MediPharm Labs Corp.

Revenue was $10 million in Q2, up 11% sequentially from $9 million in Q1. International medical cannabis revenue was $5.8 million, up 26% sequentially and about 58% of total revenue; Canadian medical cannabis revenue was $2.3 million versus $3 million in Q1, while Canadian adult use and wellness revenue was $1.5 million, up 34% from $1.1 million. Gross profit was $4.3 million with a 43% margin, up 30% from Q1 and 13% year over year. Operating expenses were $4 million, down 44% year over year and 4% sequentially. Adjusted EBITDA was positive $0.9 million, and net income was positive for the quarter, the company’s first profitable quarter since 2019. The company did not provide formal next-quarter or full-year financial guidance on the call, but said it expects the German, France, Brazil, and New Zealand medical opportunities to contribute in the back half of the year and that Q1 restructuring should generate more than $1 million in annualized savings.

Greg Hunter framed the quarter as a proof point for MediPharm’s model: regulated medical channels, branded products, pharmaceutical-grade manufacturing, and disciplined execution. He emphasized that more than 80% of revenue comes from medical channels and said the company is building on a rare licensing and regulatory platform that is difficult to replicate. His tone was upbeat and confident, especially around Germany, where he said regulatory scrutiny and GMP requirements could become a competitive advantage, and around LiBBY, which he called the strongest validation of the company’s pharmaceutical platform to date.

Hunter, acting as both interim CEO and CFO, highlighted the financial inflection: $10 million of revenue, $4.3 million of gross profit at 43%, $4 million of operating expenses, $0.9 million of adjusted EBITDA, and positive net income. He pointed to cost control and the Q1 restructuring, which is expected to produce more than $1 million in annualized savings, as key drivers of the improved profitability. He also said the company exited the quarter with $9.9 million in cash, virtually no debt, ownership of two licensed production facilities valued at more than $15 million, and current status on excise taxes, sales taxes, and trade payables.

Analysts focused on Germany, the Veterans Affairs Canada reimbursement cuts, and the LiBBY trial. Management said Germany saw 45% sequential revenue growth and 33% year-over-year growth, but acknowledged pricing pressure and tighter regulatory scrutiny; Hunter argued those changes favor MediPharm because of its EU GMP and pharmaceutical compliance capabilities. On VAC reimbursement cuts, he said the maximum reimbursable amount fell from $8.50 a gram to $6 a gram, a 30% reduction, but said cost reductions, supply-chain efficiencies, and portfolio optimization helped offset the impact. On LiBBY, management said the trial met primary and secondary endpoints, added that two U.S. provisional patents have been filed, and said the opportunity is still early but could further validate the pharma platform.