Net Revenue of $9M with strong gross margins of 37%
OPEX decreased 28% in Q1 2026 versus Q4 2025
Company is virtually debt free, with a Q1 ending cash balance of $9.9 million and outright ownership of two licensed production facilities
Management to Host Conference Call / Webcast on May 13th, 2026, at 10:00 am ET
TORONTO, May 13, 2026 (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 months ended March 31, 2026 ("Q1 2026").
MediPharm Labs achieved positive adjusted EBITDA(1) in Q1 2026, reflecting disciplined execution and continued cost control aligned with the Company's strategic roadmap to profitability.
During the quarter, MediPharm Labs leveraged its differentiated platform of licenses and certifications to advance its international medical strategy, completing its inaugural commercial shipment to New Zealand, securing new purchase agreements in France and Brazil, and expanding its branded Beacon and Wildlife portfolios across Europe and Australia. The evolving regulatory landscape in the United States continues to support increased engagement in clinical research and pharmaceutical-grade cannabinoid products, where MediPharm's FDA-registered facility and Health Canada Drug Establishment Licence position the Company to participate as opportunities develop.
In Canada, MediPharm Labs remains committed to serving patients and wellness consumers through its direct-to-patient medical platform, its established clinic network, Harvest Medicine, and its expanding wellness portfolio. The Company continues to defend its number two national brand position in the adult-use oil category(2) and is prioritizing selective listing opportunities to maintain premium positioning. MediPharm Labs also continues to expand medical platform partnerships, increasing the availability of its products across third-party medical channels.
MediPharm Labs is focused on responsible growth, prioritizing margin accretive products and sustainable profitability over short-term, lower margin opportunities that are unlikely to drive long-term value creation.
"MediPharm Labs diversified, regulated platform continued to deliver in Q1," said Greg Hunter, Interim CEO and CFO of MediPharm Labs. "Positive adjusted EBITDA, strong gross margins, and disciplined cost management reflect the progress we have made in improving the durability and earnings quality of the business, while continuing to build long-term optionality across regulated medical markets"
Commercial Highlights and Financial Results
Q1 2026 revenue was $9 million with a gross margin of 37%, reflecting disciplined product mix and cost control.
International Medical revenue was $4.6 million, representing 51% of total revenue for the quarter.
In Germany, the Company delivered 14% sequential revenue growth in Q1, 2026 supported by the expansion of Beacon Medical and Wildlife product portfolios.
The Company secured additional purchase agreements for France and Brazil, with manufacturing underway in Q2 2026.
Canadian Medical Cannabis revenue of $3.0 million was relatively flat to prior year, reflecting the resilience of the Company's medical focus and ongoing commitment to patients.
Adjusted EBITDA (1) of $0.1 million is an improvement from negative $0.1 million in Q4 2025, reflecting margin quality and lower operating expenses.
Gross profit for the quarter was $3.3 million or 37%. When adjusted for discrete items, Q1 2026 adjusted gross margin was 40.2% an improvement from 37.6% in Q4 2025.
Operating expenses for Q1 2026, were $4.2 million and decreased $1.6 million or 28% versus Q4 2025.
Restructuring actions completed during the quarter are expected to deliver approximately $1.0 million in annualized cost savings.
Three months ended
31-Mar-26
31-Dec-25
30-Sep-25
30-Jun-25
$'000s
$'000s
$'000s
$'000s
Revenue
8,963
11,062
11,448
11,808
Gross profit
3,322
3,894
2,562
3,330
% Sales
37%
35%
22%
28%
Opex(1)
(4,164)
(5,419)
(4,367)
(6,706)
Adjusted EBITDA (2)
103
(144)
(1,079)
(564)
