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Under hyperinflation accounting, the cost of goods sold in the local currency, i.e. ARS, is restated using the inflation index from the purchase or manufacturing date to the end of the reporting period, and is converted to CAD using the respective quarter-end closing rates. In Q4-25 and 2025, the cumulative inflation index applied on the inventory sold was higher than the prior year periods, leading to higher cost of goods sold reported under IAS 29 in CAD and consequently a lower gross margin both in Q4-25 and 2025 compared to the same periods in prior year (“Gross Margin Hyperinflation Impact”).
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FINANCIAL RESULTS UNDER
NON-GAAP MEASURES
[In thousands of Canadian dollars]
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The Company discloses non-GAAP measures and ratios that do not have standardized meanings prescribed by IFRS. The Company believes that shareholders, investment analysts and other readers find such measures helpful in understanding the Company’s financial performance. Non-GAAP financial measures and adjusted EBITDA per share ratio do not have any standardized meaning prescribed by IFRS and may not have been calculated in the same way as similarly named financial measures presented by other companies. The Company uses the following non-GAAP measures.
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[i] Financial results excluding the impact of hyperinflation under IAS 29
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The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company’s Argentine subsidiary uses the Argentine Peso as their functional currency. IAS 29 requires that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy be adjusted based on an appropriate general price index to express the effects of inflation.
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Financial results under IFRS are adjusted to remove the impact of hyperinflation under IAS 29. The impact of hyperinflation under IAS 29 is calculated by applying an appropriate general price index to express the effects of inflation. After applying the effects of translation, the statement of income is converted using the closing foreign exchange rate of the month.
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The Company believes that financial results excluding the impact of hyperinflation under IAS 29 represents a useful measure to investors as allow results to be viewed without the impact of IAS 29, thereby facilitating the comparison of results period over period. The presentation of financial results excluding the impact of hyperinflation under IAS 29 is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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The following tables are reconciliations of financial results under IFRS to financial results excluding the impact of hyperinflation under IAS 29.
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| Q4-25 | 2025 | |||||||||||
| Reported under IFRS | IAS 29 Adjustment | Excluding the Impact of IAS 29 | Reported under IFRS | IAS 29 Adjustment | Excluding the Impact of IAS 29 | |||||||
| Revenues | 133,106 | 97 | 133,203 | 450,088 | 2,263 | 452,351 | ||||||
| Cost of goods sold | 68,383 | (1,983 | ) | 66,400 | 249,858 | (12,502 | ) | 237,356 | ||||
| Gross margin | 64,723 | 2,080 | 66,803 | 200,230 | 14,765 | 214,995 | ||||||
| Gross margin (%) | 49 | % | 50 | % | 44 | % | 48 | % | ||||
| Expenses | ||||||||||||
| Selling and marketing | 20,421 | 26 | 20,447 | 67,927 | 521 | 68,448 | ||||||
| General and administrative | 15,033 | 132 | 15,165 | 56,182 | (839 | ) | 55,343 | |||||
| Research and development | 9,223 | 53 | 9,276 | 28,984 | 434 | 29,418 | ||||||
| Amortization of intangible assets | 13,836 | — | 13,836 | 49,487 | — | 49,487 | ||||||
| Operating income (loss) | 6,210 | 1,869 | 8,079 | (2,350 | ) | 14,649 | 12,299 | |||||
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| Q4-24 | 2024 | |||||||||||
| Reported under IFRS | IAS 29 Adjustment | Excluding the Impact of IAS 29 | Reported under IFRS | IAS 29 Adjustment | Excluding the Impact of IAS 29 | |||||||
| Revenues | 96,864 | (2,798 | ) | 94,066 | 371,304 | (5,892 | ) | 365,412 | ||||
| Cost of goods sold | 56,512 | (6,769 | ) | 49,743 | 196,899 | (4,983 | ) | 191,916 | ||||
| Gross margin | 40,352 | 3,971 | 44,323 | 174,405 | (909 | ) | 173,496 | |||||
| Gross margin (%) | 42 | % | 47 | % | 47 | % | 47 | % | ||||
| Expenses | ||||||||||||
| Selling and marketing | 14,576 | (626 | ) | 13,950 | 53,861 | (1,253 | ) | 52,608 | ||||
| General and administrative | 10,741 | (370 | ) | 10,371 | 45,488 | (1,406 | ) | 44,082 | ||||
| Research and development | 7,365 | (502 | ) | 6,863 | 23,304 | (652 | ) | 22,652 | ||||
| Amortization of intangible assets | 10,630 | (9 | ) | 10,621 | 44,355 | (27 | ) | 44,328 | ||||
| Operating (loss) income | (2,960 | ) | 5,478 | 2,518 | 7,397 | 2,429 | 9,826 | |||||
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Select financial results excluding the impact of hyperinflation under IAS 291
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| Change | Change | |||||||||||||||
| Q4-25 | Q4-24 | $ | % | 2025 | 2024 | $ | % | |||||||||
| Adjusted Revenues | 133,203 | 94,066 | 39,137 | 42 | % | 452,351 | 365,412 | 86,939 | 24 | % | ||||||
| Cost of goods sold | 66,400 | 49,743 | (16,657 | ) | 33 | % | 237,356 | 191,916 | (45,440 | ) | 24 | % | ||||
| Gross margin | 66,803 | 44,323 | 22,480 | 51 | % | 214,995 | 173,496 | 41,499 | 24 | % | ||||||
| Gross margin (%) | 50 | % | 47 | % | 48 | % | 47 | % | ||||||||
| Expenses | ||||||||||||||||
| Selling and marketing | 20,447 | 13,950 | (6,497 | ) | 47 | % | 68,448 | 52,608 | (15,840 | ) | 30 | % | ||||
| General and administrative | 15,165 | 10,371 | (4,794 | ) | 46 | % | 55,343 | 44,082 | (11,261 | ) | 26 | % | ||||
| Research and development | 9,276 | 6,863 | (2,413 | ) | 35 | % | 29,418 | 22,652 | (6,766 | ) | 30 | % | ||||
| Amortization of intangible assets | 13,836 | 10,621 | (3,215 | ) | 30 | % | 49,487 | 44,328 | (5,159 | ) | 12 | % | ||||
| Operating income | 8,079 | 2,518 | 5,561 | 221 | % | 12,299 | 9,826 | 2,473 | 25 | % | ||||||
| Adjusted EBITDA1 | 24,449 | 14,996 | 9,453 | 63 | % | 73,056 | 57,783 | 15,273 | 26 | % | ||||||
| Adjusted EBITDA1(%) | 18 | % | 16 | % | 16 | % | 16 | % | ||||||||
| Adjusted EBITDA per share1 | 0.25 | 0.15 | 0.10 | 67 | % | 0.74 | 0.58 | 0.16 | 28 | % | ||||||
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1 Adjusted EBITDA, Adjusted EBITDA per share and financial results excluding the impact of IAS 29 are non-GAAP measures and do not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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Adjusted Revenues1 by Therapeutic Area
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| Change | Change | |||||||||
| Therapeutic Area | Q4-25 | Q4-242 | $ | % | 2025 | 20242 | $ | % | ||
| Oncology/Hematology | 42,074 | 34,322 | 7,752 | 23 | % | 147,480 | 137,611 | 9,869 | 7 | % |
| Infectious Disease | 42,250 | 39,485 | 2,765 | 7 | % | 161,215 | 149,198 | 12,017 | 8 | % |
| Neurology | 26,994 | 12,504 | 14,490 | 116 | % | 85,501 | 53,225 | 32,276 | 61 | % |
| Other Specialty | 21,885 | 7,755 | 14,130 | 182 | % | 58,155 | 25,378 | 32,777 | 129 | % |
| Total Adjusted Revenues | 133,203 | 94,066 | 39,137 | 42 | % | 452,351 | 365,412 | 86,939 | 24 | % |
| 1Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||||
| 2Comparative figures have been reclassified to align with the year-end 2025 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||||
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Adjusted Revenues1 by Product Portfolio
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| Product Portfolio | Change | Change | ||||||||||
| Innovative | Q4-25 | Q4-242 | $ | % | 2025 | 20242 | $ | % | ||||
| Promoted | 89,301 | 71,093 | 18,208 | 26 | % | 319,590 | 271,499 | 48,091 | 18 | % | ||
| Mature | 32,254 | 10,663 | 21,591 | 202 | % | 84,422 | 41,176 | 43,246 | 105 | % | ||
| Total excluding discontinued | 121,555 | 81,756 | 39,799 | 49 | % | 404,012 | 312,675 | 91,337 | 29 | % | ||
| Discontinued | 24 | 454 | (430 | ) | 95 | % | 57 | 3,652 | (3,595 | ) | 98 | % |
| Total | 121,579 | 82,210 | 39,369 | 48 | % | 404,069 | 316,327 | 87,742 | 28 | % | ||
| BGx | ||||||||||||
| New Launches | 678 | 407 | 271 | 67 | % | 2,139 | 1,930 | 209 | 11 | % | ||
| Mature | 10,894 | 11,296 | (402 | ) | 4 | % | 45,793 | 46,534 | (741 | ) | 2 | % |
| Total excluding discontinued | 11,572 | 11,703 | (131 | ) | 1 | % | 47,932 | 48,464 | (532 | ) | 1 | % |
| Discontinued | 52 | 153 | (101 | ) | 66 | % | 350 | 621 | (271 | ) | 44 | % |
| Total | 11,624 | 11,856 | (232 | ) | 2 | % | 48,282 | 49,085 | (803 | ) | 2 | % |
| Total Adjusted Revenues | 133,203 | 94,066 | 39,137 | 42 | % | 452,351 | 365,412 | 86,939 | 24 | % | ||
| 1Excluding the impact of hyperinflation under IAS 29. Adjusted Revenues is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. 2Comparative figures have been reclassified to align with the year-end 2025 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||||||
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[ii] Financial results at constant currency
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Financial results at constant currency are obtained by translating the prior period revenues and financial results from the functional currencies to CAD using the conversion rates in effect during the current period. Furthermore, with respect to Argentina, the Company excludes the impact of hyperinflation and translates the revenues and results at the average exchange rate in effect for each of the periods.
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The Company believes that financial results at constant currency represents a useful measure to investors because it eliminates the effect that foreign currency exchange rate fluctuations may have on period-to-period comparability given the volatility in foreign currency exchange markets and therefore, provides greater transparency to the underlying performance of our consolidated financial results. The presentation of revenues and financial results under constant currency is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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The following tables are reconciliations of select financial results under IFRS to financial results and financial results at constant currency.
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| Q4-25 | Q4-24 | Change | ||||||||||
| Excluding the impact of IAS 291 | Excluding the impact of IAS 291 | Constant Currency Adjustment | Constant Currency | $ | % | |||||||
| Adjusted Revenues | 133,203 | 94,066 | 6,104 | 100,170 | 33,033 | 33 | % | |||||
| Cost of goods sold | 66,400 | 49,743 | 3,282 | 53,025 | (13,375 | ) | 25 | % | ||||
| Gross margin | 66,803 | 44,323 | 2,822 | 47,145 | 19,658 | 42 | % | |||||
| Gross margin (%) | 50 | % | 47 | % | 47 | % | ||||||
| Expenses | ||||||||||||
| Selling and marketing | 20,447 | 13,950 | 744 | 14,694 | (5,753 | ) | 39 | % | ||||
| General and administrative | 15,165 | 10,371 | 305 | 10,676 | (4,489 | ) | 42 | % | ||||
| Research and development | 9,276 | 6,863 | 261 | 7,124 | (2,152 | ) | 30 | % | ||||
| Amortization of intangible assets | 13,836 | 10,621 | (17 | ) | 10,604 | (3,232 | ) | 30 | % | |||
| Operating income (loss) | 8,079 | 2,518 | 1,529 | 4,047 | 4,032 | 100 | % | |||||
| Adjusted EBITDA2 | 24,449 | 16,520 | 7,929 | 48 | % | |||||||
| Adjusted EBITDA2(%) | 18 | % | 16 | % | ||||||||
| Adjusted EBITDA per share2 | 0.25 | 0.17 | 0.08 | 49 | % | |||||||
| 1Refer to Subsection – [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. | ||||||||||||
| 2EBITDA,Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures and donot have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||||||
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| 2025 | 2024 | Change | ||||||||||
| Excluding the impact of IAS 291 | Excluding the impact of IAS 291 | Constant Currency Adjustment | Constant Currency | $ | % | |||||||
| Adjusted Revenues | 452,351 | 365,412 | (916 | ) | 364,496 | 87,855 | 24 | % | ||||
| Cost of goods sold | 237,356 | 191,916 | (841 | ) | 191,075 | (46,281 | ) | 24 | % | |||
| Gross margin | 214,995 | 173,496 | (75 | ) | 173,421 | 41,574 | 24 | % | ||||
| Gross margin (%) | 48 | % | 47 | % | 48 | % | ||||||
| Expenses | ||||||||||||
| Selling and marketing | 68,448 | 52,608 | (19 | ) | 52,589 | (15,859 | ) | 30 | % | |||
| General and administrative | 55,343 | 44,082 | 192 | 44,274 | (11,069 | ) | 25 | % | ||||
| Research and development | 29,418 | 22,652 | 49 | 22,701 | (6,717 | ) | 30 | % | ||||
| Amortization of intangible assets | 49,487 | 44,328 | 635 | 44,963 | (4,524 | ) | 10 | % | ||||
| Operating income (loss) | 12,299 | 9,826 | (932 | ) | 8,894 | 3,405 | 38 | % | ||||
| Adjusted EBITDA2 | 73,056 | 57,498 | 15,558 | 27 | % | |||||||
| Adjusted EBITDA2(%) | 16 | % | 16 | % | ||||||||
| Adjusted EBITDA per share2 | 0.74 | 0.57 | 0.16 | 28 | % | |||||||
| 1Refer to Subsection – [i] Financial results excluding the impact of hyperinflation under IAS 29 for additional details. | ||||||||||||
| 2EBITDA,Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP measures and donot have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||||||
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Adjusted Revenues at Constant Currency1 by Therapeutic Area
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| Three months ended December 31, | Year ended December 31, | |||||||||
| Excluding impact of IAS 29 | ||||||||||
| Constant Currency1 | Constant Currency1 | |||||||||
| Therapeutic Area | 2025 | 20242 | $ | % | 2025 | 20242 | $ | % | ||
| Oncology/Hematology | 42,074 | 36,562 | 5,512 | 15 | % | 147,480 | 138,222 | 9,258 | 7 | % |
| Infectious Disease | 42,250 | 41,448 | 802 | 2 | % | 161,215 | 147,577 | 13,638 | 9 | % |
| Neurology | 26,994 | 13,498 | 13,496 | 100 | % | 85,501 | 52,821 | 32,680 | 62 | % |
| Other Specialty | 21,885 | 8,662 | 13,223 | 153 | % | 58,155 | 25,876 | 32,279 | 125 | % |
| Total | 133,203 | 100,170 | 33,033 | 33 | % | 452,351 | 364,496 | 87,855 | 24 | % |
| 1Adjusted Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | ||||||||||
| 2Comparative figures have been reclassified to align with the year-end 2025 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||||
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Adjusted Revenues at Constant Currency1 by Product Portfolio
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| Three months ended December 31, | Year ended December 31, | |||||||||||
| Excluding impact of IAS 29 | ||||||||||||
| Constant Currency1 | Constant Currency1 | |||||||||||
| Innovative | 2025 | 20242 | $ | % | 2025 | 20242 | $ | % | ||||
| Promoted | 89,301 | 76,298 | 13,003 | 17 | % | 319,590 | 270,220 | 49,370 | 18 | % | ||
| Mature | 32,254 | 11,187 | 21,067 | 188 | % | 84,422 | 41,142 | 43,280 | 105 | % | ||
| Total excluding discontinued | 121,555 | 87,485 | 34,070 | 39 | % | 404,012 | 311,362 | 92,650 | 30 | % | ||
| Discontinued | 24 | 521 | (497 | ) | 95 | % | 57 | 3,708 | (3,651 | ) | 98 | % |
| Total | 121,579 | 88,006 | 33,573 | 38 | % | 404,069 | 315,070 | 88,999 | 28 | % | ||
| BGx | ||||||||||||
| New Launches | 678 | 418 | 260 | 62 | % | 2,139 | 1,925 | 214 | 11 | % | ||
| Mature | 10,894 | 11,594 | (700 | ) | 6 | % | 45,793 | 46,882 | (1,089 | ) | 2 | % |
| Total excluding discontinued | 11,572 | 12,012 | (440 | ) | 4 | % | 47,932 | 48,807 | (875 | ) | 2 | % |
| Discontinued | 52 | 152 | (100 | ) | 66 | % | 350 | 619 | (269 | ) | 43 | % |
| Total | 11,624 | 12,164 | (540 | ) | 4 | % | 48,282 | 49,426 | (1,144 | ) | 2 | % |
| Total Revenues | 133,203 | 100,170 | 33,033 | 33 | % | 452,351 | 364,496 | 87,855 | 24 | % | ||
| 1Adjusted Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. 2Comparative figures have been reclassified to align with the year-end 2025 reporting presentation. These reclassifications had no impact on total revenues. | ||||||||||||
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Adjusted Revenues at Constant Currency1 by Country
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The following table represents the revenues excluding IAS 29 compared to constant currency per country, based on where the customer is located.
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| Three months ended December 31, | Year ended December 31, | ||||||||||
| Excluding impact of IAS 29 | |||||||||||
| Constant Currency1 | Change | Constant Currency1 | Change | ||||||||
| Revenue | 2025 | 2024 | $ | % | 2025 | 2024 | $ | % | |||
| Brazil | 49,817 | 51,079 | (1,262 | ) | 2 | % | 182,519 | 178,097 | 4,422 | 2 | % |
| Canada | 36,180 | 8,997 | 27,183 | 302 | % | 84,281 | 25,693 | 58,588 | 228 | % | |
| Colombia | 14,747 | 11,409 | 3,338 | 29 | % | 54,999 | 52,497 | 2,502 | 5 | % | |
| Argentina | 10,164 | 10,353 | (189 | ) | 2 | % | 43,009 | 40,011 | 2,998 | 7 | % |
| Mexico | 6,326 | 4,331 | 1,995 | 46 | % | 24,502 | 18,288 | 6,214 | 34 | % | |
| Rest of LATAM | 10,442 | 10,851 | (409 | ) | 4 | % | 43,022 | 39,873 | 3,149 | 8 | % |
| Other2 | 5,527 | 3,150 | 2,377 | 75 | % | 20,019 | 10,037 | 9,982 | 99 | % | |
| Total | 133,203 | 100,170 | 33,033 | 33 | % | 452,351 | 364,496 | 87,855 | 24 | % | |
| 1Adjusted Revenues at constant currency is a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies. | |||||||||||
| 2Includes US and other countries. | |||||||||||
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[iii] Adjusted Gross Margin
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Adjusted Gross Margin is defined as revenues less cost of goods sold, adjusted for the impact of IAS 29 (accounting under hyperinflation) and the impact in cost of goods sold of the difference between the fair value of inventory acquired and the cost paid in the Paladin Transaction, accounted under IFRS 3 – Business Combinations, when the inventory acquired as part of the transaction is sold (“Step-Up Expense”).
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The Company believes that Adjusted Gross Margin represents a useful measure to investors as allow Gross Margin to be viewed without the impact of hyperinflation under IAS 29 and Step-Up Expense, thereby facilitating the comparison period over period. The presentation of Adjusted Gross Margin is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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| Change | Change | ||||||||||||||
| Q4-25 | Q4-24 | $ | % | 2025 | 2024 | $ | % | ||||||||
| Gross margin | 64,723 | 40,352 | 24,371 | 60 | % | 200,230 | 174,405 | 25,825 | 15 | % | |||||
| Adjustments to gross margin: | |||||||||||||||
| Impact of IAS 29 | 2,080 | 3,971 | (1,891 | ) | 48 | % | 14,765 | (909 | ) | 15,674 | 1724 | % | |||
| Step-Up Expense | 1,411 | — | 1,411 | — | 3,642 | — | 3,642 | — | |||||||
| Adjusted Gross Margin | 68,214 | 44,323 | 23,891 | 54 | % | 218,637 | 173,496 | 45,141 | 26 | % | |||||
| Adjusted Gross Margin (%)1 | 51 | % | 47 | % | 48 | % | 47 | % | |||||||
| 1Adjusted Gross Margin as a percentage of Adjusted Revenues. | |||||||||||||||
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For the quarter ended December 31, 2025, Adjusted Gross Margin increased by $23,891 or 54%. For the year ended December 31, 2025, Adjusted Gross Margin increased by $45,141 or 26%. Refer to section Select Financial Results reported under IFRS for explanations of the increase in Q4-25 compared to Q4-24, as well as for the year ended 2025 compared to 2024.
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[iv] EBITDA
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EBITDA is defined as operating income or loss adjusted to exclude amortization and impairment of non-current assets, depreciation, but to include costs related to leases.
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The Company believes that EBITDA represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities. The presentation of EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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[v] Adjusted EBITDA
Adjusted EBITDA is defined as EBITDA adjusted for the impact of IAS 29 (accounting under hyperinflation), acquisition and transaction costs, Step-Up Expense and non-recurring expenses.
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The Company believes that Adjusted EBITDA represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities, without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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The following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA:
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| Change | Change | |||||||||||||||
| Q4-25 | Q4-24 | $ | % | 2025 | 2024 | $ | % | |||||||||
| Operating income (loss) | 6,210 | (2,960 | ) | 9,170 | 310 | % | (2,350 | ) | 7,397 | (9,747 | ) | 132 | % | |||
| Adjustments to operating income (loss): | ||||||||||||||||
| Amortization of intangible assets | 13,836 | 10,630 | 3,206 | 30 | % | 49,487 | 44,355 | 5,132 | 12 | % | ||||||
| Depreciation of property, plant and equipment and ROU assets | 1,243 | 3,340 | (2,097 | ) | 63 | % | 7,082 | 8,754 | (1,672 | ) | 19 | % | ||||
| Lease payments | (956 | ) | (1,052 | ) | 96 | 9 | % | (4,341 | ) | (3,913 | ) | (428 | ) | 11 | % | |
| EBITDA | 20,333 | 9,958 | 10,375 | 104 | % | 49,878 | 56,593 | (6,715 | ) | 12 | % | |||||
| Impact of IAS 29 | 2,068 | 5,038 | (2,970 | ) | 59 | % | 13,589 | 963 | 12,626 | 1311 | % | |||||
| Acquisition and transaction costs | 149 | — | 149 | — | 4,780 | 121 | 4,659 | — | ||||||||
| Step-Up Expense | 1,411 | — | 1,411 | — | 3,642 | — | 3,642 | — | ||||||||
| Other non-recurring expenses | 488 | — | 488 | — | 1,167 | 106 | 1,061 | — | ||||||||
| Adjusted EBITDA | 24,449 | 14,996 | 9,453 | 63 | % | 73,056 | 57,783 | 15,273 | 26 | % | ||||||
| Adjusted EBITDA per share | 0.25 | 0.15 | 0.10 | 67 | % | 0.74 | 0.58 | 0.16 | 28 | % | ||||||
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For the quarter ended December 31, 2025, adjusted EBITDA increased by $9,453 or 63%. For the year ended December 31, 2025, adjusted EBITDA increased by $15,273 or 26%. The increase was mainly driven by higher Adjusted Gross Margin, partly offset by higher operating expenses. Refer to section Select Financial Results reported under IFRS for further detail.
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Explanation of adjustments from EBITDA to Adjusted EBITDA
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| Impact of IAS 29 | Impact of hyperinflation accounting under IAS 29 over the operating income (loss). |
| Acquisition and transaction costs | Acquisition and transaction costs relate to costs incurred on legal, consulting and advisory fees for the acquisitions. |
| Step-Up Expense | Step-up expense relates to the impact in cost of goods sold of the difference between the fair value of inventory acquired and the cost paid in a transaction, accounted under IFRS 3 – Business Combinations, when the inventory acquired as part of the transaction is sold. |
| Other non-recurring expenses | Other non-recurring expenses relate to expenses incurred by the Company that are not due to, and are not expected to occur in, the ordinary course of business. |
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[vi] Adjusted EBITDA per share
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Adjusted EBITDA per share is defined as Adjusted EBITDA over number of common shares outstanding at the end of the respective period.
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The Company believes that Adjusted EBITDA per share represents a useful measure to investors to assess profitability and measure the Company’s ability to generate liquidity through operating activities on a per common share basis, without the impact of hyperinflation under IAS 29, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA per share is considered to be a non-GAAP ratio and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.
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The Company calculated adjusted EBITDA per share as follows:
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| Q4-25 | Q4-24 | 2025 | 2024 | |
| Adjusted EBITDA | 24,449 | 14,996 | 73,056 | 57,783 |
| Adjusted EBITDA per share | 0.25 | 0.15 | 0.74 | 0.58 |
| Number of common shares outstanding at period end (in thousands) | 99,192 | 100,048 | 99,192 | 100,048 |
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| CONSOLIDATED BALANCE SHEETS [In thousands of Canadian dollars] | ||
| As at December 31, | 2025 | 2024 |
| ASSETS | ||
Current | ||
| Cash and cash equivalents | 76,449 | 80,106 |
| Marketable securities | 18,834 | 62,225 |
| Trade receivables | 127,775 | 105,196 |
| Other receivables | 6,063 | 4,339 |
| Inventories | 135,866 | 102,698 |
| Prepaids and deposits | 6,505 | 7,744 |
| Other current financial assets | 18,946 | 30,506 |
| Income taxes receivable | 4,397 | 3,999 |
| Total current assets | 394,835 | 396,813 |
| Prepaids and deposits | 8,883 | 7,217 |
| Right-of-use assets | 9,919 | 5,912 |
| Property, plant and equipment | 12,006 | 14,110 |
| Intangible assets | 379,510 | 283,612 |
| Goodwill | 89,982 | 86,477 |
| Other financial assets | 79,484 | 103,426 |
| Deferred tax assets | 26,921 | 21,247 |
| Other long-term receivables | 44,760 | 44,983 |
| Total non-current assets | 651,465 | 566,984 |
| Total assets | 1,046,300 | 963,797 |
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| CONSOLIDATED BALANCE SHEETS (continued) [In thousands of Canadian dollars] | ||
| As at December 31, | 2025 | 2024 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current | ||
| Accounts payable and accrued liabilities | 120,868 | 78,345 |
| Lease liabilities | 3,398 | 2,640 |
| Other liabilities | 12,878 | 1,876 |
| Bank loans | 16,730 | 17,486 |
| Income taxes payable | 580 | 213 |
| Other balances payable | 10,806 | 10,688 |
| Total current liabilities | 165,260 | 111,248 |
| Accounts payable and accrued liabilities | 4,887 | 4,828 |
| Lease liabilities | 6,618 | 3,434 |
| Bank loans | 51,165 | 25,899 |
| Other balances payable | 48,105 | 19,443 |
| Deferred tax liabilities | 2,993 | 3,840 |
| Total liabilities | 279,028 | 168,692 |
| Shareholders’ equity | ||
| Share capital | 530,140 | 534,266 |
| Warrants | — | 117 |
| Contributed surplus | 32,449 | 25,708 |
| Accumulated other comprehensive income | 55,741 | 80,220 |
| Retained earnings | 148,942 | 154,794 |
| Total shareholders’ equity | 767,272 | 795,105 |
| Total liabilities and shareholders’ equity | 1,046,300 | 963,797 |
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| CONSOLIDATED STATEMENTS OF INCOME (LOSS) [In thousands of Canadian dollars, except for share and per share amounts] | ||||||||
| Three months ended December 31, | Year ended December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenues | 133,106 | 96,864 | 450,088 | 371,304 | ||||
| Cost of goods sold | 68,383 | 56,512 | 249,858 | 196,899 | ||||
| Gross margin | 64,723 | 40,352 | 200,230 | 174,405 | ||||
| Gross margin % | 49 | % | 42 | % | 44 | % | 47 | % |
| Expenses | ||||||||
| Selling and marketing | 20,421 | 14,576 | 67,927 | 53,861 | ||||
| General and administrative | 15,033 | 10,741 | 56,182 | 45,488 | ||||
| Research and development | 9,223 | 7,365 | 28,984 | 23,304 | ||||
| Amortization of intangible assets | 13,836 | 10,630 | 49,487 | 44,355 | ||||
| Operating (loss) income | 6,210 | (2,960 | ) | (2,350 | ) | 7,397 | ||
| Interest income on financial instruments measured at amortized cost | (1,018 | ) | (2,540 | ) | (5,961 | ) | (9,094 | ) |
| Other interest income | (201 | ) | (122 | ) | (245 | ) | (1,316 | ) |
| Interest expense | 3,924 | 2,447 | 10,422 | 9,223 | ||||
| Other expense | (329 | ) | 1,135 | 2,272 | 129 | |||
| Net (gain) loss on financial assets measured at fair value through profit or loss | (8,930 | ) | (8,317 | ) | 2,341 | 11,435 | ||
| Foreign exchange (gain) loss | 2,260 | (1,740 | ) | (1,856 | ) | 4,194 | ||
| Gain on hyperinflation | (720 | ) | (1,698 | ) | (2,621 | ) | (9,226 | ) |
| (Loss) income before income taxes | 11,224 | 7,875 | (6,702 | ) | 2,052 | |||
| Income taxes | ||||||||
| Current | (221 | ) | (3,813 | ) | 2,483 | 963 | ||
| Deferred | 2,591 | 953 | (3,811 | ) | (3,243 | ) | ||
| Income tax recovery | 2,370 | (2,860 | ) | (1,328 | ) | (2,280 | ) | |
| Net (loss) income | 8,854 | 10,735 | (5,374 | ) | 4,332 | |||
| Basic and diluted net (loss) income per share | 0.09 | 0.11 | (0.05 | ) | 0.04 | |||
| Weighted average number of common shares outstanding | ||||||||
| Basic | 99,339,210 | 100,533,651 | 99,566,529 | 101,040,581 | ||||
| Diluted | 99,861,530 | 100,942,735 | 99,566,529 | 101,436,902 | ||||
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| CONSOLIDATED STATEMENTS OF CASH FLOWS [In thousands of Canadian dollars] | ||||||||
| Three months ended December 31, | Year ended December 31, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| OPERATING ACTIVITIES | ||||||||
| Net income (loss) for the period | 8,854 | 10,735 | (5,374 | ) | 4,332 | |||
| Adjustments reconciling net income to operating cash flows: | ||||||||
| Depreciation and amortization | 15,079 | 13,970 | 56,569 | 53,109 | ||||
| Net loss (gain) on financial instruments | (8,930 | ) | (8,317 | ) | 2,341 | 11,435 | ||
| Unrealized foreign exchange (gain) loss | 109 | (5,523 | ) | 1,363 | (11,754 | ) | ||
| Other operating activities | 7,940 | 2,812 | 12,164 | (1,218 | ) | |||
| 23,052 | 13,677 | 67,063 | 55,904 | |||||
| Changes in non-cash working capital and other items | 11,820 | (12,208 | ) | 1,894 | (19,624 | ) | ||
| Cash inflow from operating activities | 34,872 | 1,469 | 68,957 | 36,280 | ||||
| INVESTING ACTIVITIES | ||||||||
| Acquisition of Paladin | — | — | (110,081 | ) | — | |||
| Purchase of marketable securities | (52,451 | ) | (25,990 | ) | (69,427 | ) | (149,329 | ) |
| Proceeds on maturity of marketable securities | 46,949 | 45,429 | 111,635 | 196,122 | ||||
| Investment in funds | (73 | ) | (1,271 | ) | (967 | ) | (3,846 | ) |
| Purchase of intangible assets | (1,549 | ) | (515 | ) | (31,786 | ) | (29,003 | ) |
| Other investing activities | 2,540 | 396 | 25,468 | 3,019 | ||||
| Cash inflow (outflow) from investing activities | (4,584 | ) | 18,049 | (75,158 | ) | 16,963 | ||
| FINANCING ACTIVITIES | ||||||||
| Repurchase of common shares through Normal Course Issuer Bid | (3,001 | ) | (5,150 | ) | (6,352 | ) | (8,866 | ) |
| Principal repayment of bank loans | (26,990 | ) | (6,913 | ) | (87,204 | ) | (17,611 | ) |
| Proceeds from bank loans | 867 | 543 | 112,070 | 3,473 | ||||
| Other financing activities | (5,674 | ) | (3,834 | ) | (13,108 | ) | (10,536 | ) |
| Cash outflow from financing activities | (34,798 | ) | (15,354 | ) | 5,406 | (33,540 | ) | |
| Increase (decrease) in cash and cash equivalents during the period | (4,510 | ) | 4,164 | (795 | ) | 19,703 | ||
| Cash and cash equivalents, beginning of the period | 81,876 | 73,755 | 80,106 | 58,761 | ||||
| Net foreign exchange difference | (917 | ) | 2,187 | (2,862 | ) | 1,642 | ||
| Cash and cash equivalents, end of the period | 76,449 | 80,106 | 76,449 | 80,106 | ||||
| Cash and cash equivalents | 76,449 | 80,106 | 76,449 | 80,106 | ||||
| Marketable securities | 18,834 | 62,225 | 18,834 | 62,225 | ||||
| Total cash, cash equivalents and marketable securities | 95,283 | 142,331 | 95,283 | 142,331 | ||||
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