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Revenue: $104.4 million in Q1 2025, a 10.3% increase compared to Q1 2024.
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Dispensary Revenue: $49.3 million in Q1 2025, with over 20% growth year-over-year.
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Fee-for-Service Revenue: $35.6 million in Q1 2025, a 2.3% increase year-over-year.
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Gross Profit: $17.2 million in Q1 2025, a 44.1% increase compared to Q1 2024.
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Adjusted EBITDA: Negative $5.1 million in Q1 2025, improved from negative $10.9 million in Q1 2024.
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Net Loss: $19.6 million in Q1 2025, an improvement of $303,000 compared to Q1 2024.
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Free Cash Flow: Negative $3.9 million in Q1 2025, improved from negative $15.4 million in Q1 2024.
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SG&A Expenses: $27.2 million in Q1 2025, a 9% decline compared to Q1 2024.
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Cash and Cash Equivalents: $39.8 million at the end of Q1 2025, an increase of $3.7 million compared to Q1 2024.
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Capitation Contracts: Added over 80,000 lives in Q1 2025, with anticipated $50 million in new annualized revenue.
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Debt Paydown: $20 million partial paydown of convertible preferred debt in Q1 2025.
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Capital Raise: $16.5 million gross proceeds from a private placement in Q1 2025.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenues for Q1 2025 increased by 10% compared to the prior year, driven by strong performance in the retail pharmacy and Dispensary business.
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The Dispensary segment grew over 20% in Q1 2025, contributing significantly to revenue and gross profit.
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New capitated contract wins added over 80,000 lives in the first quarter, with anticipated new contracts projected to add approximately $50 million in annualized revenue.
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Gross profit increased by 44.1% year-over-year, attributed to improved revenue and margins in both capitation and fee-for-service segments.
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The company successfully executed a partial paydown of convertible preferred debt and completed a capital raise, strengthening its financial position.
Negative Points
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Adjusted EBITDA loss was $5.1 million, although it was within the upper end of guidance.
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The outsourcing of clinical trials to Helios will result in deconsolidating clinical research revenue, modestly impacting full-year revenue.
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SG&A, including depreciation and amortization, was $27.2 million, representing a significant portion of revenue.
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Net loss for the quarter was $19.6 million, although it showed a slight improvement compared to the previous year.
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Free cash flow remained negative at $3.9 million, despite improvements from the previous year.
Q & A Highlights
Q: Can you talk a little bit about the gross profit growth of 44% year-over-year? What was the main driver of that? A: Robert Carter, CFO: The growth was driven by a one-time rebate from a new contract with our primary distributor and favorable drug pricing changes in January, combined with volume increases, particularly in the Dispensary segment.