MediPharm Labs (LABS) Q4 2025 earnings summary

Executive summary

• Achieved full-year 2025 revenue of CAD 45.1 million (or $45.1 million), up 8% year-over-year, with international medical cannabis driving growth and representing over 50% of total revenue.

• International medical cannabis revenue rose 43% year-over-year, accounting for 55% of Q4 revenue.

• Maintained a 31% gross margin for the year, reflecting disciplined product mix and cost reductions.

• Ended 2025 with CAD 10.8 million ($10.8 million) in cash, virtually no debt, and outright ownership of two production facilities valued over CAD 15 million.

• CEO transition occurred, with the CFO assuming interim CEO duties while the board searches for a permanent replacement.

Financial highlights

• Q4 2025 revenue was CAD 11.1 million ($11.1 million), down from CAD 12 million ($12.0 million) in Q4 2024, due to timing and mix in international medical business.

• Q4 gross profit was CAD 3.9 million ($3.9 million, 35% margin), up from CAD 3.6 million (30%) in Q4 2024, driven by product mix and cost reductions.

• Adjusted EBITDA loss for 2025 was CAD 1.6 million ($1.6 million), improved from CAD 1.9 million in 2024.

• Full-year operating expenses were CAD 20.9 million ($20.9 million); adjusted for severance and discrete items, expenses were CAD 16.8 million, down 14% year-over-year.

• Adjusted EBITDA for Q4 was a loss of CAD 0.1 million, a sequential improvement of CAD 0.9 million.

Outlook and guidance

• Priorities for 2026 include growing international medical revenue in key markets, expanding pharmaceutical and B2B opportunities, maintaining cost discipline, and enhancing shareholder value.

• Plans for continued expansion of product portfolio and geographic reach, targeting Brazil, France, and New Zealand.

• Anticipates negative impact on direct-to-patient revenue from Veterans Affairs Canada reimbursement policy change effective April 2026, but overall strategy remains unchanged.

• Expects continued focus on margin improvement through product mix and operational efficiency.