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- Record total revenue of $19.3 million, up 11% year-over-year
- Positive cash flows, with Adjusted EBITDA(1) of $1.3 million, up 49% year-over-year, and our 25th consecutive quarter of positive Adjusted EBITDA
- Secured new credit facilities to drive growth and to refinance existing debt
- On May 1, Stephen Lemieux assumed the role of President to lead the implementation of NeuPath’s strategic initiatives
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TORONTO — NeuPath Health Inc. (TSXV:NPTH), (“NeuPath” or the “Company”), owner and operator of a network of clinics delivering category-leading chronic pain treatment, today announced its financial and operating results for the three months March 31, 2025 and the grant of stock options (“Options”) and restricted share units (“RSUs”). All figures are in Canadian dollars, unless otherwise noted.
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“Strong organic growth in Alberta and Ontario, combined with careful attention to our operations and our clinic footprint, continues to deliver improved operating results,” said Joe Walewicz, NeuPath’s Chief Executive Officer. “We expect continued growth and improved results in 2025, as we continue to evaluate multiple inorganic growth opportunities to better serve patients, with more services, in more communities.”
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Financial and Operational Highlights
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- Total revenue was $19.3 million for the three months ended March 31, 2025 compared to $17.5 million for the three months ended March 31, 2024, up 11% compared to the first quarter of 2024, delivering record first quarter revenues;
- Adjusted EBITDA was $1.3 million for the three months ended March 31, 2025 compared to $0.9 million for the three months March 31, 2024, up 49% year-over-year;
- For the three months ended March 31, 2025, capacity utilization improved to 75%, up from 72% in the first quarter of 2024;
- On March 26, 2025, the Company secured new credit facilities from the National Bank of Canada providing an aggregate of up to $13.5 million in loans, comprised of a (i) $4.0 million revolving credit facility, (ii) $3.0 million non-revolving delayed draw term loan facility, and (iii) $6.5 million non-revolving term loan facility;
- As at March 31, 2025, the Company had $4.4 million in cash and cash equivalents and interest-bearing long-term debt of $6.5 million;
- On May 1, 2025, Stephen Lemieux assumed the newly created role of President to lead the implementation of NeuPath’s strategy to accelerate inorganic and organic growth and optimize operating margins; and
- The Company anticipates the receipt of a potentially material one-time positive payment in Q2 of 2025 relating to prior period physician reimbursements.
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(1) | Non-International Financial Reporting Standard (“IFRS”) and Other Financial Measures defined by the Company below. |
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Q1 2025 Financial Results
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Total Revenue
Total revenue is comprised of clinic revenue and non-clinic revenue. Total revenue was $19.3 million for the three months ended March 31, 2025 compared to $17.5 million for the three months ended March 31, 2024.
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Clinic Revenue
Clinic revenue is generated through the provision of medical services to patients. Clinic revenue was $18.0 million for the three months ended March 31, 2025 compared to $16.2 million for the three months ended March 31, 2024. The increase in clinic revenue for the three months ended March 31, 2025 was primarily due to stronger revenues from fluoroscopy and positive adjustments to physician reimbursement rates. Capacity utilization was 75% for the three months ended March 31, 2025 compared to 72% for the three months ended March 31, 2024. The improvement in capacity utilization was primarily driven by continued optimization of clinic space.
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Non-clinic Revenue
Non-clinic revenue was $1.3 million for the three months ended March 31, 2025 and 2024. Non-clinic revenue is earned from physician staffing allocation services where the Company provides physicians for provincial and federal correctional institutions across Canada, and from contract research services provided to pharmaceutical companies and clinical research organizations. This revenue fluctuates depending on the need for physicians in certain institutions and the timing and enrolment of clinical studies that the Company is working on.
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Gross margin % was 18.8% for the three months ended March 31, 2025 compared to 18.5% for the three months ended March 31, 2024. The increase in gross margin was primarily driven by higher revenues from fluoroscopy and positive adjustments to physician reimbursement rates compared to the comparative quarter (see Non-IFRS Financial Measures – Gross Margin and Gross Margin %).
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Adjusted EBITDA was $1.3 million for the three months ended March 31, 2025 compared to $0.9 million for the three months March 31, 2024.
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Liquidity and Capital Resources
As at March 31, 2025, the Company’s net debt was $2.1 million, compared to $3.5 million as at March 31, 2024. The Company’s net debt as at March 31, 2025 consisted of $4.4 million of cash and cash equivalents and long-term debt of $6.5 million compared to $2.6 million of cash and cash equivalents and long-term debt of $6.0 million as at March 31, 2024.
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For more information see Note 5, Long-Term Debt in the Company’s Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2025, and Note 6, Long-Term Debt in the Company’s Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2024.
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Issuance of Stock Options and Restricted Share Units
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The Company has approved the grant of 375,000 Options to an officer of the Company, to be issued on May 21, 2025, at an exercise price equal to the closing price on the last trading day immediately preceding the grant date, and with an expiry date of May 21, 2032. The terms of the Options granted are in accordance with the Company’s Amended and Restated Stock Option Plan. The Options are subject to time-based vesting and will vest annually in equal instalments on each anniversary date from the date of grant for 4 years.
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In addition, the Company approved the grant of 375,000 RSUs to the same officer of the Company, to be issued on May 21, 2025. The RSUs are subject to time-based vesting and will fully vest on May 21, 2029. One quarter of the RSUs granted will vest annually on each anniversary date from the date of grant for 4 years. The terms of the RSUs granted are in accordance with the Company’s Amended and Restated Restricted Share Unit Plan.
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