· Q1 2026 Positive Adjusted EBITDA(1)
· Net Revenue of $9M with strong gross margins of 37%
· OPEX decreased 28% in Q1 2026 versus Q4 2025
· Company is virtually debt free, with a Q1 ending cash balance of $9.9 million and outright ownership of two licensed production facilities
· Management to Host Conference Call / Webcast on May 13th,2026, at 10:00 am ET
TORONTO, May 13th, 2026 - MediPharm LabsCorp. (TSX: LABS) (OTCQB:MEDIF) (FSE: MLZ) ("MediPharm", "MediPharm Labs" or the"Company"), a pharmaceutical company specialized in precision-based cannabinoids, today announced its financial results for the three months ended March31, 2026 (“Q1 2026”).
MediPharm Labs achieved positive adjusted EBITDA(1)in Q1 2026, reflecting disciplined execution and continued cost control aligned with the Company’s strategic roadmap to profitability.
During the quarter, MediPharm Labs leveraged its differentiated platform of licenses and certifications to advance its international medical strategy, completing its inaugural commercial shipment to New Zealand, securing new purchase agreements in France and Brazil, and expanding its branded Beacon and Wildlife portfolios across Europe and Australia. The evolving regulatoryl andscape in the United States continues to support increased engagement in clinical research and pharmaceutical‑grade cannabinoid products, where MediPharm’s FDA‑registered facility andHealth Canada Drug Establishment Licence position the Company to participate as opportunities develop.
In Canada, MediPharm Labs remains committed to serving patients and wellness consumers through its direct‑to‑patient medical platform, its established clinic network, Harvest Medicine, and its expanding wellness portfolio. The Company continues to defend its number two national brand position in the adult‑use oil category(2) and is prioritizing selective listing opportunities to maintain premium positioning. MediPharm Labs also continues to expand medical platform partnerships, increasing the availability of its products across third‑party medical channels.
MediPharmLabs is focused on responsible growth, prioritizing margin accretive products and sustainable profitability over short-term, lower margin opportunities that are unlikely to drive long-term value creation.
“MediPharmLabs diversified, regulated platform continued to deliver in Q1,” said GregHunter, Interim CEO and CFO of MediPharm Labs. “Positive adjusted EBITDA,strong gross margins, and disciplined cost management reflect the progress wehave made in improving the durability and earnings quality of the business,while continuing to build long-term optionality across regulated medicalmarkets”
Commercial Highlights and Financial Results
· Q1 2026 revenue was $9 million with a gross margin of 37%, reflecting disciplined product mix and cost control.
· International Medical revenue was $4.6 million, representing 51% oftotal revenue for the quarter.
· In Germany, the Company delivered 14% sequential revenue growth in Q1,2026 supported by the expansion of Beacon Medical and Wildlife product portfolios.
· The Company secured additional purchase agreements for France and Brazil, with manufacturing underway in Q2 2026.
· Canadian Medical Cannabis revenue of $3.0 million was relatively flat to prior year, reflecting the resilience of the Company’s medical focus and ongoing commitment to patients.
· Adjusted EBITDA (1) of $0.1 million is an improvement from negative $0.1 million in Q4 2025, reflecting margin quality and lower operating expenses.
· Gross profit for the quarter was $3.3 million or 37%. When adjusted for discrete items, Q1 2026 adjusted gross margin was 40.2% an improvement from 37.6% in Q4 2025.
· Operating expenses for Q1 2026, were $4.2 million and decreased $1.6 million or 28%versus Q4 2025.
· Restructuring actions completed during the quarter are expected to deliver approximately $1.0 million in annualized cost savings.
Strong Balance Sheet - Virtually Debt Free
MediPharm Labs ended Q1 2026 with a cash balance of $9.9million, and remains virtually debt-free, with outright ownership of two licensed production facilities with a combined appraised value of more than $15M. The Company is also current on excise duties and trade payables. This strong balance sheet differentiates MediPharm Labs from many industry peers and provides flexibility to fund both organic and selective inorganic growth opportunities as the industry continues to evolve.
Q1 2026 Financial Results Conference Call / Webcast
MediPharm Labs will host a conference call and webcast on May 13th, 2026, at 10:00 am(Eastern time) to discuss the Company's financial results. The conference calldial in details are as follows:
NorthAmerica Toll-Free: (888)330-2454
International:+1 (240) 789-2714
ConferenceID: 4921762 #
Participants are asked to dial in approximately 15 minutes before the start of the call.
A webcast will be available by visiting the following link here.
For those who are unable to participate on the live conference call or webcast, a replay will be available at https://www.medipharmlabs.com/investorsapproximately one day after completion of the call.
(1) This is a non-IFRS reportingmeasure. See "Non-IFRS Measures" below.
(2) As reported in HiFyre Retailanalytics ingestible oils – January to March 2026.
See "Cautionary NoteRegarding Forward-Looking Information" below.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. MediPharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets.
In 2021,MediPharm Labs received a Pharmaceutical Drug Establishment License from Health Canada, becoming the only company in North America to hold ac ommercial-scale domestic Good Manufacturing Practices License for the extraction of multiple natural cannabinoids. This GMP license was the first step in the Company's current foreign drug manufacturing site registration with the US FDA. MediPharm also has EU-GMP certification, ANVISA GMP certification from Brazil and TGA compliance in Australia.
In 2023, MediPharm acquired VIVO Cannabis Inc. which expanded MediPharm's reach to medical patients in Canada via Canna Farms medical e-commerce platform, and in Australia and Germany through Beacon Medical PTY and Beacon Medical GmbH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with physicianc onsultations for medical cannabis education and prescriptions.
The Company carries out it operations in compliance with all applicable laws in the countries in which itoperates.
Website: www.medipharmlabs.com
Non-IFRS Measures
This press release contains references to "Adjusted EBITDA" which is anon-IFRS financial measure. Management believes that this supplementarynon-IFRS financial measure provides useful additional information related tothe operating results of the Company. This non-IFRS financial measure is notrecognized under IFRS and, accordingly, users are cautioned that this measureshould not be construed as an alternative to net income (loss) and gross profitdetermined in accordance with IFRS as measures of profitability or asalternatives to the Company's IFRS-based Financial Statements. The non-IFRSmeasure presented may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is a measure of the Company's overall financialperformance and is used as an alternative to earnings or income in somecircumstances. Adjusted EBITDA is essentially net income (loss) with interest,taxes, depreciation and amortization, non-cash adjustments and other unusual ornon-recurring items added back in. Adjusted EBITDA has limitations as an analytical tool as it does not include depreciation and amortization expense,interest income and expense, finance fees, gain in revaluation of derivative liabilities, taxes, government grants including rent and wage subsidies,one-off transactions, impairment losses on inventory and on fixed assets andintangibles, write down of deposits and share-based compensation. Because of these limitations, Adjusted EBITDA should not be considered as the sole measureof the Company's performance and should not be considered in isolation from, ora s a substitute for, analysis of the Company's results as reported under IFRS.Adjusted EBITDA, as used within the Company's disclosure, may not be directly comparable to Adjusted EBITDA used by other reporting issuers. Adjusted EBITDA does not have a standardized meaning and the Company's method of calculatingsuch non-IFRS measure may not be comparable to calculations used by othercompanies bearing the same description.
The following table reconciles the Company's net operating income (loss) (as reported), and Adjusted EBITDA for the periods presented:
(1) This represents the fair value realized on sale of cannabis inventory acquired in a business combination.
(2) This adjustment is for unusual inventory write-downs only and not the total value of inventory written down.
(3) This relates to liabilities recognized in connection with notices of reassessmentrelated to prior periods issued by the tax authorities.
(4) This relates to non-recurring fees and expenses associated with the proxy contest inconnection with the Company's annual shareholder meeting held June 16,2025.
(5) This includes non-recurring fees, expenses associated with the evaluation of potential mergers and acquisitions, fees related to reorganization of legal entities. This also includes fees and non-refundable deposits related to the proposed sale of the Company's facility in Napanee, Ontario, which was terminated in January 2025.
Cautionary Note Regarding Forward-Looking Information
This newsrelease contains "forward-looking information" and"forward-looking statements" (collectively, "forward-lookingstatements") within the meaning of the applicable Canadian securitieslegislation. All statements, other than statements of historical fact, areforward-looking statements and are based on expectations, estimates andprojections as at the date of this news release. Any statement that involvesdiscussions with respect to predictions, expectations, beliefs, plans,projections, objectives, assumptions, future events or performance (often butnot always using phrases such as "expects", or "does notexpect", "is expected", "anticipates" or "doesnot anticipate", "plans", "budget","scheduled", "forecasts", "estimates","believes" or "intends" or variations of such words andphrases or stating that certain actions, events or results "may" or"could", "would", "might" or "will" betaken to occur or be achieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-looking statementsrelate to, among other things, statements regarding the release of MediPharm'sfinancial results; management's ability to continue to grow internationalmedical revenue and reduce costs to drive growth and long-term value for theCompany; MediPharm's ability to continue to supply international medicalcannabis markets; the future of MediPharm's foreign drug manufacturing siteregistration; the launch of metered dose inhalers in international markets;product optimization and improvement of production efficiencies; andMediPharm's path to becoming Adjusted EBITDA and cash flow positive.Forward-looking statements are necessarily based upon a number of estimates andassumptions that, while considered reasonable, are subject to known and unknownrisks, uncertainties, and other factors which may cause the actual results andfuture events to differ materially from those expressed or implied by suchforward-looking statements. Such factors include, but are not limited to: generalbusiness, economic, competitive, political and social uncertainties; theinability of MediPharm to obtain adequate financing; the delay or failure toreceive regulatory approvals; and other factors discussed in MediPharm'sfilings, available on the SEDAR+ website at www.sedarplus.ca. Therecan be no assurance that such statements will prove to be accurate, as actualresults and future events could differ materially from those anticipated insuch statements. Accordingly, readers should not place undue reliance on theforward-looking statements and information contained in this news release.Except as required by law, MediPharm assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or other factors,should they change.
SOURCEMediPharm Labs Corp.
For further information, please contact: MediPharm LabsInvestor Relations,
1416.913.7425, investors@medipharmlabs.com