MediPharm Labs (LABS) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 revenue of $11.8 million, up 14% year-over-year, driven by international medical cannabis growth and operational 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.

• Continued focus on disciplined execution, sustainable growth, and innovation in pharmaceutical cannabis products.

Financial highlights

• Q2 2025 revenue reached $11.8 million, led by international medical cannabis sales.

• Gross profit for Q2 was $3.3 million (28% margin), down from prior periods due to product mix.

• Adjusted EBITDA for Q2 was -$0.6 million; year-to-date adjusted EBITDA improved to -$0.4 million from -$1.1 million prior year.

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

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

Outlook and guidance

• Management expects continued positive revenue trends, with variability as international markets mature.

• Focus remains on international expansion, product innovation, and accretive M&A opportunities.

• Anticipates further margin improvement through product mix optimization and cost efficiencies.

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

• Expects positive trend in Adjusted EBITDA to continue.