MediPharm Labs (LABS) investor relations material

Executive summary

• Achieved first positive net income since 2019 and second consecutive quarter of positive adjusted EBITDA, marking the strongest financial performance since 2019.

• Revenue grew 11% sequentially to CAD 10 million, with international medical business as a key driver.

• Gross margin improved to 43.2% from 37.1% in Q1 2026 and 32.2% in Q2 2025.

• Positive phase II LiBBY clinical trial results validated the pharmaceutical platform and proprietary cannabinoid formulation, demonstrating significant improvement in agitation symptoms in dementia patients.

• Over 80% of revenue generated from regulated medical channels, differentiating from recreational-focused peers.

Financial highlights

• Q2 revenue was CAD 10 million, up 11% sequentially from CAD 9 million in Q1.

• International medical cannabis revenue reached CAD 5.8 million (58% of total), up 26% sequentially.

• Canadian medical cannabis revenue declined to CAD 2.3 million due to reimbursement changes.

• Canadian adult use and wellness revenue grew 34% sequentially to CAD 1.5 million.

• Gross profit was CAD 4.3 million (43.2% margin), up 30% from Q1 and 13% year-over-year.

• Operating expenses were CAD 4 million, down 44% year-over-year and 4% sequentially.

• Adjusted EBITDA was positive CAD 0.9 million, highest since 2019.

• Ended the quarter with CAD 9.9 million in cash and virtually no debt.

Outlook and guidance

• Continued focus on international medical market expansion, especially in Germany, France, Brazil, and New Zealand.

• Regulatory scrutiny in Germany expected to favor compliant, pharmaceutical-grade suppliers.

• Ongoing mitigation of Canadian reimbursement headwinds through cost control and product mix optimization.

• Selective M&A to complement organic growth and enhance platform capabilities.

• Plans to expand product portfolio with new provincial listings and product formats in the second half of 2026.