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 4.5% year-over-year, with margin improving to 8.7%.

• Net income reached CAD 227,000, reversing net losses in Q1 2024 and Q4 2024, driven by lower finance costs and reduced expenses.

• Opened and consolidated a new high-volume fulfillment center in North Burnaby, BC, transitioning all beds and regional operations.

• Ontario Ministry of Health postponed fee-per-bed capitation model changes, averting immediate funding reductions.

Financial highlights

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

• Adjusted EBITDA increased to CAD 7.8 million from CAD 7.4 million year-over-year and CAD 7.6 million sequentially.

• Adjusted EBITDA margin improved by 40 basis points year-over-year to 8.7%.

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

• Cash balance rose 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 operating cost reductions anticipated.

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

• Robust sales pipeline with large national and regional customers expanding and acquiring smaller competitors.

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