dentalcorp (DNTL) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of CAD 409.4 million, up 9.9% year-over-year, with adjusted EBITDA of CAD 75.9 million, up 11.5%, and a margin increase of 20 basis points to 18.5%.

• Maintained a recurring patient visit rate of 91.5% and served over 2.3 million active patients, expanding the network to 571 practices.

• Completed 12 acquisitions for CAD 61 million, all funded from free cash flow, with 37 new practices added in the last twelve months.

• Continued deleveraging, reducing net leverage to 3.77x, marking the sixth consecutive quarter of improvement.

• Focused on organic growth, operational productivity, and technology adoption, with a scalable platform and highly variable cost structure.

Financial highlights

• Revenue grew to CAD 409.4 million from CAD 372 million in Q1 2024, a 9.9% increase, with adjusted EBITDA margin expanding to 18.5%.

• Adjusted free cash flow reached CAD 44.3 million, up 25.9% year-over-year, and adjusted free cash flow per share increased 15.8% to CAD 0.22.

• Last twelve months' pro forma revenue was CAD 1.6 billion and adjusted EBITDA was CAD 310 million.

• Gross profit for Q1 2025 was CAD 205 million, up from CAD 186.4 million in Q1 2024.

• Same practice revenue growth was 4.6% in Q1 2025.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: 10-11% revenue growth, 3-5% same practice revenue growth, 20 basis points EBITDA margin expansion, and CAD 25 million+ in pro forma adjusted EBITDA from acquisitions.

• Q2 2025 revenue expected to grow 9-10% year-over-year, with 3-5% same practice revenue growth and 20 basis points margin expansion.

• Medium-term targets include 4%+ same practice revenue growth and net debt/PF adjusted EBITDA after rent ratio of 3.0–3.5x.

• Free cash flow conversion expected to remain strong, supporting ongoing M&A and deleveraging.