IM Cannabis Corp. (NASDAQ: IMCC) (CSE: IMCC) reported a meaningful turnaround in its fourth quarter 2024, capping a year of repositioning with 25% revenue growth and its first quarterly adjusted EBITDA profit in recent history.

The medical cannabis company, which is jointly headquartered in Canada and Israel, generated C$13.3 million in revenue for the fourth quarter of 2024, which ended Dec. 31, up from C$10.7 million in the same period of 2023.

“When looking at 2024, while I am very proud of the 183% growth IMC delivered in Germany, I am delighted with the progress we made internally both strategically and operationally,” CEO Oren Shuster said in a statement.

However, the company recorded a net loss of C$11.8 million for the year, versus C$10.2 million in 2023.

The company reported a C$500,000 adjusted EBITDA profit for the fourth quarter, versus a C$4.3 million loss in the fourth quarter of 2023. For the full year, it narrowed its adjusted EBITDA loss to C$1.1 million, an 87% reduction from the C$8 million loss reported in 2023.

The improvement came largely through significant cost-cutting, the company said. Operating expenses fell 42% in the fourth quarter versus the previous year, while annual operating expenses decreased 17% to C$18.7 million, down from C$22.6 million in 2023.

Revenue in Germany increased 183% year-over-year to C$15.5 million in 2024, versus just C$5.5 million in 2023. The growth partially offset reduced revenue in Israel, where the cancellation of the company’s Oranim deal resulted in around C$8.5 million less revenue versus 2023.

The company recorded other operating expenses of C$3.2 million in 2024, primarily due to one-time Oranim revocation expenses of C$2.7 million and goodwill impairment of C$500,000.

“In Q4 … we are starting to see the initial impact of the savings we initiated during 2024 through our active cost management and full integration,” Shuster noted. “This gives us a very strong foundation leading into 2025, where we anticipate that Q1 will be the best quarter in sales we have had to date in Germany.”

CFO Uri Birenberg added, “Despite the temporary impact of inventory clearance on gross profit, the substantial 17% reduction in operating expenses has driven meaningful improvement in operating results.”

Total revenue for 2024 reached C$54 million, an 11% increase from C$48.8 million in 2023. Gross profit for the year was C$8.5 million, down from C$9.8 million in 2023, which the company attributed to a one-time inventory clearance of approximately C$3.8 million.

Total assets as of Dec. 31, 2024, were C$39.2 million, down from C$48.8 million at the end of 2023, a decline the company primarily attributed to the Oranim agreement cancellation, which accounted for C$9.5 million of the decrease.

Still, cash and cash equivalents stood at just C$900,000 at year-end, versus C$1.8 million at the end of 2023. The company included a going concern note in its financial statements, signaling potential liquidity concerns if current trends continue.