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Ontrak (OTRK) investor relations material
Ontrak Q1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q1 2025 revenue was $2.0M, down 25% year-over-year due to a major customer termination, with net loss widening to $9.1M and operating loss at $5.9M.
Membership in programs nearly doubled year-over-year to 3,165, with significant growth in both WholeHealth+ and Engage.
Callable outreach pool for WholeHealth+ increased 45% to 7,319, reflecting new agreements and expansions.
Management has substantial doubt about the company's ability to continue as a going concern without additional capital.
Secured a $10M financing commitment from Acuitas Capital LLC and extended NCQA CVO certification through April 2027.
Financial highlights
Gross margin for Q1 2025 was 37%, down from 61% in Q4 2024 and 64% in Q1 2024, reflecting revenue loss and member mix shift.
Gross profit for Q1 2025 was $0.7M, down from $1.7M in Q1 2024.
Cash at March 31, 2025 was $4.1M, down from $5.7M at year-end 2024, with negative working capital of $3.1M.
Cash flow from operations was negative $2.7M, improved from negative $3.3M in Q1 2024.
Secured debt outstanding under the Keep Well Agreement was $13.5M at quarter-end, increasing to $14.4M after subsequent borrowings.
Outlook and guidance
Q2 2025 revenue expected between $2.2M and $2.6M, representing an 8% to 22% sequential increase.
Management anticipates doubling run-rate revenue in 2025, driven by new implementations and pipeline conversions.
Additional capital is required to fund operations for the next 12 months; inability to secure funding may result in ceasing operations or bankruptcy.
Gross margin expected to improve as Whole Health Plus member mix increases, but may fluctuate with new customer launches.
The company is actively seeking to expand customer relationships and grow its outreach pool, but success is uncertain.
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