CareRx Reports Results for the Second Quarter of 2025

Executive Summary

• CareRx Corporation reported its financial results for the second quarter ended June 30, 2025, showing a slight increase in revenue and adjusted EBITDA compared to the first quarter of 2025, and an increase in adjusted EBITDA compared to the same period in 2024.
• The company highlighted operational growth driven by an increase in the average number of beds serviced, while noting that revenue decreases year-over-year were due to a shift in the mix of branded and generic pharmaceuticals.
• Management cited the addition of new beds in Q2 as the start of an expected period of attractive growth, supported by operational discipline and targeted investments.

Key Details

• Revenue: $91.4 million for Q2 2025, compared to $89.6 million in Q1 2025 and $92.0 million in Q2 2024.
  • QoQ increase driven by higher average beds serviced and one additional weekday.
  • YoY decrease driven by a change in the mix of branded and generic pharmaceuticals dispensed.
• Adjusted EBITDA: $8.0 million for Q2 2025, compared to $7.8 million in Q1 2025 and $7.5 million in Q2 2024.
  • QoQ increase attributed to higher bed counts, partially offset by non-recurring adjustments in other operating expenses in the prior quarter.
  • YoY increase driven by efficiencies and cost savings initiatives.
• Net Income: $0.6 million for Q2 2025, compared to $0.2 million in Q1 2025 and a net loss of $1.4 million in Q2 2024.
  • Improvement from prior year driven by the elimination of a non-cash intangible asset impairment related to the sale of a non-core pharmacy location in Q2 2024, and decreases in finance costs, depreciation, and amortization.
  • Partially offset by increases in transaction, restructuring, and other costs.
• Regulatory Update: In April 2025, the Ontario Ministry of Health issued an Executive Officer Notice pausing previously scheduled changes to long-term care pharmacy funding.
  • The paused changes would have reduced the fixed professional fee under the fee-per-bed capitation model from $1,500 to $1,400 per bed annually, with further decreases to $1,200 per bed.
• Conference Call: Scheduled for Thursday, July 31, 2025, at 8:30 a.m. Eastern Time.

Notable Quotes

• "The addition of new beds in the second quarter marks the beginning of what we expect will be a period of attractive growth," said Puneet Khanna, President and Chief Executive Officer of CareRx. "Coupled with continued operational discipline and targeted investments, we remain focused on supporting our home operator partners by delivering a superior quality of care while scaling efficiently."