Toronto, Ontario--(Newsfile Corp. - May 6, 2026) - CareRx Corporation (TSX: CRRX) ("CareRx" or the "Company"), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today reported its financial results for the first quarter ended March 31, 2026.

Highlights for the First Quarter of 2026

• Average Beds Serviced^[1] increased to 92,036 in Q1 2026 from 87,675 Average Beds Serviced in Q1 2025 (92,250 - Q4 2025).
• Revenue increased to $93.9 million in Q1 2026, compared to $89.6 million in Q1 2025 ($96.1 million - Q4 2025).
• Adjusted EBITDA¹ increased to $8.4 million in Q1 2026 from $7.8 million in Q1 2025 ($8.8 million - Q4 2025).
• Adjusted EBITDA Margin¹ increased to 9.0% for Q1 2026, compared to 8.7% in Q1 2025 (9.2% - Q4 2025).
• Cash from Operations decreased to $6.9 million in Q1 2026, compared to $7.4 million in Q1 2025 ($9.6 million - Q4 2025).

"Our first quarter results, with year-over-year growth in revenue, Adjusted EBITDA, margins and Average Beds Serviced, reflect the strength of the platform we have built through consistent operational discipline and targeted investment," said Puneet Khanna, President and Chief Executive Officer of CareRx. "Now that Ontario long-term care funding is stable and secured with certainty going forward, our full attention turns to driving meaningful and sustained growth."

Notable Events - Announcement of Changes to Ontario Long-Term Care Capitation Funding

• As previously disclosed in the Company's press release dated April 16, 2026, the Ontario Ministry of Health (the "Ministry") announced that the current funding rate of $1,500 per licensed long-term care ("LTC") bed per year will be maintained for 2026-2027 and on an ongoing basis. The Ministry also confirmed that the previously scheduled reduction in the fee-per-bed rate—from $1,500 to $1,200 per bed per year—will no longer be implemented. In addition, the Ministry announced changes to the treatment of unoccupied licensed beds for funding purposes, including the removal of funding for certain unoccupied ward beds.
• The Company currently estimates that the removal of funding for unoccupied ward beds will result in an approximate reduction of up to $2 million in capitation fees in 2026. The financial impact remains uncertain, as it is dependent on several factors, including the pace and extent of bed redevelopment by LTC operators. The Company is actively evaluating mitigation strategies to offset the net impact of these changes to capitation funding in Ontario. CareRx remains focused on continuing to work collaboratively with the Ontario Government and sector partners on shared priorities in enhancing long-term care.

¹ Non-IFRS measure, non-IFRS ratio, or supplementary financial measure. These measures are not standardized financial measures recognized under IFRS and may not be comparable to similar measures disclosed by other issuers. See the "Non-IFRS Measures, Non-IFRS Ratios and Other Measures" section of this press release.

FINANCIAL RESULTS

Selected Financial Information

¹ Non-IFRS measure or non-IFRS ratio. For further information, including descriptions of the composition of each measure or ratio and reconciliations of the measure to the comparable measures under IFRS, see the "Non-IFRS Measures, Non-IFRS Ratios and Other Measures" section of this press release.

Financial Performance – Q1 2026

• Adjusted EBITDA¹ and Adjusted EBITDA margin¹ increased in comparison to Q1 2025 due to the increase in beds serviced by the Company and cost savings initiatives.
• Net Debt¹ decreased to $25.0 million, compared to Q4 2025 ($27.1 million) due to the partial repayment of the Company's term loan.

Q2 2026 Dividend
The Company's Board of Directors has declared a dividend of CAD$0.02 per outstanding common share, payable on July 9, 2026, to holders of record of common shares as of the close of business on June 23, 2026. This dividend is designated as an "eligible dividend" for Canadian income tax purposes. Dividends paid or credited to non-residents of Canada are subject to withholding tax, which may be reduced by treaty. Taxation of dividends paid to U.S. residents is governed by the Internal Revenue Code. The Company advises shareholders to consult a tax advisor to determine any tax consequences of receiving dividends from CareRx.

Conference Call
The Company will host a conference call to discuss its first quarter of 2026 financial results on Thursday, May 7, 2026, at 8:30 a.m. Eastern Time (ET). To dial direct and enter the call through an operator, dial 647-849-3320 or 1-833-752-4643.

A live webcast of the conference call, including the slide presentation, will be available on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/) and can be accessed at https://www.gowebcasting.com/14668. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/).

About CareRx Corporation
CareRx is Canada's leading provider of pharmacy services to seniors living and other congregate care communities (long-term care homes, retirement homes, assisted living facilities and group homes). We are a national organization with a large network of pharmacy fulfillment centers strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimens. We take an active role in working with our home operator partners to promote resident health, staff education and medication system quality and efficiency.

Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" and "financial outlook" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, but are not limited to, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, and statements about possible future events, including statements about the payment of dividends and changes in long-term care capitation funding for pharmacy services in Ontario, including the potential impact of such funding changes on the Company. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's beliefs as of the date hereof and are based on information currently available to management. Statements including a financial outlook are included for the purpose of providing management's perspective on the Company's anticipated future business operations and financial results and such outlook may not be appropriate for other purposes.

Forward-looking statements, including statements containing a financial outlook, are based on management's perception of historical trends, current conditions, and future developments, as well as assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to known and unknown risks and uncertainties (many of which are beyond the control of the Company) that could cause actual results to differ materially from those contemplated by such statements. Forward-looking statements, including those containing a financial outlook are based on assumptions, including with respect to the number of licensed ward beds serviced by the Company, the pace, extent and timing of the redevelopment of such ward beds, and the Company's ability to effectively mitigate the loss of government funding through other revenue expansion and cost savings initiatives. Factors and risks that could cause actual results to differ from those contemplated by the forward-looking statements in this press release include, but are not limited to, the Company's general business risks, the Company's exposure to and reliance on government regulation and funding, reliance on contracts with key care operators, and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. The foregoing risks and factors are not an exhaustive list of the factors that may impact the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements, including its financial outlook. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements. The factors underlying current expectations are dynamic and subject to change.

Any forward-looking statement (including any financial outlook) speaks only as of the date of such statement, and other than as specifically required by applicable laws, the Company is under no obligation and it expressly disclaims any such obligation to update or alter the forward-looking statements, including those constituting a financial outlook, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.

Non-IFRS Measures, Non-IFRS Ratios and Other Measures
This press release includes certain measures which have not been prepared in accordance with IFRS, including: "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted EBITDA per share", "Net Debt" and "Net Debt to Adjusted EBITDA". These non-IFRS measures and non-IFRS ratios are not standardized financial measures recognized under IFRS and, accordingly, readers are cautioned that these measures may differ from, and may not be comparable to, similarly-named measures reported by other issuers. With respect to "EBITDA" and "Adjusted EBITDA", net income (loss) is the most directly comparable financial measure determined in accordance with IFRS. With respect to "Net Debt", Cash and cash equivalents and Borrowings are the most directly comparable financial measures determined in accordance with IFRS. The non-IFRS measures and ratios presented this press release should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

The Company defines "EBITDA" as earnings before depreciation and amortization, finance costs, net, and income tax expense (recovery). "Adjusted EBITDA" is defined as EBITDA before transaction, restructuring and other costs, change in fair value of contingent consideration liability, impairments, (gain) loss on disposal of assets and share-based compensation expense. "Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by revenue. "Adjusted EBITDA per share" is defined as Adjusted EBITDA divided by the weighted average outstanding shares. "Net Debt" is defined as the principal balance of the Company's borrowings net of cash and cash equivalents. "Net Debt to Adjusted EBITDA" is defined as Net Debt divided by the Company's run-rate Adjusted EBITDA annualized based on the current quarter's Adjusted EBITDA. Management of the Company believes that these non-IFRS measures and non-IFRS ratios provide useful information to investors regarding the Company's financial condition and results of operations as they provide additional key metrics of performance. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives. The Company's agreements with lenders are also structured with certain financial performance covenants which include Adjusted EBITDA as a key component of the covenant calculation. The Company uses Adjusted EBITDA Margin to assess the efficiency of its operations by comparing Adjusted EBITDA for the period against revenues. The Company believes that Adjusted EBITDA per share can provide shareholders with useful information, contextualizing Adjusted EBITDA by factoring in changes to the Company's outstanding shares. The Company believes Net Debt and Net Debt to Adjusted EBITDA provides useful information to investors and other stakeholders as it reflects the Company's overall financial leverage and liquidity position. Management uses Net Debt and Net Debt to Adjusted EBITDA as a measure of the Company's ability to meet its financial obligations and manage its capital structure.

In addition to the foregoing non-IFRS measures and ratios, the Company uses certain key performance indicators, including Average Beds Serviced, to compare the financial performance of the Company's operations between periods. Average Beds Serviced is a supplementary financial measure which is not a standardized financial measure recognized under IFRS and, accordingly, readers are cautioned that this measure may differ from, and may not be comparable to, similarly-named measures reported by other issuers. Average Beds Serviced is calculated as the simple average of the number of residents serviced by the Company at the end of each month in the applicable period.

Reconciliation of Non-IFRS Measures

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