MediPharm Labs (LABS) investor relations material

Executive summary

• Achieved positive adjusted EBITDA in Q1 2026, reflecting disciplined execution, margin management, and cost control aligned with a strategic roadmap to profitability.

• The company operates across four revenue channels, leveraging a unique regulatory and licensing platform with global certifications.

• Strategic focus remains on regulated medical markets, international expansion, and selective M&A to reinforce platform strength.

• International medical revenue accounted for 51% of total revenue, with significant growth in Germany and new agreements in France and Brazil.

• Ended the quarter virtually debt-free, with CAD 9.9 million in cash and full ownership of two licensed production facilities.

Financial highlights

• Q1 2026 revenue was CAD 9.0 million, down from CAD 10.8 million in Q1 2025, with gross profit of CAD 3.3 million and gross margin of 37%.

• International medical cannabis revenue was CAD 4.6 million (51% of total), Canadian medical cannabis revenue was CAD 3.0 million, and Canadian adult use and wellness revenue was CAD 1.1 million.

• Adjusted EBITDA was positive CAD 0.1 million, up from negative CAD 0.1 million in Q4 2025.

• Operating expenses were CAD 4.2 million, down 14% year-over-year and 28% sequentially, aided by restructuring actions.

• Adjusted gross margin improved to 40.2% from 37.6% in the previous quarter.

Outlook and guidance

• The company expects continued international medical expansion, with additional shipments to France and Brazil anticipated in 2026.

• Regulatory changes in France and the U.S. are seen as long-term catalysts for growth in pharmaceutical-grade cannabis markets.

• The company is prepared for near-term headwinds from Canadian veteran reimbursement changes, with mitigation efforts in place.

• No immediate P&L impact is expected from U.S. Schedule III rescheduling, but increased research and partnership activity is anticipated.

• Focus remains on responsible growth, prioritizing margin-accretive products and sustainable profitability.