GREY WOLF ANIMAL HEALTH REPORTS THIRD QUARTER 2025 FINANCIAL RESULTS

TORONTO, Nov. 20, 2025 /CNW/ - Grey Wolf Animal Health Corp. (TSXV: WOLF) ("Grey Wolf" or the "Company"), a Canadian diversified health company, today announced financial results for the three- and nine- months ended September 30, 2025. All results are reported in Canadian dollars.

Highlights

• Revenue for the quarter increased year over year by 35.3% to $9.3 million. Revenue increased by 33.0% to $26.8 million for the first nine months of the year.
• Gross profit increased year over year by 40.2% to $4.9 million for the quarter and 38.5% to $14.4 million for the first nine months of the year.
• Adjusted EBITDA¹ increased year over year by 62.3% to $1.9 million for the quarter and 56.4% to $5.3 million for the first nine months of the year.

"Growth in Q3 2025 was driven by both the Pharmacy and Animal Health businesses", said Angela Cechetto, Chief Executive Officer. "Our Pharmacy business continues to perform well with sales up year-over-year by 52.4% to $5.8 million and 55.9% to $17.1 million respectively, in the quarter and year-to-date.  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.  Excluding the impact of CPM, our pharmacy business grew organically by 10.5% year to date compared to the same period in 2024."

Ms. Cechetto went on to say, "our Animal Health business was up 14.5% in the third quarter and 5.5% year to date over the prior year periods. We continued to see an uptick in sales of our gastrointestinal and behavior products related to the spring and summer seasons, however, overall, there continues to be softness in visits to veterinary clinics. Adjusted EBITDA¹ increased by 56.4% year to date as a result of higher revenue and gross margins, with our Adjusted EBITDA¹ margin improving to 20.0% year to date vs 17.0% in the prior year."

Key Financial Data and Comparative Results

	Three months ended		Nine months ended
	Sep 30, 2025	Sep 30, 2024	Sep 30, 2025	Sep 30, 2024
Revenue	$9,337,130	$6,899,201	$26,782,565	$20,142,780
Gross profit	4,917,050	3,508,291	14,399,055	10,398,581
Gross profit %	52.7 %	50.9 %	53.8 %	51.6 %
Total operating expenses	3,684,675	2,706,100	11,166,641	8,301,807
Operating income for the period	1,232,375	802,191	3,232,414	2,096,774
Income tax expense (recovery)	280,287	225,480	640,396	604,950
Net income for the period	548,976	502,151	1,327,454	1,205,770
Earnings per share
Basic and diluted	$0.02	$0.02	$0.04	$0.04
EBITDA	1,886,458	1,155,277	5,211,051	3,095,156
Adjusted EBITDA	1,923,067	1,184,618	5,346,368	3,418,807
			Sep 30, 2025	Dec 31, 2024
Total assets			$65,440,193	$65,602,178
Total liabilities			35,230,251	36,771,017

Results of Operations for the Three- and Nine- Months ended September 30, 2025

Revenue for the three- and nine- month periods ended September 30, 2025 increased 35.3% to $9.3 million and 33.0% to $26.8 million, respectively, compared to the same periods in 2024.  Revenue in the Animal Health business grew year over year by 14.5% to $3.6 million and 5.5% to $9.7 million, respectively, in the quarter and first nine months of 2025 driven by increased sales in established and new products.  In the Pharmacy business, revenue grew year over year by 52.4% to $5.8 million and 55.9% to $17.1 million respectively, in the three- and nine-month periods of 2025 due to growth in sales of compounded products and the impact of the acquisition of the Compounding Pharmacy of Manitoba in December 2024 (the" CPM Acquisition").

Gross profit margins for the three- and nine-month periods ended September 30, 2025 increased to 52.7% from 50.9% and 53.8% from 51.6% compared to the same periods in 2024. Year to date, gross profits were impacted by increased margins in the Pharmacy business unit as a result of decreased material and labour costs and the impact of the CPM Acquisition, offset by reduced margins in the Animal Health business unit as a result of product mix.

Total expenses for the three- and nine-month periods ended September 30, 2025, increased 36.2% to $3.7 million and 34.5% to $11.2 million, respectively, over the same periods in 2024. During the nine-month period, there was an increase in salary, bonuses, and benefits related to operational growth and the CPM Acquisition as compared to the same period in 2024, and an increase in freight expenses and one-time transaction costs related to the CPM Acquisition.

Adjusted EBITDA¹ for the three- and nine-month periods ended September 30, 2025 increased 62.3% to $1.9 million and 56.4% to $5.3 million compared to the same periods in 2024. The increase in Adjusted EBITDA¹ was mainly due to increased net income for the period after adjusting for the related impacts from the CPM Acquisition on interest and accretion expenses and depreciation and amortization cost, and transaction costs.

Cash and cash equivalents were $6.7 million at September 30, 2025 compared to $6.4 million at December 31, 2024.  The Company generated cash from operations of $2.3 million in the first nine months, which was primarily impacted by net income for the current period offset by changes in non-cash working capital items, most significantly changes in trade and other receivables, inventories, and accounts payable and accrued liabilities.

As at September 30, 2025, the Company had outstanding borrowings of $25.5 million, of which $2.1 million are current and $23.4 million are non-current. The Company repaid borrowings of $0.5 million in the quarter and $1.4 million since December 31, 2024. The Company's debt consists of three fixed rate term loans, including a mortgage of $4.4 million secured against the CPM land and building.

Grey Wolf's financial statements and accompanying Management's Discussion and Analysis for the three- and nine-months ended September 30, 2025 are available under the Company's profile on www.sedarplus.ca. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

¹ Non-IFRS Measures

Management uses both IFRS and Non-IFRS Measures to assess the financial and operating performance of the Company's operations. These Non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The Non-IFRS Measures referenced in this press release includes Adjusted EBITDA. The Company defines Adjusted EBITDA as earnings before transaction costs (including, for greater certainty, transaction costs related to the CPM Acquisition), settlement costs, interest income, interest and accretion expense, income taxes, depreciation of property and equipment, depreciation of right of use assets, amortization of intangible assets, share-based compensation, foreign exchange gains or losses and other income. The Company considers Adjusted EBITDA as an additional metric in assessing business performance and an important measure of operating performance and cash flow, providing useful information to help analyze and compare profitability between companies for investors and analysts.

The following table provides a summary of the differences between Grey Wolf's consolidated IFRS and Non-IFRS financial measures, which are reconciled below:

EBITDA and Adjusted EBITDA

	Three months ended		Nine months ended
	Sep 30, 2025	Sep 30, 2024	Sep 30, 2025	Sep 30, 2024
Net income for the period	$548,976	$502,151	$1,327,454	$1,205,770
Interest income	(24,267)	(52,766)	(81,829)	(156,614)
Interest and accretion expense	407,879	133,450	1,327,673	410,354
Income taxes	280,287	225,480	640,396	604,950
Depreciation of property and equipment	203,780	81,282	593,527	233,656
Depreciation of right of use assets	49,219	21,930	107,580	65,790
Amortization of intangible assets	420,584	243,750	1,296,250	731,250
EBITDA	1,886,458	1,155,277	5,211,051	3,095,156
Adjustments
Share-based compensation	17,109	35,465	51,327	45,589
Foreign exchange loss	19,500	(6,124)	18,720	32,314
Transaction costs	-	-	65,270	-
Settlement costs	-	-	-	245,748
Adjusted EBITDA	1,923,067	1,184,618	5,346,368	3,418,807

About Grey Wolf Animal Health Corp.‎

Grey Wolf Animal Health Corp., headquartered in Toronto, Canada, is a diversified health ‎company founded by a veterinarian to bring to market a broad portfolio of products that meets the ‎unmet needs of veterinarians, physicians and patients.  The Company's strategy is to in-license, acquire or compound prescription and non-prescription products for commercialization in the animal and human health market ‎in Canada. For additional information, please visit: www.greywolfah.com. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward Looking Statements

Certain information included in this press release contains forward-looking information with the meaning of applicable Canadian securities laws. This information includes statements concerning the Company's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events or the negative thereof. Such forward-looking information reflects management's beliefs and is based on information currently available. All forward-looking information in this press release is qualified by the following cautionary statements.

Forward-looking information necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its subsidiaries, and cause actual results to differ materially from current expectations of estimated or anticipated events or results.

A more detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the Risk Factors section of Grey Wolf's Management's Discussion and Analysis for the three- and nine-months ended September 30, 2025. The forward-looking information included in this press release is made as of the date hereof and should not be relied upon as representing the Company's views as of any date subsequent to the date hereof. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

SOURCE Grey Wolf Animal Health Corp.

For further information, please contact:‎ Angela Cechetto, Chief Executive Officer, E-mail: [email protected]