Research Reports

Summary

InterCure Ltd. reported FY2025 revenue of over NIS 270 million, a 13% increase from 2024, with NIS 47 million Adjusted EBITDA and NIS 17 million positive operating cash flow — its twelfth consecutive half-year of positive Adjusted EBITDA — amid ongoing recovery from the October 7, 2023 attack and war-related disruptions.

Key takeaways

Revenue of over NIS 270 million in FY2025, up 13% year-over-year, exceeding preliminary estimate of NIS 265 million — signals operational resilience and demand recovery.

Adjusted EBITDA of NIS 47 million, up over 90% from NIS 24 million in 2024 and representing 17% of revenue — reflects improved margin discipline and cannabis-sector profitability.

Positive operating cash flow of NIS 17 million (vs. negative NIS 67 million in 2024) enabled repayment of over NIS 35 million in loans — strengthens liquidity trajectory despite reduced cash on hand.

Resumed production and first product batches from the Nir Oz facility since October 7, 2023 — marks critical operational milestone in physical recovery, though timeline extended beyond original plan.

Launched >75 new GMP SKUs in 2025 and achieved first significant revenues from the German market in H2 2025 — validates premium medical product strategy and global expansion execution.

Entered binding agreements to acquire Botanico Ltd. (ISHI) and acquire 28% stake in Cannasoul R&D Ltd. with path to 51% — advances pharmaceutical capabilities and international genetics platform.

Full analysis

InterCure’s FY2025 results reflect a decisive inflection point in post-conflict recovery: revenue growth accelerated meaningfully in H2 2025 (+24% sequentially), driven by resumed Nir Oz operations, record GMP SKU launches, and first material German market revenues — all while maintaining positive Adjusted EBITDA for the twelfth consecutive half-year. The 90% year-over-year Adjusted EBITDA increase (to NIS 47M) underscores disciplined cost management and margin expansion in the core cannabis sector, despite NIS 37M net loss attributable to non-cash Bazelet debt provisions and war-related impacts. Positive operating cash flow (NIS 17M vs. NIS -67M in 2024) enabled meaningful debt reduction (NIS 35M repaid) and supported strategic investments, including the Botanico acquisition and Cannasoul collaboration — both explicitly designed to strengthen pharmaceutical R&D and global genetics infrastructure. Management highlights that Nir Oz rehabilitation remains complex and extended beyond initial timelines, contingent on receipt of additional compensation advances (NIS 82M received against NIS 251M claimed), underscoring continued exposure to Israeli government claims resolution. Forward-looking commentary emphasizes sustained momentum into 2026, with primum branded product launches expected in Germany and other markets, and Botanico’s anticipated NIS 30M+ H2 2026 revenue contribution — positioning InterCure not just for recovery, but for scalable, science-led international growth anchored in vertically integrated GMP capabilities.