TORONTO – MediPharm Labs Corp., a pharmaceutical company specialized in precision-based cannabinoids, reported financial results for the three months ended March 31, 2025 (“Q1 2025”).
The company reported positive Q1 2025 Adjusted EBITDA and 87% year-over-year growth in international medical revenue.
David Pidduck, CEO, comments, “We are pleased that our strategy and our vision in growing MediPharm Labs is working, resulting in positive Adjusted EBITDA in Q1 2025. This is an important milestone and demonstrates the significant strides made to transform the organization and establish MediPharm’s position as a global leader in pharma-quality cannabinoid, medical and wellness products.”
Greg Hunter, CFO, added, “Over the past three years, we’ve demonstrated consistent revenue growth, implemented strategic cost reductions and expanded margins —all of which have contributed to this important positive Adjusted EBITDA achievement. As we move forward, management remains focused and relentless in driving further revenue growth and continuing to streamline expenses to enhance our profitability profile and strengthen our financial position.”
Q1 2025 Financial Highlights
During Q1 2025, the Company’s revenue of $10.8M increased $1.0M or 11% versus the three months ended March 31, 2024 (“Q1 2024”), largely driven by the increased revenues generated by sales of flower and dronabinol in our international business.
The Company’s Q1 2025 gross profit was $4.2M or 38.7% of total revenue and improved significantly versus the Q1 2024 gross profit margin of 27.4% due to increased sales volume, product mix and expense reductions. Management continues to focus on efficiencies to drive gross profit.
Operating expenses (general administrative expenses, marketing and selling expenses, and R&D expenses) for Q1 2025 was $4.4M and has decreased $1.3M versus prior year. In addition, Q1 2025 operating expenses decreased $0.8M or 15% versus the three months ended December 31st, 2024 (“Q4 2024”). Management continues to focus on expense reduction opportunities.
For Q1 2025, the Company’s Adjusted EBITDA was $0.1M and improved $1.1M or 115% versus Q1 2024. This improvement in Adjusted EBITDA is driven by revenue growth, the improvement in gross profit and the reduction of operating expenses. Q1 2025 Adjusted EBITDA improved $0.2M versus Q4 2024 driven by increased gross profit and continued expense reductions.
Balance Sheet
The Company is virtually debt-free and had a cash balance of $8.4M at the end of Q1 2025. Contrary to many other cannabis companies, MediPharm is also up-to-date on cannabis excise duties and accounts payable. MediPharm is monetizing non-core assets to invest in growth, including the previously announced sale of its Hope facility for $4.5M, which is anticipated to close within the second quarter of 2025, subject to customary closing conditions and receipt of all necessary approvals, as applicable.
This financial position is expected to provide MediPharm with stability to execute on its short-term sales plans and provides the balance sheet strength to support the Company’s long-term growth strategy including selective mergers and acquisitions. This balance sheet strength puts MediPharm in a favourable position relative to many of its peer group who are largely burdened with excessive debt, unpaid excise duties, and significantly stretched accounts payables.
International Medical Cannabis Revenue Growth of 87% vs. Prior Year
International medical revenue increased from $3.2M in Q1 2024 to $5.9M in Q1 2025, driven largely by increased international flower and German dronabinol sales. This 87% year-over-year growth occurred across multiple product groups and geographies including Germany, Australia and the United Kingdom.
The international medical business represented 55% of total revenue in Q1 2025 versus 33% in prior year.
In January, 2025 the Company announced a commercial agreement with Laboratório Teuto, a leading pharmaceutical manufacturer and marketer in Brazil.
About MediPharm Labs
Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients, and advanced derivative products utilizing a GMP-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.
