Grey Wolf Animal Health: A Veterinarian-Built Business Growing 33% a Year

A practicing veterinarian started a company to solve a problem he saw every day in his own clinic — and it's now doing nearly $36 million in annualized revenue. Grey Wolf Animal Health Corp (TSXV: WOLF) is one of Canada's quieter small-cap growth stories, trading at $1.33 with a $45 million market cap, and the numbers are starting to get hard to ignore.

What They Do

Grey Wolf sells pharmaceutical, nutraceutical, and consumable products to veterinary clinics across Canada — everything from sedatives and wound care products to syringes and IV catheters. They also operate a compounding pharmacy that creates custom medications for both animal and human patients. The company was founded in 2015 by Dr. Ian Sandler, a practicing veterinarian who still works in his clinic, giving the company a direct line to what vets actually need.

How They Make Money

Grey Wolf operates two business units that work together nicely. The Animal Health segment distributes branded and generic products to vet clinics — products like SILEO (a noise anxiety treatment for dogs), sedatives, thyroid medications, and disposable medical supplies. The Pharmacy segment compounds custom prescriptions for both animal and human health markets. Revenue in the first nine months of 2025 hit $26.8 million, up 33% year-over-year, putting the company on pace for roughly $36 million annually. The pharmacy side has been the real engine lately, growing 55.9% over the same period, boosted by their December 2024 acquisition of The Compounding Pharmacy of Manitoba (CPM). But this isn't just acquisition-fueled growth — as CEO Angela Cechetto noted, even excluding CPM, the pharmacy business grew organically by 10.5% year to date. That said, the CEO also flagged "softness in visits to veterinary clinics," which is worth watching.

What Sets Them Apart

Grey Wolf's edge starts with its founder. Having a practicing veterinarian running the show means the company has an unusually direct understanding of what vet clinics actually buy and need. Their dual business model creates natural cross-selling opportunities — a vet clinic already buying supplies through Grey Wolf is a warm lead for compounded medications, and vice versa. The pharmacy segment adds recurring revenue since compounded prescriptions are filled on an ongoing basis. And their acquisition playbook — licensing late-stage products for the Canadian market and buying complementary businesses — has been executed well so far.

The Numbers

Grey Wolf fits squarely in the growth/small-cap bucket, and the financial trajectory is encouraging. Gross margins have expanded to 53.8% in the first nine months of 2025, up from 51.6% a year earlier. Adjusted EBITDA reached $5.35 million, a 56.4% jump year-over-year. Perhaps most importantly, the company is generating positive operating cash flow — $2.27 million through the first three quarters, up from just $480K in the same period of 2024.

The balance sheet tells a more nuanced story. Grey Wolf carries $25.7 million in debt, largely from the CPM acquisition, against $6.75 million in cash. That's a meaningful debt load, but manageable — the enterprise value sits at $64 million with an EV/EBITDA of 11.5x, which isn't unreasonable for a company growing revenue at 33% with expanding margins. They're actively paying down debt — $1.4 million repaid in the first nine months — and generating enough cash flow to service it comfortably.

Key Risks

The elephant in the room is size and liquidity. With a ~$45 million market cap and average volume around 21K shares, WOLF trades thinly, meaning it can be hard to buy or sell shares without moving the price. The debt burden from the CPM acquisition adds financial risk — interest rates on the newer loans sit at 7.09%, which isn't cheap. The softness in vet clinic visits that management flagged could weigh on the Animal Health segment if it persists. Grey Wolf is also Canada-only for now, which limits their addressable market. And like any small company relying on acquisitions for growth, there's always execution risk — integrating new businesses while keeping the core running smoothly is never guaranteed.

The Verdict

Grey Wolf Animal Health is a well-run, founder-led small-cap that's hitting its growth stride. Revenue is accelerating, margins are expanding, cash flow is positive, and management has shown it can integrate acquisitions effectively. At an EV/EBITDA of 11.5x with 33% revenue growth, the valuation looks reasonable for what you're getting. This one's worth a closer look for investors comfortable with small-cap risk who want exposure to the Canadian animal health space — a niche that bigger players aren't paying much attention to yet.