TORONTO — MediPharm Labs Corp., a pharmaceutical company specialized in precision-based cannabinoids, reported its financial results for the three and six months ended June 30, 2025.
MediPharm achieved strong year-over-year revenue growth in Q2 2025 and continued to advance its international medical cannabis strategy, supported by a solid balance sheet and strategic cost management. During the quarter, MediPharm successfully defended a proxy contest, with shareholders voting three-to-one in support of the Company’s board of directors and strategic direction. The Company saw record shareholder engagement, demonstrating strong alignment with management’s proven strategy for creating long-term value.
“We are pleased with our strong year-over-year revenue growth and continued momentum in international markets,” said David Pidduck, CEO of MediPharm Labs. “While the second quarter included the cost and distraction of a proxy contest, our team remained focused and delivered solid results. I want to thank our shareholders again for their continued support and engagement. We are aligned in our vision to build a profitable, cash flow-positive business, and remain confident in our path forward.”
Greg Hunter, CFO of MediPharm Labs, added, “The second quarter demonstrated the resilience of our commercial strategy, with 14 percent year-over-year revenue growth to $11.8M, and an increased cash balance at the end of Q2, despite the financial impact of the proxy contest. As we move forward, management remains focused on and relentless in driving further revenue growth and continuing to streamline expenses to enhance our profitability profile.”
Q2 2025 Financial Summary
Year-over-Year Revenue Growth
Revenue for the second quarter was $11.8 million, an increase of $1.5 million or 14% compared to Q2 2024, driven by continued growth in the Company’s international business.
International medical cannabis revenue reached $6.7 million, now representing 57% of total revenue. The 50% year-over-year growth in revenue for international medical cannabis was achieved through product portfolio expansion across multiple geographies.
Canadian adult-use and wellness saw a Q2 2025 revenue of $1.6 million, representing a 6% year-over-year increase and 19% sequential growth versus Q1 2025. The Company’s portfolio expansion into novel metered dose inhalers and water-soluble drops contributed to growth in the Canadian market. Following Q2 2025, the Company subsequently expanded its line of inhalers in the domestic market, with plans to launch metered dose inhalers in the near future across several international markets, including Australia and the UK.
Gross Profit, Adjusted EBITDA, General Admin & Operating Expenses
Gross profit for the quarter was $3.3 million, representing 28% of revenue. The decline from prior periods was primarily due to product mix. Management continues to pursue margin improvement through product optimization and production efficiencies.
Operating expenses, adjusted for discrete items including a $2.2 million proxy contest expense, were $4.3 million, achieving a decline both year-over-year and sequentially. General and administrative expenses, excluding the proxy contest, decreased $0.8 million year-over-year and remained consistent with Q1 2025.
Adjusted EBITDA of negative $0.6 million in Q2 2025 declined versus the prior year, however, year-to-date Adjusted EBITDA improved to negative $0.4 million from negative $1.1 million in the first half of 2024. While Adjusted EBITDA tends to fluctuate from quarter to quarter, management expects the overall trend to remain positive.
Balance Sheet
MediPharm ended Q2 2025 with a cash balance of $10.4 million, up from $8.4 million in Q1 2025, supported by the divestiture of its facility in Hope, British Columbia on June 5, 2025 for $4.5 million.
The Company remains virtually debt-free, owns two production facilities outright with an appraised value of more than $15M, and is current on excise duties and trade payables. This positions MediPharm favourably relative to many industry peers, and provides flexibility to fund operations and pursue its path to becoming EBITDA and cash flow positive.
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.
