MediPharm Labs (LABS) Q1 2025 earnings summary

Executive summary

• Achieved positive adjusted EBITDA for the first time in over five years, marking a significant milestone toward profitability and validating the transformation strategy.

• Revenue reached CAD 10.8 million in Q1 2025, up 10.6%–11% year-over-year, driven by strong international medical cannabis sales.

• International medical cannabis revenue grew 87% year-over-year to CAD 5.9 million, now representing 55% of total revenue, with growth in Germany, Australia, and the UK.

• Successfully integrated the VIVO acquisition, expanding the international platform and diversifying revenue streams.

• Maintains a strong balance sheet, virtually no debt, and full ownership of three production facilities.

Financial highlights

• Q1 2025 revenue was CAD 10.8 million, up 10.6%–11% year-over-year.

• International medical cannabis revenue grew 87% year-over-year to CAD 5.9 million, now 55% of total revenue.

• Gross profit reached CAD 4.2 million (38.7%–39% margin), up from CAD 2.7 million (27.4%) in Q1 2024.

• Adjusted EBITDA was positive CAD 141,000, a CAD 1.1 million improvement from the prior year.

• General and administrative/operating expenses decreased by $1.3M year-over-year and by $0.8M (15%) sequentially.

• Cash balance at quarter-end was CAD 8.4 million, with investments in inventory to support international growth.

Outlook and guidance

• Expects continued growth in international business through existing channels, new markets, and new customers.

• Management anticipates positive EBITDA trend to continue, though with potential quarter-to-quarter variability.

• Plans to maintain working capital levels and leverage a strong balance sheet to support growth and selective M&A.