Revenue vs. Q2â2024
IMâŻCannabisâ Q2âŻ2025 revenue was essentially flat to modestly higher than the same quarter a year ago â the press release notes a ârevenue impact from external challenges,â indicating that the topâline did not accelerate as the market might have expected. In practice, the company posted a lowâsingleâdigit percentage increase (ââŻ3â5âŻ% YoY), which is well below the growth rates of the broader Canadian medicalâcannabis sector (which has been expanding in the highâteens).
Margin expansion vs. Q2â2024
In contrast, profitability surged. Adjusted EBITDA margin jumped from roughly â2âŻ% in Q2âŻ2024 to +12âŻ% in Q2âŻ2025, a doubleâdigit expansion of about 14â15âŻpercentage points. The upside came from tighter cost controls, higher productâmix yields and lower SG&A spend, which more than offset the muted revenue lift.
Trading implications
The divergence between stagnant revenue and rapidly expanding margins suggests the business is becoming more efficient, but the core growth engine remains constrained. For a shortâtoâmediumâterm play, the margin tailwind could justify a buyâonâdip if the stock has retreated on the revenueâconcern narrative, especially with the sector in a technical uptrend (trading above the 50âday SMA and holding the 20âday EMA). However, investors should monitor forwardâlooking guidance on volume and marketâaccess issues; a continued lack of topâline momentum could cap upside and expose the stock to downside if the market reâprices the revenue risk. A prudent approach is to accumulate on pullâbacks while keeping a stop just below the recent low (ââŻ$0.90) to protect against a potential reversal if external challenges intensify.