MediPharm Labs (LABS) investor relations material

Executive summary

• Achieved 14% year-over-year revenue growth in Q2 2025 to $11.8M, driven by strong international medical cannabis performance and strategic execution.

• International medical cannabis revenue grew 50% year-over-year, now 57% of total revenue.

• Successfully defended against a costly proxy contest, with all management recommendations approved and dissident nominees rejected.

• Canadian adult-use and wellness revenue rose 6% year-over-year and 19% sequentially, aided by new product launches.

• Maintained focus on cost reduction, operational efficiency, and international expansion despite governance challenges.

Financial highlights

• Q2 revenue reached $11.8M, up $1.5M or 14% year-over-year, led by international medical cannabis sales.

• Gross profit was $3.3M (28% margin), down from prior periods due to product mix.

• Adjusted EBITDA for Q2 was negative $600K, with year-to-date adjusted EBITDA at negative $400K, a $600K improvement over last year.

• Cash balance increased to $10.4M at Q2 end, up from $8.4M in Q1, supported by a $4.5M facility divestiture.

• Operating expenses, excluding $2.2M proxy contest expense, were $4.3M, declining year-over-year and sequentially.

Outlook and guidance

• Management expects positive revenue trends to continue, though quarterly variability is anticipated as international markets mature.

• Focus remains on disciplined execution, sustainable growth, and further international expansion.

• Ongoing investment in innovation, product launches, and M&A opportunities to drive future growth.

• Plans to launch metered dose inhalers in international markets, including Australia and the UK.

• Expects positive trend in Adjusted EBITDA to continue.