CareRx (CRRX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached CAD 92.2 million, up from CAD 91.1 million in Q4 2023, driven by higher branded pharmaceutical prices and operational excellence, despite a 4.2% decline in average beds serviced.

• Adjusted EBITDA for Q4 2024 was CAD 7.6 million, reflecting cost efficiencies, improved supply terms, and operational discipline.

• Net loss narrowed to CAD 2.2 million from CAD 3.7 million year-over-year, but increased from CAD 0.4 million in Q3 2024, mainly due to lower finance costs and higher share-based compensation.

• Opened a new high-volume, state-of-the-art fulfillment center in North Burnaby, BC, consolidating regional operations and enhancing service delivery.

• New Chief Financial Officer appointed and final conversion of convertible debentures completed.

Financial highlights

• Q4 2024 revenue was CAD 92.2 million, up from CAD 91.1 million in Q4 2023, but down from CAD 92.8 million in Q3 2024.

• Adjusted EBITDA margin held steady at 8.2% year-over-year, but decreased 20 basis points sequentially.

• Net loss for Q4 2024 was CAD 2.2 million, improved from CAD 3.7 million in Q4 2023.

• Cash at year-end was CAD 9.1 million, up from CAD 8.8 million at Q3 end.

• Total debt reduced by CAD 21.8 million year-over-year, with finance costs down by CAD 5.2 million.

Outlook and guidance

• Robust pipeline for new RFPs and bed expansions expected to drive growth in 2025.

• 3,000 new beds secured for H1 2025, including recent customer acquisitions.

• Targeting double-digit EBITDA margin in H1 2025 as new beds and efficiencies ramp up.

• CapEx for 2025 expected to remain around CAD 8 million, including automation investments.

• Ongoing evaluation of technology and process improvements to support long-term growth.