CareRx (CRRX) investor relations material

Executive summary

• Revenue reached CAD 93.6 million in Q2 2026, with adjusted EBITDA of CAD 8 million and net income of CAD 400,000, reflecting an 8.6% margin.

• Average beds serviced increased to 91,719, up from 90,048 in Q2 2025.

• Signed a new long-term agreement with a national seniors home operator, expected to add about 3,000 new retirement beds in Q3 2026.

• Closed the St. Catharines pharmacy, consolidating operations into the Oakville hub for efficiency.

• Board approved a 10% increase in the quarterly dividend to CAD 0.022 per share.

Financial highlights

• Revenue increased to CAD 93.6 million from CAD 91.4 million year-over-year, driven by higher average beds serviced.

• Adjusted EBITDA was CAD 8 million, stable year-over-year, with margin declining to 8.6% from 8.8%.

• Net income decreased to CAD 400,000 from CAD 600,000 year-over-year, mainly due to changes in Ontario ward bed funding.

• Cash from operations was CAD 3.7 million, nearly flat year-over-year but down from Q1 2026.

• Net debt was CAD 29.1 million at quarter end, up from CAD 25 million in Q1 2026.

Outlook and guidance

• The impact of Ontario ward bed funding changes is expected to be CAD 2 million for the full year 2026.

• All 3,000 new beds from the recent contract will be onboarded in Q3, with full EBITDA margin impact expected in Q4.

• Targeting 6,000–8,000 organic bed additions for the year, with about half achieved by mid-year.

• Margin lift from generic semaglutide expected in 2027 as supply stabilizes.

• Management highlights predictability of cash flows and focus on operational efficiency.