Toronto, Ontario--(Newsfile Corp. - July 29, 2026) - CareRx Corporation (TSX: CRRX) ("CareRx" or the "Company"), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today reported its financial results for the second quarter ended June 30, 2026.
Highlights for the Second Quarter of 2026
- Average Beds Serviced1 increased to 91,719 in Q2 2026 from 90,048 Average Beds Serviced in Q2 2025 (92,036 - Q1 2026).
- Revenue increased to $93.6 million in Q2 2026, compared to $91.4 million in Q2 2025 ($93.9 million - Q1 2026).
- Adjusted EBITDA1remained consistent at $8.0 million in Q2 2026, compared with Q2 2025 ($8.4 million - Q1 2026).
- Adjusted EBITDA Margin1decreased to 8.6% in Q2 2026 from 8.8% in Q2 2025 (9.0% - Q1 2026).
- Cash from Operations remained consistent at $3.7 million in Q2 2026, compared to $3.8 million in Q2 2025 ($6.9 million - Q1 2026).
"We are very excited to have secured a new large national customer that will bring approximately 3,000 beds into the network with implementation planned for the third quarter." said Puneet Khanna, President and Chief Executive Officer of CareRx. "This contract represents an important milestone for CareRx and is a testament to the trust that retirement community operators place in our people, our clinical expertise, and our commitment to exceptional service. Winning this partnership through a competitive process, without acquisition, demonstrates the strength of our team and the value we bring every day. Additionally, the increase in our quarterly dividend is evidence of the strength of our financial position, our operating performance, and the predictability of our cash flows."
Notable Events
- The Company entered into a long-term contract with a national seniors home operator in the quarter, as a result of which, the Company expects to service an additional estimated 3,000 new retirement residents. Onboarding of the new retirement residences will commence in the third quarter of 2026.
- The St. Catharines, Ontario, pharmacy location was closed and the serviced beds relocated to the Oakville pharmacy location.
- The Company's Board of Directors declared a quarterly dividend of $0.022 cents per common share, a 10% increase in the Company's previous quarterly dividend.
FINANCIAL RESULTS
| For the three month periods ended June 30, | For the six month periods ended June 30, | |||||
| (Thousands of Canadian dollars except per share amounts and percentages) | 2026 | 2025 | 2024 | 2026 | 2025 | 2024 |
| $ | $ | $ | $ | $ | $ | |
| Revenue | 93,571 | 91,390 | 91,968 | 187,494 | 180,940 | 181,697 |
| EBITDA1 | 6,511 | 6,827 | 5,784 | 14,266 | 13,557 | 12,542 |
| Adjusted EBITDA1 | 8,024 | 7,997 | 7,517 | 16,441 | 15,776 | 14,962 |
| Adjusted EBITDA per share - Basic | $0.13 | $0.13 | $0.13 | $0.26 | $0.25 | $0.25 |
| Adjusted EBITDA Margin1 | 8.6% | 8.8% | 8.2% | 8.8% | 8.7% | 8.2% |
| Net income (loss) | 363 | 561 | (1,379) | 1,532 | 788 | (1,896) |
| Per share - Basic and Diluted | $0.01 | $0.01 | ($0.02) | $0.02 | $0.01 | ($0.03) |
| Cash provided by operations | 3,692 | 3,769 | 8,072 | 10,618 | 11,143 | 17,350 |
| Total Assets | 243,163 | 218,310 | 218,584 | 243,163 | 218,310 | 218,584 |
| Total Liabilities | 133,560 | 131,364 | 138,316 | 133,560 | 131,364 | 138,316 |
Financial Performance - Q2 2026
- Adjusted EBITDA1 remained consistent from Q2 2025 and Adjusted EBITDA margin1 decreased from Q2 2025. The Company's increase in beds serviced and cost savings initiatives were offset by the previously announced funding changes for certain unoccupied ward beds in Ontario.
- Net Debt1 decreased to $29.1 million, compared to Q2 2025 ($35.9 million) due to the partial repayment of the Company's term loan, but increased compared to Q1 2026 ($25.0 million) due to a decrease in cash and cash equivalents, notwithstanding a reduction in the Company's borrowings.
Q3 2026 Dividend
The Company's Board of Directors has declared a dividend of CAD$0.022 per outstanding common share, payable on October 8, 2026, to holders of record of common shares as of the close of business on September 15, 2026. This dividend is designated as an "eligible dividend" for Canadian income tax purposes. Dividends paid or credited to non-residents of Canada are subject to withholding tax, which may be reduced by treaty. Taxation of dividends paid to U.S. residents is governed by the Internal Revenue Code. The Company advises shareholders to consult a tax advisor to determine any tax consequences of receiving dividends from CareRx.
Conference Call
The Company will host a conference call to discuss its first quarter of 2026 financial results on Thursday, July 30, 2026, at 8:30 a.m. Eastern Time (ET). To dial direct and enter the call through an operator, dial 647-849-3320 or 1-833-752-4643.
A live webcast of the conference call, including the slide presentation, will be available on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/) and can be accessed by copying and pasting this link into a browser: https://www.gowebcasting.com/14759. Please connect at least 15 minutes prior to the conference call.
The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/).
About CareRx Corporation
CareRx is Canada's leading provider of pharmacy services to seniors living and other congregate care communities (long-term care homes, retirement homes, assisted living facilities and group homes). We are a national organization with a large network of pharmacy fulfillment centers strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimens. We take an active role in working with our home operator partners to promote resident health, staff education and medication system quality and efficiency.
For additional information, please contact:
Neil Weber
Investor Relations
LodeRock Advisors
647-222-0574
neil.weber@loderockadvisors.com
Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, but are not limited to, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, and statements about possible future events, including statements about the payment of dividends, the number of residents expected to be serviced pursuant to the Company's contract with a national seniors home operator, and the expected commencement of the delivery of services to those new residents. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's beliefs as of the date hereof and are based on information currently available to management.
Forward-looking statements are based on management's perception of historical trends, current conditions, and future developments, as well as assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to known and unknown risks and uncertainties (many of which are beyond the control of the Company) that could cause actual results to differ materially from those contemplated by such statements. Forward-looking statements are based on assumptions, including those relating to the number of residents electing to use the Company's services under new contracts. Factors and risks that could cause actual results to differ from those contemplated by the forward-looking statements in this press release include, but are not limited to, the Company's general business risks, the Company's exposure to and reliance on government regulation and funding, reliance on contracts with key care operators, and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. The foregoing risks and factors are not an exhaustive list of the factors that may impact the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements. The factors underlying current expectations are dynamic and subject to change.
Any forward-looking statement speaks only as of the date of such statement, and other than as specifically required by applicable laws, the Company is under no obligation and it expressly disclaims any such obligation to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.
Non-IFRS Measures, Non-IFRS Ratios and Other Measures
This press release includes certain measures which have not been prepared in accordance with IFRS, including: "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted EBITDA per share", "Net Debt" and "Net Debt to Adjusted EBITDA". These non-IFRS measures and non-IFRS ratios are not standardized financial measures recognized under IFRS and, accordingly, readers are cautioned that these measures may differ from, and may not be comparable to, similarly-named measures reported by other issuers. With respect to "EBITDA" and "Adjusted EBITDA", net income (loss) is the most directly comparable financial measure determined in accordance with IFRS. With respect to "Net Debt", Cash and cash equivalents and Borrowings are the most directly comparable financial measures determined in accordance with IFRS. The non-IFRS measures and ratios presented this press release should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.
The Company defines "EBITDA" as earnings before depreciation and amortization, finance costs, net, and income tax expense (recovery). "Adjusted EBITDA" is defined as EBITDA before transaction, restructuring and other costs, change in fair value of contingent consideration liability, impairments, (gain) loss on disposal of assets and share-based compensation expense. "Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by revenue. "Adjusted EBITDA per share" is defined as Adjusted EBITDA divided by the weighted average outstanding shares. "Net Debt" is defined as the principal balance of the Company's borrowings net of cash and cash equivalents. "Net Debt to Adjusted EBITDA" is defined as Net Debt divided by the Company's run-rate Adjusted EBITDA annualized based on the current quarter's Adjusted EBITDA. Management of the Company believes that these non-IFRS measures and non-IFRS ratios provide useful information to investors regarding the Company's financial condition and results of operations as they provide additional key metrics of performance. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives. The Company's agreements with lenders are also structured with certain financial performance covenants which include Adjusted EBITDA as a key component of the covenant calculation. The Company uses Adjusted EBITDA Margin to assess the efficiency of its operations by comparing Adjusted EBITDA for the period against revenues. The Company believes that Adjusted EBITDA per share can provide shareholders with useful information, contextualizing Adjusted EBITDA by factoring in changes to the Company's outstanding shares. The Company believes Net Debt and Net Debt to Adjusted EBITDA provides useful information to investors and other stakeholders as it reflects the Company's overall financial leverage and liquidity position. Management uses Net Debt and Net Debt to Adjusted EBITDA as a measure of the Company's ability to meet its financial obligations and manage its capital structure.
In addition to the foregoing non-IFRS measures and ratios, the Company uses certain key performance indicators, including Average Beds Serviced, to compare the financial performance of the Company's operations between periods. Average Beds Serviced is a supplementary financial measure which is not a standardized financial measure recognized under IFRS and, accordingly, readers are cautioned that this measure may differ from, and may not be comparable to, similarly-named measures reported by other issuers. Average Beds Serviced is calculated as the simple average of the number of residents serviced by the Company at the end of each month in the applicable period.
Reconciliation of Non-IFRS Measures
| For the three month periods ended June 30, | For the six month periods ended June 30, | |||
| 2026 | 2025 | 2026 | 2025 | |
| (Thousands of Canadian Dollars except per share amounts) | $ | $ | $ | $ |
| Net income | 363 | 561 | 1,532 | 788 |
| Depreciation and amortization | 4,431 | 4,543 | 8,958 | 9,301 |
| Finance costs, net | 1,527 | 1,723 | 3,021 | 3,468 |
| Deferred tax expense | 190 | - | 755 | - |
| EBITDA | 6,511 | 6,827 | 14,266 | 13,557 |
| Transaction, restructuring and other costs | 659 | 423 | 841 | 940 |
| Change in fair value of contingent consideration liability | 11 | 15 | 26 | 45 |
| Share-based compensation expense | 617 | 526 | 1,071 | 948 |
| Loss on disposal of assets | 226 | 206 | 237 | 286 |
| Adjusted EBITDA | 8,024 | 7,997 | 16,441 | 15,776 |
| Adjusted EBITDA Margin | 8.6% | 8.8% | 8.8% | 8.7% |
| Weighted average number of shares - basic (in thousands) | 63,406 | 63,000 | 63,091 | 62,546 |
| Adjusted EBITDA per share - basic | $0.13 | $0.13 | $0.26 | $0.25 |
| Weighted average number of shares - diluted (in thousands) | 65,128 | 64,974 | 64,825 | 64,520 |
| Adjusted EBITDA per share - diluted | $0.12 | $0.12 | $0.25 | $0.24 |
| As at June 30, 2026 | As at June 30, 2025 | |
| (thousands of Canadian Dollars) | $ | $ |
| Cash and cash equivalents | 9,574 | 8,690 |
| Borrowings | 38,666 | 44,623 |
| Net Debt | 29,092 | 35,933 |
| Net Debt to Adjusted EBITDA | 0.87 | 1.12 |
1 Non-IFRS measure, non-IFRS ratio, or supplementary financial measure. These measures are not standardized financial measures recognized under IFRS and may not be comparable to similar measures disclosed by other issuers. See the "Non-IFRS Measures, Non-IFRS Ratios and Other Measures" section of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307220
Source: CareRx Corporation
