MediPharm Labs (LABS) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 revenue of CAD 11.4 million, up 17% year-over-year, driven by international medical cannabis sales, which now represent 56% of total revenue.

• International medical cannabis revenue grew 83% year-over-year, with strong growth in Germany, Australia, and the UK.

• Expanded into new international markets, including Brazil, France, and New Zealand, and completed first production orders for these regions.

• Expanded product portfolio with new metered-dose inhalers in Australia and Canada, with plans for further international launches.

• Maintained a strong balance sheet with CAD 10.6 million in cash and virtually no debt, supporting both organic and inorganic growth opportunities.

Financial highlights

• Q3 2025 revenue was CAD 11.4 million, up 17% year-over-year; international medical cannabis revenue grew 83% to CAD 6.4 million.

• Gross profit was CAD 2.6 million, with margin pressure from product mix; gross margin declined to 22% from 39% in Q1.

• Adjusted EBITDA loss was CAD 1.1 million; net loss improved to CAD 2.2 million, down CAD 0.6 million year-over-year and CAD 1.6 million sequentially.

• Operating expenses reduced by 19% year-over-year to CAD 4.4 million.

• Cash balance increased to CAD 10.6 million at quarter end, up CAD 0.2 million from Q2, aided by asset sales.

Outlook and guidance

• Management expects continued revenue growth and margin improvement as new higher-margin products and markets ramp up.

• No formal guidance provided, but focus remains on profitable growth and achieving cash flow positivity.

• Expects positive trend in Adjusted EBITDA despite quarterly fluctuations.

• Plans to launch inhalers in additional international markets, including the UK.

• Anticipates variability in results as international markets mature.