Knight Therapeutics Reports Fourth Quarter and Year-End 2025 Results

Delivered record-high revenues, Adjusted EBITDA¹, Adjusted EBITDA per share¹ since inception
Generated record high cash flow from operations since inception
Provides 2026 revenues guidance of $490 million to $510 million and adjusted EBITDA¹ of approximately 15%

MONTREAL, March 19, 2026 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX: GUD) ("Knight" or “the Company”), a pan-American (ex-US) specialty pharmaceutical company, today reported financial results for its fourth quarter and year ended December 31, 2025. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.

2025 Highlights

Financial results

• Revenues were $450,088, an increase of $78,784 or 21% over the prior year. The increase was primarily driven by the incremental revenues from the Paladin and Sumitomo Transactions and the growth of our key promoted products, partly offset by declines in our mature and branded generic products, the termination of a non-strategic agreement in Colombia and the impact of hyperinflation².
• Gross margin was 44% of revenues compared to 47% in prior year. The decrease was due to the impact of hyperinflation² and the fair value adjustment on the inventory acquired in the Paladin transaction.
• Operating loss was $2,350 compared to an operating income of $7,397 in prior year.
• Net loss was $5,374, compared to a net income of $4,332 in prior year.
• Loss per share was $0.05, compared to an earnings per share of $0.04 in prior year.
• Cash inflow from operations was $68,957, an increase of $32,677 or 90% over prior year.

Non-GAAP measures

• Adjusted Revenues¹ were $452,351, an increase of $86,939 or 24% or an increase of $87,855 or 24% on a constant currency¹ basis, primarily driven by the incremental revenues from the Paladin and Sumitomo Transactions and the growth of our key promoted products, partly offset by declines in our mature and branded generic products and the termination of a non-strategic agreement in Colombia.
• Excluding the Paladin and Sumitomo acquisitions, the key promoted portfolio delivered a growth of 12% on a constant currency¹ basis and a three-year CAGR exceeding 20%.
• The growth products³ acquired in the Paladin and Sumitomo transactions grew by 68% in the second half compared to the first half of 2025, according to IQVIA Canada.
• Adjusted Gross margin¹ was 48% of Adjusted Revenues¹ compared to 47% in prior year. The increase was mainly due to the contribution from the Paladin and Sumitomo portfolios as well as the growth of our key promoted products.
• Adjusted EBITDA¹ was $73,056, an increase of $15,273 or 26% over prior year.
• Adjusted EBITDA per share¹ was $0.74, an increase of $0.16 or 28% over prior year.

Corporate developments

• Launched a NCIB in August 2025 to purchase up to 3,000,000 common shares of the Company over the next 12 months. In 2025, 1,130,600 common shares were purchased at an average price of $5.69 for aggregate cash consideration of $6,431.
• Closed a secured syndicated revolving credit facility with four lenders for US$100 million with an accordion feature for an additional US$100 million.
• Closed a working capital line of credit agreement with Citibank, N.A.
• Settled the Synergy loan agreement and collected $13,758 [US$10,000] in cash and received warrants with a fair value of $1,116 [US$811].
• Collected a strategic loan receivable with a life sciences company for $3,840 [US$2,771].
  

Products

• Added profitable and growth assets and expanded our portfolio with over fifty products including eight pipeline and early launch stage assets.
  • Executed an asset purchase agreement with Paladin Pharma Inc., to acquire the Paladin business. Knight paid $90,002, an additional $23,008 for inventory and expects to pay $8,457 for the final and full settlement of the holdback from the purchase price. Furthermore, Knight may have to pay up to an additional US$15,000 upon achieving certain sales milestones.
  • Entered into exclusive license and supply agreements with Sumitomo to commercialize Myfembree^® (relugolix/estradiol/norethindrone acetate), Orgovyx^® (relugolix), Gemtesa^® (vibegron), and an asset purchase agreement to acquire certain mature products in Canada for $25,400. Knight may pay up to an additional $15,750 if certain sales milestones are met.
  • Expanded existing partnership with Helsinn and in-licensed Onicit^® IV (palonosetron) for Mexico, Brazil, and select LATAM countries.
  • Expanded existing partnership with Incyte and amended the Supply and Distribution Agreement to add the exclusive rights to distribute Zynyz^® (retifanlimab) and Niktimvo^® (axatilimab) in Latin America.
  • In-licensed one branded generic product for Brazil.
• Submitted multiple products for regulatory approval across our territories:
  • Tavalisse^® (fostamatinib) in Argentina.
  • Crexont^® (carbidopa and levodopa) in Canada, Mexico, Chile, Argentina and Peru.
  • Supplemental indication of Minjuvi^® (tafasitamab) for follicular lymphoma (FL) in Brazil.
• Obtained regulatory approval for multiple products across our territories:
  • Wynzora^® (calcipotriene and betamethasone dipropionate) in Canada.
  • Pemazyre^® (pemigatinib) in Argentina and Mexico.
  • Minjuvi^® (tafasitamab) for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) in Argentina.
• Received Notice of Non-Compliance from Health Canada requesting additional information for its New Drug Submission for Qelbree^® (viloxazine) and expect to submit the response in 2026.
• Received rejection from ANVISA regarding the marketing authorization application for Tavalisse^® in Brazil and submitted an appeal which was accepted by ANVISA.
• Executed on 10 commercial launches across our territories
  • Onicit^® IV in Brazil and Mexico.
  • Pemazyre^® in Brazil and Mexico.
  • Minjuvi^® for the treatment of adult patients with relapsed or refractory diffuse DLBCL in Argentina and Mexico.
  • Xcopri^®, Myfembree^® and Orgovyx^® in Canada.
  • Jornay PM^® (methylphenidate HCI extended-release capsules) in Canada.

Subsequent to year-end

• Submitted Niktimvo^® for regulatory approval in Brazil.
• Submitted supplemental indication of Minjuvi^® for FL for regulatory approval in Argentina and Mexico.
• Obtained regulatory approval of supplemental indication of Minjuvi^® for the treatment of adult patients with relapsed or refractory FL in Brazil.
• Obtained regulatory approval and launched Bapocil^® (palbociclib) in Colombia.
• Executed certain agreements with two partners to return the Canadian commercial rights of six non‑core products in exchange for $21,500 and, in accordance with the Asset Purchase Agreement, will settle the holdback to Paladin for $8,457.
• Repaid principal of $10,000 on the revolving credit facility.
• Executed an asset purchase agreement to acquire a manufacturing facility in Argentina.
• Up to March 12, 2026, the Company purchased additional 1,183,300 common shares at an average purchase price of $6.17 for an aggregate cash consideration of $7,296.

"I am pleased to announce that we delivered another year of record‑high adjusted revenues¹ and adjusted EBITDA¹ and cash flow from operations since Knight’s inception. While delivering record results, we strengthened our Canadian infrastructure and portfolio with multiple mature cashflow generating products as well as several early launch and pipeline products which positions Canada to be one of Knight's largest contributors to revenue and profitability within the next 2 to 3 years. We also expanded our partnerships with Helsinn adding Onicit^®, and with Incyte adding Niktimvo^® and Zynyz^®, for Latin America. Over the past year we have licensed, submitted, obtained regulatory approval and launched multiple innovative products in Canada and Latin America. This is the result of the execution of our strategy which will continue into 2026 as we look to deliver nearly $500 million revenues representing a twofold increase in our business within five years,” said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.

SELECT FINANCIAL RESULTS REPORTED UNDER IFRS [In thousands of Canadian dollars]
					Change								Change
	Q4-25		Q4-24		$1		%2		2025		2024		$1		%2
Revenues	133,106		96,864		36,242		37	%	450,088		371,304		78,784		21	%
Gross margin	64,723		40,352		24,371		60	%	200,230		174,405		25,825		15	%
Gross margin %	49	%	42	%					44	%	47	%
Selling and marketing	20,421		14,576		(5,845	)	40	%	67,927		53,861		(14,066	)	26	%
General and administrative	15,033		10,741		(4,292	)	40	%	56,182		45,488		(10,694	)	24	%
Research and development	9,223		7,365		(1,858	)	25	%	28,984		23,304		(5,680	)	24	%
Amortization of intangible assets	13,836		10,630		(3,206	)	30	%	49,487		44,355		(5,132	)	12	%
Operating expenses	58,513		43,312		(15,201	)	35	%	202,580		167,008		(35,572	)	21	%
Operating income (loss)	6,210		(2,960	)	9,170		310	%	(2,350	)	7,397		(9,747	)	132	%
Net income (loss)	8,854		10,735		(1,881	)	18	%	(5,374	)	4,332		(9,706	)	224	%

¹ A positive variance represents a positive impact to net income (loss) and a negative variance represents a negative impact to net income (loss).
² Percentage change is presented in absolute values.

Revenues: For the quarter ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $29,134 of incremental revenues. The remaining variance was mainly due to the growth of our key promoted products, the purchasing patterns of certain products partly offset by declines in our branded generic products and the termination of a non-strategic agreement in Colombia.

For the year ended December 31, 2025, the increase in revenues excluding the Hyperinflation Impact² was $87,855 or 24% on a constant currency¹ basis. The Paladin and Sumitomo portfolios contributed $56,532 of incremental revenues. The remaining variance was mainly driven by the growth of our key promoted products which grew by $32,488 or 12% on a constant currency¹ basis and the purchasing patterns of certain products, partly offset by declines in our branded generic products and the termination of a non-strategic agreement in Colombia.

The table below provides revenues by therapeutic areas.

			Change					Change
Therapeutic Area	Q4-25	Q4-241	$	%		2025	20241	$	%
Oncology/Hematology	41,988	35,823	6,165	17	%	146,373	140,837	5,536	4	%
Infectious Diseases	42,252	40,417	1,835	5	%	160,381	150,986	9,395	6	%
Neurology	26,989	12,480	14,509	116	%	85,460	53,229	32,231	61	%
Other Specialty	21,877	8,144	13,733	169	%	57,874	26,252	31,622	120	%
Total	133,106	96,864	36,242	37	%	450,088	371,304	78,784	21	%
1Comparative figures have been reclassified to align with the year-end 2025 reporting presentation. These reclassifications had no impact on total revenues.

The increase in revenues is explained by the following:

• Oncology/Hematology: For the quarter ended December 31, 2025, the increase in revenues was mainly due to the addition of Orgovyx^® and Onicit^®, the growth of Minjuvi^®, the launch of Pemazyre^® as well as the purchasing patterns of certain customers.
  
  For the year ended December 31, 2025, the revenues from our key promoted Oncology/Hematology products increased by $14,531 or 20% on a constant currency¹ basis mainly driven by the addition of Orgovyx^® and Onicit^®, the growth of Minjuvi^® and Akynzeo^® as well as the launch of Pemazyre^®. This growth was partly offset by declines in our mature and branded generics due to their lifecycle and the termination of a non-strategic agreement in Colombia.

• Infectious Diseases: For the quarter ended December 31, 2025, there was no material change in revenues of the portfolio.
  
  For the year ended December 31, 2025, the increase in the revenues was primarily due to the growth of Cresemba^® and Ambisome^®, partly offset by the purchasing patterns of certain products.

• Neurology: For the quarter ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $14,810 of incremental revenues.
  
  For the year ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $28,184 of incremental revenues. The remaining variance was due to purchasing patterns of certain customers and the launch of Jornay PM^®.

• Other Specialty: For the quarter ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $12,132 of incremental revenues. The rest of the variance was driven by growth of Imvexxy^® and Bijuva^® partly offset by the purchasing patterns of certain customers.
  
  For the year ended December 31, 2025, the increase in revenues was driven by the addition of the Paladin and Sumitomo portfolios which contributed to $24,267 of incremental revenues. The rest of the variance was driven by growth of Imvexxy^® and Bijuva^® as well as purchasing patterns of certain customers.

Gross margin: The Adjusted Gross Margin¹ as a % of Adjusted Revenues¹, was 51% in Q4-25 compared to 47% in Q4-24. The increase was driven by the higher contribution of the Canadian business in Q4-25 compared to Q4-24 as well as our product mix, which generates a higher adjusted gross margin as a % of Adjusted Revenues¹.

For the year ended December 31, 2025, the Adjusted Gross Margin¹ as a % of Adjusted Revenues¹ was 48% in 2025 compared to 47% in prior year. The increase was primarily driven by the higher contribution of the Canadian business in 2025 compared to 2024, which generates a higher adjusted gross margin as a % of Adjusted Revenues¹, partly offset by product mix .

Selling and marketing (“S&M”) expenses: For the quarter and year ended December 31, 2025, the increase in S&M expenses was mainly driven by an expansion in our sales and commercial structure behind the Paladin portfolio, the new launches in the Sumitomo portfolio as well as the launch of Minjuvi^® in Mexico and Jornay PM^® in Canada. In addition to structure, the increase also included our promotion and marketing expenses for the newly launched brands acquired in the Paladin and Sumitomo Transactions including Orgovyx^®, Myfembree^®, Xcopri^® and Envarsus^® PA as well as on our recently launched brands including Jornay PM^® in Canada, Minjuvi^® in Mexico and Argentina, Pemazyre^® in Mexico and Brazil, Onicit^® and pre-launch activities including Tavalisse^® in Mexico.

General and administrative (“G&A”) expenses: For the quarter ended December 31, 2025, the increase in G&A expenses was mainly due to an incremental $2,903 in share-based compensation mainly as a result of periodic reassessment of achieving vesting targets. The remaining variance was driven by an increase in our structure due to the Paladin and Sumitomo Transactions and higher spending on professional and consulting fees.

For the year ended December 31, 2025, the increase in G&A expenses was primarily driven by acquisition and transaction costs of $4,567 related to the Paladin Transaction, as well as an additional $5,063 in share-based compensation as a result of periodic reassessment of achieving vesting targets. The remaining variance was driven by an increase in our structure due to the Paladin and Sumitomo transactions and higher spending on professional and consulting fees.

Research and development (“R&D”) expenses: For the quarter and year ended December 31, 2025, the increase in R&D expenses was mainly due to the expansion of our scientific affairs structure including field-based medical science liaison personnel related to the Paladin and Sumitomo portfolios. In addition to structure, the increase included incremental medical, regulatory and pharmacovigilance spend on the Paladin and Sumitomo portfolios as well as development, regulatory, pre-launch and launch expenses on our pipeline and new launches including Niktimvo^®, Minjuvi^®, Jornay PM^® and Pemazyre^®.

Net income (loss)

For the quarter ended December 31, 2025, the net income was $8,854 compared to $10,735 for the same period in prior year. For the year ended December 31, 2025, the net loss was $5,374 compared to a net income of $4,332 in prior year. These variances were mainly driven by the above-mentioned items, as well as changes in amortization of intangible assets, net gains and losses on financial instruments measured at fair value through profit or loss, foreign exchange effects, hyperinflation gains, interest income, and income tax expense or recovery.

SELECT BALANCE SHEET ITEMS [In thousands of Canadian dollars]
			Change
	December 31, 2025	December 31, 2024	$		%
Cash, cash equivalents and marketable securities	95,283	142,331	(47,048	)	33	%
Trade and other receivables	178,598	154,518	24,080		16	%
Inventories	135,866	102,698	33,168		32	%
Financial assets	98,430	133,932	(35,502	)	27	%
Intangible assets	379,510	283,612	95,898		34	%
Accounts payable and accrued liabilities	125,755	83,173	42,582		51	%
Bank loans	67,895	43,385	24,510		56	%

"Over the past year, we have further strengthened and diversified our pharmaceutical business through strategic transactions in both Canada and Latin America. Our disciplined financial management approach and focus on sustainable growth have delivered results. We improved our cash position from net debt of $1 million at the end of Q3-2025 to net cash of $27 million at the end of 2025. In fact, as of today, we have already repaid half of the principal of the revolving credit facility that was withdrawn to finance the Paladin Transaction. Our Debt to Adjusted EBITDA leverage ratio significantly improved from over 1.5x in Q3-25 to under 1x in Q4-25. Our business continues to deliver both record financial results and record free cash flow. Looking forward, we remain committed to our disciplined capital allocation strategy to deliver long term shareholder value,” said Arvind Utchanah, Chief Financial Officer of Knight Therapeutics Inc.

Cash, cash equivalents and marketable securities: As at December 31, 2025, Knight had $95,283 in cash, cash equivalents and marketable securities, a decrease of $47,048 or 33% as compared to December 31, 2024. The decrease is mainly driven by the payment of $141,867 related to the Paladin and Sumitomo Transactions and certain intangibles, the repurchase of common shares through the NCIB for $6,352, interest on bank loans and lease liabilities of $11,945, partly offset by cash inflows from operations of $68,957, as well as collection from strategic loan repayments and distribution from funds of $25,250. In addition, during the year, Knight drewdown $60,000 on the revolving credit facility and used free cash flows generated for the principal repayments of $35,134. Subsequent to the end of the year, Knight repaid another $10,000 of principal on the revolving credit facility.

Trade and other receivables: As at December 31, 2025, trade and other receivables were $178,598, an increase of $24,080 or 16% as compared to December 31, 2024, mainly due to the trade receivables generated by the revenues from the Paladin and Sumitomo portfolios and the growth across the remainder of the portfolio.

Inventories: As at December 31, 2025, inventories were $135,866, an increase of $33,168 or 32% of which approximately $26,000 related to inventory balance of the Paladin and Sumitomo portfolios as at December 31, 2025. The remaining variance was due to the timing of purchases as well as investments on our new product launches, partly offset by the Balance Sheet Hyperinflation Impact² on inventory held in Argentina as well as foreign exchange revaluation.

Financial assets: As at December 31, 2025, financial assets were $98,430, a decrease of $35,502 or 27%, as compared to December 31, 2024, mainly driven by strategic loan repayments of $21,116 and a decrease in fund investments of $12,540, which included a return of capital of $7,626 and a decrease in fair value of $4,914.

Intangible assets: As at December 31, 2025, intangible assets were $379,510, an increase of $95,898 or 34%, mainly due to the recognition of the intangible assets acquired in the Paladin Transaction for $102,761 and the Sumitomo Transaction for $29,718, partly offset by amortization, foreign exchange revaluation and the de-recognition of certain milestones not expected to be met.

Accounts payable and accrued liabilities: As at December 31, 2025, accounts payable and accrued liabilities were at $125,755, an increase of $42,582 or 51%. The increase was driven by a higher level of payables in our Canadian operations due to the increase in the portfolio as a result of the Paladin and Sumitomo Transactions, as well as the purchase of inventory for our key promoted products.

Bank Loans: As at December 31, 2025, bank loans were at $67,895, an increase of $24,510 or 56% as compared to December 31, 2024, mainly driven by the drawdown of $60,000 from the revolving credit facility on June 17, 2025, partly offset by loan repayments of $34,771, including repayments of $20,000 on the revolving credit facility and $12,690 to IFC. Subsequent to year end, Knight repaid principal of $10,000 on the revolving credit facility.

Transactions in 2025

Paladin Transaction
In June 2025, Knight closed a definitive Asset Purchase Agreement to acquire the international business of Endo Operations Limited which was mainly its Canadian business operating as Paladin Pharma Inc. (“Paladin Transaction”). Knight paid $90,002 and an additional $23,008 for inventory and upon receipt of the Partner Payment expects to pay $8,457 for the final and full settlement of the holdback from the purchase price. Furthermore, Knight may pay future contingent payments of up to US$15,000 upon achieving certain sales milestones.

Sumitomo Transaction
In June 2025, Knight entered into exclusive license and supply agreements with Sumitomo Pharma America Inc. ("Sumitomo") and its affiliates to commercialize Myfembree^®, Orgovyx^® and Gemtesa^® in Canada, as well as an asset purchase agreement under which Knight acquired certain mature products (“Sumitomo Transaction”). Under the terms of the agreements, Knight acquired the exclusive rights to distribute, promote, market and sell the in-licensed and acquired products in Canada. Knight paid $25,400 and may pay certain future contingent sales milestones up to $15,750.

Expansion of the existing partnerships
Knight expanded its relationship with Helsinn Healthcare SA ("Helsinn") and added exclusive rights to distribute, and commercialize Onicit^® in Mexico, Brazil and select LATAM countries. Knight assumed commercial activities for Onicit^® in Mexico and Brazil in Q1 2025.

Knight expanded its relationship with Incyte Biosciences International Sàrl ("Incyte") and added the exclusive rights to distribute Zynyz^® (retifanlimab) and Niktimvo^® (axatilimab) for Latin America.

Return of commercial rights
In March 2026, Knight executed certain agreements with two partners to return the Canadian commercial rights of six non-core products in exchange for a payment of $21,500 ("Partner Payment"). These products generated revenues of $7,527 ⁴ in 2025.

In accordance with the Asset Purchase Agreement of the Paladin Transaction, as a final and full settlement, Knight will release $8,457 of the Settlement Agreement Holdback to Paladin.

Acquisition of a manufacturing facility in Argentina

In March 2026, Knight executed an asset purchase agreement to acquire a pharmaceutical development and manufacturing facility (including land, building and certain equipment) in an industrial zone outside of Buenos Aires in Argentina ("Facility"). Knight expects to move portions of its branded generic manufacturing activities to this Facility over the next three years.

Q4-25 Product Updates

Oncology/Hematology

Minjuvi^® (tafasitamab)
Knight obtained regulatory approval for Minjuvi^® in combination with lenalidomide followed by Minjuvi^® monotherapy for the treatment of adult patients with relapsed or refractory DLBCL, who are not eligible for ASCT in Argentina in Q4-25. Knight launched Minjuvi^® in Argentina in Q4-25.

Knight submitted supplemental applications seeking regulatory approvals for an additional indication of Minjuvi^® in combination with rituximab and lenalidomide for the treatment of adult patients with previously treated follicular lymphoma (FL) in Argentina and Mexico in Q1-26. Furthermore, Knight received the approval of Minjuvi^® in combination with rituximab and lenalidomide for the treatment of adult patients with relapsed or refractory FL in Brazil in Q1-26.

Niktimvo^® (axatilimab)
Knight submitted Niktimvo^® (axatilimab) for regulatory approval in Brazil in Q1-26, for the treatment of chronic graft-versus-host disease (GVHD) after failure of at least two prior lines of systemic therapy in adult and pediatric patients 6 years and older.

Tavalisse^® (fostamatinib)
Knight received a rejection from ANVISA regarding its marketing authorization applicable for Tavalisse^® in Brazil and filed an appeal with ANVISA.

Pemazyre^® (pemigatinib)
Knight launched Pemazyre^® in Brazil and Mexico in Q4-25 and expects to launch in Argentina in the first half of 2026, as a monotherapy for the treatment of adults with locally advanced or metastatic cholangiocarcinoma with a FGFR2 fusion or rearrangement that have progressed after at least one prior line of systemic therapy.

Bapocil^® (palbociclib)
Bapocil^® was approved and launched in Colombia. Bapocil^® in combination with endocrine therapy is indicated for the treatment of patients with metastatic or advanced breast cancer that is hormone receptor positive and human epidermal growth factor receptor 2 (HER2) negative, in combination with: an aromatase inhibitor as initial endocrine-based therapy in post-menopausal women; or with fulvestrant in patients with disease progression after endocrine therapy.

Neurology

Crexont^® (carbidopa and levodopa)
Knight submitted Crexont^® for approval in Chile, Argentina and Peru in Q4-25. Crexont^® is a novel, oral formulation of carbidopa ("CD")/levodopa ("LD") extended-release capsules designed for the treatment of Parkinson’s disease.

Qelbree^® (viloxazine)
Knight received a Notice of Non-Compliance (NON) from Health Canada for its New Drug Submission for Qelbree^®, for the treatment of Attention-Deficit Hyperactivity Disorder ("ADHD"). Knight will submit its response to Health Canada in 2026.

Jornay PM^® (methylphenidate HCI extended-release capsules)
Knight launched Jornay PM^® in Canada in Q4 2025. Jornay PM^® is the first and only evening-dosed methylphenidate product commercially available in Canada to treat ADHD in children from 6 to 12 years of age.

Other Specialty

Wynzora^® (calcipotriol and betamethasone dipropionate)
Knight received Health Canada's approval of Wynzora^® for the topical treatment of psoriasis vulgaris in adults and adolescents aged 12-17 years for up to 8 weeks. Knight expects to launch Wynzora^® in 2026.

Financial Outlook⁵

For fiscal 2026, Knight expects to generate between $490 million to $510 million in revenues and adjusted EBITDA¹ to be approximately 15% of revenues. The guidance is based on a number of assumptions, including but not limited to the following:

• no material impact on revenues due to the application of hyperinflation accounting for Argentina
• no revenues for business development transactions not completed as at March 18, 2026
• no unforeseen termination to our license, distribution & supply agreements
• no interruptions in supply whether due to global supply chain disruptions or general manufacturing issues
• no material impact from changes in tariffs, trade barriers, or customs duties
• no material adverse impact from wars, armed conflicts, or geopolitical hostilities
• no new generic entrants on our key pharmaceutical brands
• no unforeseen changes to government mandated pricing regulations
• successful commercial execution on product listing arrangements with HMOs, insurers, key accounts, and public payers
• successful execution and uptake of newly launched products
• no material increase in provisions for inventory or trade receivables
• no significant variations of forecasted foreign currency exchange rates
• inflation remaining within forecasted ranges
  
  

Should any of the assumptions differ, the financial outlook and the actual results may vary materially. Refer to the risks and assumptions referred to in the Forward-Looking Statements section of this news release for further details.

__________________________________

¹ Adjusted Revenues, revenues at constant currency, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA per share 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. Refer to section - Financial Results under Non-GAAP measures for additional details.
² Refers to the impact of hyperinflation due to the application of IAS 29 in Argentina. Refer to Section - Hyperinflation for additional details.
³ Includes Xcopri^®, Orgovyx^®, Myfembree^® and Envarsus^®PA.
⁴ For certain products, revenues include $3,247 generated by Paladin Pharma Inc. between January 1 and June 17, 2025.
⁵ This forward looking information is based on assumptions specific to the nature of the Company’s activities with regard to annual revenue growth considering industry information, expected market share, pricing assumptions, actions of competitors, sales erosion rates after the end of patent or other intellectual property rights protection, the timing of the entry of generic competition, the expected results of tenders, among other variables.

Conference Call Notice 

Knight will host a conference call and audio webcast to discuss its fourth quarter and year ended December 31, 2025, today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, March 19, 2026
Time: 8:30 a.m. ET
Telephone: Toll Free: 1-888-699-1199 or International 1-416-945-7677
Webcast: www.knighttx.com or Webcast
This is a listen-only audio webcast. Media Player is required to listen to the broadcast.

Replay: An archived replay will be available for 30 days at www.knighttx.com

About Knight Therapeutics Inc. 

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing and commercializing pharmaceutical products for Canada and Latin America. Knight's Latin American subsidiaries operate under United Medical, Biotoscana Farma and Laboratorio LKM. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.knighttx.com or www.sedarplus.ca.

Forward-Looking Statement

This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form for the year ended December 31, 2025 as filed on www.sedarplus.ca. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information or future events, except as required by law.

CONTACT INFORMATION:

Investor Contact:
Knight Therapeutics Inc.
Samira Sakhia		Arvind Utchanah
President & Chief Executive Officer		Chief Financial Officer
T: 514.484.4483		T. +598.2626.2344
F: 514.481.4116
Email: IR@knighttx.com		Email: IR@knighttx.com
Website: www.knighttx.com		Website: www.knighttx.com

HYPERINFLATION

The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company’s Argentine subsidiary use 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. After applying for the effects of hyperinflation, the statement of income (loss) is converted using the closing foreign exchange rate of the reporting period.

Revenues and operating expenses in the local currency, i.e. ARS, are restated from the month of the sales or the month in which the expense was incurred to the end of the reporting period using the inflation index during that period. The restatement calculation is performed on a year to date basis based on IAS29 ("Inflation Adjusted Figures"). For the years ended December 31, 2025 and 2024, the Company applied the following inflation index for the restatement of each respective month.

	January	February	March	April	May	June	July	August	September	October	November	December
2025	1.29	1.26	1.21	1.18	1.16	1.14	1.12	1.10	1.08	1.05	1.03	1.00
2024	1.81	1.59	1.44	1.32	1.27	1.21	1.16	1.12	1.08	1.05	1.03	1.00

Under IAS 29, the translation from the local currency, to the reporting currency is performed on the Inflation Adjusted Figures using the end of period rate at the reporting date. The Inflation Adjusted Figures were converted to the CAD using the following quarter-end closing rates for each of the respective periods.

	Q4-25	Q4-24
ARS	1,059	717

	Q4-25		Q4-24		2025		2024
ARS Variation %1	(7.9)%		(0.1)%		(48)%		(17)%

¹ Depreciation of ARS vs CAD during each period, calculated as follows: (End of period rate - Beginning of period rate) / Beginning of period rate.

In 2025 the inflation rate used for the hyperinflation adjustments on revenues and operating expenses of the Company's subsidiary in Argentina was lower than the ARS depreciation in the same period. For example, the revenues generated and operating expenses incurred in January 2025 were restated by applying an inflation index of 29% while the ARS to CAD depreciated by 48% in 2025. Consequently, this resulted in lower revenues and operating expenses reported under IAS 29 in CAD. Conversely, in 2024 the inflation index was higher than the ARS depreciation which resulted in higher revenues and operating expenses reported under IAS 29 in CAD. Therefore, the hyperinflation accounting under IAS 29 resulted in a decrease in the reported revenues and operating expenses of the Company's subsidiary in Argentina in CAD in both Q4-25 and 2025 when compared to the same periods in prior year ("Hyperinflation Impact").

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").

FINANCIAL RESULTS UNDER NON-GAAP MEASURES
[In thousands of Canadian dollars]

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.

[i] Financial results excluding the impact of hyperinflation under IAS 29

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.

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.

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.

The following tables are reconciliations of financial results under IFRS to financial results excluding the impact of hyperinflation under IAS 29.

	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

	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

Select financial results excluding the impact of hyperinflation under IAS 29¹

					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	%

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.

Adjusted Revenues¹ by Therapeutic Area

			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.

Adjusted Revenues¹ by Product Portfolio

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.

[ii] Financial results at constant currency

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.

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.

The following tables are reconciliations of select financial results under IFRS to financial results and financial results at constant currency.

	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.

	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.

Adjusted Revenues at Constant Currency¹ by Therapeutic Area

	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.

Adjusted Revenues at Constant Currency¹ by Product Portfolio

	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.

Adjusted Revenues at Constant Currency¹ by Country

The following table represents the revenues excluding IAS 29 compared to constant currency per country, based on where the customer is located.

	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.

[iii] Adjusted Gross Margin

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").

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.

					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.

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.

[iv] EBITDA

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.

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.

[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.

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.

The following table is a reconciliation of operating income (loss) to EBITDA and adjusted EBITDA:

					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	%

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.

Explanation of adjustments from EBITDA to Adjusted EBITDA

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.

[vi] Adjusted EBITDA per share

Adjusted EBITDA per share is defined as Adjusted EBITDA over number of common shares outstanding at the end of the respective period.

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.

The Company calculated adjusted EBITDA per share as follows:

	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

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

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

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

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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