Q2 2026 Adjusted EBITDA¹ of $0.9M, the Company’s strongest quarterly performance since 2019²
Positive net income in Q2 2026, compared with a net loss of $3.8M in Q2 2025
OPEX decreased 44% in Q2 2026 versus Q2 2025
Net Revenue of $10.0M, an increase of 11% versus Q1 2026 with German revenue increasing 45% sequentially and 33% year over year
Cash of $9.9M consistent with Q1 2026, and the Company remains virtually debt free, with outright ownership of two production facilities appraised at over $15M
Positive Phase II LiBBY trial results presented demonstrating statistically significant improvement in agitation symptoms using MediPharm's proprietary cannabinoid formulation
Management to Host Conference Call / Webcast on August 13th, 2026, at 10:00 am ET

TORONTO, Aug. 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 and six months ended June 30, 2026 ("Q2 2026").

The Company improved sequentially on revenue, gross margin and Adjusted EBITDA versus the three months ended March 31, 2026 ("Q1 2026"). MediPharm Labs generated Adjusted EBITDA¹ of $0.9 million in Q2 2026, its strongest quarterly Adjusted EBITDA performance since 2019² and its second consecutive quarter of positive Adjusted EBITDA.

Greg Hunter, Interim CEO and CFO of MediPharm Labs, commented:

"Q2 demonstrates the strength and resilience of the MediPharm platform. We delivered our strongest quarterly Adjusted EBITDA since 2019 and returned to positive net income despite reimbursement and regulatory headwinds across several of our key markets. These results reflect the actions we have taken over the past six months to improve profitability, diversify revenue streams and build a stronger business.

At the same time, the positive Phase II LiBBY results highlight the unique value of our pharmaceutical capabilities and proprietary cannabinoid formulations. Together, these achievements demonstrate the strength of our commercial platform today and the long-term potential of MediPharm to help advance evidence-based cannabinoid medicines for patients with significant unmet needs.”

Financial Highlights

Q2 2026 Adjusted EBITDA¹ of $0.9 million, an improvement of $1.5 million versus Q2 2025 and $0.8 million versus Q1 2026.
Net income improved $3.8 million versus Q2 2025, to positive net income in Q2 2026.
Revenue of $10.0 million increased 11% sequentially versus Q1 2026, driven by continued strength in the international medical business.
Gross profit of $4.3 million or 43.2% of revenue, compared with 37.1% in Q1 2026 and 32.2% in Q2 2025.
Operating expenses of $4.0 million, a decrease of $3.2 million or 44% versus Q2 2025 and a decrease of 4% versus Q1 2026. These results reflect the restructuring actions completed in Q1 2026 that are expected to deliver more than $1 million in annualized savings.
Cash of $9.9 million, consistent with Q1 2026.
For the six months ended June 30, 2026, Adjusted EBITDA was $1.0 million, an improvement of $1.4 million versus prior year.

Three months ended
	30-Jun-26	31-Mar-26	31-Dec-25	30-Sep-25
	$’000s	$’000s	$’000s	$’000s
Revenue	9,984	8,963	11,062	11,448
Gross profit	4,312	3,322	4,275	2,989
% Sales	43%	37%	39%	26%
Opex (a)	(4,016)	(4,164)	(5,800)	(4,794)
Adjusted EBITDA (b)	894	103	(144)	(1,079)
(a) Opex includes general administrative expense, marketing and selling expenses and R&D expenses.
(b) Adjusted EBITDA is a non-IFRS financial measure. See "Non-IFRS Measures".
(c) Comparative figures have been reclassified for a change in the classification of patient education fees and differ from those previously reported.

Operational and Commercial Highlights

International Medical

International Medical revenue was $5.8 million, an increase of 26% versus Q1 2026 and 58% of total revenue, driven by growth in the Company’s branded products.
In Germany, revenue increased 45% versus Q1 2026 and 33% versus Q2 2025, with sales of European branded products more than doubling sequentially following the launch of additional Beacon Medical and Wildlife flower products.
The Company shipped its second purchase order of GMP cannabis oils to France, launched Wildlife in Australia, renewed its ANVISA Good Manufacturing Practices certificate in Brazil, and received replenishment orders for New Zealand.

Canada

MediPharm Labs continues to advance initiatives across its medical platforms, to support Veteran patients, prioritizing their service levels and product access, in the face of Veterans Affairs Canada reimbursement changes. Effective April 1, 2026 Veterans Affairs Canada reduced the maximum medical cannabis per gram reimbursement rates by 29% for Veterans. Following the April 1 reimbursement changes, Canadian Medical Cannabis revenue was $2.3 million, a decrease of 23% versus Q1 2026. The Company proactively planned for these changes and was able to mitigate the impact to overall Company profitability through other efficiencies and revenue opportunities.
Canadian Adult Use and Wellness revenue increased 34% versus Q1 2026 to $1.5 million, with the Company maintaining its number two national brand position in the adult use oil category⁴. Following the quarter, the Company will be expanding its portfolio with new provincial listings confirmed, and several new product formats and formulations slated for release in the second half of 2026.

Clinical Development

On July 14, 2026, topline results from the double-blind phase of the Phase II LiBBY (Life’s End Benefits of Cannabidiol and Tetrahydrocannabinol) trial were presented at the Alzheimer’s Association International Conference. The randomized, double-blind, placebo-controlled study met its primary endpoint, demonstrating statistically significant improvement in agitation symptoms compared with placebo in patients with advanced dementia at week 2 as measured by the Cohen-Mansfield Agitation Inventory, with improvement sustained through the 12-week treatment period.³

The study evaluated MediPharm Labs’ proprietary oral cannabinoid formulation, which was developed and supplied exclusively by MediPharm Labs for use in the trial and shipped into the United States through a highly regulated cross-border supply chain. MediPharm has filed two U.S. provisional patent applications covering the formulation and related therapeutic applications.

The LiBBY study is led by investigators at the Keck School of Medicine of the University of Southern California (“USC”) and funded by the National Institute on Aging, part of the U.S. National Institutes of Health (“NIH”), with additional funding provided by the Alzheimer’s Association through project SG-25-1440079. The study was conducted through the Alzheimer’s Clinical Trials Consortium (“ACTC”) and coordinated by the USC Epstein Family Alzheimer’s Therapeutic Research Institute (“ATRI”) in collaboration with leading academic research institutions across the United States.

Strong Balance Sheet - Virtually Debt Free

MediPharm Labs remains virtually debt free, with outright ownership of two licensed production facilities with a combined appraised value of more than $15M, and is current on excise duties, sales taxes and trade payables. The cash balance remained stable at $9.9 million during the quarter even while inventory levels increased to support customer demand. 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.

Q2 2026 Financial Results Conference Call / Webcast

MediPharm Labs will host a conference call and webcast on August 13th, 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.

The Company’s unaudited condensed interim consolidated financial statements and management’s discussion and analysis for the three and six months ended June 30, 2026 are available under the Company’s profile on SEDAR+ at www.sedarplus.ca. Readers should review those documents in full.

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 Licence from Health Canada, becoming the only company in North America to hold a commercial-scale domestic Good Manufacturing Practices Licence for the extraction of multiple natural cannabinoids. This GMP licence 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

SOURCE MediPharm Labs Corp.

For further information, please contact: MediPharm Labs Investor Relations,

1 416.913.7425, investors@medipharmlabs.com

Notes and References

Adjusted EBITDA is a non-IFRS financial measure. See "Non-IFRS Measures" below for a definition and a reconciliation to net operating income (loss), the most directly comparable IFRS measure.
Based on the Company’s reported quarterly Adjusted EBITDA results for periods from 2019 to the date of this news release. See "Non-IFRS Measures" below.
Phase II LiBBY trial double-blind phase topline results presented at the Alzheimer’s Association International Conference (AAIC), London, United Kingdom, July 14, 2026.
As reported in HiFyre Retail analytics ingestible oils – April to June 2026.

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
	30-Jun-26	31-Mar-26	31-Dec-25	30-Sep-25
	$’000s	$’000s	$’000s	$’000s
Net operating loss	(34)	(912)	(2,007)	(2,188)
Adjusted for:
Share-based compensation expense	440	154	211	194
Depreciation and amortization	384	382	396	420
Restructuring related severance expenses	23	121	942	104
Impairment loss on remeasurement of assets held for sale	-	-	-	34
Loss/(gain on disposition of assets)	-	-	-	147
Incremental cost of cannabis inventory acquired in a business combination (a)	116	9	7	31
Fair value adjustments in gross profit	(19)	148	(127)	(139)
Miscellaneous (d)	(16)	171	138	-
AGM related proxy fees (b)	-	18	162	173
Transaction costs (c)	-	12	134	145
Adjusted EBITDA	894	103	(144)	(1,079)

(a) This represents the fair value realized on sale of cannabis inventory acquired in a business combination.
(b) This relates to certain fees and expenses associated with the proxy contest in connection with the Company’s annual shareholder meeting held June 16, 2025, and ongoing legal expenses related to the Apollo Claim.
(c) This includes non-recurring fees, expenses associated with the evaluation of potential mergers and acquisitions, and fees related to reorganization of legal entities.
(d) This relates to unusual, non-recurring transactions that are not reflective of the Company’s ongoing operating performance.

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, the significance and implications of the LiBBY study results and the potential therapeutic benefits of MediPharm’s proprietary formulation; the Company’s ability to obtain, maintain and benefit from intellectual property protection relating to the formulation, including patent applications filed; the ability to use study data for future regulatory submissions and development activities; the potential for future clinical development programs, additional indications, regulatory submissions and strategic collaborations; 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 anticipated shipment of purchase orders in Brazil and New Zealand; the future of MediPharm’s foreign drug manufacturing site registration; the anticipated effects of the rescheduling of cannabis under the U.S. Controlled Substances Act; the effects of the Veterans Affairs Canada reimbursement change and management’s mitigation initiatives; the appraised value of the Company’s production facilities; the launch of new product formats and formulations and the timing of related provincial listings; product optimization and improvement of production efficiencies; and MediPharm’s path to sustained Adjusted EBITDA and cash flow positive results. 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; changes in government reimbursement programs; changes in prescribing behaviour and regulatory enforcement in the markets in which the Company operates; the possibility that future clinical studies may not replicate or support the findings observed in the LiBBY study; 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.

MediPharm Labs Reports Positive Q2 2026 Net Income and Second Consecutive Quarter of Positive Adjusted EBITDA