Quipt Home Medical Corp ((TSE:QIPT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Quipt Home Medical Corp’s recent earnings call painted a picture of strategic resilience amidst some financial challenges. The company showcased important strategic expansions and maintained a steady adjusted EBITDA margin, signaling potential for future growth. However, the call also highlighted declines in revenue year-over-year, a decrease in the customer base, and increased operating expenses, pointing to ongoing challenges that the company must address.
Revenue Stabilization and Organic Growth
Quipt Home Medical reported revenue of $58.3 million for fiscal Q3 2025, marking a return to positive quarter-over-quarter organic growth of 1.6% compared to $57.4 million in Q2 2025. This stabilization is a positive sign, although the revenue still reflects a 4.1% decrease from the same quarter the previous year.
Strategic Health System Partnerships
The company announced significant partnerships with major health systems, including Ballad Health, and a joint venture with Henry Ford Health, McLaren Health, and Blanchard Valley Health. These partnerships expand Quipt’s presence into Michigan and Ohio, enhancing its strategic footprint.
Consistent Adjusted EBITDA Margin
Despite a dynamic environment, Quipt maintained a steady adjusted EBITDA margin at 23.5% in Q3 2025. This consistency demonstrates the company’s ability to manage its operations effectively amidst external pressures.
Expansion and Infrastructure Growth
With over 160 locations across 27 states, Quipt serves more than 325,000 active patients. This extensive network supports the company’s scalability and operational efficiency, crucial for its growth strategy.
Strong Recurring Revenue
Recurring revenue remained robust, accounting for 81% of total revenue in Q3 2025. This indicates a stable and reliable revenue stream, which is vital for the company’s financial health.
Joint Venture with Hart Medical Equipment
The joint venture with Hart Medical Equipment adds immediate scale, with Hart generating approximately $60 million in revenue and $7 million in adjusted EBITDA. This partnership is expected to enhance Quipt’s presence in the Midwest.
Decrease in Customer Base and Setups
There was a slight decrease in the customer base, with Quipt serving 151,000 unique patients as of June 30, 2025, down from 153,000 in 2024. Setups and deliveries also decreased from 216,000 in Q3 2024 to 210,000 in Q3 2025.
Revenue Decline Year-Over-Year
The company experienced a 4.1% decline in revenue year-over-year, with fiscal Q3 2025 revenue at $58.3 million compared to $60.8 million in Q3 2024. This decline highlights the challenges Quipt faces in maintaining its revenue growth.
Increased Operating Expenses
Operating expenses rose to 53.3% of revenue in Q3 2025, up from 50.4% in the corresponding period in 2024. This increase in expenses is a concern that the company needs to address to improve profitability.
Net Loss Increase
Quipt reported a net loss of $3 million or $0.07 per diluted share for Q3 2025, compared to a $1.6 million loss or $0.04 per diluted share in Q3 2024. This increase in net loss underscores the financial challenges the company is currently facing.
Decrease in Cash on Hand
The company’s cash on hand decreased to $11.3 million as of June 30, 2025, from $17.1 million as of March 31, 2025. This reduction in cash reserves could impact the company’s flexibility in managing its operations.
Forward-Looking Guidance
Looking ahead, Quipt Home Medical Corp. is focused on operational excellence, with strategic expansions and partnerships expected to drive long-term growth and shareholder value. The company projects an annualized run rate revenue of roughly $300 million through its joint venture with Hart Medical Equipment, which is anticipated to provide immediate scale and enhance its Midwest presence.
In summary, Quipt Home Medical Corp’s earnings call highlighted a mix of strategic resilience and financial challenges. While the company has made significant strides in strategic partnerships and maintaining a steady EBITDA margin, it faces hurdles with declining revenue, increased expenses, and a shrinking customer base. The forward-looking guidance suggests a focus on strategic growth and operational excellence to overcome these challenges and drive future success.