Ontrak, Inc.

Ontrak reported Q1 2025 revenue of $2 million, down 25% year over year. Gross margin was 37%, compared with 61% in Q4 2024 and 63.6% in Q1 2024. Cash flow from operations was negative $2.7 million, versus negative $3.3 million in the same period last year, and cash at quarter end was $4.1 million, down from $5.7 million at year-end 2024. Ending enrolled members were 3,165, up from 2,125 at the start of the quarter, and average quarterly revenue per enrolled member was about $254, down from $500 in Q4 2024 and $504 in Q1 2024. For Q2 2025, the company expects revenue of $2.2 million to $2.6 million, or 8% to 22% sequential growth.

Brandon LaVerne said Ontrak is building on the momentum from 2024, citing a substantially larger outreach pool, new implementations, and expansion with existing partners. He highlighted over 3,165 enrolled members at quarter end, more than 1,150 in Engage, and said the new model is extending the company’s reach to members who do not need WholeHealth+ but still need behavioral health support. He also emphasized the provider-model strategy, Medicaid provider approvals, and AI-driven productivity gains, saying teams are now more than twice as productive as in 2021.

James Park framed the quarter around lower revenue from a customer that disenrolled at the end of 2024, partially offset by new and expanded customers. He detailed the member and monetization trends: 2,039 new members enrolled in Q1, a 10% average monthly disenrollment rate, 184 graduations, and average revenue per enrolled member of about $254, down from prior periods because of the Engage mix. On cash and liquidity, he said operating cash flow was negative $2.7 million, cash was $4.1 million at quarter end, the company borrowed $1.5 million under its Keep Well agreement in Q1 and another $0.5 million after quarter end, and a financing agreement announced earlier provides up to $10 million of additional funding.

This was largely a prepared-remarks call with no analyst Q&A captured in the transcript. The main management commentary anticipating questions was around conversion of a large Midwestern Medicaid plan for 300,000 members, four other proposals under review, and the possibility of roughly doubling revenue from current customers if bottom-of-funnel opportunities convert. Management also addressed margin pressure by noting new customer launches can temporarily lower gross margin because the company hires ahead of growth.