PharmaCorp Rx (PCRX) Q2 2025 earnings summary

Executive summary

• Operates as a national pharmacy consolidator with exclusive right-of-first-refusal on 1,100+ PharmaChoice Canada stores, focusing on acquisition-led growth and expanding its national footprint.

• Demonstrates strong acquisition pipeline, positive net income in Q1-25, and a scalable platform through strategic alliances.

• Management team with deep expertise in pharmacy, retail, and acquisitions, driving operational and financial performance.

• Q2 2025 saw continued operational momentum, with growth in prescription volumes and front-of-store sales from three operating pharmacies.

• Acquisition of a fourth pharmacy in Western Canada post-quarter-end furthered national scale ambitions.

Financial highlights

• Q2-25 Adjusted EBITDA (Pre-IFRS 16, 4-Wall basis) was $688K, compared to $707K in Q1-25.

• Same store script count grew 3.5% and same store sales increased 11.3% in Q2-25.

• Maintains a strong balance sheet with $9.6M in cash and low leverage as of June 30, 2025.

• Net loss for the quarter was driven by continued investment in corporate infrastructure and catch-up of deferred executive compensation from 2024.

• Solid pharmacy-level contribution margins and consistent weighted average EBITDA multiples across acquisitions support the accretive growth model.

Outlook and guidance

• Expects continued acquisition-driven growth, leveraging exclusive access to a large, fragmented market.

• Pipeline includes 40+ new stores annually joining the PCC banner, with 40-50 stores turning over each year.

• Anticipates further value creation through operational improvements and integration of acquired stores.

• Management expects to close additional acquisitions in the second half of 2025, advancing previously announced pipeline transactions.

• Focus remains on sourcing high-quality pharmacies that align with long-term acquisition strategy and contribute to accretion.