GREY WOLF HEALTH REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS

TORONTO, Aug. 25, 2026 /CNW/ -- Grey Wolf Health Corp. (TSXV: WOLF) ("Grey Wolf" or the "Company"), a Canadian diversified health company, today announced financial results for the three- and six- months ended June 30, 2026. All results are reported in Canadian dollars.

Highlights

• Revenue for the quarter increased year over year by 11.1% to $10.6 million. Revenue increased by 10.8% to $19.3 million for the first six months of the year.
• Gross profit increased year over year by 10.5% to $5.9 million for the quarter and 11.8% to $10.6 million for the first six months of the year.
• Adjusted EBITDA¹ decreased year over year by 7.5% to $2.0 million for the quarter. Adjusted EBITDA¹ increased slightly year over year by 1.3% to $3.5 million for the first six months of the year.

"We posted another solid quarter of revenue growth while investing in our business to support our ongoing expansion initiatives," said Angela Cechetto, Chief Executive Officer. "Our Pharmacy business grew organically year-over-year by 9.3% to $6.7 million due to an increase in sales of compounded products during the quarter. Meanwhile, our Animal Health business was up 14.2% year-over-year to $3.9 million in the quarter due to increased sales of established and new products, particularly in our gastrointestinal, behavior and end-of-life portfolios."

Ms. Cechetto continued, "Adjusted EBITDA¹ was up slightly year to date versus 2025 as we continue to invest in people, a new ERP system and a new compounding facility. We appointed a new Vice President of Sales & Marketing to lead our commercial activities across both the Pharmacy and Animal Health business units. We also announced a name change of the company to Grey Wolf Health Corp., better reflecting our expanded strategic focus across human and animal health. These initiatives are focused on advancing our growth strategy to organically double Adjusted EBITDA¹ by the end of 2030."

Key Financial Data and Comparative Results

	Three months ended		Six months ended
	Jun 30, 2026	Jun 30, 2025	Jun 30, 2026	Jun 30, 2025
Revenue	$10,576,471	$9,523,600	$19,330,207	$17,445,435
Gross profit	5,868,719	5,312,293	10,602,623	9,482,005
Gross profit %	55.5 %	55.8 %	54.9 %	54.4 %
Total operating expenses	4,645,030	3,833,453	8,695,724	7,481,966
Operating income for the period	1,223,689	1,478,840	1,906,899	2,000,039
Income tax expense	303,024	306,954	426,717	360,109
Net income for the period	502,752	751,230	648,017	778,478
Earnings per share
Basic and diluted	$0.02	$0.02	$0.02	$0.02
EBITDA	1,890,207	2,153,686	3,242,354	3,324,593
Adjusted EBITDA	1,999,513	2,162,488	3,469,085	3,423,301
			Jun 30, 2026	Dec 31, 2025
Total assets			$64,798,175	$64,528,466
Total liabilities			33,054,439	33,963,905

Results of Operations for the Three- and Six- Months ended June 30, 2026

Total revenue for the three- and six- month periods ended June 30, 2026 increased 11.1% to $10.6 million and 10.8% to $19.3 million, respectively, compared to the same period in 2025. Revenue in the Pharmacy business increased by 9.3% to $6.7 million and 9.1% to $12.4 million respectively, compared to the same three- and six-month periods in 2025 due to growth in sales of compounded products. In the Animal Health business, revenue grew year over year by 14.2% to $3.9 million and 14.0% to $7.0 million, respectively, in the three- and six-month periods in 2026 due to increased sales in established and new products. 

Gross profit margins for the three- and six-month periods ended June 30, 2026 were mostly unchanged at 55.5% from 55.8% and 54.9% from 54.4% compared to the same periods in 2025. Gross profits were impacted by increased margins in the Animal Health business unit as a result of product mix, offset by reduced margins in the Pharmacy business unit as a result of increased material and labour costs.

Total expenses for the three- and six-month periods ended June 30, 2026, increased 21.2% to $4.6 million and 16.2% to $8.7 million, respectively, over the same periods in 2025. During the six-month period, there was an increase in salary, bonuses, and benefits related to operational growth, an increase in professional and outside services in support of the ERP implementation, and an increase in freight and other expenses.

Adjusted EBITDA¹ for the three- and six-month periods ended June 30, 2026 decreased 7.5% to $2.0 million and increased by 1.3% to $3.5 million, respectively, compared to the same periods in 2025. Adjusted EBITDA¹ was impacted by a decrease in net income, offset by foreign exchange losses and one-time implementation costs for the period ended June 30, 2026.

Cash and cash equivalents were $8.9 million at June 30, 2026 compared to $7.7 million at December 31, 2025. The Company generated cash from operations of $2.2 million, 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 and accounts payable and accrued liabilities.

As at June 30, 2026, the Company had outstanding borrowings of $24.1 million, of which $2.1 million are current and $22.0 million are non-current. The Company repaid borrowings of $0.5 million in the quarter and $1.0 million since December 31, 2025. The Company's debt consists of three fixed rate term loans, including a mortgage of $4.4 million secured against our Manitoba facility. Subsequent to the quarter-end, the Company extended the term of the CWB credit loan having a balance of $6.7 million at June 30, 2026 until August 2027.

Grey Wolf's financial statements and accompanying Management's Discussion and Analysis for the three- and six-months ended June 30, 2026 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.

¹Non-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), one-time implementation 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. 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		Six months ended
	Jun 30, 2026	Jun 30, 2025	Jun 30, 2026	Jun 30, 2025
Net income for the period	$502,752	$751,230	$648,017	$778,478
Interest income	(30,441)	(27,164)	(59,388)	(57,562)
Interest and accretion expense	429,705	456,127	867,637	919,794
Income taxes	303,024	306,954	426,717	360,109
Depreciation of property and equipment	205,955	195,942	400,947	389,747
Depreciation of right of use assets	100,295	29,181	200,590	58,361
Amortization of intangible assets	378,917	441,416	757,834	875,666
EBITDA	1,890,207	2,153,686	3,242,354	3,324,593
Adjustments
Share-based compensation	22,931	17,109	35,558	34,218
Foreign exchange loss (gain)	18,649	(8,307)	23,916	(780)
One-time implementation costs	67,726	-	167,257	-
Transaction costs	-	-	-	65,270
Adjusted EBITDA	1,999,513	2,162,488	3,469,085	3,423,301

About Grey Wolf Health Corp.‎

Grey Wolf Health Corp., headquartered in Toronto, Canada, is a diversified health ‎company focused on bringing 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, including statements regarding the new facility in Ancaster, Ontario. 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 six-months ended June 30, 2026. 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 Health Corp.

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