- MediPharm Labs (TSX:LABS) elevated into positive net income in Q2 2026, ending June 30th, while delivering sequential improvements in revenue and adjusted EBITDA.
- The company develops and manufactures pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients and advanced derivative products.
- The microcap cannabis stock last traded at C$0.08 and has given back 11.11 per cent year-over-year.
MediPharm Labs (TSX:LABS), a cannabis-focused pharma company, elevated into positive net income in Q2 2026, ending June 30th, while delivering sequential improvements in revenue and adjusted EBITDA.
Financial highlights
- Revenue of C$10 million, up by 11 per cent quarter-over-quarter (QoQ), thanks to strong international medical cannabis sales.
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- Adjusted EBITDA of C$0.9 million, up by C$1.5 million YoY and by C$0.8 million QoQ, representing the company’s strongest showing under the metric since 2019 and second positive quarter in a row.
- Net income turned positive, improving by C$3.8 million YoY.
- Gross profit of C$4.3 million or 43.2 per cent of revenue, up from 37.1 per cent QoQ and 32.2 per cent YoY.
- Operating expenses of C$4 million, down by C$3.2 million or 44 per cent YoY and down by 4 per cent QoQ, reflecting restructuring work in Q1 expected to yield more than C$1 million in annualized savings.
- Cash of C$9.9 million, in line with Q1 2026, while remaining virtually debt free, according to Thursday’s news release.
Operational highlights
International medical
- International medical revenue of C$5.8 million, up by 26 per cent QoQ, thanks to branded product demand.
- Germany revenue increased by 45 per cent QoQ and by 33 per cent YoY, bolstered by European branded products more than doubling sequentially following the launch of new Beacon Medical and Wildlife flower products.
- MediPharm also shipped its second 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
- Following Veterans Affairs Canada reducing its maximum medical cannabis per gram reimbursement rates by 29 per cent, Canadian medical cannabis revenue was C$2.3 million, down by 23 per cent QoQ, an expected decrease the company successfully mitigated “through other efficiencies and revenue opportunities,” the news release goes on to state.
- Canadian adult use and wellness revenue was C$1.5 million, up by 34 per cent QoQ, with MediPharm maintaining its #2 national brand position in the adult use oil category, as ranked by HiFyre. The company plans to release new products in the category before the year is up.
Clinical development
- Phase II of MediPharm’s LiBBY (Life’s End Benefits of Cannabidiol and Tetrahydrocannabinol) trial evaluating the company’s oral cannabinoid formulation met its primary endpoint, showing statistically significant improvement in agitation symptoms compared with placebo in patients with advanced dementia at week 2, with improvement sustained through the 12-week treatment period.
Leadership commentary
“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,” Greg Hunter, Interim Chief Executive Officer and Chief Financial Officer of MediPharm Labs, said in a statement.
“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,” Hunter concluded.
About MediPharm Labs
MediPharm, est. 2015, develops and manufactures pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients and advanced derivative products.
The microcap cannabis stock (TSX:LABS) last traded at C$0.08 and has given back 11.11 per cent year-over-year.
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