GREY WOLF ANIMAL HEALTH REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS

Executive Summary

• Grey Wolf Animal Health Corp. reported strong second-quarter 2025 financial results, with revenue increasing 32.3% year-over-year to $9.5 million and Adjusted EBITDA rising 56.8% to $2.2 million.
• The Pharmacy segment drove significant growth, with revenue up 51.4% to $6.2 million, largely attributed to the acquisition of the Compounding Pharmacy of Manitoba (CPM) in December 2024.
• The company also announced a strategic expansion of its pharmacy operations, signing a 15-year lease for a new 29,000 square-foot facility in Ancaster, Ontario, scheduled to open in January 2027.

Key Details

• Revenue Performance:
  • Q2 2025 Revenue: $9.5 million (up 32.3% from $7.2 million in Q2 2024).
  • Six-Month Revenue: $17.4 million (up 31.7% from $13.2 million in H1 2024).
  • Pharmacy Business Revenue (Q2): $6.2 million (up 51.4% YoY); Organic growth excluding CPM acquisition was 10.6% year-to-date.
  • Animal Health Business Revenue (Q2): $3.4 million (up 7.6% YoY); relatively flat year-to-date.
• Profitability Metrics:
  • Gross Profit (Q2): $5.3 million (up 40.6% YoY); Margin improved to 55.8% from 52.5%.
  • Gross Profit (H1): $9.5 million (up 37.6% YoY); Margin improved to 54.4% from 52.0%.
  • Adjusted EBITDA (Q2): $2.2 million (up 56.8% YoY).
  • Adjusted EBITDA (H1): $3.4 million (up 53.2% YoY); Margin improved to 19.6% from 16.9%.
  • Net Income (Q2): $751,230 (up from $577,547 in Q2 2024).
  • Earnings Per Share (Basic and Diluted): $0.02 for both Q2 and H1 2025.
• Balance Sheet and Cash Flow:
  • Cash and Cash Equivalents: $6.1 million at June 30, 2025 (down from $6.4 million at Dec 31, 2024).
  • Cash from Operations: $1.0 million generated in Q2 2025.
  • Total Assets: $64.9 million; Total Liabilities: $35.2 million.
  • Outstanding Borrowings: $26.0 million total ($2.1 million current, $23.9 million non-current).
  • Debt Repayment: $0.4 million repaid in Q2; $0.9 million repaid since Dec 31, 2024.
  • Net Debt/Adjusted EBITDA Ratio: Approximately 2.9x (2.3x excluding real estate), based on 2024 proforma Adjusted EBITDA of $6.7 million.
• Operational Updates:
  • CPM Acquisition Impact: The acquisition of the Compounding Pharmacy of Manitoba (completed Dec 2024) contributed to revenue growth and increased operating expenses (salaries, freight, and one-time transaction costs).
  • New Facility Lease: Trutina Pharmacy Inc. signed a long-term lease for a 29,000 sq. ft. facility in Ancaster, Ontario.
  • Lease Terms: Initial term of 15 years starting January 1, 2027, with two five-year extension options.
  • Transition Plan: The current compounding pharmacy will remain operational until the build-out is complete to ensure business continuity.

Notable Quotes

• "Q2 2025 represented our strongest historical quarter for both revenue and Adjusted EBITDA... Our Pharmacy business continues to perform well with sales up year-over-year by 51.4%... This growth is driven by an increase in sales of compounded products and the impact of the acquisition of the Compounding Pharmacy of Manitoba (CPM) in December 2024." — Angela Cechetto, Chief Executive Officer
• "The Ancaster expansion along with the recent CPM acquisition in Manitoba will strengthen the Company's ability to expand its current business... The new pharmacy has been designed to increase capacity to service existing and new customers for the Pharmacy business while maintaining the high-level of customer service that our customers deserve." — Brandon Mair-Wren, Vice President, Pharmacy Operations