· Net Income was positive for thesecond consecutive quarter, and Adjusted EBITDA1 positive for itsthird consecutive quarter.
· Net Revenue of $11.8M increased18% versus Q2 2026, with German revenue increasing 19% sequentially and 81%year over year
· OPEX decreased 25% versus Q32025 and 11% versus Q2 2026
· Cash of $10.1M, increased from$9.9M in Q2 2026; the Company remains virtually debt free, with outrightownership of two production facilities appraised at over $15M
· Management to Host ConferenceCall / Webcast on November 12th, 2026, at 10:00 am ET
TORONTO, November 12th, 2026 - MediPharmLabs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ) ("MediPharm","MediPharm Labs" or the "Company"), a pharmaceuticalcompany specialized in precision-based cannabinoids, today announced itsfinancial results for the three and nine months ended September 30, 2026("Q3 2026").
MediPharm Labs generated its thirdconsecutive quarter of positive Adjusted EBITDA and achieved positive netincome for the second consecutive quarter. Revenue increased 18% versus thethree months ended June 30, 2026 ("Q2 2026"), and revenue, grossprofit and Adjusted EBITDA were all higher than in the three months endedSeptember 30, 2025 ("Q3 2025"). More than 80% of revenue for the nine months ended September 30, 2026,was generated through prescription-based medical channels and over 55% ofrevenue was generated through international channels.
“Q3demonstrates the progress we are making in building a stronger and moreprofitable MediPharm,” said Greg Hunter, CEO of MediPharm Labs. “We deliveredone of our strongest revenue quarters in recent years, achieved positive netincome for the second consecutive quarter and generated our third consecutivequarter of positive Adjusted EBITDA. Importantly, more than 80% of our revenueis now generated through prescription-based medical channels, reflectingMediPharm’s deep experience in global medical and pharmaceutical cannabis. Ourdifferentiated regulatory and manufacturing platform continues to translateinto international growth and improved commercial results.”
Financial Highlights
· Revenue of $11.8 millionincreased 18% versus Q2 2026, driven by growth in International Medical.
· Gross profit of $3.8 million,an increase of 27% versus Q3 2025. Gross margin was 32%, compared with 26% inQ3 2025
· Q3 2026 Adjusted EBITDA1of $0.4 million, an improvement of $1.5 million versus Q3 2025.
· Net income improved $2.3million versus Q3 2025, to positive net income of $112K in Q3 2026.
· Operating expenses decreased25% versus Q3 2025 and 11% versus Q2 2026.
· For the nine months endedSeptember 30, 2026, Adjusted EBITDA was $1.4 million, an improvement of $2.9million versus the prior-year period.
Operational and Commercial Highlights
International Medical
· International Medical revenuewas $6.9 million, an increase of 20% versus Q2 2026 and 59% of total revenue.
· In Germany, revenue increased19% versus Q2 2026 and 81% versus Q3 2025, supported by demand across flower,oil and dronabinol and the expansion of the MediPharm branded portfolios,Beacon Medical and Wildlife.
· Revenue from otherinternational markets increased to $1.8 million from $0.7 million in Q2 2026,with growth in the UK and in Brazil, where the Company's products launchedthrough national pharmacy channels.
· In Australia, the Companyrefreshed its Beacon Medical portfolio, expanded Wildlife into the valuesegment and broadened its distribution as the market continues to adjust tochanges in prescribing practices and pricing.
· As previously announced, thePhase II LiBBY trial, which used a proprietary cannabinoid formulationmanufactured by MediPharm Labs for agitation in patients with advanceddementia, met its primary endpoint, with statistically significant improvementas early as two weeks. The Company is evaluating potential next steps,including additional clinical development opportunities, regulatory pathwaysand strategic partnerships.
· Subsequent to quarter end,MediPharm advanced its international inhaler commercialization program with itsfirst commercial shipment of CBD metered-dose inhalers to Panama. The Companyhas also received a notified-body opinion for its metered-dose inhaler, aregulatory milestone that supports the pathway toward future commercializationin the UK and European Union.
Canada
· Canadian Medical Cannabisrevenue was stable sequentially at $2.3 million and consistent with Q2 2026. TheCompany continues to prioritize service levels and product access in the faceof Veterans Affairs April 1 reimbursement rate changes. Revenue declined versusQ3 2025, reflecting the 30% reduction (from $8.50 to $6.00 per gram) in themaximum reimbursement rate for Veterans Affairs Canada clients. In addition, HarvestMedicine reached a new high in active Veteran patients during the quarter.
· In Adult Use and Wellness, theCompany launched new Pocket Drops in Ontario and Alberta, with additional lineextensions confirmed for Q4 2026, and maintained its number two national brandposition in adult use traditional oils3.
Strong Balance Sheet with Cashincreasing Sequentially
Cash increased to $10.1 million from $9.9million in Q2 2026. MediPharm Labs strong balance sheet continues to differentiatethe company from many industry peers and provides flexibility to fund bothorganic growth and selective M&A opportunities as the industry continues toevolve. The Company remains virtually debt free, with outright ownership of twolicensed production facilities with a combined appraised value of more than$15M, and is current on excise duties, sales taxes and trade payables.
Q3 2026 Financial ResultsConference Call / Webcast
MediPharm Labs will host a conference calland webcast on November 12th, 2026, at 10:00 am (Eastern time) to discuss theCompany’s financial results. The conference call dial in details are asfollows:
Conference Call Dial in Details:
United States Toll-Free: (833) 461-5787
Canada Toll-Free: (833) 769-6440
International: dial-in numbers areavailable here.
Meeting ID: 571066887
Participants are asked to dial inapproximately 15 minutes before the start of the call.
Webcast:
A webcast will be available by visitingthe following link here.
For those who are unable to participate onthe live conference call or webcast, a replay will be available athttps://www.medipharmlabs.com/investors approximately one day after completionof the call.
The Company’s unaudited condensed interimconsolidated financial statements and management’s discussion and analysis forthe three and nine months ended September 30, 2026, are available under theCompany’s profile on SEDAR+ at www.sedarplus.ca. Readers should review thosedocuments in full.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializesin the development and manufacture of purified, pharmaceutical-quality cannabisconcentrates, active pharmaceutical ingredients (API) and advanced derivativeproducts utilizing a Good Manufacturing Practices certified facility with ISOstandard-built clean rooms. MediPharm Labs has invested in an expert, researchdriven team, state-of-the-art technology, downstream purification methodologiesand purpose-built facilities for delivery of pure, trusted and precision-dosedcannabis products for its customers. MediPharm Labs develops, formulates,processes, packages and distributes cannabis and advanced cannabinoid-basedproducts to domestic and international medical markets.
In 2021, MediPharm Labs received aPharmaceutical Drug Establishment Licence from Health Canada, becoming the onlycompany in North America to hold a commercial-scale domestic Good ManufacturingPractices Licence for the extraction of multiple natural cannabinoids. This GMPlicence was the first step in the Company’s current foreign drug manufacturingsite 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 CannabisInc. which expanded MediPharm’s reach to medical patients in Canada via CannaFarms medical e-commerce platform, and in Australia and Germany through BeaconMedical PTY and Beacon Medical GmbH. This acquisition also included HarvestMedical Clinics in Canada which provides medical cannabis patients withphysician consultations for medical cannabis education and prescriptions.
The Company carries out its operations incompliance with all applicable laws in the countries in which it operates.
Website: www.medipharmlabs.com
SOURCE MediPharm Labs Corp.
For further information, please contact:
MediPharm Labs Investor Relations, 1 416.913.7425
investors@medipharmlabs.com
Notes and References
1. AdjustedEBITDA is a non-IFRS financial measure. See "Non-IFRS Measures" belowfor a definition and a reconciliation to net operating income (loss), the mostdirectly comparable IFRS measure.
2. Based onthe Company’s reported quarterly Adjusted EBITDA results for Q1 2026, Q2 2026and Q3 2026. See "Non-IFRS Measures" below.
3. Asreported in HiFyre Retail analytics ingestible oils – July to September 2026.
Non-IFRS Measures
This press release contains references to"Adjusted EBITDA" which is a non-IFRS financial measure. Managementbelieves that this supplementary non-IFRS financial measure provides usefuladditional information related to the operating results of the Company. Thisnon-IFRS financial measure is not recognized under IFRS and, accordingly, usersare cautioned that this measure should not be construed as an alternative tonet income (loss) and gross profit determined in accordance with IFRS as measuresof profitability or as alternatives to the Company’s IFRS-based FinancialStatements. The non-IFRS measure presented may not be comparable to similarmeasures presented by other issuers. Adjusted EBITDA is a measure of theCompany’s overall financial performance and is used as an alternative toearnings or income in some circumstances. Adjusted EBITDA is essentially netincome (loss) with interest, taxes, depreciation and amortization, non-cashadjustments and other unusual or non-recurring items added back in. AdjustedEBITDA has limitations as an analytical tool as it does not includedepreciation and amortization expense, interest income and expense, financefees, gain in revaluation of derivative liabilities, taxes, government grantsincluding rent and wage subsidies, one-off transactions, impairment losses oninventory and on fixed assets and intangibles, write down of deposits andshare-based compensation. Because of these limitations, Adjusted EBITDA shouldnot be considered as the sole measure of the Company’s performance and shouldnot be considered in isolation from, or as a substitute for, analysis of theCompany’s results as reported under IFRS. Adjusted EBITDA, as used within theCompany’s disclosure, may not be directly comparable to Adjusted EBITDA used byother reporting issuers. Adjusted EBITDA does not have a standardized meaningand the Company’s method of calculating such non-IFRS measure may not becomparable to calculations used by other companies bearing the samedescription.
The following table reconciles the Company’s netoperating income (loss) (as reported), and Adjusted EBITDA for the periodspresented:
Cautionary Note RegardingForward-Looking Information
This news release contains "forward-lookinginformation" and "forward-looking statements" (collectively,"forward-looking statements") within the meaning of the applicableCanadian securities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based on expectations,estimates and projections as at the date of this news release. Any statementthat involves discussions with respect to predictions, expectations, beliefs,plans, projections, objectives, assumptions, future events or performance(often but not always using phrases such as "expects", or "doesnot expect", "is expected", "anticipates" or"does not 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, management’s ability to continue to growinternational medical and pharmaceutical and B2B revenue and reduce costs todrive growth and long-term value for the Company; MediPharm’s ability tocontinue to supply international medical cannabis markets, including Germany,the United Kingdom, Brazil, New Zealand, France and Australia; the regulatorypathway for, and future commercialization of, the Company’s metered-doseinhaler in the United Kingdom, the European Union and Panama; the future ofMediPharm’s foreign drug manufacturing site registration; the effects of theVeterans Affairs Canada reimbursement change and management’s mitigationinitiatives; the expected annualized savings from restructuring initiatives;the appraised value of the Company’s production facilities; the launch of newproduct formats, line extensions and provincial listings; product optimizationand improvement of production efficiencies; the Company’s evaluation of selectivemerger and acquisition opportunities; and MediPharm’s path to sustainedAdjusted EBITDA and cash flow positive results. Forward-looking statements arenecessarily based upon a number of estimates and assumptions that, whileconsidered reasonable, are subject to known and unknown risks, uncertainties,and other factors which may cause the actual results and future events todiffer materially from those expressed or implied by such forward-lookingstatements. Such factors include, but are not limited to: general business,economic, competitive, political and social uncertainties; the inability ofMediPharm to obtain adequate financing; the delay or failure to receiveregulatory approvals; changes in government reimbursement programs; changes inprescribing behaviour, pricing and regulatory enforcement in the markets inwhich the Company operates; dependence on a limited number of significantcustomers; and other factors discussed in MediPharm’s filings, available on theSEDAR+ website at www.sedarplus.ca. There can be no assurance that suchstatements will prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such statements. Accordingly,readers should not place undue reliance on the forward-looking statements andinformation contained in this news release. Except as required by law,MediPharm assumes no obligation to update the forward-looking statements ofbeliefs, opinions, projections, or other factors, should they change.