MediPharm Advances Global Reach in Q3 2025 with Double-Digit Revenue Growth and Strong International Medical Cannabis Gains
- Q3 2025 Revenue of $11.4 Million, an Increase of 17% over Q3 2024
- 83% Growth in Year-Over-Year Revenue for International Medical Cannabis
- International Medical sales now 56% of Total Revenue
- Increased Cash Balance of $10.6 Million at the end of Q3 2025
- Operating Expenses Decreased 19% Year-Over-Year
- Management to Host Conference Call / Webcast on November 13th, 2025 at 10:00 am ET
TORONTO, Nov. 13, 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 nine months ended September 30, 2025.
MediPharm delivered another successful quarter of strong year-over-year revenue growth in the three months ended September 30, 2025 ("Q3 2025"), advancing the Company's international medical cannabis strategy to increase revenue, while reducing costs and increasing the Company's cash balance. Continued international momentum, disciplined cost management and a solid balance sheet highlight the Company's commitment to scaling responsibly, to drive sustainable growth and long-term value creation. (2)
"Our third quarter results reflect the strength of our international strategy, and the resilience of our differentiated business model" said David Pidduck, CEO of MediPharm Labs. "MediPharm is uniquely positioned to serve the most complex and highest value medical cannabis markets worldwide with a range of direct to patient, partnership and distribution pathways." (2)
Greg Hunter, CFO of MediPharm Labs, added, "The third quarter continued to show our commercial strategy is working, with Q3 2025 revenue growth of 17% and year-to-date revenue growth of 14%. We maintained our disciplined approach to expense and cash management, reducing operating expenses by 19% versus prior year and 35% versus prior quarter, while increasing our cash balance to $10.6 million at the end of Q3 2025. As we move forward, management remains focused and relentless in driving further revenue growth and continuing to streamline expenses to enhance our profitability profile."
Q3 2025 Financial Summary
17% Year-over-Year Revenue Growth
Revenue for the third quarter was $11.4 million, an increase of $1.6 million or 17% compared to the three months ended September 30, 2024 ("Q3 2024"), driven by continued growth in the Company's international business.
International medical cannabis revenue reached $6.4 million in Q3 2025, now representing 56% of total revenue. The 83% 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 Q3 2025 revenue of $1.8 million, representing a 4% year-over-year increase and 9% sequential growth versus the three months ended June 30, 2025 ("Q2 2025").
In Q3 2025, the Company expanded its line of inhalers in the domestic market to include minor cannabinoids, and launched metered dose inhalers in Australia. The company has plans to launch inhalers in other international markets, in the future, including the UK. (2)
Gross Profit, Adjusted EBITDA, General Admin & Operating Expenses
Gross profit for the quarter was $2.6 million, reflecting margin pressure from product mix within our international business. Management continues to focus on optimizing product mix through novel introductions, like the Company's recently launched metered dose inhalers, and implementing further efficiencies to improve margins. (2)
Operating expenses were $4.4 million in Q3 2025, achieving a decline both year-over-year and sequentially. General and administrative expenses decreased 19% year-over-year and 35% versus prior quarter.
Adjusted EBITDA(1) was negative $1.1 million in Q3 2025, while year-to-date Adjusted EBITDA(1) improved by $0.3 million compared to prior year. While Adjusted EBITDA(1) tends to fluctuate from quarter to quarter, management expects the overall trend to remain positive.(2)
| Three months ended | |||||
| 30-Sep-25 | 30-Jun-25 | 31-Mar-25 | 31-Dec-24 | 30-Sep-24 | |
| $'000s | $'000s | $'000s | $'000s | ||
| Revenue | 11,448 | 11,808 | 10,806 | 12,042 | 9,798 |
| Gross profit | 2,562 | 3,330 | 4,182 | 3,616 | 3,120 |
| % Sales | 22% | 28% | 39% | 30% | 32% |
| Opex(1) | (4,367) | (6,706) | (4,370) | (5,109) | (5,442) |
| Adjusted EBITDA(2) | (1,079) | (564) | 141 | (96) | (743) |
|
(1) Opex includes general administrative expense, marketing and selling expenses and R&D expenses. | |||||
|
(2) Adjusted EBITDA is a non-IFRS measure. See "Non-IFRS Measures". | |||||
Strong Balance Sheet – Increased Cash Balance & Virtually Debt Free
MediPharm ended Q3 2025 with a cash balance of $10.6 million, up $0.2 million from Q2 2025, driven by disciplined cash management and supported by $0.4M in asset sales.
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. MediPharm is positioned favourably, relative to many industry peers, with flexibility to fund both organic and inorganic growth opportunities as the industry evolves.(2)
Q3 2025 Financial Results Conference Call / Webcast
MediPharm's executive management team will host a conference call and webcast on Thursday, November 13th, 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" which is a non-IFRS financial measure. Management believes that this supplementary non-IFRS financial measure provides useful additional information related to the operating results of the Company. This non-IFRS financial measure is not recognized under IFRS and, accordingly, users are cautioned that this 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 measure presented may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is a measure of the Company's overall financial performance and is used as an alternative to earnings or income in some circumstances. Adjusted EBITDA is essentially net income (loss) with interest, taxes, depreciation and amortization, non-cash adjustments and other unusual or non-recurring items added back in. Adjusted EBITDA has limitations as an analytical tool as it does 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, 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. Adjusted EBITDA, as used within the Company's disclosure, may not be directly comparable to Adjusted EBITDA used by other reporting issuers. Adjusted EBITDA does not have a standardized meaning 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 Adjusted EBITDA for the periods presented:
| Three months ended | ||||
| September 30, | June 30, | March 31, | December 31, | |
| 2025 | 2025 | 2025 | 2024 | |
| $’000s | $’000s | $’000s | $’000s | |
| Net operating loss | (2,188) | (3,800) | (441) | (1,803) |
| Adjusted for: | ||||
| Share-based compensation expense | 194 | 502 | 437 | 227 |
| Depreciation and amortization | 420 | 419 | 425 | 563 |
| Restructuring related severance expenses | 104 | 229 | - | 80 |
| Impairment loss on remeasurement of assets held for sale | 34 | 81 | - | - |
| Loss/ (gain) on disposition of assets | 147 | (271) | - | - |
| Early lease termination cost | - | - | - | 70 |
| Incremental cost of cannabis inventory acquired in a business combination(1) | 31 | 42 | 20 | 251 |
| Write down inventories(2) | - | - | - | 10 |
| Fair value adjustments in gross profit | (139) | (93) | (46) | (53) |
| Indirect tax reassessments(3) | - | - | 524 | - |
| Miscellaneous | - | 57 | (28) | 150 |
| ASM and Proxy Contest related fees(4) | 173 | 2,170 | - | - |
| Transaction costs/ (income)(5) | 145 | 100 | (750) | 409 |
| Adjusted EBITDA | (1,079) | (564) | 141 | (96) |
(1) This represents the fair value realized on sale of cannabis inventory acquired in a business combination.
(2) This adjustment is for unusual inventory write-downs only and not the total value of inventory written down.
(3) This relates to liabilities recognized in connection with notices of reassessment related to prior periods issued by the tax authorities.
(4) This relates to non-recurring fees and expenses associated with the proxy contest in connection with the Company's annual shareholder meeting held June 16, 2025.
(5) This includes non-recurring fees, expenses associated with the evaluation of potential mergers and acquisitions, fees related to reorganization of legal entities. This also includes fees and non-refundable deposits related to the proposed sale of the Company's facility in Napanee, Ontario, which was terminated in January 2025.
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; management's ability to continue to grow international medical revenue and reduce costs to drive growth and long-term value for the Company; MediPharm's ability to continue to supply international medical cannabis markets; 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 Adjusted 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
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