CareRx (CRRX) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $91.4 million, up from $89.6 million in Q1 2025 and slightly down from $92.0 million in Q2 2024, driven by increased beds serviced and a change in drug mix.

• Adjusted EBITDA reached $8.0 million, up from $7.8 million in Q2 2024 and $7.5 million in Q1 2025, with margin up 60 bps year-over-year to 8.8%.

• Net income was $0.6 million in Q2 2025, reversing a net loss of $1.4 million in Q2 2024 and up from $0.2 million in Q1 2025, aided by non-cash adjustments and lower finance costs.

• 3,000 new beds were fully onboarded in Q2, with full revenue impact expected in Q3 and average beds serviced rising to 90,048.

• Leadership team realigned, including new executive appointments and creation of Chief Clinical Officer role, to support strategic priorities.

Financial highlights

• Net debt rose to $34.8 million from $33.4 million in Q1, with cash decreasing to $8.7 million from $11.2 million.

• Net debt to adjusted EBITDA remained at 1.1x as of June 30, 2025.

• Cash from operations in Q2 2025 was $3.8 million, down from $8.1 million in Q2 2024.

• Ending bed count was 91,062 at quarter end.

• Adjusted EBITDA is a key metric for lender covenants and funding growth initiatives.

Outlook and guidance

• Full revenue contribution from new beds expected in Q3, with management maintaining a 6,000–8,000 net organic bed growth target for 2025.

• Internal goal to reach double-digit adjusted EBITDA margin by year-end, with improvements expected from bed growth, operational efficiency, and procurement initiatives.

• Sales pipeline remains robust, with ongoing expansion by national and regional customers.

• Management expects attractive growth driven by new bed additions and targeted investments.