MediPharm Labs (TSE:LABS)
TSX:LABS
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MediPharm Labs
(TSX:LABS)
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Rating:56Neutral
Price Target:
C$0.07
▼(-10.00% Downside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by weak profitability and negative cash flow, partially offset by a very low-leverage balance sheet and improving operating discipline. Technicals are supportive with price above major moving averages, while valuation is constrained by losses (negative P/E). The latest earnings call adds modest support due to positive adjusted EBITDA, cost savings, and strong liquidity, but revenue pressure and reimbursement cuts remain key near-term risks.
Positive Factors
Balance Sheet Strength
Very low leverage and a nearly debt-free capital structure provide durable financial flexibility in a cyclical, regulated industry. With cash on hand and current accounts, the company can fund operations, absorb delays in receivables or approvals, and selectively pursue partnerships or M&A without immediate refinancing pressure.
Negative Factors
Negative Cash Generation
Persistent negative operating and free cash flow means the business is still consuming cash to run operations. Over months this can erode liquidity buffers and constrain reinvestment in capacity or regulatory filings unless sustained profitability or external financing closes the cash gap, raising execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and a nearly debt-free capital structure provide durable financial flexibility in a cyclical, regulated industry. With cash on hand and current accounts, the company can fund operations, absorb delays in receivables or approvals, and selectively pursue partnerships or M&A without immediate refinancing pressure.
Read all positive factors
MediPharm Labs (LABS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$29.74M
Dividend YieldN/A
Average Volume (3M)466.64K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth0.66%
EPS Growth-14.29%
CountryCA
Employees161
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.02
Shares Outstanding424,864,260
10 Day Avg. Volume458,518
30 Day Avg. Volume466,636
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.76
Price to Sales (P/S)0.61
P/FCF Ratio-4.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)C$38.98M
MediPharm Labs Business Overview & Revenue Model
Company Description
MediPharm Labs Corp. operates as a pharmaceutical entity, specializing in the creation and global commercialization of premium, pharmaceutical-grade cannabis oils, concentrates, and sophisticated derivative products. Its market reach extends acros...
How the Company Makes Money
MediPharm Labs primarily makes money by manufacturing cannabis extracts and derivative products and selling them through several channels. A core revenue stream is business-to-business (B2B) supply: MediPharm produces bulk cannabis concentrates (e...
MediPharm Labs Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call balanced clear near-term challenges—most notably a ~16.7% YoY revenue decline, a widened net loss and industry reimbursement headwinds—with several material positives: return to positive adjusted EBITDA, a strong 37% gross margin, meaningful operating expense reductions (‑14% YoY, ‑28% sequential), $1.0M in expected annualized savings, $9.9M cash and limited debt, and continued international commercial traction (France, New Zealand, Brazil, Germany). Management emphasizes disciplined, margin-focused execution and long-term pharma optionality supported by rare regulatory credentials. Given the company's demonstrated ability to protect margins, improve profitability metrics and maintain liquidity while advancing international expansion, the tone is cautiously optimistic.Positive Updates
Revenue and Channel Mix
Q1 revenue of $9.0M (down from $10.8M in Q1 2025, a decline of ~16.7%) with international medical representing $4.6M or ~51% of total revenue, underscoring the strength and contribution of regulated international channels.
Negative Updates
Year-over-Year Revenue Decline
Total revenue declined ~16.7% year-over-year to $9.0M, attributed to typical Q1 seasonality and market adjustments in Australia; indicates near-term top-line pressure.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Channel Mix
Q1 revenue of $9.0M (down from $10.8M in Q1 2025, a decline of ~16.7%) with international medical representing $4.6M or ~51% of total revenue, underscoring the strength and contribution of regulated international channels.
Read all positive updates
Company Guidance
The call guided that Q1 results delivered $9.0M revenue (down from $10.8M a year ago) with international medical at $4.6M (~51% of revenue), Canadian medical $3.0M and Canadian adult-use/wellness $1.1M, producing $3.3M gross profit (37% margin); operating expenses were $4.2M (down 14% YoY and 28% sequentially) and restructuring is expected to yield ~ $1.0M of annualized savings starting in Q2, supporting positive adjusted EBITDA of $0.1M despite a $0.9M net loss (prior-year loss $0.4M included $0.75M break fee). Management expects Q2 shipments for newly secured France and Brazil orders (France dossier to be submitted in Q2 with authorization hoped for later in the year), noted 14% sequential growth in Germany, a New Zealand market entry and progress on metered‑dose inhaler filings, and emphasized a strong liquidity position with $9.9M cash, virtually no debt and accounts current, while flagging a near‑term headwind from Veteran Affairs reimbursement cuts from ~$8.50/gram to $6/gram effective April 1.MediPharm Labs Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
78
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.28M | 45.12M | 41.96M | 33.06M | 22.12M | 21.71M |
| Gross Profit | 13.26M | 13.97M | 12.80M | 5.86M | -1.91M | -15.25M |
| EBITDA | -7.06M | -6.54M | -7.52M | -10.48M | -27.09M | -38.55M |
| Net Income | -8.75M | -8.27M | -10.69M | -13.08M | -29.98M | -54.80M |
Balance Sheet | ||||||
| Total Assets | 43.62M | 45.74M | 53.73M | 63.94M | 65.50M | 92.36M |
| Cash, Cash Equivalents and Short-Term Investments | 9.87M | 10.81M | 11.69M | 17.98M | 24.14M | 34.11M |
| Total Debt | 18.00K | 201.00K | 388.00K | 2.29M | 632.00K | 216.00K |
| Total Liabilities | 8.52M | 9.93M | 10.55M | 10.93M | 9.49M | 9.21M |
| Stockholders Equity | 35.10M | 35.81M | 43.18M | 53.01M | 56.01M | 83.15M |
Cash Flow | ||||||
| Free Cash Flow | -3.33M | -5.60M | -5.01M | -12.81M | -16.93M | -14.00M |
| Operating Cash Flow | -3.27M | -5.50M | -4.86M | -12.34M | -16.07M | -13.21M |
| Investing Cash Flow | 4.66M | 4.62M | 413.00K | 6.87M | 5.16M | 35.00K |
| Financing Cash Flow | 7.00K | -18.00K | -1.85M | -368.00K | 796.00K | 27.80M |
MediPharm Labs Technical Analysis
Negative
0.08
Price Trends
0.08
Negative
0.07
Negative
0.07
Negative
Market Momentum
>-0.01
Positive
43.37
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LABS, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LABS.
MediPharm Labs Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | C$29.74M | -3.40 | -19.10% | ― | 0.66% | -14.29% | |
55 Neutral | C$7.60M | -5.33 | 11.57% | ― | -16.08% | -547.37% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | C$12.31M | -3.30 | ― | ― | -25.05% | 67.74% | |
46 Neutral | C$29.56M | -22.98 | 7.78% | ― | 16.45% | -6.36% | |
44 Neutral | C$14.17M | -6.69 | -71.80% | ― | -17.50% | -120.67% | |
41 Neutral | C$16.35M | -4.31 | -68.32% | ― | 1.96% | -24.60% |
* Healthcare Sector Average
TSE:LABS
MediPharm Labs
0.07
>-0.01
-6.67%
TSE:PCLO
PharmaCielo
0.08
<0.01
6.67%
TSE:OILS
Nextleaf Solutions
0.05
-0.02
-30.77%
TSE:ROMJ
Rubicon Organics
0.44
0.02
4.76%
TSE:AVCN
Avicanna
0.13
-0.14
-51.85%
TSE:INNO
InnoCan Pharma
3.15
-11.80
-78.93%
MediPharm Labs Corporate Events
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
MediPharm Labs Boosts International Medical Cannabis Revenue and Tightens Costs in 2025
Positive
Mar 30, 2026
MediPharm Labs reported 2025 revenue of $45.1 million, up 8% year over year, with international medical cannabis sales rising 43% to $25.2 million and accounting for more than half of total revenue. Management highlighted a strengthened balance sh...
Business Operations and StrategyFinancial Disclosures
MediPharm Labs Sets March 30 Date for 2025 Results and Investor Call
Neutral
Mar 26, 2026
MediPharm Labs, a specialized pharmaceutical cannabis company focused on precision-based cannabinoid ingredients and derived products for global medical markets, operates GMP-certified, ISO-standard facilities and has expanded its reach through re...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.