Quipt Home Medical Reports Improved Fiscal Third Quarter 2025 Results

Executive Summary

• Quipt Home Medical Corp. reported fiscal third quarter 2025 financial results, highlighting a return to positive quarter-over-quarter organic growth and stabilized revenue.
• The company announced the acquisition of a full-service durable medical equipment (DME) provider from Ballad Health, expanding its geographic footprint and integrating into a major health system's discharge planning process.
• Financial performance showed a slight year-over-year decline in revenue and net income, but Adjusted EBITDA margins remained strong and consistent with historical levels.

Key Details

• Q3 2025 Revenue: $58.3 million, a 4.1% decrease compared to $60.8 million in Q3 2024; however, this represents a 1.6% increase from Q2 2025 ($57.4 million).
• Nine Months Revenue: $177.0 million, a 4.1% decrease compared to $184.6 million for the same period in 2024.
• Adjusted EBITDA: $13.7 million (23.5% of revenue) for Q3 2025, compared to $14.2 million (23.4% of revenue) in Q3 2024. For the nine months ended June 30, 2025, Adjusted EBITDA was $41.0 million (23.2% of revenue).
• Net Income/Loss: Net loss of $3.0 million ($0.07 per diluted share) for Q3 2025, compared to a net loss of $1.6 million ($0.04 per diluted share) in Q3 2024.
• Cash Position: $11.3 million in cash on hand as of June 30, 2025 (down from $17.1 million at March 31, 2025). Total credit availability was $35.3 million, with $14.3 million available on a revolving credit facility and $21.0 million on a delayed-draw term loan.
• Leverage: Net Debt to Adjusted EBITDA Leverage Ratio of 1.5x.
• Customer Base: 151,000 unique patients as of June 30, 2025 (down 1.3% year-over-year from 153,000), but up 3.4% quarter-over-quarter from 146,000 in Q2 2025.
• Set-ups/Deliveries: 210,000 unique set-ups/deliveries in Q3 2025 (down 2.8% year-over-year), but up 3.5% quarter-over-quarter from 203,000 in Q2 2025.
• Respiratory Resupply: 119,000 set-ups/deliveries in Q3 2025, up 7.2% quarter-over-quarter from 111,000 in Q2 2025.
• Acquisition (Ballad Health): On July 7, 2025, Quipt acquired 100% of a DME provider owned by Ballad Health.
  • Acquiree Revenue: $6.6 million for the fiscal year ended June 30, 2025 (unaudited).
  • Expansion: Adds over 12,500 patients annually across four branch locations in East Tennessee and Southwest Virginia.
  • Strategic Agreement: Signed a Preferred Provider Agreement (PPA) with Ballad Health, embedding Quipt into hospital discharge planning for 20 hospitals across TN, VA, NC, and KY.
  • Funding: Funded entirely with cash on hand.
  • Integration: Management expects acquired operation's Adjusted EBITDA margins to align with Quipt's historical range within two quarters.

Notable Quotes

• Greg Crawford, CEO: “Our third quarter results reflect important progress, as we returned to positive organic growth and achieved clear revenue stabilization across the overall business... The subsequent completion of the Ballad Health acquisition marks a meaningful milestone for Quipt. This transaction embeds us directly into the discharge pathway of a prominent integrated health system and reinforces our broader strategy of expanding through healthcare system partnerships.”
• Hardik Mehta, CFO: “We are extremely pleased with the stability we saw in our fiscal third quarter results. Our Adjusted EBITDA margin remained strong and consistent... We are thrilled to have executed the Ballad-owned durable medical equipment acquisition after quarter end while maintaining a conservative balance sheet and strong financial flexibility.”