InterCure Reports Strong Growth, Pivots to Global Cannabis Markets

HERZLIYA, Israel – February 19, 2026 – InterCure Ltd., Israel's largest medical cannabis producer, today announced strong preliminary financial results for 2025, signaling a year of significant recovery and strategic international expansion. The company reported estimated annual revenues of NIS 265 million (approximately $72 million), an 11% increase from 2024, and marked its twelfth consecutive half-year of positive Adjusted EBITDA, a rare feat of sustained profitability in the volatile global cannabis sector.

The results were bolstered by a powerful second half of the year, where revenue grew by nearly 20% compared to the same period in 2024. This growth comes as the company not only recovered from significant operational disruptions but also successfully generated its first significant revenues from Germany, Europe’s largest and fastest-growing medical cannabis market.

“2025 marked a year of disciplined execution and renewed growth for InterCure,” said Alexander Rabinovich, Chief Executive Officer of InterCure, in a statement. “We delivered meaningful acceleration in the second half of the year with nearly 20% revenue growth and achieved our twelfth consecutive half-year of positive Adjusted EBITDA.”

Resilience in the Face of Conflict

A key part of InterCure's 2025 story is its remarkable operational resilience. The company's southern cultivation facility in Nir Oz was significantly impacted by the October 7, 2023 attack and the ensuing war in Gaza, which affected revenues in late 2023 and early 2024. However, the company announced it has since resumed production, importation, and sales from the facility, delivering its first product batches since the conflict began.

This recovery has been supported by the Israeli government. InterCure has submitted a damages claim totaling NIS 251 million for war-related damages. To date, it has received NIS 81 million in compensation advances from Israeli authorities. The company stated it is working closely with the government to secure full compensation for the damages, which has been crucial in restoring operations and fueling its growth trajectory.

The ability to rebound from such a significant geopolitical crisis while simultaneously executing an ambitious growth strategy underscores the robustness of the company’s operational planning and management.

A Strategic Push into Germany

Perhaps the most significant milestone in InterCure's recent strategy is its successful entry into the German market. The company reported its first substantial revenues from Germany in the second half of 2025, a move that positions it to capitalize on a market undergoing explosive growth.

Germany’s legalization of medical cannabis through the CanG Act in April 2024 has transformed the European landscape. Industry data shows that medical patient numbers in Germany have surged from around 250,000 before the act to an estimated 900,000 by early 2025, with projections suggesting it could become the world's largest medical cannabis market this year. This has led to a massive increase in demand, with import volumes more than doubling in the past year.

InterCure is entering this burgeoning market through a strategic partnership with the globally recognized cannabis brand Cookies. The agreement allows InterCure to cultivate, manufacture, and distribute Cookies-branded products in Germany, leveraging its EU-Good Manufacturing Practices (GMP) certified facilities. This pharmaceutical-grade certification is a critical advantage in Germany's highly regulated medical market. The company plans to establish “Cookies Corners” in major German cities, aiming to capture market share from established Canadian and Dutch exporters.

The Blueprint for Profitability

While many cannabis companies worldwide struggle to achieve profitability, InterCure has consistently delivered positive financial results. Its twelfth consecutive half-year of positive Adjusted EBITDA sets it apart from a large portion of the industry, particularly in North America, where high operating costs and restrictive tax laws like the U.S. Section 280E have crippled balance sheets. According to a 2024 industry survey, fewer than 30% of U.S. cannabis businesses reported being profitable.

InterCure’s success is largely attributed to its vertically integrated “seed-to-sale” business model. By controlling the entire supply chain—from cultivation and production in its GMP-certified facilities to distribution through its market-leading network—the company maintains tight control over costs, quality, and margins. This operational efficiency, combined with a focus on high-margin, pharmaceutical-grade medical products, provides a sustainable financial foundation that has proven resilient to both market volatility and external shocks.

Positioning for a Global Future

With a strong financial base and a foothold in Europe, InterCure is making strategic moves to secure its long-term global position. During 2025, the company entered into two key agreements. The first is a share purchase agreement to acquire Botanico Ltd. (ISHI), a move expected to enhance access to premium U.S. genetics and advanced cultivation technologies. The second is a strategic investment in Cannasoul R&D Ltd., acquiring a 28% stake with a path to a majority holding, which will bolster the company's pharmaceutical research capabilities.

These moves, along with the launch of over 70 new product SKUs in 2025, indicate a focus on innovation and preparation for evolving regulatory landscapes worldwide. The company is closely monitoring potential cannabis rescheduling in the United States, a policy shift that could dramatically open the market by removing prohibitive tax burdens and easing research restrictions.

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.”