Quipt Home Medical Corp.

Fiscal Q3 2025 revenue was $58.3 million, down 4.1% from $60.8 million in Q3 2024, but up 1.6% sequentially from $57.4 million in Q2 2025. Adjusted EBITDA was $13.7 million, or 23.5% of revenue, versus $14.2 million, or 23.4%, in Q3 2024. Net loss was $3 million, or $0.07 per diluted share, compared with a $1.6 million loss, or $0.04 per diluted share, last year. For the first 9 months, revenue was $177 million versus $184.6 million a year ago, and adjusted EBITDA was $41 million versus $44 million. Cash flow from operations was $27.9 million for the 9 months ended June 30, 2025, and cash on hand was $11.3 million at June 30, 2025. Management said total credit availability was $35.3 million and net debt to adjusted EBITDA leverage was 1.5x. For the outlook, management said the Hart JV is expected to close by the end of fiscal Q4 2025, with Quipt paying $17 million to $18 million for a 60% stake; Hart generated approximately $60 million of revenue and $7 million of adjusted EBITDA as of June 30, 2025, and management expects Hart's margin to align with Quipt's historical corporate averages within 3 quarters. After closing, Quipt expects to reach an annualized run-rate revenue of roughly $300 million company-wide.

Greg Crawford said the quarter showed clear revenue stabilization, a return to positive organic growth, and a more predictable referral environment, with core therapies, sleep resupply, and respiratory demand all described as steady. His tone was confident and forward-looking, centered on scaling through health-system partnerships and embedding Quipt into discharge pathways. He also emphasized that structural improvements from late 2024 are now supporting a more agile cost structure and better operating leverage.

Hardik Mehta emphasized that Q3 marked a return to positive organic growth and a stable adjusted EBITDA margin of 23.5%. He pointed to 151,000 unique patients, 210,000 setups/deliveries, and recurring revenue at 81% of total revenue, while noting patient capex remains pressured by Philips recall-related ventilator replacements. He also said operating cash flow was $27.9 million for the 9-month period, cash was $11.3 million, credit availability was $35.3 million, and leverage was 1.5x, and he described the Ballad transaction and Hart JV as disciplined capital allocation.

Analysts focused on whether EBITDA less patient capex can keep improving, and management said patient capex has been a drag because of ventilator replacements tied to the Philips recall, but they expect the margin to stay steady or expand if revenue stabilizes and expenses remain controlled. Questions on the Hart JV centered on how Quipt can lift its current $7 million EBITDA base; management said the improvement should come over the next few quarters through integration, shared cost structures, and operational efficiencies. On M&A, management said the pipeline is strong with many inbound opportunities, and on the One Big Beautiful Bill, Greg Crawford said the company does not anticipate any operational impact.