MediPharm Labs (TSE:LABS) reported 2025 full-year revenue of CAD 45.1 million and fourth-quarter revenue of CAD 11.1 million, as interim Chief Executive Officer and Chief Financial Officer Greg Hunter highlighted a year of international expansion, cost discipline, and a shifting revenue mix toward regulated medical markets.
Leadership transition and strategy focus
Hunter opened the call by addressing the company’s CEO transition, noting that David Pidduck stepped down and that Hunter has assumed the interim CEO role while continuing as CFO. Hunter said the board “is actively engaged in determining the next CEO” and that Pidduck remains on the board “providing continuity of governance, institutional knowledge, and strategic alignment.”
International medical growth drives results
Hunter said full-year revenue increased 8% year-over-year to CAD 45 million, despite pressure in the Canadian cannabis market. The growth was “driven primarily by our international medical cannabis business,” which grew 43% year-over-year and became the majority of the company’s revenue mix.
International medical cannabis represented more than half of total revenue throughout 2025, and in Q4 accounted for 55% of revenue, Hunter said. He emphasized that the international mix shift reflected years of investment in “regulatory capability, quality systems, international partnerships, and pharmaceutical-grade manufacturing,” rather than a single large shipment or contract.
During the year, MediPharm completed several international initiatives Hunter described as new market pathways, including:
- First commercial shipments into France
- First purchase orders in Brazil under sanitary authorization with an Anvisa-licensed pharmaceutical partner
- Approvals with a partner in New Zealand, positioning an entry into that regulated medical market
Hunter also pointed to ongoing regulatory tightening in Europe and Australia, saying the company believes this environment favors operators with established pharmaceutical-grade systems and licenses.
Product mix, operational changes, and margin drivers
Hunter said MediPharm’s differentiation is tied to its licensing and compliance footprint, citing a Health Canada Drug Establishment License, EU GMP certification, Anvisa GMP certification (Brazil), TGA compliance (Australia), and an FDA-inspected facility with prior shipments of pharmaceutical-grade APIs into the U.S. for research and clinical studies. He also noted the company maintains licenses and registrations that could support natural health product development if the pathway evolves in Canada.
The company also made operational moves during 2025, including the CAD 4.5 million sale of its non-core Hope, British Columbia facility in Q2, which Hunter said strengthened the balance sheet and reduced expenses. He added that the company invested in its EU GMP Napanee facility, expanding growth capacity by roughly 30%, and said that capacity is now operational.
On product development, Hunter discussed continued commercialization of pharmaceutical-grade formats, including metered dose inhalers. He said MediPharm launched a “CBN THC nighttime inhaler” in Canada and in Q4 expanded its Australian portfolio with four metered dose inhaler products, as well as a high-CBD inhalation cartridge intended as a non-THC alternative for patients.
Q4 and full-year financial performance
For the fourth quarter, MediPharm reported revenue of CAD 11.1 million, down from CAD 12.0 million in Q4 2024, which Hunter attributed to “timing and mix differences largely in the international medical business.” By segment in Q4, international medical cannabis revenue was CAD 6.1 million (55% of revenue), Canadian medical cannabis revenue was CAD 3.2 million (up 8% sequentially versus Q3 2025), and Canadian adult use and wellness revenue was CAD 1.4 million.
Gross profit in Q4 was CAD 3.9 million, or 35%, compared with CAD 3.6 million, or 30%, in Q4 2024. Hunter said the improvement was driven by product mix and cost reductions, adding that management remains focused on optimizing mix and production efficiency.
Operating expenses in Q4 were CAD 5.4 million, up CAD 0.3 million year-over-year, and included approximately CAD 1.0 million of severance expense. Adjusting for severance and other discrete items, Hunter said Q4 operating expenses were CAD 4.2 million, down CAD 0.3 million, or 8%, from the prior year period. Adjusted EBITDA was a loss of CAD 0.1 million, improving CAD 0.9 million versus Q3 2025, which Hunter attributed to improved gross margin from product mix. Net loss for the quarter was CAD 2.0 million, compared with CAD 1.7 million a year earlier.
For the full year, revenue rose 8% to CAD 45.1 million, which Hunter said was “largely driven by a 42% growth in international medical.” Gross profit was CAD 14.0 million, representing a 31% margin, compared with CAD 12.8 million and a 31% margin in 2024. Total operating expenses were CAD 20.9 million, down CAD 0.7 million year-over-year; excluding severance, proxy-contest costs, and other discrete items, Hunter said operating expenses were CAD 16.8 million, down CAD 2.7 million, or 14%, versus the prior year. Adjusted EBITDA loss improved to CAD 1.6 million from CAD 1.9 million in 2024, while net loss narrowed to CAD 8.3 million from CAD 10.7 million.
Hunter noted that 2025 results included CAD 2.5 million in expenses related to the proxy contest and CAD 1.3 million in severance expense.
Balance sheet, reimbursement changes, and 2026 priorities
MediPharm ended 2025 with CAD 10.8 million in cash, up CAD 0.2 million from Q3 2025. Trade and other receivables were CAD 7.5 million, with 85% aged 60 days or less. Trade and other payables were CAD 9.2 million. Hunter also said the company has “virtually no debt” and owns two production facilities with an appraised value exceeding CAD 15 million. He emphasized that the company is “up to date on cannabis excise duties, sales taxes, and trade payable obligations.”
Hunter also addressed forthcoming changes at Veterans Affairs Canada. Effective April 1, 2026, Veterans Affairs Canada will reduce the maximum reimbursable price for medical cannabis from CAD 8.50 per gram to CAD 6 per gram. Hunter said the company incorporated the change into its planning and expects it to negatively impact direct-to-patient revenue beginning in the second quarter of 2026, but added that the company does not view the change as altering its overall strategy.
Looking to 2026, Hunter said MediPharm does not provide formal guidance but outlined priorities including continued international medical growth in markets such as Germany, the U.K., New Zealand, Brazil, France, and Australia; building brands internationally; expanding pharmaceutical and B2B opportunities “where returns justify the investment”; and maintaining strict cost discipline while protecting quality and compliance.
During the Q&A, Hunter attributed Q4 gross margin improvement to the absence of the company’s “traditional summer shutdown” that impacted Q3, as well as product mix shifts including higher-margin international oils and higher-margin metered dose inhalers, and exiting certain lower flower segments internationally while adding tolling business. He also said the company is seeing increased competition and pricing compression in Germany and Australia, but suggested regulatory changes—such as potential German restrictions on telehealth and mail order, and tighter enforcement in Australia—could benefit providers with robust licensing and GMP compliance.
Asked about potential U.S. rescheduling to Schedule III, Hunter said it remains “early days” and noted the primary impact would be tax relief for U.S. MSOs, which “doesn’t impact MediPharm.” He said MediPharm’s opportunity would be expanded research access and increased participation in clinical studies.
About MediPharm Labs (TSE: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 produced in a GMP-certified facility with ISO-standard clean rooms. MediPharm has invested in an expert research-driven team, state-of-the-art technology, advanced purification methodologies, and purpose-built facilities to deliver pure, trusted, precision-dosed cannabinoid products for domestic and international markets.
