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 second quarter ended June 30, 2025 (“Q2-2025”). 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

Q2-2025 vs. Q2-2024

• Revenue was $6,233 compared to $4,088, an increase of $2,145;
• Gross profit was $3,825 compared to $2,235, an increase of $1,590;
• Operating expenses were $3,242 compared to $3,279, a decrease of $37;
• Net income was $798 compared to a net loss $(926), an increase of $1,724;
• Adjusted EBITDA¹ was $964 compared to $(686), an increase of $1,650;
• Ending cash was $8,184, a decrease of $354 for the quarter.

“We are pleased with the positive results for the quarter, which showed significant year-over-year improvement and strengthened our position as we enter the second half of 2025. Q2 was marked by the successful fulfillment of key purchase orders with a new manufacturing customer, and the continued growth in our Skincare segment,” commented Serge Verreault, President and Chief Executive Officer of Crescita. “While non-recurring in nature, the mutual termination agreement with Croma added approximately $900,000 to our topline and cash balance. When excluding its impact on our results, we achieved a breakeven Adjusted EBITA for the quarter,” added Mr. Verreault.

“Looking ahead, we are optimistic about our growth prospects and are actively exploring strategic opportunities to further strengthen our position and expand our market presence, including discussions with potential partners for Pliaglis for certain available European countries.”

Operational and Corporate Developments

For the three and six months ended June 30, 2025 and up to the date of this press release:

Mutual Termination of Licensing Agreement with Croma Pharma GmbH for Pliaglis^®

• In May, we mutually agreed to terminate our Commercialization and Development License Agreement with Croma Pharma GmbH (“Croma”), that granted Croma exclusive rights to market Pliaglis^® in Germany, the United Kingdom, Ireland, Switzerland, Brazil, Romania, Belgium, the Netherlands and Luxembourg. Following a strategic business review, Croma decided to rationalize its product portfolio and realign its business priorities. Under the terms of the termination agreement, we regained all development and commercialization rights for Pliaglis in the affected territories, and Croma paid Crescita €575,000 (CA$902,000). We are exploring potential new partnerships to commercialize Pliaglis in these markets.

Repurchases under our Normal Course Issuer Bid (“NCIB”)

• During the three and six months ended June 30, 2025, we repurchased 107,004 and 183,098 common shares through our NCIB at weighted average purchase prices per share of $0.55 and $0.56 for total cash considerations of $59 and $102, respectively.

Q2-2025 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 and six months ended June 30, 2025, which are available on Crescita’s profile on SEDAR+ at www.sedarplus.ca and on Crescita’s website at www.crescitatherapeutics.com.

Revenues

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 currently 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 June 30, 2025, total revenue was $6,233 compared to $4,088 for the three months ended June 30, 2024. The increase of $2,145 was primarily driven by the ramp-up of production volumes with a new customer in the Manufacturing segment, as well as the termination payment of approximately $902 (€575) received from Croma during the quarter (the “Termination Payment”). Skincare segment sales also increased year-over-year, primarily reflecting incremental revenue from Aquafolia, acquired in June 2024, and higher export sales to Asian markets, partly offset by a decrease in e-commerce revenue.

For the six months ended June 30, 2025, total revenue was $9,770, compared to $9,084 for the six months ended June 30, 2024. The net increase of $686 was mainly driven by higher Licensing and Skincare segment revenue, attributable to the same factors as those identified for the quarter, while Manufacturing segment revenue decreased primarily due to the timing of the fulfillment of a purchase order originally scheduled for Q1-2025 but advanced into Q4-2024. This decrease was partly offset by the ramp-up of production volumes with a new customer.

Gross Profit and Gross Margin

For the three months ended June 30, 2025, gross profit was $3,825, representing a gross margin of 61.4%, compared to $2,235 and 54.7%, respectively, for the three months ended June 30, 2024. The increases in gross profit of $1,590 and in gross margin of 6.7%, respectively, were primarily driven by the increase in revenue, including the full-margin Termination Payment, the favorable impact of higher manufacturing volumes, as well as the cost of promotions in the prior year, partly offset by a decrease in higher-margin e-commerce revenue.

For the six months ended June 30, 2025, gross profit was $5,572, representing a gross margin of 57.0%, compared to $4,646 and 51.1%, respectively, for the six months ended June 30, 2024. The net increases in gross profit of $926 and in gross margin of 5.9%, respectively, were mainly due to the same factors as those identified for the quarterly period.

Operating Expenses

For the three months ended June 30, 2025 and 2024, total operating expenses were $3,242 and $3,279, respectively, remaining essentially flat year-over-year.

For the six months ended June 30, 2025 and 2024, total operating expenses were $6,051 and $6,421, respectively. The year-over-year net decrease of $370 was mainly driven by lower headcount-related expenses as a result of position vacancies, as well as lower commercial partnership fees in connection with our ecommerce sales.

Cash and Cash Equivalents

Cash and cash equivalents were $8,184 at June 30, 2025, reflecting a net decrease of $354 in the quarter, mainly as a result of an unfavorable net change in non-cash working capital.

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 and 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, and goodwill and intangible asset impairment, 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; and the Company’s ability to respond to changes to its industry and the global economy.

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, 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.

¹Please refer to the Non-IFRS Financial Measures section of this press release.

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