• Q2 Revenue of $11.8 Million, an Increase of 14% over Q2 2024
• 50% Growth in Revenue for International Medical Cannabis
• International Medical sales now 57% of Total Revenue
• Cash Balance of $10.4 Million at the end of Q2, Increased from $8.4 Million in Q1 2025
• Management to Host Conference Call / Webcast on August 14^th, 2025 at 10:00 am ET
  
  

TORONTO, Aug. 14, 2025 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ) ("MediPharm", "MediPharm Labs" or the "Company"), a pharmaceutical company specialized in precision-based cannabinoids, today announced its financial results for the three and six months ended June 30, 2025.

MediPharm achieved strong year-over-year revenue growth in Q2 2025 and continued to advance its international medical cannabis strategy, supported by a solid balance sheet and strategic cost management. During the quarter, MediPharm successfully defended a proxy contest, with shareholders voting three-to-one in support of the Company’s board of directors and strategic direction. The Company saw record shareholder engagement, demonstrating strong alignment with management’s proven strategy for creating long-term value.

“We are pleased with our strong year-over-year revenue growth and continued momentum in international markets,” said David Pidduck, CEO of MediPharm Labs. “While the second quarter included the cost and distraction of a proxy contest, our team remained focused and delivered solid results. I want to thank our shareholders again for their continued support and engagement. We are aligned in our vision to build a profitable, cash flow-positive business, and remain confident in our path forward.”

Greg Hunter, CFO of MediPharm Labs, added, “The second quarter demonstrated the resilience of our commercial strategy, with 14 percent year-over-year revenue growth to $11.8M, and an increased cash balance at the end of Q2, despite the financial impact of the proxy contest. As we move forward, management remains focused on and relentless in driving further revenue growth and continuing to streamline expenses to enhance our profitability profile.”

Q2 2025 Financial Summary

14% Year-over-Year Revenue Growth

Revenue for the second quarter was $11.8 million, an increase of $1.5 million or 14% compared to Q2 2024, driven by continued growth in the Company’s international business.

International medical cannabis revenue reached $6.7 million, now representing 57% of total revenue. The 50% year-over-year growth in revenue for international medical cannabis was achieved through product portfolio expansion across multiple geographies.

Canadian adult-use and wellness saw a Q2 2025 revenue of $1.6 million, representing a 6% year-over-year increase and 19% sequential growth versus Q1 2025. The Company’s portfolio expansion into novel metered dose inhalers and water-soluble drops contributed to growth in the Canadian market. Following Q2 2025, the Company subsequently expanded its line of inhalers in the domestic market, with plans to launch metered dose inhalers in the near future across several international markets, including Australia and the UK.⁽²⁾

Gross Profit, Adjusted EBITDA, General Admin & Operating Expenses

Gross profit for the quarter was $3.3 million, representing 28% of revenue. The decline from prior periods was primarily due to product mix. Management continues to pursue margin improvement through product optimization and production efficiencies.⁽²⁾

Operating expenses, adjusted for discrete items including a $2.2 million proxy contest expense, were $4.3 million, achieving a decline both year-over-year and sequentially. General and administrative expenses, excluding the proxy contest, decreased $0.8 million year-over-year and remained consistent with Q1 2025.

Adjusted EBITDA⁽¹⁾ of negative $0.6 million in Q2 2025 declined versus the prior year, however, year-to-date Adjusted EBITDA⁽¹⁾ improved to negative $0.4 million from negative $1.1 million in the first half of 2024. While Adjusted EBITDA⁽¹⁾ tends to fluctuate from quarter to quarter, management expects the overall trend to remain positive.⁽²⁾

Strong Balance Sheet – Virtually Debt Free

MediPharm ended Q2 2025 with a cash balance of $10.4 million, up from $8.4 million in Q1 2025, supported by the divestiture of its facility in Hope, British Columbia on June 5, 2025 for $4.5 million.

The Company remains virtually debt-free, owns two production facilities outright with an appraised value of more than $15M, and is current on excise duties and trade payables. This positions MediPharm favourably relative to many industry peers, and provides flexibility to fund operations and pursue its path to becoming EBITDA⁽¹⁾ and cash flow positive. ⁽²⁾

Q2 2025 Financial Results Conference Call / Webcast

MediPharm's executive management team will host a conference call and webcast on Thursday, August 14^th, 2025 at 10:00 am (Eastern time) to discuss the Company's financial results. The conference call dial in details are as follows:

North America Toll-Free: (888)330-2454
International: +1 (240) 789-2714

Conference ID: 4921762 #

Participants are asked to dial in approximately 15 minutes before the start of the call.

A webcast will be available by visiting the following link here.

For those who are unable to participate on the live conference call or webcast, a replay will be available at https://www.medipharmlabs.com/investors approximately one day after completion of the call.

(1) This is a non-IFRS reporting measure. See “Non-IFRS Measures” below.
(2) This is a forward-looking statement and based on a number of assumptions. See “Cautionary Note Regarding Forward-Looking Information” below.

About MediPharm Labs 

Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. MediPharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets.

In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment License from Health Canada, becoming the only company in North America to hold a commercial-scale domestic Good Manufacturing Practices License for the extraction of multiple natural cannabinoids. This GMP license was the first step in the Company's current foreign drug manufacturing site registration with the US FDA.

In 2023, MediPharm acquired VIVO Cannabis Inc. which expanded MediPharm's reach to medical patients in Canada via Canna Farms medical ecommerce platform, and in Australia and Germany through Beacon Medical PTY and Beacon Medical GMBH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with Physician consultations for medical cannabis education and prescriptions.

The Company carries out its operations in compliance with all applicable laws in the countries in which it operates.

Website: www.medipharmlabs.com

Non-IFRS Measures

This press release contains references to "Adjusted EBITDA" and “EBITDA”, which are non-IFRS financial measures. Management believes that these supplementary non-IFRS financial measures provide useful additional information related to the operating results of the Company. These non-IFRS financial measures are not recognized under IFRS and, accordingly, users are cautioned that these measure should not be construed as an alternative to net income (loss) and gross profit determined in accordance with IFRS as measures of profitability or as alternatives to the Company's IFRS-based Financial Statements. The non-IFRS measures presented may not be comparable to similar measures presented by other issuers. Adjusted EBITDA and EBITDA are measures of the Company's overall financial performance and are used as an alternative to earnings or income in some circumstances. EBITDA is essentially net income (loss) with interest, taxes, depreciation and amortization added back in, whereas Adjusted EBITDA also adds back non-cash adjustments and other unusual or non-recurring items. EBITDA and Adjusted EBITDA have limitations as an analytical tool as they do not include depreciation and amortization expense, interest income and expense, finance fees, gain in revaluation of derivative liabilities, taxes, government grants including rent and wage subsidies, one-off transactions, impairment losses on inventory and on fixed assets and intangibles, write down of deposits and share-based compensation. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as the sole measure of the Company's performance and should not be considered in isolation from, or as a substitute for, analysis of the Company's results as reported under IFRS. EBITDA and Adjusted EBITDA, as used within the Company's disclosure, may not be directly comparable to EBITDA and Adjusted EBITDA used by other reporting issuers. EBITDA and Adjusted EBITDA do not have standardized meanings and the Company's method of calculating such non-IFRS measure may not be comparable to calculations used by other companies bearing the same description.

The following table reconciles the Company's net operating income (loss) (as reported), and EBITDA and Adjusted EBITDA for the periods presented:

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, statements regarding the release of MediPharm's financial results; the future of MediPharm's foreign drug manufacturing site registration; the launch of metered dose inhalers in international markets; product optimization and improvement of production efficiencies; and MediPharm’s path to becoming EBITDA and cash flow positive. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm's filings, available on the SEDAR+ website at www.sedarplus.ca. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

SOURCE MediPharm Labs Corp.

For further information, please contact: MediPharm Labs Investor Relations,
1 416.913.7425, investors@medipharmlabs.com