Crescita Reports First Quarter 2026 Results

LAVAL, Québec--(BUSINESS WIRE)--Crescita Therapeutics Inc. (TSX: CTX and OTC US: CRRTF) (“Crescita” or the “Company”), a growth-oriented, innovation-driven Canadian commercial dermatology company, today reported its financial results for the first quarter ended March 31, 2026 (“Q1-2026”). All amounts presented are in thousands of Canadian dollars (“CAD”) unless otherwise noted and in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

Financial Highlights

Q1-2026 vs. Q1-2025²

• Revenue was $5,637, compared to $3,537, an increase of $2,100;
• Gross profit was $2,644 compared to $1,570, an increase of $1,074;
• Operating expenses were $3,849 compared to $2,632, an increase of $1,217;
• Net loss was $(1,160) compared to $(932), an increase of $228;
• Adjusted EBITDA¹ was $238 compared to $(679), an increase of $917;
• Ending cash of $8,710, an increase of $133 for the quarter.

Commenting on the results and Crescita’s proposed acquisition by ClinActiv, Serge Verreault, President and CEO of Crescita, stated: “During the first quarter, we continued to execute against our operational priorities. Our results reflect the year-over-year revenue and gross profit growth, driven by higher production volumes in our Manufacturing segment as well as the incremental revenue from recently acquired skincare assets. As we work through the remaining steps required to complete the transaction, we maintain our focus on serving our customers and supporting our employees, as well as ensuring a smooth and orderly transition of the business.”

Operational and Corporate Developments

For the three months ended March 31, 2026 and up to the date of this press release:

Filing and Mailing of Special Meeting Materials and Receipt of Interim Order in respect of Arrangement with ClinActiv Holdings Inc.

• On April 22, the Company announced that it had filed and mailed its management information circular (the “Circular”) and related materials in connection with the special meeting of shareholders to be held on May 14, 2026 (the “Special Meeting”) at which shareholders will be asked to pass a special resolution (the “Arrangement Resolution”) approving the previously announced plan of arrangement with ClinActiv Holdings Inc. and its affiliate (the “Arrangement”). The Circular, which was filed on SEDAR+, provides, among other things, details regarding the background to the Arrangement and the rationale for the Board of Directors’ recommendation, as well as voting procedures. The Company also announced that it had obtained an interim order from the Ontario Superior Court of Justice (Commercial List) (the “Court”), authorizing Crescita to proceed with various matters relating to the Arrangement, including the holding of the Special Meeting to consider and vote on the Arrangement Resolution.
  
  Subject to the receipt of the requisite approval of the shareholders, the final approval of the Arrangement by the Court and the satisfaction of other customary conditions, the Arrangement is expected to close in the second quarter of 2026. Upon closing of the Arrangement, it is expected that the Company’s common shares will be delisted from the Toronto Stock Exchange (the “TSX”) and that Crescita will apply to the applicable Canadian securities regulators to cease to be a reporting issuer under applicable Canadian securities laws.

Acquisition by ClinActiv Holdings Inc. in an All-Cash Deal at a Significant Premium

• On March 14, the Company entered into an arrangement agreement with ClinActiv Holdings Inc. and its affiliate (the “Purchaser”), pursuant to which the Purchaser will acquire all of the issued and outstanding common shares of the Company for cash consideration of $0.80 per share, subject to upward or downward adjustment based on the Company’s net working capital balance at closing, with a minimum purchase price of $0.75 per share. The target purchase price of $0.80 per share represents a premium of approximately 74% over the five-day volume weighted average price of the Company’s shares on the TSX as of the close of market trading on March 13 (being the last trading day prior to the announcement of the transaction).
  
  The Arrangement will be implemented by way of a court-approved statutory plan of arrangement under section 182 of the Business Corporations Act (Ontario). Completion of the Arrangement is subject to approval by the Company’s shareholders, court approval, satisfaction of customary closing conditions, and the Company maintaining minimum cash and net working capital balances at closing. The Company issued a news release announcing the Arrangement on March 16, 2026, a copy of which is available on SEDAR+ at www.sedarplus.ca, along with the Arrangement Agreement and Voting and Support Agreements.

Manufacturing and Office Facility Lease Renewal

• In February, the Company exercised its option to renew the lease for its manufacturing and office facility. The lease, which was set to expire on September 30, 2026, has been extended for an additional five years and will now expire on September 30, 2031. The renewal is on the same terms and conditions as our existing lease.

Q1-2026 Summary Financial Results

Note: Select financial information is outlined below and should be read in conjunction with Crescita's Condensed Consolidated Interim Financial Statements and related Management's Discussion and Analysis (“MD&A”) for the three months ended March 31, 2026, which are available on Crescita’s profile on SEDAR+ at www.sedarplus.ca and on Crescita’s website at www.crescitatherapeutics.com.

Revenue

We have three reportable segments: 1) Commercial Skincare (“Skincare”), which generates revenue from the commercialization of our branded non-prescription skincare products, manufactured in-house, in Canada and in certain international markets, as well as other brands under exclusive distribution agreements; 2) Licensing and Royalties (“Licensing”), which derives revenue from licensing our intellectual property related to Pliaglis^®; and 3) Manufacturing and Services (“Manufacturing”), which generates revenue from contract manufacturing and product development services.

For the three months ended March 31, 2026, total revenue was $5,637 compared to $3,537 for the three months ended March 31, 2025. The net increase of $2,100 was primarily driven by higher Manufacturing segment revenue of $1,572, mainly due to the fulfillment of large orders in Q1-2026, as well as the impact of the timing, in the prior year, of a purchase order that was originally planned for Q1-2025 but was fulfilled in Q4-2024. Skincare sales also increased by $592, mainly reflecting incremental revenue from Bacti Control, acquired in August 2025, along with higher e-commerce sales and increased export revenue to Asian markets.

Gross Profit and Gross Margin

For the three months ended March 31, 2026, gross profit was $2,644, representing a gross margin of 46.9%, compared to $1,570 and 44.4%, respectively, for the three months ended March 31, 2025. The increase in gross profit of $1,074 was mainly driven by higher revenue in our Manufacturing and Skincare segments. The net increase in gross margin of 2.5% was mainly due to the benefit of increased manufacturing volumes in our plant, partly offset by an unfavorable revenue mix, reflecting a higher relative proportion of lower-margin Manufacturing segment revenue, in the current quarter versus the prior year.

Operating Expenses

For the three months ended March 31, 2026, total operating expenses were $3,849 compared to $2,632 for the three months ended March 31, 2025. The increase of $1,217 was primarily driven by the $825 in transaction costs incurred in connection with the Arrangement, primarily representing legal and advisory fees recorded in SG&A, a $201 increase in share-based compensation expense resulting from the increase in the Company’s share price following the announcement of the Arrangement, and higher consulting fees year-over-year.

Cash and Cash Equivalents

Cash and cash equivalents were $8,710 at March 31, 2026, reflecting a net increase of $133 for the quarter, mainly due to the cash provided by operating activities.

Non-IFRS Financial Measures

We report our financial results in accordance with IFRS. However, we use certain non-IFRS financial measures to assess our Company’s performance. We believe these to be useful to management, investors, and other financial stakeholders in assessing Crescita’s performance. The non-IFRS measures used in this press release do not have any standardized meaning prescribed by IFRS and are therefore not comparable to similar measures presented by other issuers. These measures should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS. The following are the Company’s non-IFRS measures along with their respective definitions:

1. EBITDA is defined as earnings before interest, income taxes, depreciation of property, plant and equipment, and amortization of right-of-use asset and intangible assets.
2. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation of property, plant and equipment, amortization of right-of-use asset and intangible assets, foreign exchange (gains) losses, share of (profit) loss of associates, fair value (gains) losses, share-based compensation, restructuring, acquisition-related and integration costs, impairment of goodwill, intangible assets, and investment in an associate, and material non-recurring items that are outside the normal course of operations, as applicable.

Management believes that Adjusted EBITDA is an important measure of operating performance and cash flow and provides useful information to investors as it highlights trends in the underlying business that may not otherwise be apparent when relying solely on IFRS measures. Below is a reconciliation of EBITDA and Adjusted EBITDA to their closest IFRS measures.

Caution Concerning Limitations of Summary Financial Results Press Release

This summary earnings press release contains limited information meant to assist the reader in assessing Crescita’s performance, but it is not a suitable source of information for readers who are unfamiliar with Crescita and is not in any way a substitute for the Company's Consolidated Audited Financial Statements and notes thereto, MD&A and latest Annual Information Form (“AIF”), all of which can be found on the Company’s profile on SEDAR+ at www.sedarplus.ca.

About Crescita Therapeutics Inc.

Crescita (TSX: CTX and OTC US: CRRTF) is a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house R&D and manufacturing capabilities. The Company offers a portfolio of high-quality, science-based non-prescription skincare products and a commercial stage prescription product, Pliaglis^®. We also own multiple proprietary transdermal delivery platforms that support the development of patented formulations to facilitate the delivery of active ingredients into or through the skin. For more information visit, www.crescitatherapeutics.com.

Forward-looking Information

Certain statements in this press release constitute forward-looking statements and/or forward-looking information (collectively “forward-looking information”) within the meaning of applicable securities laws. All information in this press release, other than statements of current and historical fact, represents forward-looking information and is qualified by this cautionary note.

Forward-looking information may relate to the Company’s future financial outlook and anticipated events or results and may include information regarding the Company’s financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans, objectives, and expectations. Such information is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company’s anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Often, but not always, forward-looking information can be identified by the use of forward-looking terminology such as: “outlook”, “objective”, “anticipate”, “intend”, “plan”, “goal”, “seek”, “believe”, “aim”, “project”, “estimate”, “expect”, “strategy”, “future”, “likely”, “may”, “should”, “will”, “growth strategy”, “future”, “prospects”, “continue”, and similar references to future periods or suggesting future outcomes or events. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information.

Examples of forward-looking information include, but are not limited to, statements made in this press release under the heading “Financial Highlights”, including statements regarding the Company’s objectives, plans, goals, strategies, growth, performance, operating results, financial condition, business prospects, opportunities and industry trends, and similar statements concerning anticipated future events, results, circumstances, performance or expectations.

Forward-looking information is neither historical fact nor assurance of future performance. Instead, it reflects management’s current beliefs, expectations and assumptions and is based only on information currently available to us. Forward-looking information is necessarily based on a number of estimates and assumptions that, while considered reasonable by the management of the Company as of the date of this press release, are inherently subject to significant business, economic, and competitive uncertainties and contingencies that are difficult to predict and many of which are outside of our control.

The Company’s estimates, beliefs and assumptions, which may prove to be incorrect, include various assumptions regarding, among other things: the Company’s future growth potential, results of operations, future prospects and opportunities; the Company’s ability to retain and recruit, as applicable, customers, members of management and key personnel; industry trends; legislative or regulatory matters, including expected changes to laws and regulations and the effects of such changes; future levels of indebtedness; availability of capital; the Company’s ability to secure additional capital and source and complete acquisitions; the Company’s ability to maintain and expand its market presence and geographic scope; economic and market conditions, including the imposition of and adverse changes to tariffs and other trade protection measures; the impact of currency exchange and interest rates; the Company’s ability to maintain existing financing and insurance on acceptable terms; the Company’s ability to execute on, and the impact of, its environmental, social and governance initiatives; the impact of competition; the Company’s ability to respond to changes to its industry and the global economy; and the Company’s expectations and assumptions concerning the Arrangement, including the completion of the Arrangement, the receipt, in a timely manner, of shareholder and court approvals in respect of the Arrangement, the satisfaction of other conditions to closing of the Arrangement, and the Company's cash balance and net working capital as of closing of the Arrangement.

Forward-looking information involves risks and uncertainties that could cause Crescita’s actual results and financial condition to differ materially from those contemplated by such forward-looking information. Important factors that could cause such differences include, among others:

• economic and market conditions, including factors impacting global supply chains such as pandemics, geopolitical conflicts and tensions, and trade protection measures, like the imposition of tariffs and retaliatory tariffs by the United States and Canada;
• the impact of inflation and fluctuating interest rates;
• the Company’s ability to execute its growth strategies;
• the degree or lack of market acceptance of the Company’s products;
• reliance on third parties for marketing, distribution and commercialization, and clinical trials;
• the impact of variations in the values of the Canadian dollar in relation to the U.S. dollar and Euro;
• the impact of the volatility in financial markets;
• the Company’s ability to retain members of its management team and key personnel;
• the impact of changing conditions in the regulatory environment and product development processes;
• manufacturing and supply risks;
• increasing competition in the industries in which the Company operates;
• the Company’s ability to meet its contractual obligations;
• the impact of product liability matters;
• the impact of litigation involving the Company and/or its products;
• the impact of changes in relationships with customers and suppliers;
• the degree of intellectual property protection of the Company’s products;
• developments and changes in applicable laws and regulations,
• risks related to the Arrangement; and
• other risk factors described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory agencies and commissions, including the sections entitled “Risk Factors” in the Company’s most recent annual MD&A and AIF.

If any risks or uncertainties with respect to the above materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. This list is not exhaustive of the factors that may impact the Company’s forward-looking information. Although management has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known or that management believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information, which speaks only as of the date provided, and is subject to change after such date. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update any forward-looking information, whether written or oral, that may be provided from time to time, whether as a result of new information, future developments or otherwise.

Source: Crescita Therapeutics

FOR MORE INFORMATION, PLEASE CONTACT:
Linda Kisa, CPA, CA
Vice-President, Reporting and Corporate Affairs and Secretary
Email: lkisa@crescitatx.com