Quipt Home Medical Corp. announced its financial results for the second quarter of fiscal year 2025, ended March 31, 2025. The company reported total revenue of $57.38 million, a 6% decrease from $61.25 million in the prior year period.
Revenue softness was attributed to the discontinuation of the Medicare 75/25 blended rate, the withdrawal of Medicare Advantage members due to a competitor's capitated agreement, and the non-renewal of a disposable supply contract. These factors contributed to a 4% decline in revenue for the six months ended March 31, 2025, totaling $118.76 million.
Despite the revenue decline, Quipt demonstrated operational resilience, achieving an Adjusted EBITDA of $13.35 million, resulting in a robust Adjusted EBITDA margin of 23.3%. This margin performance was highlighted by management as a "standout" given the revenue pressures, reflecting structural efficiency initiatives.
The company reported a net loss of $3.04 million, or $0.07 per diluted share, for Q2 2025, compared to a net loss of $739,000, or $0.02 per diluted share, in Q2 2024. Operational metrics showed a slight decrease in patients serviced to 146,000 and a 3% decrease in total equipment setups/deliveries.
Quipt maintained a strong liquidity position with $17.14 million in cash and $30.70 million available under its credit facilities, totaling $47.84 million. The net debt to Adjusted EBITDA leverage ratio remained conservative at 1.5 times.
Management reiterated its strategic priority to reignite organic growth and partner with healthcare systems as preferred providers for hospital discharge-driven care. The company also provided fiscal 2025 guidance for 6% to 8% free cash flow conversion.
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