CareRx (CRRX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was CAD 89.6 million, stable year-over-year and down from CAD 92.2 million in Q4 2024 due to fewer operational days.

• Adjusted EBITDA rose to CAD 7.8 million, up from CAD 7.4 million in Q1 2024 and CAD 7.6 million in Q4 2024, with margin improving to 8.7%.

• Net income reached CAD 227,000, reversing a net loss from both Q1 2024 and Q4 2024, driven by lower finance costs and reduced expenses.

• Opened and consolidated operations into a new state-of-the-art pharmacy in North Burnaby, BC, fully transitioning all beds in Q1.

• Ontario Ministry of Health postponed fee-per-bed capitation model reduction for another year, averting an immediate fee decrease.

Financial highlights

• Revenue: CAD 89.6 million in Q1 2025, flat year-over-year, down from CAD 92.2 million in Q4 2024.

• Adjusted EBITDA: CAD 7.8 million, up from CAD 7.4 million in Q1 2024 and CAD 7.6 million in Q4 2024.

• Adjusted EBITDA margin improved to 8.7% from 8.3% in Q1 2024 and 8.2% in Q4 2024.

• Net income: CAD 227,000, compared to a net loss of CAD 517,000 in Q1 2024 and CAD 2.2 million in Q4 2024.

• Cash balance increased to CAD 11.2 million; net debt decreased to CAD 33.4 million.

Outlook and guidance

• Revenue from 3,000 new beds will ramp up over the next two quarters, with full onboarding before the end of Q2 2025.

• Full benefits from Burnaby consolidation expected in the back half of 2025, with operational cost efficiencies anticipated.

• Growth strategy includes organic expansion, tuck-in acquisitions, and contract purchases, supported by a robust sales pipeline.

• Management signals entry into a new growth phase, emphasizing scalable, sustainable growth and long-term value creation.

• Ongoing focus on cost discipline and operational efficiencies to support margin improvement.