IM Cannabis Corp AI Stock Analysis
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IM Cannabis Corp (IMCC) AI Stock Analysis
IM Cannabis Corp
(NASDAQ:IMCC)
IMCC scores very low, driven primarily by a badly damaged financial foundation: negative shareholders' equity, debt exceeding the equity base, a more than 90% decline in total assets since 2021, persistent losses, and TTM revenue and cash flow both turning negative. Technicals reinforce the caution, with the share price far below all major moving averages and negative MACD confirming a prolonged downtrend, though oversold RSI and Stochastic readings suggest the selling is stretched. Valuation provides no offset given negative earnings and no dividend. Partial offsets include meaningful gross margin expansion, substantial debt reduction, and the first positive operating cash flow year in 2025 — but until profitability is sustained and equity rebuilt, this remains a high-risk, speculative situation with material financing and dilution concerns.
IM Cannabis Corp (IMCC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $343.15K
- Dividend Yield
- ―
- Average Volume (3M)
- 2.73M
- Price to Earnings (P/E)
- -0.0
- Beta (1Y)
- 1.76
- Revenue Growth
- -11.91%
- EPS Growth
- -285.26%
- Country
- US
- Employees
- 44
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Drug Manufacturers - Specialty & Generic
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 speci...
IM Cannabis Corp Earnings Call Summary
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.
Q1-2025 Updates
Positive Updates
Negative 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
Financials are the dominant weakness. The income statement (score 24) shows stalled revenue — up just 1.3% in fiscal 2025 and down about 10.6% on a TTM basis to roughly $41.6 million — with no profitable year on record and a TTM net loss near $15.9 million. The balance sheet (score 14) is the most severe concern: shareholders' equity has turned negative (-$0.9 million at year-end 2025 and about -$5.5 million TTM), total assets have shrunk more than 90% since 2021, and roughly $13.9 million of debt exceeds the entire equity base, implying elevated solvency and dilution risk. Cash flow (score 33) is the relative bright spot, with the first positive operating and free cash flow year in 2025 (about $4.7 million), but momentum has reversed to roughly -$2.4 million on a TTM basis. Gross margin expansion to about 27.3% TTM and ongoing debt paydown are genuine positives, but they do not offset negative book value and sustained losses.
Income Statement
24NegativeBalance Sheet
14Very NegativeCash Flow
33Negative| 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 | -8.24M | -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
Price Trends
Market Momentum
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 0.57 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 1.61, and below the 200-day MA of 9.14, indicating a bearish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 29.24 is Positive, neither overbought nor oversold. The STOCH value of 17.41 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.
Latest Risks Added
0 New RisksIM Cannabis Corp Peers Comparison
Overall Rating
SNDL55Neutral
TLRY46Neutral
IXHL43Neutral
YCBD43Neutral- IMCC29Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SNDL | 55Neutral | $338.22M | -7.74 | -5.50% | ― | -2.49% | 32.03% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| TLRY | 46Neutral | $367.99M | -1.74 | -10.30% | ― | 15.93% | 93.85% |
| IXHL | 43Neutral | $25.34M | -2.94 | -12.40% | ― | -100.00% | 96.25% |
| YCBD | 43Neutral | $4.40M | -1.22 | -34.25% | ― | 10.01% | 95.01% |
| IMCC | 29Underperform | $911.06K | -0.02 | 841.81% | ― | -11.91% | -285.26% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IMCC | Im Cannabis Corp | 0.57 | -29.39 | -98.10% | |
| YCBD | Cbdmd INc | 0.37 | -0.23 | -37.67% | |
| TLRY | Tilray | 2.43 | -7.87 | -76.41% | |
| SNDL | Sndl Inc. | 1.37 | -0.30 | -17.96% | |
| IXHL | Incannex Healthcare Limited Sponsored ADR | 1.97 | -8.21 | -80.65% |
IM Cannabis Corp Corporate Events
IM Cannabis Reports Third-Quarter and Nine-Month 2026 Financial Results
On November 13, 2026, IM Cannabis reported third-quarter continuing-operations revenue of $1.65 million, down from $5.08 million a year earlier, alongside a $0.04 million gross loss and a $7.08 million net loss. For the nine months ended September 30...
IM Cannabis Raises US$1.2 Million in Convertible Note Financing
IM Cannabis Corp. closed a US$1.2 million convertible note financing with an existing institutional investor on November 4, 2026, receiving net proceeds of US$1.02 million for general corporate purposes. The note carries 4% annual interest, includes...
IM Cannabis Closes Sale of European IMC Holdings to Strengthen Balance Sheet
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 Holdings’...
IM Cannabis Director Resigns Amid Ongoing Corporate Restructuring
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 over its op...
IM Cannabis Closes US$1.31 Million Direct Share Offering Amid Financial Strain
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 effor...
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.
Date of analysis: Nov 06, 2026