IM Cannabis (US:IMCC) Prnewswire·2025-11-13 14:00Core Insights - IM Cannabis Corp. reported its financial results for Q3 2025, indicating a transition year with potential regulatory challenges in Germany affecting sales [2][4] - The company recorded a non-cash impairment of $3.1 million in Q3 2025, impacting its financial performance [2][11] - Revenue for Q3 2025 remained stable at $13.9 million, consistent with Q3 2024, while total revenue for the first nine months of 2025 was $39 million, down from $40.7 million in the same period of 2024 [11][17] Financial Performance - Gross profit for Q3 2025 was $2.7 million, a decrease of 13% compared to $3.1 million in Q3 2024 [11] - Gross margin decreased to 20% in Q3 2025 from 23% in Q3 2024, reflecting a 13% decline [11] - Operating expenses rose significantly to $6.9 million in Q3 2025, up 68% from $4.1 million in Q3 2024, primarily due to the impairment [11] Losses and Adjusted Metrics - The net loss for Q3 2025 was $3.9 million, compared to a net loss of $1.1 million in Q3 2024, with the increase attributed to the impairment [11] - Adjusted EBITDA loss for Q3 2025 was $0.6 million, worsening from a loss of $0.2 million in Q3 2024, marking a 143% decline [11] - Basic and diluted loss per share increased to $0.75 in Q3 2025 from $0.41 in Q3 2024 [11] Balance Sheet Overview - Total assets as of September 30, 2025, were $44.3 million, up 13% from $39.2 million at the end of 2024, driven by increases in inventory and advances to suppliers [11] - Total liabilities increased to $40 million as of September 30, 2025, an 11% rise from $36 million at the end of 2024, mainly due to higher accounts payable [11] - Cash and restricted cash on hand were $2.3 million as of September 30, 2025, compared to $0.9 million at the end of 2024 [11]