381
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)-9.42
Price to Sales (P/S)0.15
P/FCF Ratio1.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-9.63
Revenue Forecast (FY)$62.75M
IM Cannabis Corp Business Overview & Revenue Model
Company Description
IM Cannabis Corp. specializes in the cultivation, production, and provision of medicinal cannabis goods throughout international markets such as Israel, Germany, and Canada. The company offers a range of cannabis products, including flowers and sp...
How the Company Makes Money
IM Cannabis Corp makes money primarily by selling cannabis products into regulated markets through a mix of (1) wholesale and (2) retail/consumer channels, depending on the jurisdiction and its operating footprint at a given time.
Key revenue str...
IM Cannabis Corp Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The earnings call for IM Cannabis reflected a positive sentiment, with the company achieving net profitability and substantial growth in the German market, despite a decline in Israeli revenue and increased liabilities.Positive Updates
Net Profit Achieved in Q1 2025
IM Cannabis achieved a net profit of approximately $0.2 million in Q1 2025, marking a significant turnaround from a loss of $6 million in Q1 2024.
Negative Updates
Decline in Israeli Revenue
Revenue in Israel declined by 56% compared to Q1 2024, primarily due to the cancellation of the Oranim deal.
Read all updates
Q1-2025 Updates
Positive
Negative
Net Profit Achieved in Q1 2025
IM Cannabis achieved a net profit of approximately $0.2 million in Q1 2025, marking a significant turnaround from a loss of $6 million in Q1 2024.
Read all positive updates
Company Guidance
During the Q1 2025 earnings call, IM Cannabis reported a significant turnaround with a net profit of $0.2 million, contrasting with a $6 million loss in Q1 2024. The company achieved an adjusted EBITDA profit of $0.6 million, representing an improvement of almost $3 million compared to the previous year's loss of $2.2 million. Revenues increased by 4% to $12.5 million, driven by a remarkable 569% growth in the German market, which now represents 62% of total revenue. This growth in Germany offset a 56% decline in Israeli revenue. The gross margin improved by 87%, and gross profit surged 94% to $3.4 million, aided by strategic cost-cutting measures that reduced operating expenses by 56%. Total assets grew by 15%, reflecting increased trade receivables, inventory, and advances to suppliers. The company plans to continue financing operations through existing resources and available credit facilities while exploring additional capital sources.IM Cannabis Corp Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
14
Very Negative
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.37M | 54.73M | 54.03M | 48.80M | 54.34M | 34.05M |
| Gross Profit | 5.71M | 9.69M | 8.45M | 9.85M | 9.16M | 6.33M |
| EBITDA | -8.32M | -6.95M | -6.14M | -2.79M | -16.76M | 6.24M |
| Net Income | -15.76M | -11.32M | -10.59M | -9.50M | -188.89M | -17.76M |
Balance Sheet | ||||||
| Total Assets | 24.73M | 31.74M | 39.19M | 48.81M | 60.68M | 287.39M |
| Cash, Cash Equivalents and Short-Term Investments | 1.74M | 2.73M | 863.00K | 1.81M | 2.45M | 13.90M |
| Total Debt | 13.85M | 16.27M | 18.01M | 13.78M | 11.53M | 29.27M |
| Total Liabilities | 30.37M | 35.35M | 36.04M | 35.11M | 36.88M | 82.44M |
| Stockholders Equity | -5.55M | -858.00K | 5.24M | 14.47M | 22.65M | 201.24M |
Cash Flow | ||||||
| Free Cash Flow | -2.38M | 4.70M | -1.23M | -8.66M | -14.20M | -38.97M |
| Operating Cash Flow | -2.37M | 4.72M | -1.08M | -8.07M | -12.64M | -34.37M |
| Investing Cash Flow | -672.49K | -531.00K | -470.00K | -1.18M | -1.41M | -9.01M |
| Financing Cash Flow | 4.82M | 1.15M | 3.83M | 9.42M | 4.76M | 48.73M |
IM Cannabis Corp Technical Analysis
Negative
0.11
Price Trends
3.06
Negative
4.68
Negative
15.68
Negative
Market Momentum
-0.16
Negative
44.21
Neutral
4.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IMCC, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 2.40, below the 50-day MA of 3.06, and below the 200-day MA of 15.68, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 4.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IMCC.
IM Cannabis Corp Risk Analysis
IM Cannabis Corp disclosed 1 risk factors in its most recent earnings report. IM Cannabis Corp reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IM Cannabis Corp Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $310.11M | -18.60 | -1.99% | ― | -0.88% | 76.93% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $40.77M | -2.87 | -27.42% | ― | -100.00% | 95.90% | |
46 Neutral | $527.58M | -2.71 | -7.95% | ― | 11.46% | 95.35% | |
45 Neutral | $5.05M | -1.49 | -34.25% | ― | 10.01% | 95.01% | |
44 Neutral | $3.58M | -1,062.50 | -3.03% | ― | -11.91% | -285.26% |
* Healthcare Sector Average
IMCC
IM Cannabis Corp
2.04
-57.66
-96.58%
YCBD
cbdMD
0.46
-0.70
-60.69%
TLRY
Tilray
3.61
-12.59
-77.72%
SNDL
SNDL
1.24
-1.34
-51.94%
IXHL
Incannex Healthcare Limited Sponsored ADR
3.21
-11.24
-77.79%
IM Cannabis Corp Corporate Events
IM Cannabis Closes Sale of European IMC Holdings to Strengthen Balance Sheet
Oct 2, 2026
On September 29, 2026, IM Cannabis Corp. closed the sale of its European-focused subsidiary IMC Holdings to Slil.com Holding, following a pre-closing reorganization that carved out and retained its Israeli operations. The deal transfers IMC Holdin...
IM Cannabis Director Resigns Amid Ongoing Corporate Restructuring
Sep 28, 2026
On September 27, 2026, IM Cannabis Corp. announced that director Einat Zakariya resigned from the company’s board and all its committees for personal reasons, with the company emphasizing that her departure was not due to any disagreement ov...
IM Cannabis Closes US$1.31 Million Direct Share Offering Amid Financial Strain
Sep 25, 2026
On September 24, 2026, IM Cannabis Corp. closed a registered direct offering of 655,000 common shares at US$2.00 per share, raising gross proceeds of US$1.31 million to bolster working capital and general corporate needs. The financing reflects ef...
IM Cannabis Posts Deeper Losses and Negative Equity in Second Quarter 2026
Aug 13, 2026
On August 13, 2026, IM Cannabis Corp. reported that for the six months ended June 30, 2026, revenue fell to $16.3 million from $25.2 million a year earlier, with gross profit dropping to $2.9 million and net loss widening sharply to $6.9 million, ...
IM Cannabis Director Alon Dayan Steps Down in Routine Board Change
Jul 27, 2026
IM Cannabis Corp. is an international medical cannabis company listed on Nasdaq, with operations centered in Israel and Germany. The group runs an integrated medical cannabis platform, importing and distributing products to patients, operating ret...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.