MediPharm Labs Reports First Quarter 2026 Results Achieving Positive Adjusted EBITDA

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 13^th, 2026, at 10:00 am ET

TORONTO, May 13, 2026 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (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 March 31, 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 regulatory landscape in the United States continues to support increased engagement in clinical research and pharmaceutical-grade cannabinoid products, where MediPharm’s FDA-registered facility and Health 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.

MediPharm Labs 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.

“MediPharm Labs diversified, regulated platform continued to deliver in Q1,” said Greg Hunter, Interim CEO and CFO of MediPharm Labs. “Positive adjusted EBITDA, strong gross margins, and disciplined cost management reflect the progress we have made in improving the durability and earnings quality of the business, while continuing to build long-term optionality across regulated medical markets”

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% of total 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.


Three months ended
	31-Mar-26	31-Dec-25	30-Sep-25	30-Jun-25
	$’000s	$’000s	$’000s	$’000s
Revenue	8,963	11,062	11,448	11,808
Gross profit	3,322	3,894	2,562	3,330
% Sales	37%	35%	22%	28%
Opex⁽¹⁾	(4,164)	(5,419)	(4,367)	(6,706)
Adjusted EBITDA ⁽²⁾	103	(144)	(1,079)	(564)

(1) Opex includes general administrative expense, marketing and selling expenses and R&D expenses.
(2) Adjusted EBITDA is a non-IFRS measure. See "Non-IFRS Measures".

Strong Balance Sheet - Virtually Debt Free

MediPharm Labs ended Q1 2026 with a cash balance of $9.9 million, 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 13^th, 2026, at 10:00 am (Eastern time) to discuss the Company's financial results. The conference call dial in details are as follows:

North America Toll-Free: (888)330-2454
International: +1 (240) 789-2714

Conference ID: 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/investors approximately one day after completion of the call.

(1) This is a non-IFRS reporting measure. See "Non-IFRS Measures" below.
(2) As reported in HiFyre Retail analytics ingestible oils – January to March 2026.

See "Cautionary Note Regarding 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 a commercial-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 physician consultations for medical cannabis education and prescriptions.

The Company carries out its operations in compliance with all applicable laws in the countries in which it operates.

Website: www.medipharmlabs.com

Non-IFRS Measures

This press release contains references to "Adjusted EBITDA" which is a non-IFRS financial measure. Management believes that this supplementary non-IFRS financial measure provides useful additional information related to the operating results of the Company. This non-IFRS financial measure is not recognized under IFRS and, accordingly, users are cautioned that this measure should not be construed as an alternative to net income (loss) and gross profit determined in accordance with IFRS as measures of profitability or as alternatives to the Company's IFRS-based Financial Statements. The non-IFRS measure presented may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is a measure of the Company's overall financial performance and is used as an alternative to earnings or income in some circumstances. Adjusted EBITDA is essentially net income (loss) with interest, taxes, depreciation and amortization, non-cash adjustments and other unusual or non-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 and intangibles, write down of deposits and share-based compensation. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company's performance and should not be considered in isolation from, or as 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 calculating such non-IFRS measure may not be comparable to calculations used by other companies bearing the same description.

The following table reconciles the Company's net operating income (loss) (as reported), and Adjusted EBITDA for the periods presented:

	Three months ended
	31-Mar-26	31-Dec-25	30-Sep-25	30-Jun-25
	$’000s	$’000s	$’000s	$’000s
Net operating loss	(912)	(2,007)	(2,188)	(3,800)
Adjusted for:
Share-based compensation expense	154	211	194	502
Depreciation and amortization	382	396	420	419
Restructuring related severance expenses	121	942	104	229
Impairment loss on remeasurement of assets held for sale	-	-	34	81
Loss/(gain on disposition of assets)	-	-	147	(271)
Incremental cost of cannabis inventory acquired in a business combination ⁽¹⁾	9	7	31	42
Fair value adjustments in gross profit	148	(127)	(139)	(93)
Indirect tax reassessments ⁽²⁾	-	-	-	-
Miscellaneous⁽⁵⁾	171	138	-	57
AGM related proxy fees ⁽³⁾	18	162	173	2,170
Transaction costs ⁽⁴⁾	12	134	145	100
Adjusted EBITDA	103	(144)	(1,079)	(564)

(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 reassessment related to prior periods issued by the tax authorities.
(4)	This relates to non-recurring fees and expenses associated with the proxy contest in connection 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 news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that 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 "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, statements regarding the release of MediPharm's financial results; management's ability to continue to grow international medical revenue and reduce costs to drive growth and long-term value for the Company; MediPharm's ability to continue to supply international medical cannabis markets; the future of MediPharm's foreign drug manufacturing site registration; the launch of metered dose inhalers in international markets; product optimization and improvement of production efficiencies; and MediPharm's path to becoming Adjusted EBITDA and cash flow positive. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm's filings, available on the SEDAR+ website at www.sedarplus.ca. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

SOURCE MediPharm Labs Corp.

For further information, please contact: MediPharm Labs Investor Relations,
1 416.913.7425, investors@medipharmlabs.com

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