CareRx (CRRX) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached CAD 93.2 million, with adjusted EBITDA of CAD 8.3 million and net income of CAD 1.6 million, marking the third consecutive quarter of positive net income.

• Average beds serviced increased to 91,298, up from 89,099 in Q3 2024 and 90,048 in Q2 2025, reflecting ongoing expansion.

• Adjusted EBITDA margin improved to 9.0% from 8.4% year-over-year and 8.8% sequentially.

• Continued focus on innovative pharmacy services, strong government and industry partnerships, and readiness to grow with the sector.

Financial highlights

• Revenue was CAD 93.2 million, up from CAD 92.8 million year-over-year and CAD 91.4 million sequentially.

• Adjusted EBITDA rose to CAD 8.3 million, up from CAD 7.8 million year-over-year, with margin expanding to 9%.

• Net income improved to CAD 1.6 million from a net loss of CAD 360,000 in Q3 2024 and CAD 561,000 last quarter.

• Cash from operations was CAD 10.1 million, down from CAD 12.2 million year-over-year but up from CAD 3.8 million sequentially.

• Cash at quarter-end was CAD 15.5 million, with net debt reduced to CAD 28.8 million and net debt/Adjusted EBITDA at 0.9x.

Outlook and guidance

• Confident in achieving 6,000–8,000 new beds added for the year, with 4,200 already added year-to-date and additional wins expected.

• Targeting double-digit EBITDA margin as efficiency initiatives mature, particularly with the Burnaby facility.

• Organic growth pipeline remains robust, with similar bed growth targets for next year and tailwinds from new long-term care developments.

• Management highlighted ongoing cost savings initiatives and onboarding of new beds as drivers for improved margins and profitability.

• Flexible capital allocation strategy balances growth investments and shareholder returns.