Grey Wolf Animal Health Corp (WOLF)

GREY WOLF ANIMAL HEALTH REPORTS FIRST QUARTER 2026 FINANCIAL RESULTSMay 21, 2026 5:00 PM
PR Newswire (Canada) TORONTO, May 21, 2026 /CNW/ - Grey Wolf Animal Health Corp. (TSXV: WOLF) ("Grey Wolf" or the "Company"), a Canadian diversified health company, today announced financial results for the three months ended March 31, 2026. HighlightsRevenue for the quarter increased year over year by 10.5% to $8.8 million.Gross profit increased year over year by 13.5% to $4.7 million for the quarter.Adjusted EBITDA1 increased year over year by 16.6% to $1.5 million for the quarter.Introducing a 5-year financial target to organically double Adjusted EBITDA1 by the end of 2030."We posted a solid first quarter for both revenue and Adjusted EBITDA," said Angela Cechetto, Chief Executive Officer. "Our Pharmacy business grew organically by 8.8% to $5.6 million due to an increase in sales of compounded products. Meanwhile, our Animal Health revenue grew by 13.8% to $3.1 million year-over-year resulting from an increase in sales of established products, new products introduced during the prior year and an increase in commission revenue. Adjusted EBITDA1 for the quarter increased year-over-year by 16.6% to $1.5 million as a result of higher revenue and gross profits. During 2026, we will continue to advance our growth strategy by investing in key initiatives to support future scale, including the development of a new facility, implementation of an ERP system and continued investment in personnel."Ms. Cechetto continued, "Our five-year financial goals are grounded in a commitment to invest in our people, facilities and processes. As a result of these investments, we have set a target to organically double Adjusted EBITDA1 by the end of 2030. We are also actively pursuing acquisition opportunities to meaningfully augment this organic growth plan over the same horizon."Key Financial Data and Comparative Results

Three months ended


Mar 31, 2026Mar 31, 2025




Revenue

$8,753,736$7,921,835Gross profit

4,733,9044,169,712Gross profit %

54.1 %52.6 %Total operating expenses

4,050,6943,648,513Operating income for the period

683,210521,199




Income tax expense

123,69353,155Net income for the period

145,26527,248




Earnings per share



Basic and diltued

$0.004$0.001




EBITDA

1,352,1471,170,907Adjusted EBITDA

1,469,5721,260,813







Mar 31, 2026Dec 31, 2025




Total assets

$64,363,667$64,528,466Total liabilities

33,392,21433,963,905Results of Operations for the First Quarter-ended March 31, 2026Total revenue for the three-month period ended March 31, 2026 increased 10.5% to $8.8 million over the same period in 2025. Revenue in the Pharmacy business unit increased by 8.8% to $5.6 million from $5.2 million over the same period in 2025 due to an increase in sales of compounded products. Revenue in the Animal Health business unit increased by 13.8% to $3.1 million from $2.7 million over the same period in 2025 mainly due to increased sales of established products and commission revenue and new products introduced during the prior year.Gross profits for the three-month period ended March 31, 2026 were 54.1% compared to 52.6% for the same period in 2025. Gross profits were impacted by increased margins in the Animal Health business unit as a result of product mix and an increase in commission revenue. The Pharmacy business unit margins remained consistent with the same period in 2025.Total expenses for the three-month period ended March 31, 2026 increased 11.0% to $4.1 million over the same period in 2025. During the three-month period, there was an increase in salary, bonus, and benefits related to operational growth as compared to the same period in 2025, an increase in freight expenses and one-time implementation costs related to new information systems.Adjusted EBITDA1 was $1.5 million in the first quarter 2026 compared to $1.3 million in the same period in 2025, mainly due to an increase in net income, income taxes and one-time implementation costs for the period ended March 31, 2026.Cash and cash equivalents were $8.8 million at March 31, 2026 compared to $7.7 million at December 31, 2025. The Company generated cash from operations of $1.5 million, which was primarily impacted by net income for the current period offset by changes in non-cash working capital items, most significantly changes in trade and other receivables, inventories, prepaid expenses, and accounts payable and accrued liabilities.As at March 31, 2026, the Company had outstanding borrowings of $24.6 million, of which $2.2 million are current and $22.4 million are non-current. The Company repaid borrowings of $0.5 million in the quarter. The Company's debt consists of three fixed rate term loans, including a mortgage of $4.4 million secured against the CPM land and building.Grey Wolf's financial statements and accompanying Management Discussion and Analysis for the three months ended March 31, 2026 are available under the Company's profile on www.sedarplus.ca. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.Proposed Name ChangeThe Company announced earlier this year that it intends to change its name to Grey Wolf Health Corp. (TSXV: WOLF), subject to TSX Venture Exchange and shareholder approval. What started as an animal health company has evolved over the last several years to include compounding pharmacy services to both human and animal markets in Canada. The Company believes the proposed name reflects Grey Wolf's broader mission to deliver tailored solutions to humans and animals in areas of unmet need. Shareholders will be asked to approve the proposed change at the annual general and special meeting of the Company scheduled for June 24, 2026, voting materials for which will be available shortly.1Non-IFRS MeasuresManagement uses both IFRS and Non-IFRS Measures to assess the financial and operating performance of the Company's operations. These Non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The Non-IFRS Measures referenced in this press release includes Adjusted EBITDA. The Company defines Adjusted EBITDA as earnings before transaction costs (including, for greater certainty, transaction costs related to the CPM Acquisition), one-time implementation costs, interest income, interest and accretion expense, income taxes, depreciation of property and equipment, depreciation of right of use assets, amortization of intangible assets, share-based compensation, foreign exchange gains or losses and other income The Company considers Adjusted EBITDA as an additional metric in assessing business performance and an important measure of operating performance and cash flow, providing useful information to help analyze and compare profitability between companies for investors and analysts.The following table provides a summary of the differences between Grey Wolf's consolidated IFRS and Non-IFRS financial measures, which are reconciled below:EBITDA and Adjusted EBITDA






Three months ended


Mar 31, 2026Mar 31, 2025




Net income for the period

$145,265$27,248




Interest income

(28,947)(30,398)Interest and accretion expense

437,932463,667Income taxes

123,69353,155Depreciation of property and equipment

194,992193,805Depreciation of right of use assets

100,29529,180Amortization of intangible assets

378,917434,250




EBITDA

1,352,1471,170,907




Adjustments



Share-based compensation

12,62717,109Foreign exchange loss

5,2677,527One-time implementation costs

99,531-Transaction costs

-65,270




Adjusted EBITDA

1,469,5721,260,813About Grey Wolf Animal Health Corp.?Grey Wolf Animal Health Corp., headquartered in Toronto, Canada, is a diversified health ?company founded by a veterinarian to bring to market a broad portfolio of products that meets the ?unmet needs of veterinarians, physicians and patients. The Company's strategy is to in-license, acquire or compound prescription and non-prescription products for commercialization in the animal and human health market ?in Canada. For additional information, please visit: www.greywolfah.com.?Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.Forward Looking StatementsCertain information included in this press release contains forward-looking information with the meaning of applicable Canadian securities laws. This information includes statements concerning the Company's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including the proposed change of the Company's name and the Company's 5-year financial target. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", "target" or similar expressions suggesting future outcomes or events or the negative thereof. Such forward-looking information reflects management's beliefs and is based on information currently available. All forward-looking information in this press release is qualified by the following cautionary statements. Forward-looking information necessarily involve known and unknown risks and uncertainties, which may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, assumptions may not be correct and objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its subsidiaries, and cause actual results to differ materially from current expectations of estimated or anticipated events or results.A more detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the Risk Factors section of Grey Wolf's Management's Discussion and Analysis for the three-months ended March 31, 2026. The forward-looking information included in this press release is made as of the date hereof and should not be relied upon as representing the Company's views as of any date subsequent to the date hereof. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.SOURCE Grey Wolf Animal Health Corp. Original: GREY WOLF ANIMAL HEALTH REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS

https://greywolfah.com/grey-wolf-animal-health-reports-fourth-quarter-and-year-end-2025-financial-results/