Achieved nine-month record-high revenues of over $430 million and Adjusted EBITDA¹ of over $76 million
Raised 2026 guidance to revenues of $560 million to$570 million and Adjusted EBITDA¹ of approximately 17.5% of revenues
Raised peak annual revenues for pipeline and launched pipeline products to over $300 million

MONTREAL, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Knight Therapeutics Inc. (TSX: GUD) (“Knight” or “the Company”), a pan-American (ex-US) pharmaceutical company, today reported financial results for its third quarter ended September 30, 2026. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.

Q3-26 Highlights

Financial Results - IFRS

• Revenues were $137,691, an increase of $16,143 or 13% over the same period in the prior year. The increase was primarily driven by the growth of our promoted products in Canada and Latin America, and the appreciation of LATAM currencies, partly offset by the purchasing patterns of certain customers.
• Gross margin was $68,431 or 50% of revenues compared to $55,810 or 46% of revenues in the same period in prior year. The increase in gross margin % was mainly due to product mix and the lower impact of hyperinflation².
• Operating loss was $6,551 compared to an operating income of $646 in the same period in prior year.
• Net loss was $2,680, compared to a net loss of $3,791 in the same period in prior year.
• Net loss per share was $0.03, compared to a net loss per share of $0.04 in the same period in prior year.
• Generated cash inflow from operations of $26,089.
  
  

Financial Results - Non-IFRS

• Adjusted Revenues¹ were $136,740, an increase of $14,112 or 12% over the same period in the prior year, or $5,487 or 4% on a constant currency¹ basis, primarily driven by the growth of our promoted products partly offset by the purchasing patterns of certain customers.
• Adjusted Gross Margin¹ was $69,706 or 51% of Adjusted Revenues¹ compared to $59,898 or 49% of Adjusted Revenues¹ in the same period in prior year. The increase in the Adjusted Gross Margin¹ % was mainly due to product mix.
• Adjusted EBITDA¹ was $23,802, an increase of $2,815 or 13% over the same period in prior year.
• Adjusted EBITDA per share¹ was $0.24, an increase of $0.03 or 15% over the same period in prior year.
• Ended the quarter with net cash³ of $114,538, compared to net debt³ of $987 at the end of Q3-25.
  
  

Corporate developments

• Raised 2026 guidance to revenues of $560 million to $570 million (previously $540 million to $560 million) and Adjusted EBITDA¹ of approximately 17.5% of revenues (previously at least 15%).
• Raised peak annual revenues for pipeline and launched pipeline products to over $300 million (previously over $200 million).
• Brazil’s Superior Chamber of Tax Appeals issued a final decision in Knight’s favour regarding the goodwill tax reassessments.
• Completed the NCIB launched in August 2025 with a total purchase of 1,976,800 common shares at an average price of $6.21 for aggregate cash consideration of $12,277.
  
  

Products

• Entered into an exclusive distribution agreement with Kyowa Kirin International for Poteligeo^® (mogamulizumab) in Brazil, Mexico, Colombia and Argentina.
• Submitted multiple products for regulatory approval:
  • Supplemental indication for Minjuvi^® (tafasitamab) as a first-line treatment option for adults with previously untreated diffuse large B-cell lymphoma (DLBCL) or high-grade B-cell lymphoma (HGBL) in Brazil.
  • Gemtesa^® (vibegron) in Canada.
• Obtained regulatory approval for Tavalisse^® (fostamatinib disodium hexahydrate) in Colombia.
• Executed on 2 commercial launches:
  • Durivast^® (rivastigmine) in Colombia.
  • Wynzora^® (calcipotriol and betamethasone dipropionate) in Canada.
• Received a Notice of Non-Compliance from Health Canada requesting additional information for its New Drug Submission for Crexont^® (carbidopa and levodopa) extended-release capsules. Knight is working with its partner to prepare a response to Health Canada.
• Completed the transition of the exclusive U.S. commercialization rights for Impavido^® (miltefosine) to Eton Pharmaceuticals, Inc.
  
  

Subsequent to quarter-end

• Obtained regulatory approval for Niktimvo^® (axatilimab) in Brazil.
• Executed on 2 commercial launches:
  • Tavalisse^® (fostamatinib disodium hexahydrate) in Brazil.
  • Durivast^® (rivastigmine) in Peru.
• Obtained regulatory approval and launched a supplemental indication of Minjuvi^® for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL) in Mexico.
  
  

“I am excited with our record performance in the first nine months of 2026. Our revenues grew by 36% to $430 million and Adjusted EBITDA¹ by 57% to over $76 million. This strong performance is the result of our commercial execution driving the growth of our promoted portfolio, which increased by $78 million or 39%. During the quarter, we also entered into an agreement with KKI for Poteligeo^®, further strengthening our oncology/hematology portfolio. Given our strong performance, we are raising our financial outlook for fiscal 2026 for both revenues and Adjusted EBITDA¹ and now expect record revenues of between $560 million and $570 million and Adjusted EBITDA¹ of approximately 17.5% of revenues. Looking beyond 2026, based on the performance of our launched pipeline products and the addition of Poteligeo^®, we have also raised our estimate of peak annual revenues for our pipeline and launched pipeline to over $300 million,” said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.

“The growth in our business is translating into solid cash generation. We generated $96 million from our operations in the first nine months of the year and ended the quarter with net cash³ of $115 million. Our raised 2026 outlook and increased pipeline peak revenue guidance, together with our strong balance sheet, position us well to continue executing on our mission of acquiring, in-licensing, developing and commercializing pharmaceutical products in Canada and Latin America,” continued Ms. Sakhia.

^{_______________________________________
1} Refer to Section - Financial Results under Non-IFRS 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 Cash and cash equivalents, and marketable securities, net of bank loans

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 September 30, 2026, revenues increased by $16,143 or 13% compared to the same period in the prior year. This increase was primarily driven by the growth of our promoted products in Canada and Latin America, and the appreciation of LATAM currencies, partly offset by the purchasing patterns of certain customers. On a constant currency¹ basis, the increase in revenues was $5,487 or 4%, driven by the following:

• The Promoted Portfolio grew by $7,531 or 10%.
  • This growth was mainly driven by Myfembree^®, Imvexxy^®, Envarsus^®PA, Orgovyx^®, Minjuvi^®, Pemazyre^®, Bapocil^®, Akynzeo^®, Xcopri^®, Jornay PM^® and Cresemba^®.
  • Partly offset by the purchasing patterns of certain customers.
• The Mature and Discontinued Portfolios decreased by $2,044 or 4%. The variance was not significant.
  

^{_______________________________________
1} Refer to Section - Financial Results under Non-IFRS measures for additional details.

Our revenues by product portfolio are as follows:

• Promoted Portfolio: For the quarter ended September 30, 2026, the Promoted Portfolio increased by $14,874 or 21% driven by:
  • The Launched Pipeline Products grew by $12,386 or 141% and on a constant currency¹ basis by $12,205 or 137% driven by our product launches in Canada and Latin America including Orgovyx^®, Imvexxy^®, Xcopri^®, Myfembree^®, Jornay PM^® and Minjuvi^®.
  • The Strategic Products increased by $2,488 or 4% and, on a constant currency¹ basis, decreased by $4,674 or 7%, driven by the purchasing patterns of certain customers and a decline in revenue of Lenvima^® in Colombia due to price reductions under the direct price control regime, partly offset by the growth in our promoted strategic products including Cresemba^®, Akynzeo^® and Envarsus^®PA. Excluding the impact of the purchasing patterns of certain customers, the Strategic Products grew by $2,253 or 3%.

• Mature Portfolio: For the quarter ended September 30, 2026, the Mature Portfolio increased by $2,569 or 5% and decreased on a constant currency¹ basis by $741 or 1%. The variances were not significant.
  

^{_______________________________________
1} Refer to Section - Financial Results under Non-IFRS measures for additional details.

Gross margin: For the quarter ended September 30, 2026, gross margin was $68,431 or 50%, compared to $55,810 or 46% in Q3-25. Adjusted Gross Margin¹ was $69,706 in Q3-26, an increase of $9,808 compared to Q3-25, due to the growth of revenues. The Adjusted Gross Margin¹ as a % of Adjusted Revenues¹, was 51% in Q3-26 compared to 49% in Q3-25. The increase was mainly due to product mix.

Selling and marketing (“S&M”) expenses: For the quarter ended September 30, 2026, S&M expenses increased by $4,174 or 23% and by $2,874 or 15% on a constant currency¹ basis. The increase was driven by an expansion in our sales structure to support our launches and re-launches in Canada, Brazil and Mexico. In addition to structure, the increase included incremental promotion and marketing expenses for our Launched Pipeline Products, including Orgovyx^®, Myfembree^®, Xcopri^®, Jornay PM^®, Wynzora^®, Durivast^®, Minjuvi^®, and Tavalisse^®.

General and administrative (“G&A”) expenses: For the quarter ended September 30, 2026, G&A expenses increased by $3,093 or 24% and by $2,902 or 22% on a constant currency¹ basis. The increase was mainly driven by an increase in our structure and in administrative costs to support our larger portfolio, as well as higher professional and legal fees. These fees include the legal expenses in connection with tax litigation in Canada and Brazil.

Research and development (“R&D”) expenses: For the quarter ended September 30, 2026, R&D expenses increased by $1,095 or 13% and by $468 or 5% on a constant currency¹ basis. The variance was not significant.

Remeasurement of contingent consideration: For the quarter ended September 30, 2026, remeasurement of contingent consideration increased by $12,093. The increase reflects additional sales milestones that Knight now expects to achieve under the Paladin transaction, based on higher expected peak revenues for a launched pipeline product, taking into consideration its performance since launch.

Net loss: For the quarter ended September 30, 2026, the net loss was $2,680 compared to a net loss of $3,791 for the same period in prior year. The variance was mainly driven by the above-mentioned items, as well as changes in amortization of intangible assets, net gain on financial assets measured at fair value through profit or loss, foreign exchange gain, gain on hyperinflation, interest expense, and income tax recovery.

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

Cash, cash equivalents and marketable securities: As at September 30, 2026, cash, cash equivalents and marketable securities were $136,887, an increase of $41,604 or 44%, compared to December 31, 2025. The increase was mainly driven by operating cash inflows of $96,306 and proceeds of $21,500 for the return of the Canadian commercial rights for certain non-core products, partly offset by net principal repayments on bank loans of $49,893, investment in intangible assets of $9,918, the repurchase of common shares under the NCIB of $9,275, a holdback payment of $8,442 related to the Paladin transaction, and the acquisition of a manufacturing facility in Argentina of $2,950.

Intangible assets: As at September 30, 2026, intangible assets were $344,856, a decrease of $34,654 or 9%, compared to December 31, 2025, primarily due to amortization of $42,941 and derecognition of $17,000 of intangible assets related to the return of the Canadian commercial rights for certain non-core products, partly offset by additions of $14,477 for sales milestones and foreign exchange revaluation. The addition reflects sales milestones that the Company now expects to achieve, based on higher expected peak revenues for multiple launched pipeline products, taking into consideration their performance since launch.

Bank loans: As at September 30, 2026, bank loans were $22,349, a decrease of $45,546 or 67%, compared to December 31, 2025, mainly due to the repayment of $40,000 on the revolving credit facility, as well as repayments on the Bancolombia and IFC loans.

Q3-26 Product Updates

Poteligeo^® (mogamulizumab)

Knight entered into an exclusive distribution agreement with Kyowa Kirin International under which Knight will be responsible for obtaining regulatory approval and commercializing mogamulizumab in Brazil, Mexico, Colombia and Argentina. Poteligeo^® is approved in the United States and Europe for the treatment of adult patients with relapsed or refractory mycosis fungoides (MF) or Sézary syndrome (SS), after at least one prior systemic therapy.

Oncology/Hematology

Lenvima^® (lenvatinib)

Colombia’s Ministry of Health published the list of medicines subject to the direct price control regime and added lenvatinib to the list effective on August 19, 2026, which resulted in a decrease in the selling price of lenvatinib. In addition, during Q2-26, INVIMA approved a generic version of lenvatinib 10 mg which has not been launched to date. The Company expects these developments to continue to negatively impact revenues and adjusted EBITDA of Lenvima^® in Colombia.

Minjuvi^® (tafasitamab)

Follicular lymphoma (FL)

Subsequent to Q3-26, Knight obtained regulatory approval and launched a supplemental indication of Minjuvi^® for the treatment of adult patients with relapsed or refractory follicular lymphoma (FL) in Mexico.

First-line diffuse large B-cell lymphoma (DLBCL)

Knight filed a supplemental application in Brazil for Minjuvi^® in combination with lenalidomide and R-CHOP (rituximab, cyclophosphamide, doxorubicin, vincristine and prednisone), or tafa-len-R-CHOP, as a first-line treatment for adult patients with previously untreated DLBCL or high-grade B-cell lymphoma (HGBL).

Niktimvo^® (axatilimab)

Subsequent to Q3-26, Knight announced that ANVISA, under the rare disease pathway, approved Niktimvo^® in Brazil, for the treatment of chronic graft-versus-host disease (cGVHD) after failure of at least two prior lines of systemic therapy in adult and pediatric patients 6 years and older weighing at least 40 kg. Knight has since submitted Niktimvo^® for pricing approval to the Drugs Market Regulation Chamber in Brazil.

Tavalisse^® (fostamatinib disodium hexahydrate)

Knight obtained regulatory approval for Tavalisse^® in Colombia for the treatment of adult patients with chronic immune thrombocytopenia (ITP) who have had an insufficient response, loss of response, or intolerance to prior treatment with corticosteroids and intravenous immunoglobulin. Knight expects to launch Tavalisse^® in Colombia in the first half of 2027. Subsequent to Q3-26, Knight announced the launch of Tavalisse^® in Brazil for the treatment of adult patients with ITP who have had an insufficient response to a previous treatment.

Infectious Diseases

Ambisome^® (amphotericin B)

In September 2026, a competitor received ANVISA approval for a generic and a branded generic of liposomal amphotericin B. The Company expects this development to negatively impact sales and the Adjusted EBITDA of Ambisome^® in Brazil in 2027.

Neurology

Crexont^® (carbidopa and levodopa)

Knight received a Notice of Non-Compliance from Health Canada for its New Drug Submission for Crexont^®, for the treatment of Parkinson’s disease. Knight will work with its partner to prepare a response to Health Canada.

Durivast^® (rivastigmine)

Knight launched Durivast^® in Colombia for the symptomatic treatment of dementia associated with Alzheimer's disease, administered as a transdermal patch applied twice weekly, on designated days and dementia associated with Parkinson's disease. Subsequent to Q3-26, Durivast^® launched in Peru.

Other Specialty

Wynzora^® (calcipotriol and betamethasone dipropionate)

Knight launched Wynzora^® in Canada for the topical treatment of psoriasis vulgaris in adults and adolescents aged 12 and older.

Gemtesa^® (vibegron)

Knight submitted Gemtesa^® for regulatory approval in Canada for the treatment of overactive bladder (OAB) with symptoms of urge urinary incontinence, urgency, and urinary frequency in adults, and OAB with symptoms of urge urinary incontinence, urgency, urinary frequency, and nocturia in adult males on pharmacological therapy for benign prostatic hyperplasia.

Financial Outlook¹

Pipeline and launched pipeline peak annual revenues guidance increased to over $300,000¹

Knight has raised its estimate of peak annual revenues for its pipeline and launched pipeline products from over $200,000 to over $300,000¹. The increase reflects (i) higher expected peak revenues for multiple launched pipeline products, taking into consideration their performance since launch, and (ii) the addition of Poteligeo^®. This is the fourth time Knight has raised this guidance, up from over $50,000 in 2022. The current guidance covers more than 75 product launches across Canada and Latin America of which 22 have been launched to date. As a result of the higher peak annual revenue guidance, Knight recognized $27,248 in additional sales milestones that it now expects to achieve, including $12,771 in contingent consideration payable related to the Paladin transaction.

Fiscal Year 2026 revenues and Adjusted EBITDA² guidance

Knight has increased its 2026 financial guidance on revenues and Adjusted EBITDA² as a % of revenues. The Company expects to generate between $560 and $570 million in revenues, up from $540 million to $560 million in revenues, and Adjusted EBITDA² as a % of revenues is expected to be approximately 17.5%, up from at least 15%. The increase in our outlook is mainly driven by the stronger performance of our promoted products across multiple countries as well as LATAM currencies performing better against the Canadian dollar than previously anticipated.

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 November 4, 2026
• no unforeseen termination to our license, distribution and 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} 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.
² Refer to Section - Financial Results under Non-IFRS measures for additional details.

ConferenceCall Notice 

Knight will host a conference call and audio webcast to discuss its third quarter ended September 30, 2026, today at 8:30 a.m. ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, November 5, 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 pharmaceutical company focused on acquiring, 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 the TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's website 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 as a result of new information or future events, except as required by law.

CONTACT INFORMATION:

HYPERINFLATION

The Company applies IAS 29, Financial Reporting in Hyperinflationary Economies, as its Argentine subsidiary's functional currency is the Argentine Peso. Revenues and operating expenses in ARS are restated for inflation from the month in which they were recorded to the end of the reporting period, using the corresponding factor in the inflation index below.

The inflation restatement is calculated on a year-to-date basis, and the restated amounts are translated into CAD at the closing rate for the period.

¹Positive variances indicate appreciation of ARS vs CAD, and negative variances depreciation.

Accordingly, the application of hyperinflation accounting under IAS 29 resulted in higher reported revenues and operating expenses, in CAD, for the Company's Argentine subsidiary in both Q3-26 and YTD-26 compared with the corresponding prior-year periods. Under hyperinflation accounting, cost of goods sold denominated in ARS is restated using the inflation index from the inventory purchase or production date to the end of the reporting period and translated into CAD using the applicable quarter-end closing rates.

^{_______________________________________
1} Appreciation (depreciation) of ARS vs CAD, calculated as (beginning of period rate − end of period rate) / beginning of period rate.

FINANCIAL RESULTS UNDERNON-IFRS MEASURES
[In thousands of Canadian dollars]

The Company discloses Non-IFRS 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-IFRS 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-IFRS measures.

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

The Company applies IAS 29, Financial Reporting in Hyperinflationary Economies, as its Argentine subsidiary's functional currency is the Argentine Peso. To derive this measure, financial results under IFRS are adjusted to remove the impact of hyperinflation under IAS 29. Refer to Section – Hyperinflation for further details.

The Company believes that financial results excluding the impact of hyperinflation under IAS 29 represent a useful measure to investors as they allow results to be viewed without those impacts, 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-IFRS measure and does not have any standardized meaning under IFRS. 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.

Select financial results excluding the impact of hyperinflation under IAS 29¹

Adjusted Revenues¹ by Product Portfolio

Adjusted Revenues¹ by Therapeutic Area

[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 represent 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-IFRS measure and does not have any standardized meaning under IFRS. 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 excluding the impact of hyperinflation under IAS 29 to financial results and financial results at constant currency for the same period in prior year.

Adjusted Revenues at Constant Currency¹ by Product Portfolio

Adjusted Revenues at Constant Currency¹ by Therapeutic Area

[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 to assess Gross Margin 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-IFRS measure and does not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies.

[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-IFRS measure and does not have any standardized meaning under IFRS. 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 remeasurement of contingent consideration, 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. The presentation of adjusted EBITDA is considered to be a Non-IFRS measure and does not have any standardized meaning under IFRS. 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 (loss) income to EBITDA and adjusted EBITDA:

For the quarter ended September 30, 2026, adjusted EBITDA increased by $2,815 or 13%. The increase was mainly driven by higher Adjusted Gross Margin¹, partly offset by higher operating expenses. Refer to Section 3 - Results of Operations of the MD&A for further details.

^{______________________________________
1} Non-IFRS measures and do not have any standardized meaning under IFRS. As a result, the information presented may not be comparable to similar measures presented by other companies.

Explanation of adjustments from EBITDA to Adjusted EBITDA

[vi] Adjusted EBITDA per share

Adjusted EBITDA per share is defined as Adjusted EBITDA divided by the 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 remeasurement of contingent consideration, impact of hyperinflation under IAS 29, acquisition and transaction costs, Step-Up Expense and non-recurring expenses, thereby facilitating the comparison period over period. The presentation of adjusted EBITDA per share is considered to be a Non-IFRS ratio and does not have any standardized meaning under IFRS. 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: