MediPharm Labs Corp. (TSE:LABS, OTCMKTS:MEDIF, FRA:MLZ) posted a second straight quarterly profit and drove an 18% sequential rise in revenue, underscoring its rapid momentum in the cannabis medical space. The results cement its position as a fast‑growing player in the medical cannabis sector.
Net income jumped to C$112,000 for the quarter ended Sept. 30, a C$2.3 million improvement from a year earlier, while revenue climbed to C$11.8 million, according to the Nov. 12 release.
Cash on hand rose to C$10.1 million at Sept. 30, up from C$9.9 million in June, and the firm will unpack the details on a Nov. 12 conference call.
Shares closed at C$0.065 on Nov. 11, before the earnings, a price that does not reflect market reaction to the Thursday announcement. Investors will watch the post‑release move closely.
Quarterly Margins Narrowed As Sales Rose
Gross profit slipped to C$3.8 million in the September quarter, down from C$4.3 million in June, pushing the gross margin to 32% from 43% despite higher sales.
Operating expenses fell 11% sequentially to C$3.6 million, 25% lower than a year ago, keeping the company in positive Adjusted EBITDA for a third straight quarter, albeit down to C$442,000 from C$894,000 in Q2.
Adjusted EBITDA, a non‑IFRS metric, remains positive but its decline shows the profit‑to‑cash conversion still needs verification. The cash‑flow statement was not reviewed, leaving operating cash generation unverified.
Medical Exports Drive The Revenue Mix
International medical revenue hit C$6.9 million, a 20% sequential increase, and accounted for 59% of total sales, with German sales soaring 81% YoY on strong demand for flower, oil and dronabinol.
Other overseas markets contributed C$1.8 million, up from C$0.7 million in June, as MediPharm expanded into the UK and Brazil through national pharmacy channels.
For the first nine months of 2026, over 80% of revenue stemmed from prescription‑based medical channels, while international sales represented more than 55% of the period’s total.
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CEO Greg Hunter said, “We delivered one of our strongest revenue quarters in recent years, achieved positive net income for the second consecutive quarter and generated our third consecutive quarter of positive Adjusted EBITDA.”
Canadian medical revenue held steady at C$2.3 million sequentially but fell year‑over‑year after Veterans Affairs Canada cut its reimbursement rate from C$8.50 to C$6 per gram on April 1.
Peer Village Farms International (NASDAQ:VFF) reported third‑quarter cannabis revenue of US$55 million and generated US$7.3 million in operating cash flow, with export sales up 75% YoY to US$20.8 million.
MediPharm’s next investor event is the Nov. 12 results call, where management will address the sequential margin decline and the conversion of reported profit into operating cash flow.
