MediPharm Labs (TSE:LABS) reported third-quarter 2026 revenue of CAD 11.8 million, up 18% from the prior quarter, as growth in Germany and the U.K. helped offset continued pressure in Australia.
The company posted positive net income for a second consecutive quarter and positive adjusted EBITDA for a third consecutive quarter, CEO and CFO Greg Hunter said on the earnings call. MediPharm did not disclose a net income figure on the call.
“Q3 was another significant quarter for MediPharm,” Hunter said, citing international sales growth, cost controls and the company’s cash position. All dollar amounts discussed on the call were in Canadian dollars.
International sales drive revenue growth
International medical cannabis revenue rose 20% sequentially to CAD 6.9 million, representing approximately 59% of total quarterly revenue. Germany generated CAD 5 million, up 19% from the second quarter and 81% from a year earlier. Hunter said demand for flower, oil and dronabinol supported growth alongside the expansion of the Beacon and Wildlife brands.
U.K. revenue increased 220% sequentially, although Hunter did not provide a dollar figure. He said MediPharm continued to expand its business there with established partners.
Australia remained challenging, with regulatory scrutiny, changing prescribing behavior, price pressure and reductions in channel inventory weighing on sales. Hunter said the company had adjusted prices, refreshed its Beacon portfolio, expanded Wildlife into the value segment and pursued a more diversified distribution strategy. He expects recovery to take time.
In Brazil, MediPharm and pharmaceutical partner Alko do Brasil launched a full-spectrum CBD oral oil developed and manufactured at MediPharm’s Barrie facility. Hunter said products also launched through national pharmacy channels during the quarter.
The company continued supplying medical cannabis oil in France and developing regulatory dossiers with a local partner, while building on the introduction of Beacon Medical in New Zealand. Shortly after the quarter ended, MediPharm made its first commercial shipment of CBD metered-dose inhalers to Panama. Hunter also said the company received a Notified Body Opinion supporting a pathway toward potential future commercialization of the inhaler in the U.K. and European Union.
Margins improve from a year earlier
Gross profit was CAD 3.8 million, or 32% of revenue, and rose 27% from a year earlier. Gross margin improved year over year but declined sequentially because of product mix, Hunter said.
Operating expenses, including general and administrative costs, marketing and selling, and research and development, fell 25% year over year and 11% sequentially to CAD 3.6 million. Hunter attributed the decline in part to cost reductions, including a first-quarter restructuring expected to produce more than CAD 1 million in annualized savings.
Adjusted EBITDA was positive CAD 0.4 million for the quarter. For the year to date, MediPharm generated CAD 1.4 million in positive adjusted EBITDA, although revenue remained below the prior-year level because of the Australian market contraction and changes to Veterans Affairs Canada reimbursement, Hunter said.
The company ended the quarter with more than CAD 10 million in cash and virtually no debt. Hunter said MediPharm owns two production facilities with a combined appraised value exceeding CAD 15 million and remains current on excise taxes, sales taxes and trade payables.
Domestic medical revenue stabilizes
Canadian medical cannabis revenue held steady at CAD 2.3 million compared with the second quarter, following an earlier decline tied to Veterans Affairs reimbursement changes. Hunter said the company is focused on patient retention and is implementing cost and procurement initiatives to mitigate the changes.
Canadian adult-use and wellness revenue slipped to CAD 1.4 million from CAD 1.5 million in the second quarter. Pharma and business-to-business revenue increased to CAD 1.2 million, supported by higher volumes from existing customers and new business wins.
Hunter said MediPharm continues to evaluate acquisitions that could strengthen its position in regulated medical markets or expand its capabilities. The company remains selective on valuation, integration risk and use of capital, he said.
Clinical study next steps under review
During the question-and-answer session, Hunter discussed the phase II LiBBY trial, a randomized, double-blind, placebo-controlled study of MediPharm’s proprietary cannabinoid formulation in patients with advanced dementia experiencing agitation.
He said results presented at the Alzheimer’s Association International Conference in July showed the study met its primary and secondary endpoints, with statistically significant improvement for patients receiving the product. MediPharm has filed two U.S. provisional patents related to the formulation, Hunter said.
The company is working with academic and other partners on potential next steps, including additional clinical development, regulatory pathways or strategic partnerships. Hunter said more work remains before the company can provide further information.
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.
