NEUPATH HEALTH REPORTS SECOND QUARTER 2025 RESULTS

Executive Summary

• NeuPath Health Inc. reported record second-quarter total revenue of $23.6 million (up 25% year-over-year) and $43.0 million for the first half of 2025 (up 18% year-over-year).
• The company achieved positive cash flows with Adjusted EBITDA of $2.2 million for Q2 (up 69% year-over-year) and $3.5 million for the first half of 2025 (up 61% year-over-year), marking the 26th consecutive quarter of positive Adjusted EBITDA.
• Capacity utilization improved to 79% for the six-month period, driven by stronger revenues and clinic space optimization, while the company noted substantial uptake for its novel Arthrosamid procedure launched in March.

Key Details

• Revenue Performance:
  • Q2 Total Revenue: $23.6 million (vs. $18.9 million in Q2 2024).
  • H1 2025 Total Revenue: $43.0 million (vs. $36.4 million in H1 2024).
  • Clinic Revenue (Q2): $22.2 million (vs. $17.3 million in Q2 2024).
  • Clinic Revenue (H1 2025): $40.3 million (vs. $33.4 million in H1 2024).
  • Non-Clinic Revenue (Q2): $1.4 million (vs. $1.6 million in Q2 2024).
  • Non-Clinic Revenue (H1 2025): $2.7 million (vs. $2.9 million in H1 2024).
• Profitability Metrics:
  • Q2 Adjusted EBITDA: $2.2 million (up 69% from $1.3 million in Q2 2024).
  • H1 2025 Adjusted EBITDA: $3.5 million (up 61% from $2.2 million in H1 2024).
  • Q2 Gross Margin: 19.8% (vs. 20.0% in Q2 2024).
  • H1 2025 Gross Margin: 19.4% (vs. 19.3% in H1 2024).
  • Gross Margin improvement attributed to positive adjustments to physician reimbursement rates, including a material one-time retroactive payment for prior periods, and stronger fluoroscopy revenues.
• Operational Metrics:
  • Q2 Capacity Utilization: 84% (vs. 77% in Q2 2024).
  • H1 2025 Capacity Utilization: 79% (vs. 75% in H1 2024).
  • Significant patient uptake observed for Arthrosamid (2.5% iPAAG) following its March launch.
• Balance Sheet & Liquidity:
  • Cash and Cash Equivalents (as of June 30, 2025): $3.8 million.
  • Long-Term Debt (as of June 30, 2025): $6.5 million.
  • Net Debt (as of June 30, 2025): $2.7 million (improved from $3.1 million as of June 30, 2024).
• Management Changes:
  • Stephen Lemieux appointed as President.

Notable Quotes

• “Our core business continues to perform well, supported by improved capacity utilization, strong early demand for Arthrosamid®, and the continued focus by the entire NeuPath team on the patient journey and outcomes,” said Joe Walewicz, NeuPath’s Chief Executive Officer.
• “Adjusting for the benefit of a one-time retroactive payment, we delivered strong growth and improved cash flows that reflect the work of the team to mitigate cost pressures and optimize our clinic footprint. We expect further investments in the second half of the year to enhance our clinic network, and with the addition of Stephen Lemieux as President, we are accelerating our focus on strategic opportunities.”