dentalcorp (DNTL) Q1 2025 earnings summary

Executive summary

• Operates the largest national network of dental practices in Canada, with 571 practices as of Q1 2025, serving over 2.3 million active patients and generating $1.6 billion in LTM revenue.

• Achieved Q1 2025 revenue of $409.4M, up 9.9% year-over-year, with 4.6% same practice revenue growth and double-digit growth across all key financial metrics since IPO.

• Adjusted EBITDA rose 11.5% to $75.9M, with margin expanding 20 bps to 18.5%, and adjusted free cash flow reached $44.3M, up 25.9% year-over-year.

• Recurring patient visit rate reached 91.5%, with 92% of patients recurring and active patients up 9.5% year-over-year.

• Focuses on organic growth, operational productivity, and acquisitive growth, supported by a scalable technology platform and highly variable cost structure.

Financial highlights

• Q1 2025 revenue was $409.4M, up 9.9% year-over-year, with 4.6% same practice revenue growth and adjusted EBITDA of $75.9M, up 11.5% year-over-year.

• Adjusted free cash flow was $44.3M, up 25.9% year-over-year, with per-share growth of 15.8% to $0.22.

• Gross profit for Q1 2025 was $205.0M, up from $186.4M in Q1 2024.

• Net loss and comprehensive loss was $(10.2)M, a slight improvement from $(11.7)M in Q1 2024.

• Liquidity at quarter-end was $408M, including $58M in cash and $350M in undrawn debt capacity.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: 10-11% revenue growth, 3-5% same practice revenue growth, 20 bps adjusted EBITDA margin improvement, and over $25M 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 bps margin expansion.

• Free cash flow expected to continue growing at 15%+ year-over-year.