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Quipt Home Medical Corp (TSE:QIPT)
:QIPT
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Quipt Home Medical (QIPT) AI Stock Analysis

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TSE:QIPT

Quipt Home Medical

(TSX:QIPT)

Rating:66Neutral
Price Target:
C$3.50
▼(-3.58% Downside)
Quipt Home Medical's overall score reflects strong revenue growth and cash flow management, balanced by challenges in profitability and valuation concerns. The company's strategic expansions and stable EBITDA margins are positive, but year-over-year revenue declines and increased expenses pose risks.
Positive Factors
Acquisition Strategy
Quipt checked all the boxes with a return to sequential organic revenue growth and the announcement of an acquisition of a 60% stake in a $60M DME provider in a JV with three healthcare systems.
Financial Performance
Total credit availability of $35.3M is more than sufficient for the Hart deal, indicating strong liquidity and leverage management.
Strategic Partnerships
Quipt notched another partnership in its health system strategy with a joint venture in the Midwest alongside three health systems.
Negative Factors
Cash Flow
EBITDA performance isn't translating to cash generation at the moment, with management calling out additional patient capex to replace Philips ventilator stemming from a recall.
Growth Outlook
Analyst maintains a HOLD rating as they look for a reacceleration of organic growth back to previously targeted levels of 8-10%.
Organic Growth
Though there was sequential improvement, results were still down year over year across metrics.

Quipt Home Medical (QIPT) vs. iShares MSCI Canada ETF (EWC)

Quipt Home Medical Business Overview & Revenue Model

Company DescriptionQuipt Home Medical Corp. provides in-home medical equipment and supplies, and respiratory and durable medical equipment in the United States. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company also provides bariatric equipment, bathroom safety products, bilevel positive airway pressure, canes/crutches, continuous positive airway pressure, CPAP masks and accessories, hospital beds, humidifiers, nebulizers and compressors, oxygen concentrators, patient lifts, walkers, wheelchairs, and products for wound care. In addition, it offers ventilators; home-based sleep apnea and chronic obstructive pulmonary disease treatments; home-based healthcare logistics and services; medical supplies, medical equipment, mobility equipment, and respiratory equipment; and CPAP and BiPAP units, ventilation equipment and aids, daily and ambulatory aides, and equipment solutions, as well as home and hospital delivery, and oxygen therapy services. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. was incorporated in 1993 and is headquartered in Wilder, Kentucky.
How the Company Makes MoneyQuipt Home Medical makes money through the sale and rental of durable medical equipment (DME) and the provision of related healthcare services. The company's key revenue streams include insurance reimbursements from government and private health insurers, direct sales to patients, and rental income from equipment provided to patients on a temporary basis. Significant factors contributing to its earnings include the growing demand for home-based healthcare solutions, strategic partnerships with healthcare providers, and a focus on expanding its service offerings and geographical reach to meet the needs of an aging population.

Quipt Home Medical Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Dec 22, 2025
Earnings Call Sentiment Neutral
Quipt Home Medical demonstrated important strategic expansions and maintained a steady adjusted EBITDA margin, indicating resilience and potential for future growth. However, there were declines in revenue year-over-year, a decrease in the customer base, and increased operating expenses, which highlight some ongoing challenges.
Q3-2025 Updates
Positive Updates
Revenue Stabilization and Organic Growth
Revenue for fiscal Q3 2025 was $58.3 million, a return to positive quarter-over-quarter organic growth of 1.6%, compared to $57.4 million in Q2 2025.
Strategic Health System Partnerships
Quipt announced partnerships with major health systems including Ballad Health and a joint venture with Henry Ford Health, McLaren Health, and Blanchard Valley Health, expanding presence into Michigan and Ohio.
Consistent Adjusted EBITDA Margin
Adjusted EBITDA margin remained steady at 23.5% in Q3 2025, showing consistent performance despite a dynamic environment.
Expansion and Infrastructure Growth
With over 160 locations across 27 states, Quipt serves over 325,000 active patients, supporting scalability and efficiency.
Strong Recurring Revenue
Recurring revenue for Q3 2025 was robust at 81% of total revenue, indicating a stable revenue stream.
Joint Venture with Hart Medical Equipment
The joint venture adds immediate scale with Hart generating approximately $60 million in revenue and $7 million in adjusted EBITDA.
Negative Updates
Decrease in Customer Base and Setups
The company's customer base decreased, serving 151,000 unique patients as of June 30, 2025 compared to 153,000 in 2024, and setups/deliveries decreased from 216,000 in Q3 2024 to 210,000 in Q3 2025.
Revenue Decline Year-Over-Year
Revenue for fiscal Q3 2025 decreased by 4.1% to $58.3 million from $60.8 million in Q3 2024.
Increased Operating Expenses
Operating expenses as a percentage of revenue rose to 53.3% in Q3 2025 from 50.4% in the corresponding period in 2024.
Net Loss Increase
Net loss for Q3 2025 was $3 million or $0.07 per diluted share, compared to $1.6 million loss or $0.04 per diluted share in Q3 2024.
Decrease in Cash on Hand
The company reported $11.3 million of cash on hand as of June 30, 2025, down from $17.1 million as of March 31, 2025.
Company Guidance
During the third quarter of fiscal year 2025, Quipt Home Medical Corp. reported a return to positive organic growth and revenue stabilization. The company achieved $58.3 million in revenue, reflecting a 1.6% quarter-over-quarter increase, though it was a 4.1% decrease from the previous year's quarter. Adjusted EBITDA margin was consistent at 23.5%, with adjusted EBITDA totaling $13.7 million. Despite a net loss of $3 million or $0.07 per diluted share, cash flow from operations improved to $27.9 million for the nine months ended June 30, 2025. The company completed 210,000 unique setups/deliveries and maintained strong recurring revenue at 81% of total revenue. Quipt also announced a strategic joint venture with Hart Medical Equipment, enhancing their Midwest presence and projecting an annualized run rate revenue of roughly $300 million. This joint venture is expected to provide an immediate scale, with Hart generating approximately $60 million in revenue and $7 million in adjusted EBITDA as of June 30, 2025. The company's focus remains on operational excellence, with strategic expansions and partnerships set to drive long-term growth and shareholder value.

Quipt Home Medical Financial Statement Overview

Summary
Quipt Home Medical shows strong revenue growth and solid cash flow management, but struggles with net profitability and rising liabilities. The company's financial health is supported by consistent operational cash flow, indicating potential for improved profitability with strategic adjustments.
Income Statement
75
Positive
Quipt Home Medical has demonstrated consistent revenue growth, with a revenue increase from $221.74 million in 2023 to $241.93 million in TTM 2024, highlighting positive sales momentum. However, despite growing revenues and gross profit margins (71.6% in TTM 2024), profitability remains a challenge, as indicated by negative net income margins (-3% in TTM 2024). The EBIT margin is marginally positive, suggesting minimal operational profitability.
Balance Sheet
68
Positive
The company's balance sheet shows a moderate debt-to-equity ratio of 0.95 in TTM 2024, reflecting balanced leverage. However, the return on equity is concerning due to negative net income, affecting shareholder returns. The equity ratio remains stable at approximately 43.8%, indicating a sound capital structure but with limited financial flexibility due to rising liabilities.
Cash Flow
80
Positive
Quipt Home Medical exhibits robust cash flow management, with a healthy free cash flow of $20.52 million in TTM 2024. The operating cash flow to net income ratio is strong, showcasing effective cash generation from operations despite net losses. Free cash flow growth has been variable, but the company maintains a solid cash position to support future investments and operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue245.91M211.68M139.86M102.35M72.64M
Gross Profit176.99M153.78M106.65M74.18M52.70M
EBITDA51.07M44.07M28.05M13.21M12.80M
Net Income-6.76M-2.78M4.84M-6.17M-4.57M
Balance Sheet
Total Assets247.25M247.41M132.21M108.57M53.95M
Cash, Cash Equivalents and Short-Term Investments16.17M17.21M8.52M34.61M21.88M
Total Debt99.80M97.96M10.93M27.05M17.17M
Total Liabilities140.06M136.29M52.67M49.95M32.81M
Stockholders Equity107.19M111.11M79.55M58.62M21.14M
Cash Flow
Free Cash Flow25.07M33.75M17.38M13.65M
Operating Cash Flow35.38M40.54M26.34M18.69M
Investing Cash Flow-10.31M-82.83M-42.49M-17.84M
Financing Cash Flow-26.15M50.87M-9.85M3.91M10.48M

Quipt Home Medical Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.63
Price Trends
50DMA
2.92
Positive
100DMA
2.82
Positive
200DMA
3.31
Positive
Market Momentum
MACD
0.20
Negative
RSI
65.11
Neutral
STOCH
75.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:QIPT, the sentiment is Positive. The current price of 3.63 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 2.92, and above the 200-day MA of 3.31, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:QIPT.

Quipt Home Medical Risk Analysis

Quipt Home Medical disclosed 47 risk factors in its most recent earnings report. Quipt Home Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Quipt Home Medical Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
C$152.92M-9.96%-0.70%-102.48%
60
Neutral
C$21.07M-26.27%17.61%-19.19%
54
Neutral
C$186.03M-106.37%64.42%-21.09%
51
Neutral
$7.91B-0.36-41.70%2.23%23.45%-1.86%
49
Neutral
C$26.74M-233.44%219.12%-15.92%
45
Neutral
C$52.67M-291.69%16.00%9.79%
44
Neutral
C$19.29M207.08%88.47%11.88%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:QIPT
Quipt Home Medical
3.63
-0.05
-1.36%
TSE:ASG
Aurora Spine
0.26
0.00
0.00%
TSE:PINK
Perimeter Medical Imaging AI
0.24
-0.14
-36.84%
TSE:PRN
Profound Medical
6.03
-5.21
-46.35%
TSE:TLT
Theralase Technologies
0.19
0.02
11.76%
TSE:VPT
VentriPoint Diagnostics
0.11
-0.07
-38.89%

Quipt Home Medical Corporate Events

M&A TransactionsBusiness Operations and Strategy
Quipt Home Medical Expands Midwest Presence Through Strategic Joint Venture
Positive
Aug 12, 2025

Quipt Home Medical has announced a strategic joint venture with three major health systems, acquiring a 60% stake in Hart Medical Equipment. This move is set to enhance Quipt’s presence in the Midwest, particularly with its entry into the Michigan market, and is expected to add $60 million in revenue. The partnership will strengthen Quipt’s integration with healthcare systems, leveraging Hart’s established relationships with hospitals and care facilities. The transaction is anticipated to close by the end of Fiscal Q4, 2025, and is expected to align with Quipt’s strategic goals of expanding its service network and improving patient care outcomes.

The most recent analyst rating on (TSE:QIPT) stock is a Buy with a C$8.50 price target. To see the full list of analyst forecasts on Quipt Home Medical stock, see the TSE:QIPT Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Quipt Home Medical Achieves Positive Growth and Expands Reach with Strategic Acquisition
Positive
Aug 11, 2025

Quipt Home Medical reported its fiscal third quarter 2025 results, highlighting a return to positive organic growth with a 1.6% increase in quarter-over-quarter revenue, despite a year-over-year decrease. The company achieved an adjusted EBITDA of 23.5% of revenue and maintained strong recurring revenue at 81%. Operationally, Quipt expanded its reach through the acquisition of a durable medical equipment provider, enhancing its presence in the Appalachian Highlands region and securing a Preferred Provider Agreement with Ballad Health. This strategic move is expected to align the acquired operation’s margins with Quipt’s historical range, supporting long-term growth and stability.

The most recent analyst rating on (TSE:QIPT) stock is a Buy with a C$8.50 price target. To see the full list of analyst forecasts on Quipt Home Medical stock, see the TSE:QIPT Stock Forecast page.

Financial Disclosures
Quipt Home Medical to Release Q3 2025 Financial Results
Neutral
Jul 29, 2025

Quipt Home Medical Corp. is set to announce its fiscal third-quarter 2025 financial results on August 11, 2025, with a conference call scheduled for the following day. This announcement is significant as it provides insights into the company’s financial health and operational progress, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (TSE:QIPT) stock is a Buy with a C$8.50 price target. To see the full list of analyst forecasts on Quipt Home Medical stock, see the TSE:QIPT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025