Numinus Wellness (NUMI) Q3 2024 earnings summary

Executive summary

• Undertook significant restructuring, including a 60% headcount reduction and closure of non-profitable Canadian clinics, to achieve operational profitability and reduce monthly cash burn below CAD 1,000,000.

• Transitioned out of Canadian clinic operations, shifting to an asset-light model via a partnership with Field Trip Health and focusing on U.S. clinics and late-stage drug therapy opportunities.

• Announced the proposed acquisition of MedBright AI to leverage AI and data science for clinic efficiency and scalability, with rebranding to Numinus Intelligence upon closing.

• Maintained a cash burn rate below CAD 1,000,000 per month, ending the quarter with CAD 3,700,000 in cash and CAD 2,000,000 in working capital.

• Practitioner training program grew to over 1,650 learners from 18 countries.

Financial highlights

• Q3 revenue was CAD 4,300,000, down 1.9% sequentially and 17% year-over-year, mainly due to the closure of the Arizona clinic.

• U.S. wellness clinic revenue was CAD 3,400,000, down from CAD 3,600,000 in Q2 and CAD 4,100,000 in Q3 2023.

• Cedar Clinical Research revenue rose 10.7% sequentially to CAD 800,000, with trailing twelve-month revenue up to CAD 3,800,000 from CAD 3,100,000 year-over-year.

• Gross margin was 22%, down from 24% in Q2 and 34.5% in Q3 2023.

• Net loss from continuing operations was CAD 5,100,000 (CAD 0.02 per share), improved from CAD 5,700,000 in the prior quarter.

Outlook and guidance

• Focus remains on driving high-margin revenue and optimizing operating expenses.

• Transition team in place to reduce costs and preserve cash ahead of MedBright acquisition.

• MedBright acquisition expected to close by end of August or early September, pending regulatory and shareholder approval.

• Strategic focus on achieving profitability with existing operations and leveraging expertise for broader market opportunities.

• Proposed MedBright AI acquisition expected to enhance revenue generation and expand AI-enabled offerings for U.S. mental health providers.