InterCure Defies Conflict with Record Revenue, Targets Global Expansion

HERZLIYA, Israel – February 19, 2026

In a powerful display of financial resilience and strategic foresight, Israeli cannabis leader InterCure Ltd. (Nasdaq: INCR, TASE: INCR) announced preliminary estimated revenues of NIS 265 million for 2025. The results, which mark an 11% increase over the previous year, are underscored by the company achieving its twelfth consecutive half-year of positive Adjusted EBITDA, a significant feat given the region's geopolitical turmoil and the operational challenges faced since the October 7, 2023 attack.

The announcement paints a picture of a company not merely surviving but thriving, accelerating growth in the latter half of the year while simultaneously laying the groundwork for significant international expansion into Europe and the United States.

Financial Fortitude Amidst Adversity

InterCure's financial performance in 2025 demonstrates a robust operational core. The company projects annual revenue of NIS 265 million, with a notable acceleration in the second half of the year, which brought in approximately NIS 135 million—a nearly 20% increase compared to the same period in 2024. Bolstering this growth is a solid balance sheet, with the company reporting NIS 43 million in cash on hand as of year-end.

This financial strength is all the more remarkable considering the direct impact of the war in Gaza. InterCure's southern facility in Nir Oz, a key production site, was severely affected by the October 7th attack. The company has since resumed production, importation, and sales from the facility, delivering its first batches in 2025. This recovery is a testament to the organization's operational tenacity.

The financial cost of the conflict is substantial. InterCure has submitted a damages claim of NIS 251 million to Israeli authorities and has so far received NIS 81 million in compensation advances. While the company continues to work with authorities to secure the full amount, the successful resumption of operations at Nir Oz stands as a critical milestone in its recovery.

Adding to its domestic growth, the company launched a record of more than 70 new Good Manufacturing Practices (GMP) certified SKUs during the year, strengthening its market-leading position in Israel with a portfolio of premium medical products.

Global Ambitions: Germany and Beyond

A pivotal development highlighted in the report is InterCure's successful entry into the German market, where it generated its first significant revenues in the second half of 2025. This move is strategically timed to capitalize on Germany's rapidly expanding medical cannabis sector, which is the largest in Europe with an estimated market size exceeding €670 million.

Recent legislative changes in Germany, particularly the Medical Cannabis Act (MedCanG) enacted in April 2024, have de-narcotized cannabis and streamlined patient access, fueling market growth. For an import-reliant market like Germany, InterCure's GMP-certified, pharmaceutical-grade products are well-positioned to meet growing demand.

Alexander Rabinovich, Chief Executive Officer and Chairman of InterCure, commented on the milestone in the company's press release. “This marks another key milestone with our first significant revenues in the German market, as we expect continued execution of our global expansion strategy in Germany and additional markets throughout 2026,” he stated. This expansion is a core part of the company's strategy to leverage its vertically integrated model on a global scale.

Strategic Plays for the American Market

While solidifying its position in Israel and expanding in Europe, InterCure has made aggressive moves to position itself for the eventual opening of the U.S. market. The company has executed several strategic acquisitions and partnerships designed to provide access to American genetics, technology, and research leadership.

In September 2025, InterCure signed an agreement to acquire Botanico Ltd. (ISHI), a move that provides access to premium U.S. genetics and advanced cultivation technologies. The acquisition, expected to close in early 2026, is projected to add over NIS 30 million in revenue during the second half of 2026. This deal also integrates ISHI's founders into InterCure's leadership, bringing valuable U.S. market expertise into the fold.

Furthermore, in November 2025, the company acquired a 28% stake in Cannasoul R&D Ltd., a leading cannabis research firm founded by the renowned Prof. Dedi Meiri. The deal, which includes a path to a 51% controlling stake, significantly enhances InterCure’s research and pharmaceutical capabilities. This partnership is aimed at accelerating the development of evidence-based cannabis therapeutics, strengthening the company's scientific credentials ahead of potential U.S. market entry.

These maneuvers are timed as the U.S. federal government appears closer than ever to rescheduling cannabis from Schedule I to Schedule III of the Controlled Substances Act. Such a move would acknowledge its medical use and, crucially, alleviate the punitive tax burden of IRS Section 280E, which would dramatically improve the profitability of cannabis operations in the U.S.

Navigating Headwinds and Domestic Challenges

Despite the positive outlook, InterCure is navigating a complex landscape. The company is closely monitoring restructuring proceedings initiated by Bazelet, a key partner in Israel for whom InterCure produces cannabis oil. The proceedings have left approximately NIS 27 million in outstanding payments to InterCure temporarily frozen. In response, InterCure has initiated production at an additional facility and reached understandings to maintain production activities, mitigating potential disruptions to its supply chain.

This proactive approach to risk management, combined with its strategic growth initiatives, underscores the company's multifaceted strategy. As Rabinovich noted, “As regulatory frameworks continue to evolve, particularly in the United States and Europe, we believe InterCure is strategically positioned to leverage its vertically integrated model, scientific leadership, and international partnerships to drive long-term value for patients and shareholders.” The company's performance in 2025 suggests it is well on its way to turning that belief into a reality.