MediPharm Labs (LABS) investor relations material

Executive summary

• Q3 revenue was CAD 11.8M, up 18% QoQ and 3% YoY; net income was CAD 112K and Adjusted EBITDA CAD 442K, marking a second and third consecutive positive quarter, respectively.

• More than 80% of 9M revenue came from prescription-based medical channels, and over 55% from international channels.

• International medical growth and higher-value product mix supported results amid Australian market weakness and lower Canadian medical sales.

Financial highlights

• Q3 gross profit was CAD 3.8M versus CAD 3.0M YoY; operating income was CAD 79K versus a CAD 2.2M loss, and net income was CAD 112K versus a CAD 2.1M loss.

• 9M revenue was CAD 30.7M versus CAD 34.1M; net loss narrowed to CAD 751K from CAD 6.3M, while operating loss narrowed to CAD 867K from CAD 6.4M.

• Q3 operating expenses were CAD 3.6M, down 25% YoY and 11% QoQ; 9M expenses fell 30% to CAD 11.8M.

• 9M operating cash use fell to CAD 402K from CAD 5.9M; cash was CAD 10.1M at September 30, 2026, versus CAD 10.8M at December 31, 2025.

Outlook and guidance

• Priorities include expanding regulated medical markets, branded portfolios and pharmaceutical-grade formats, with focus on sustainable margins and repeatable business.

• Australian recovery is expected to take time; pricing, portfolio and distribution changes aim to better match patient demand.

• Pocket Drops line extensions were planned for Q4 2026, subject to demand, production timing and regulatory notifications.

• Costa Rica shipments under the Remidose agreement await regulatory requirements and export approvals; future UK and EU MDI sales depend on regulatory acceptance and manufacturing and import requirements.

• Selective M&A remains under evaluation against strategic fit, valuation, integration risk and return thresholds.