Jamieson Wellness Inc. Reports Second Quarter 2025 Results
TORONTO — Jamieson Wellness Inc. ('Jamieson Wellness' or the 'Company') (TSX: JWEL) today reported its second quarter results for the period ended June 30, 2025. All amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS and other financial measures. See 'Non-IFRS and Other Financial Measures' below.
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Management Commentary
'Q2 marked another solid quarter, reinforcing the continued strength of the health and wellness category and Jamieson's leadership within it,' said Mike Pilato, President and CEO of Jamieson Wellness. 'Branded revenue growth of nearly 14 percent reflects both sustained global demand for our trusted brands and our team's precise execution of our strategic plan across all key markets.
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'In Canada, our 'Proudly Canadian' platform continues to resonate with consumers driving strong consumption growth while our innovation pipeline drives category-leading performance. In the U.S., youtheory is gaining traction through our traditional retail presence and our new ecommerce partnership, with strong consumption growth validating our strategy. In China, our successful 6/18 campaign delivered exceptional growth as our investment in brand awareness continues to resonate with consumers. And internationally, we're seeing continued momentum driven by innovation, particularly across the Middle East and Southeast Asia.
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'In the first half of 2025, our branded business expanded by nearly 14%, with growth across all our branded business units. As we head into the second half of the year we're pleased to increase our quarterly dividend, as we have done every year as a public company. We remain focused on executing our innovation roadmap, expanding our global reach, and driving operational excellence. Built on our 103-year foundation of quality and trust, we're executing from an even stronger position as we continue to Inspire Better Lives Every Day.'
Second Quarter Highlights
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New Jamieson innovation, notably behind the trending magnesium category and 'Proudly Canadian' marketing programs drove strong consumer consumption in Canada
Highly successful 6/18 promotion in China achieved 73% growth over prior year
Trending ingredients drove increased youtheory consumption including accelerated growth in stress support and a market-leading product in the energy category
New product launches and successful heart and women's health campaigns drove sell through in many International markets
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Summary of Consolidated Results
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All comparisons are with the second quarter of 2024
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Consolidated revenue increased 7.7% to $199.1 million, driven by 13.8% growth in Jamieson Brands partially offset by an expected decline in Strategic Partners
Gross profit increased by $15.8 million to $80.8 million; normalized gross profit increased by $14.2 million largely driven by higher branded revenue and margins
Gross profit margin 3 increased by 540 basis points; normalized gross profit margin increased 460 basis points due to favourable channel mix and prior year inefficiencies
EBITDA 1 increased by $5.8 million to $30.1 million, mainly driven by higher revenues and gross profit; Adjusted EBITDA 1 increased by $3.5 million or 11.2% to $35.1 million, reflecting the impact of higher sales volumes, partially offset by timing of investments in SG&A
Net earnings was $13.8 million; Adjusted net earnings 1 was $17.3 million, or $2.6 million higher, reflecting higher normalized earnings from operations
Diluted earnings per share was $0.30; Adjusted diluted earnings per share 2 was $0.40
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Summary of Segment Results
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Jamieson Brands
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Revenue increased 13.8% or $21.5 million
Canada revenue increased by 2.0%, driven by strong consumer consumption, partially offset by the impact of order fulfillment in Q2 prior year after the labour disruption in the first quarter
China revenue increased 70.8% driven by a successful 6/18 promotional campaign, continued brand loyalty growth behind our brand building investment, and a heavier weighting of influencer programs scheduled in the quarter
youtheory revenue increased by 9.7% mainly driven by strong consumption in e-commerce driven by our new strategic partnership, growth in our traditional channels, and timing of shipments of our Q3 promotional programs
International revenue increased by 9.6% driven by growth in core markets in the Middle East and Asia
Gross profit increased by $17.0 million to $78.3 million; normalized gross profit increased by $15.4 million mainly driven by revenue growth and higher margins
Gross profit margin 3 increased by 480 basis points; normalized gross profit margin increased by 370 basis points mainly driven by volume efficiencies compared to inefficiencies due to the labour disruption in the prior year and favourable channel mix
Adjusted EBITDA 1 increased by $4.8 million to $33.5 million, driven by higher gross profit partially offset by timing of SG&A to support growth and brand awareness in China; Adjusted EBITDA margin 2 was 18.9%, an increase of 50 basis points mainly due to improved gross profit margins
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Strategic Partners
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Revenue decreased an expected 24.9% or $7.2 million, impacted by the timing of customer ordering patterns under new programs and shipments shifting to the second half of the year
Gross profit decreased by $1.2 million; gross profit margin 3 decreased by 110 basis points driven mainly by production mix
Adjusted EBITDA 1 was $1.6 million, a decrease of $1.2 million; Adjusted EBITDA margin 2 was 7.5%, a decrease of 240 basis points
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Balance Sheet and Cash Flow from Operations
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All comparisons are with the second quarter of 2024
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As at June 30, 2025, the Company had approximately $132.9 million in cash and available revolving and swingline facilities and net debt 1 of $367.1 million
The Company generated $11.4 million in cash from operations compared to $6.9 million generated in Q2 2024
Cash from operating activities before working capital considerations of $18.8 million was $1.7 million higher than Q2 2024
Cash invested in working capital decreased by $2.9 million mainly due to timing of vendor payments, partially offset by the timing of customer collections and increased inventories to support the growth of the business
During the six-month period ended June 30, 2025, the Company purchased for cancellation 444,580 Common Shares under its normal course issuer bid ('NCIB') program for an aggregate consideration of $13.1 million
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1 This is a non-IFRS financial measure. See the 'Non-IFRS and Other Financial Measures' section of this press release for more information on each non-IFRS financial measure.
2 This is a non-IFRS ratio. See the 'Non-IFRS and Other Financial Measures' section of this press release for more information on each non-IFRS ratio.
3 This is a supplementary financial measure. See the 'Non-IFRS and Other Financial Measures' section of this press release for more information on each supplementary financial measure.
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Adjusting Fiscal 2025 Outlook
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The Company is maintaining its consolidated revenue and Adjusted EBITDA outlook for the 2025 fiscal year and continues to anticipate the following:
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The Company is adjusting its outlook for the 2025 fiscal year to reflect higher Jamieson Brands revenue in China due to strong demand, and lower Strategic Partners revenue to account for the timing of onboarding new partners. As such, the Company now expects the following:
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Revenue in the Jamieson Brands segment to range between $695.0 to $725.0 (10.5% to 15.3% growth), updated from the Company's previous expectation of $685.0 to $720.0 million (9.0% to 14.5% growth)
Jamieson China revenue to grow 30.0% to 40.0%, updated from the previous range of 25.0% to 35.0%. Growth will be driven by market growth, innovation, and by further extending effectiveness and efficiency within digital programs driving trial and awareness.
Revenue in the Strategic Partners segment to range between $105.0 to $116.0 (up to 10.0% growth), updated from the Company's previous expectation of $116.0 to $121.0 million (10.0% to 15.0% growth)
Growth is expected to be driven by new programs and industry growth propelling higher volumes within the Company's existing program portfolio. Uncertainties surrounding U.S. tariffs have delayed launches of new programs and the timing of onboarding new customers have shifted revenues to the following year.
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In addition, Adjusted diluted earnings per share is expected to range from $1.79 to $1.90 (11.0% to 18.0% growth), reflecting higher interest expense on the repurchase of shares under the NCIB program and timing of seasonal working capital investments.
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The Company's 2025 guidance reflects the current prevailing trade environment between the United States, Canada and other countries. To date, tariffs have not had a material impact on the Company's overall financial performance, as these costs have been mitigated through the Company's flexible supply chain and operating efficiencies. The Company recognizes that the trade environment is constantly changing and actual results may be impacted by future changes in global trade policies. For additional details on the Company's fiscal 2025 outlook, including guidance for the third quarter of 2025, refer to the 'Outlook' section in the management's discussion and analysis of financial condition and results of operations ('MD&A') for the three and six months ended June 30, 2025.
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Declaration of Second Quarter Dividend
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The board of directors of the Company authorized a 2.0 cent or a 9.5% increase in the quarterly dividend and declared a cash dividend for the second quarter of 2025 of $0.23 per common share, or approximately $9.5 million in total.
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Payable: September 12, 2025
Record date: August 29, 2025
Designated an 'eligible dividend' under the Income Tax Act (Canada)
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The Company's unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three and six months ended June 30, 2025 and related MD&A are available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Investor Relations section of the Company's website at https://investors.jamiesonwellness.com.
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Conference Call
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Management will host a conference call to discuss the Company's second quarter 2025 results at 5:00 p.m. ET today, August 7, 2025. To access:
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About Jamieson Wellness
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Jamieson Wellness is dedicated to Inspiring Better Lives Every Day with its portfolio of innovative natural health brands. Established in 1922, the Jamieson brand is Canada's #1 vitamins, minerals and supplements ('VMS') brand. The Company's youtheory brand, acquired in 2022, is an established and growing lifestyle brand in the U.S. Combined, these global brands are available in more than 50 countries worldwide. The Company also offers a variety of innovative VMS products as well as sports nutrition products to consumers in Canada with its Progressive, Smart Solutions, Iron Vegan and Precision brands. The Company is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information please visit jamiesonwellness.com.
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Jamieson Wellness' head office is located at 1 Adelaide Street East Suite 2200, Toronto, Ontario, Canada.
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Forward-Looking Information
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This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company's anticipated results and its outlook for its 2024 revenue, Adjusted EBITDA and Adjusted diluted earnings per share. Words such as 'expect', 'anticipate', 'intend', 'may', 'will', 'estimate' and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under 'Risk Factors' in the Company's Annual Information Form dated March 31, 2025 and under the 'Risk Factors' section in the MD&A filed today, August 7, 2025. This information is based on the Company's reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority.
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The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company's results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See 'Forward-looking Information' and 'Risk Factors' within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements.
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Jamieson Wellness Inc.
Selected Consolidated Financial Information
In thousands of Canadian dollars, except share and per share amounts
Three months ended Six months ended
June 30 June 30
2025
2024
2025
2024
Revenue
199,109
184,806
345,072
312,844
Cost of sales
118,295
119,778
209,038
205,031
Gross profit
80,814
65,028
136,034
107,813
Gross profit margin
40.6
%
35.2
%
39.4
%
34.5
%
Selling, general and administrative expenses
55,346
43,867
104,933
83,425
Share-based compensation
2,078
1,744
4,165
3,493
Earnings from operations
23,390
19,417
26,936
20,895
Operating margin
11.7
%
10.5
%
7.8
%
6.7
%
Foreign exchange gain
(1,749
)
(180
)
(1,245
)
(951
)
Interest expense and other financing costs
4,771
4,647
9,679
9,520
Accretion on preferred shares
1,155
2,121
3,427
4,340
Earnings before income taxes
19,213
12,829
15,075
7,986
Provision for income taxes
5,385
4,516
3,761
3,392
Net earnings
13,828
8,313
11,314
4,594
Net earnings attributable to:
Shareholders
13,071
8,653
10,625
4,540
Non-controlling interests
757
(340
)
689
54
13,828
8,313
11,314
4,594
Adjusted net earnings
17,267
14,654
23,215
18,569
EBITDA
30,118
24,358
37,915
31,507
Adjusted EBITDA
35,100
31,555
54,166
47,652
Adjusted EBITDA margin
17.6
%
17.1
%
15.7
%
15.2
%
Weighted average number of shares
Basic
41,712,207
41,456,594
41,845,278
41,468,227
Diluted
43,065,916
42,472,623
43,104,101
42,304,411
Earnings per share attributable to common shareholders:
Basic, earnings per share
0.31
0.20
0.25
0.11
Diluted, earnings per share
0.30
0.20
0.25
0.11
Adjusted diluted, earnings per share
0.40
0.35
0.54
0.44
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Jamieson Wellness Inc.
Consolidated Statements of Financial Position
In thousands of Canadian dollars
June 30,
2025
December 31,
2024
Assets
Current assets
Cash
50,537
44,787
Accounts receivable
165,085
228,031
Inventories
191,939
154,658
Derivatives
1,238
2,661
Prepaid expenses and other current assets
6,167
6,803
Income taxes recoverable
5,272
–
420,238
436,940
Non-current assets
Property, plant and equipment
101,302
103,591
Goodwill
279,433
287,503
Intangible assets
364,747
377,214
Deferred income tax
4,265
3,545
Total assets
1,169,985
1,208,793
Liabilities
Current liabilities
Accounts payable and accrued liabilities
139,102
137,653
Income taxes payable
1,345
4,373
Derivatives
4,767
2,982
Current portion of other long-term liabilities
17,790
27,673
163,004
172,681
Long-term liabilities
Long-term debt
417,652
308,285
Post-retirement benefits
1,268
1,209
Deferred income tax
63,594
64,467
Redeemable preferred shares
–
98,138
Other long-term liabilities
13,409
15,633
Total liabilities
658,927
660,413
Equity
Share capital
328,879
326,219
Warrants
14,705
14,705
Contributed surplus
25,014
23,835
Retained earnings
82,436
99,109
Accumulated other comprehensive income
17,336
41,313
Total shareholders' equity
468,370
505,181
Non-controlling interests
42,688
43,199
Total equity
511,058
548,380
Total liabilities and equity
1,169,985
1,208,793
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Non-IFRS and Other Financial Measures
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This press release makes reference to certain financial measures, including non-IFRS financial measures that are historical, non-IFRS measures that are forward-looking, non-GAAP ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company's business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The Company uses the following non-IFRS financial measures: 'EBITDA', 'Adjusted EBITDA' and 'Adjusted net earnings', the most directly comparable financial measure for each that is disclosed in its financial statements being net earnings, 'normalized gross profit', 'normalized SG&A', 'normalized earnings from operations', 'cash from operating activities before working capital considerations' and 'net debt', the most directly comparable financial measures for each that is disclosed in its financial statements being gross profit, SG&A, earnings from operations, cash flows from operating activities, and long-term debt, respectively, the following non-IFRS ratios: 'Adjusted EBITDA margin', 'Adjusted diluted earnings per share', 'normalized gross profit margin', 'normalized operating margin', and the following supplementary financial measures: 'gross profit margin' and 'operating margin' to provide supplemental measures of the Company's operating performance and thus highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. For an explanation of the composition of each such measure and the usefulness and additional uses of each by management, see the 'How we Assess the Performance of our Business' section of the MD&A, which is incorporated by reference. See below for a quantitative reconciliation of each non-IFRS financial measure to its most directly comparable financial measure disclosed in the Company's financial statements to which the measure relates.
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The following tables provide a quantitative reconciliation of net earnings to EBITDA, Adjusted EBITDA, and Adjusted net earnings, as well as gross profit to normalized gross profit, SG&A to normalized SG&A, earnings from operations to normalized earnings from operations and net debt, each of which are non-IFRS financial measures (see the 'Non-IFRS and Other Financial Measures' of this press release for further information on each non-IFRS financial measure) for the three and six months ended June 30, 2025.
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Jamieson Wellness Inc.
Three months ended
June 30
2025
2024
$ Change
% Change
Revenue
177,317
155,787
21,530
13.8
%
Gross profit
78,251
61,284
16,967
27.7
%
Labour relations costs (1)
–
1,414
(1,414
)
(100.0
%)
Acquisition and divestiture related costs (2)
–
165
(165
)
(100.0
%)
Normalized gross profit
78,251
62,863
15,388
24.5
%
Gross profit margin
44.1
%
39.3
%
–
4.8
%
Normalized gross profit margin
44.1
%
40.4
%
–
3.7
%
Share-based compensation (3)
2,078
1,744
334
19.2
%
Selling, general and administrative expenses
53,767
42,262
11,505
27.2
%
Acquisition and divestiture related costs (2)
–
(324
)
324
100.0
%
IT system implementation (4)
(3,796
)
(3,449
)
(347
)
(10.1
%)
Legal and other (6)
(857
)
–
(857
)
(100.0
%)
Labour relations costs (1)
–
(281
)
281
100.0
%
Normalized selling, general and administrative expenses
49,114
38,208
10,906
28.5
%
Earnings from operations
22,406
17,278
5,128
29.7
%
Acquisition and divestiture related costs (2)
–
489
(489
)
(100.0
%)
IT system implementation (4)
3,796
3,449
347
10.1
%
Labour relations costs (1)
–
1,695
(1,695
)
(100.0
%)
Legal and other (6)
857
–
857
100.0
%
Normalized earnings from operations
27,059
22,911
4,148
18.1
%
Operating margin
12.6
%
11.1
%
–
1.5
%
Normalized operating margin
15.3
%
14.7
%
–
0.6
%
Adjusted EBITDA
33,455
28,691
4,764
16.6
%
Adjusted EBITDA margin
18.9
%
18.4
%
–
0.5
%
Strategic Partners
Three months ended
June 30
2025
2024
$ Change
% Change
Revenue
21,792
29,019
(7,227
)
(24.9
%)
Gross profit
2,563
3,744
(1,181
)
(31.5
%)
Gross profit margin
11.8
%
12.9
%
–
(1.1
%)
Selling, general and administrative expenses
1,579
1,605
(26
)
(1.6
%)
Earnings from operations
984
2,139
(1,155
)
(54.0
%)
Operating margin
4.5
%
7.4
%
–
(2.9
%)
Adjusted EBITDA
1,645
2,864
(1,219
)
(42.6
%)
Adjusted EBITDA margin
7.5
%
9.9
%
–
(2.4
%)
Jamieson Brands
Six months ended
June 30
2025
2024
$ Change
% Change
Revenue
308,698
271,135
37,563
13.9
%
Gross profit
132,041
102,414
29,627
28.9
%
Labour relations costs (1)
–
4,667
(4,667
)
(100.0
%)
IT system implementation (4)
1,023
–
1,023
100.0
%
Acquisition and divestiture related costs (2)
–
165
(165
)
(100.0
%)
Normalized gross profit
133,064
107,246
25,818
24.1
%
Gross profit margin
42.8
%
37.8
%
–
5.0
%
Normalized gross profit margin
43.1
%
39.6
%
–
3.5
%
Share-based compensation (3)
4,165
3,493
672
19.2
%
Selling, general and administrative expenses
101,807
80,323
21,484
26.7
%
Acquisition and divestiture related costs (2)
–
(324
)
324
100.0
%
IT system implementation (4)
(8,082
)
(6,429
)
(1,653
)
(25.7
%)
Labour relations costs (1)
–
(1,721
)
1,721
100.0
%
Donations (5)
(3,118
)
–
(3,118
)
(100.0
%)
Legal and other (6)
(882
)
(297
)
(585
)
(197.0
%)
Normalized selling, general and administrative expenses
89,725
71,552
18,173
25.4
%
Earnings from operations
26,069
18,598
7,471
40.2
%
Acquisition and divestiture related costs (2)
–
489
(489
)
(100.0
%)
IT system implementation (4)
9,105
6,429
2,676
41.6
%
Labour relations costs (1)
–
6,388
(6,388
)
(100.0
%)
Donations (5)
3,118
–
3,118
100.0
%
Legal and other (6)
882
297
585
197.0
%
Normalized earnings from operations
39,174
32,201
6,973
21.7
%
Operating margin
8.4
%
6.9
%
–
1.5
%
Normalized operating margin
12.7
%
11.9
%
–
0.8
%
Adjusted EBITDA
51,728
43,815
7,913
18.1
%
Adjusted EBITDA margin
16.8
%
16.2
%
–
0.6
%
Strategic Partners
Six months ended
June 30
2025
2024
$ Change
% Change
Revenue
36,374
41,709
(5,335
)
(12.8
%)
Gross profit
3,993
5,399
(1,406
)
(26.0
%)
IT system implementation (4)
226
–
226
100.0
%
Normalized gross profit
4,219
5,399
(1,180
)
(21.9
%)
Gross profit margin
11.0
%
12.9
%
–
(1.9
%)
Normalized gross profit margin
11.6
%
12.9
%
–
(1.3
%)
Selling, general and administrative expenses
3,126
3,102
24
0.8
%
Earnings from operations
867
2,297
(1,430
)
(62.3
%)
IT system implementation (4)
226
–
226
100.0
%
Normalized earnings from operations
1,093
2,297
(1,204
)
(52.4
%)
Operating margin
2.4
%
5.5
%
–
(3.1
%)
Normalized operating margin
3.0
%
5.5
%
–
(2.5
%)
Adjusted EBITDA
2,438
3,837
(1,399
)
(36.5
%)
Adjusted EBITDA margin
6.7
%
9.2
%
–
(2.5
%)
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Reconciliation of Non-IFRS Financial Measures
In thousands of Canadian dollars
Three months ended Six months ended
June 30 June 30
2025
2024
2025
2024
Net earnings:
13,828
8,313
11,314
4,594
Add:
Recovery of income taxes
5,385
4,516
3,761
3,392
Interest expense and other financing costs
4,771
4,647
9,679
9,520
Accretion on preferred shares
1,155
2,121
3,427
4,340
Depreciation of property, plant, and equipment
3,474
3,236
6,729
6,752
Amortization of intangible assets
1,505
1,525
3,005
2,909
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
30,118
24,358
37,915
31,507
Share-based compensation (3)
2,078
1,744
4,165
3,493
Foreign exchange gain
(1,749
)
(180
)
(1,245
)
(951
)
Labour relations costs (1)
–
1,695
–
6,388
IT system implementation (4)
3,796
3,449
9,331
6,429
Acquisition and divestiture related costs (2)
–
489
–
–
Donations (5)
–
–
3,118
–
Legal and other (6)
857
–
882
297
Adjusted EBITDA
35,100
31,555
54,166
47,652
Recovery of income taxes
(5,385
)
(4,516
)
(3,761
)
(3,392
)
Interest expense and other financing costs
(4,771
)
(4,647
)
(9,679
)
(9,520
)
Depreciation of property, plant, and equipment
(3,474
)
(3,236
)
(6,729
)
(6,752
)
Amortization of intangible assets
(1,505
)
(1,525
)
(3,005
)
(2,909
)
Share-based compensation (3)
(1,956
)
(1,622
)
(3,921
)
(3,249
)
Tax deduction from vesting of certain share-based awards
(19
)
–
(708
)
–
Tax effect of normalization adjustments
(723
)
(1,355
)
(3,148
)
(3,261
)
Adjusted net earnings
17,267
14,654
23,215
18,569
Three months ended Six months ended
June 30 June 30
2025
2024
2025
2024
Gross profit
80,814
65,028
136,034
107,813
Labour relations costs (1)
–
1,414
–
4,667
Acquisition and divestiture related costs (2)
–
165
–
165
IT system implementation (4)
–
–
1,249
165
Normalized gross profit
80,814
66,607
137,283
112,645
Normalized gross profit margin
40.6
%
36.0
%
39.8
%
36.0
%
Selling, general and administrative expenses
55,346
43,867
104,933
83,425
Acquisition and divestiture related costs (2)
–
(324
)
–
(324
)
IT system implementation (4)
(3,796
)
(3,449
)
(8,082
)
(6,429
)
Labour relations costs (1)
–
(281
)
–
(1,721
)
Donations (5)
–
–
(3,118
)
–
Legal and other (6)
(857
)
–
(882
)
(297
)
Normalized selling, general and administrative expenses
50,693
39,813
92,851
74,654
Earnings from operations
23,390
19,417
26,936
20,895
Acquisition and divestiture related costs (2)
–
489
–
489
IT system implementation (4)
3,796
3,449
9,331
6,429
Donations (5)
–
–
3,118
–
Labour relations costs (1)
–
1,695
–
6,388
Legal and other (6)
857
–
882
297
Normalized earnings from operations
28,043
25,050
40,267
34,498
Normalized operating margin
14.1
%
13.6
%
11.7
%
11.0
%
Article content
(1)
These expenses are mainly comprised of third-party legal, security fees, unavoidable facility expenditures, customer fines and penalties, along with freight charges to expedite shipments to customers as it relates to a labour disruption in Q1 2024.
(2)
Prior year expenses mainly pertain to legal, consulting and integration costs associated with the acquisition and integration of our former distributor partner in China on April 28, 2023.
(3)
The Company's share-based compensation expense pertains to our long-term incentive plan (the 'LTIP') (refer to ' Share-based compensation'), with stock options, performance-based share units ('PSUs'), time-based restricted share units ('RSUs'), and deferred share units ('DSUs') expenses, along with associated payroll taxes.
(4)
Mainly pertains to development costs associated with our IT system implementation to augment our system infrastructure. Unlike other system improvement projects with costs capitalized, due to its cloud-based nature, these system implementation costs are expensed accordingly.
(5)
Include cash and in-kind donations to support communities adjacent to our Irvine, California facility impacted by the wildfires.
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Article content
Investor and Media Contact Information:
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National Post
26 minutes ago
- National Post
Dentalcorp Reports Second Quarter 2025 Results
Article content Revenue of $435.2 million, an increase of 8.9% from the second quarter of 2024, with Same Practice Revenue Growth ('SPRG') 1 of 3.3%. Adjusted EBITDA 1 of $81.2 million, an increase of 9.9% compared to the same period in 2024; Adjusted EBITDA Margin 1 of 18.7%, an increase of 20 basis points over the same period in 2024. Adjusted Free Cash Flow 1 and Adjusted Free Cash Flow per Share 1 of $45.6 million and $0.23, an increase of 12.0% and 9.5%, respectively, over the same period in 2024; Adjusted Net Income 1 of $30.7 million. Net debt / PF Adjusted EBITDA after rent Ratio 1 of 3.65x, a decrease of 0.46x compared to the same period in 2024. Acquired 8 new practice locations which are expected to generate $3.8 million in PF Adjusted EBITDA after rent 1 at 6.3x ($12.1 million and 7.1x, respectively, for the six months ended June 30, 2025) expanding Dentalcorp's national footprint to 575 locations. Achieved a 91.8% recurring patient visit rate 1, reflecting predictable and continued patient demand across the network. Article content Third Quarter 2025 Outlook Article content Revenue and SPRG 1 for the third quarter of 2025 are estimated to increase by 10.0% to 12.0% (to between $412.9M and $420.4M) and between 3.0% to 5.0%, from the third quarter of 2024, respectively. Adjusted EBITDA Margin 1 for the third quarter of 2025 is estimated to increase by 20 basis points from the third quarter of 2024, to 18.6%, and Adjusted EBITDA 1 is estimated to increase to between $76.8M and $78.2M. Subsequent to the quarter, closed $5.5 million of PF Adjusted EBITDA after rent 1 representing 7 practices, and when combined with signed LOIs and acquisitions completed as of June 30, 2025, is greater than our 2025 full-year acquisition target of $25 million of PF Adjusted EBITDA after rent 1. Article content (¹) Article content Non-IFRS financial measure, non-IFRS ratio, or supplementary financial measure. For comprehensive definitions and quantitative reconciliations, please refer to the 'Non-IFRS and Other Financial Measures' section within this news release. Article content TORONTO — dentalcorp Holdings Ltd. ('Dentalcorp' or the 'Company') (TSX: DNTL), Canada's largest and one of North America's fastest growing networks of dental practices, today announced its financial and operating results for the second quarter ended June 30, 2025, reaffirmed the full year 2025 guidance previously provided in the Company's news release dated March 21, 2025, and announced its outlook for the third quarter of 2025. All financial figures are in Canadian dollars unless otherwise indicated. Article content 'Our teams across the country delivered another quarter of strong results, with revenue and Adjusted EBITDA growth of approximately 9% and 10%, respectively, over the second quarter of 2024, and setting new highs for both metrics. We continued to realize operating leverage across the business, with second quarter Adjusted EBITDA Margin expanding 20 basis points over the second quarter of 2024 to 18.7%, marking our fifth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion,' said Graham Rosenberg, CEO and Chairman of Dentalcorp. Article content 'We generated a record $45.6 million in Adjusted Free Cash Flow in the second quarter of 2025, representing an increase of approximately 12% over the second quarter of 2024,' Rosenberg continued. 'This led to continued deleveraging, with our Net Debt / PF Adjusted EBITDA after rent Ratio decreasing to 3.65x, a reduction of 0.46x from the second quarter of 2024, marking our seventh consecutive quarter of deleveraging,' Rosenberg said. Article content 'Following a strong second quarter of 2025, we are carrying this momentum into the third quarter, anticipating SPRG of 3.0% to 5.0%, revenue growth of 10.0% to 12.0%, and Adjusted EBITDA Margin expansion of 20 basis points over the third quarter of 2024, to 18.6%,' said Nate Tchaplia, President and Chief Financial Officer. 'During the second quarter of 2025, we acquired 8 new practices that are expected to generate $3.8 million in PF Adjusted EBITDA after rent, at an average multiple of 6.3x. We are pleased to note that as of today, we have closed on, or signed LOIs for, acquisitions representing PF Adjusted EBITDA after rent in excess of our 2025 acquisition target of $25 million,' Tchaplia continued. Article content 'With regards to the federal government's Canadian Dental Care Plan ('CDCP'), we have treated over 125,000 CDCP patients with 95% of our practices currently accepting CDCP patients. Second quarter 2025 SPRG was impacted by visit deferrals, as the newly eligible 18-64 cohort began to receive treatment in July. Looking ahead, we anticipate minimal CDCP-related visit deferrals for the balance of the year as the program is now fully deployed,' Tchaplia concluded. Article content 'We remain on track to meet or exceed our full year 2025 guidance, where we expect to see SPRG of 3.0% to 5.0%, an accelerated pace of M&A with acquisitions representing $25 million+ of PF Adjusted EBITDA after rent, Pre-tax Adjusted Free Cash flow per Share growth of 15%+, and another year of Adjusted EBITDA Margin expansion of 20+ basis points,' said Rosenberg. Article content (a) Non-IFRS financial measure, non-IFRS ratio or supplementary financial measure. See the 'Non-IFRS and Other Financial Measures and Ratios' section of this release for definitions and quantitative reconciliations. Article content Conference Call Notification Article content The Company will hold a conference call to provide a business update on Friday, August 8, 2025, at 8:30 a.m. ET. A question-and-answer session will follow the business update. Article content Non-IFRS and Other Financial Measures and Ratios Article content As appropriate, we supplement our results of operations determined in accordance with IFRS with certain non-IFRS and other financial measures and ratios as we believe these non-IFRS and other financial measures are useful to investors, lenders and others in assessing our performance and highlighting trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Our management also uses non-IFRS measures for purposes of comparing to prior periods; preparing annual operating budgets; developing future projections and earnings growth prospects; measuring the profitability of ongoing operations; analyzing our financial condition, business performance and trends, including the operating performance of the business after taking into consideration the acquisitions of dental practices; and determining components of employee compensation. As such, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management's perspective, including how we evaluate our financial performance and how we manage our capital structure. We also believe that securities analysts, investors and other interested parties frequently use these non-IFRS and other financial measures and industry metrics in the evaluation of issuers. Article content These non-IFRS and other financial measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, may include or exclude certain items as compared to similar IFRS measures and may not be comparable to similarly-titled measures reported by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For further information on non-IFRS and other financial measures and ratios, including the most directly comparable IFRS measures, composition of the measures, a description of how we use these measures, an explanation of how these measures are useful to investors and applicable reconciliations, refer to the 'Non-IFRS and Other Financial Measures', 'Non-IFRS Financial Measures', 'Non-IFRS Ratios' and 'Certain Supplementary Financial Measures' sections of management's discussion and analysis of operations for the three and six months ended June 30, 2025, which is available on the Company's profile on SEDAR+ at Article content 'EBITDA' means, for the applicable period, net income (loss) and comprehensive income (loss) plus (a) net finance costs, (b) income tax expense (recovery), and (c) depreciation and amortization. Management does not use EBITDA as a financial performance metric, but we present EBITDA to assist investors in understanding the mathematical development of Adjusted EBITDA and Same Practice EBITDA Growth. The most comparable IFRS measure to EBITDA is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content Adjusted EBITDA Article content 'Adjusted EBITDA' is calculated by adding to EBITDA certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) net impact of unrealized foreign exchange gains or losses on non-cash balances; (b) share-based compensation; (c) external acquisition expenses; (d) change in fair value of financial instruments at fair value through profit or loss; (e) other corporate costs; (f) (gain) loss on disposal of dental practices; (g) loss on disposal and impairment of property and equipment and intangible assets; (h) loss on settlement of other receivables; (i) impairment of right-of-use assets; (j) post-employment benefits; and (k) short-term benefits. Adjusted EBITDA is a supplemental measure used by management and other users of our financial statements to assess the financial performance of our business without regard to the effects of interest, depreciation and amortization costs, expenses that are not considered reflective of underlying business performance, and other expenses that are expected to be one-time or non-recurring. We use Adjusted EBITDA to facilitate a comparison of our operating performance on a consistent basis from period to period and to provide for a more complete understanding of factors and trends affecting our business. The most comparable IFRS measure to Adjusted EBITDA is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Change in fair value of financial instruments at fair value through profit or loss includes i) change in fair value of derivative instruments, ii) change in fair value of contingent consideration, iii) change in fair value of preferred shares and iv) change in fair value of other financial liability. Change in fair value of derivative instruments represents the change in present value of the estimated future cash flows based on observable yield curves at each reporting date. Change in fair value of contingent consideration represents the change in fair value recognized related to obligations under earn-out arrangements measured on acquisition, and at each subsequent reporting date. Change in fair value of preferred shares represents the change in fair value of the Company's investment in the Management Preferred Shares measured at each reporting date. Change in fair value of other financial liability represents the change in fair value of certain put and call options issued over the Associate Dentists' profit rights for the Company's De novo practices measured at each reporting periods. All of above are classified as financial assets at FVTPL, and are revalued at each reporting date and recognized in the condensed interim consolidated statements of income (loss) and comprehensive income (loss). (c) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (d) Represents the (gain) loss on disposal of dental practices that were disposed of during the reporting period. (e) Represents the loss on disposal and impairment of property and equipment and intangible assets which primarily occurred upon the closure of certain dental practice locations and the subsequent disposal of leasehold improvements and equipment that could not be transferred to other dental practices. (f) Represents post-employment benefits provided to the Company's former President. (g) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. Article content Adjusted Free Cash Flow Article content 'Adjusted free cash flow' is calculated by adding or subtracting from cash flow from operating activities: (a) external acquisition expenses; (b) other corporate costs; (c) post-employment benefits; (d) short-term benefits; (e) repayment of principal on leases; (f) maintenance capital expenditure; and (g) changes in working capital. We use Adjusted free cash flow to facilitate a comparison of our operating performance on a consistent basis from period to period, to provide for a more complete understanding of factors and trends affecting our business, and to determine components of employee compensation. The most comparable IFRS measure to Adjusted free cash flow is cash flow from operating activities, for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (c) Represents post-employment benefits provided to the Company's former President. (d) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. (e) Represents capital expenditures for general maintenance and safety compliance of dental practices for the reporting period. (f) Represents the change in non-cash working capital items for the reporting period. Article content 'Adjusted free cash flow per Share' means Adjusted free cash flow Article content divided Article content by the total number of Multiple Voting Shares and Subordinate Voting Shares on a fully diluted basis. Adjusted free cash flow per Share is utilized to determine components of employee compensation. Article content Pre-tax Adjusted Free Cash Flow Article content 'Pre-tax Adjusted free cash flow' in respect of a period means Adjusted free cash flow less cash income tax (recovery) expense. We use Pre-tax Adjusted free cash flow to facilitate a comparison of our operating performance on a consistent basis from period to period, to provide for a more complete understanding of factors and trends affecting our business, and to determine components of employee compensation. The most comparable IFRS measure to Pre-tax Adjusted free cash flow is cash flow from operating activities. Article content divided by Article content the total number of Multiple Voting Shares and Subordinate Voting Shares Article content Article content on a fully diluted basis. Pre-tax Adjusted free cash flow per Share is utilized to determine components of employee compensation. Article content Adjusted Net Income Article content 'Adjusted net income' is calculated by adding to Net income (loss) and comprehensive income (loss) certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) amortization of intangible assets; (b) share-based compensation; (c) change in fair value of financial instruments at fair value through profit or loss; (d) external acquisition expenses; (e) other corporate costs; (f) (gain) loss on disposal of dental practices; (g) loss on disposal and impairment of property and equipment and intangible assets; (h) loss on settlement of other receivables; (i) impairment of right-of-use assets; (j) loss on modification of borrowings; (k) post-employment benefits; (l) short-term benefits; and (m) the tax impact of the above. We use Adjusted net income to facilitate a comparison of our operating performance on a consistent basis from period to period and to provide for a more complete understanding of factors and trends affecting our business. The most comparable IFRS measure to Adjusted net income is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Change in fair value of financial instruments at fair value through profit or loss includes i) change in fair value of derivative instruments, ii) change in fair value of contingent consideration, iii) change in fair value of preferred shares and iv) change in fair value of other financial liability. Change in fair value of derivative instruments represents the change in present value of the estimated future cash flows based on observable yield curves at each reporting date. Change in fair value of contingent consideration represents the change in fair value recognized related to obligations under earn-out arrangements measured on acquisition, and at each subsequent reporting date. Change in fair value of preferred shares represents the change in fair value of the Company's investment in the Management Preferred Shares measured at each reporting date. Change in fair value of other financial liability represents the change in fair value of certain put and call options issued over the Associate Dentists' profit rights for the Company's De novo practices measured at each reporting periods. All of above are classified as financial assets at FVTPL, and are revalued at each reporting date and recognized in the condensed interim consolidated statements of income (loss) and comprehensive income (loss). (c) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (d) Represents the (gain) loss on disposal of dental practices that were disposed of during the reporting period. (e) Represents the loss on disposal and impairment of property and equipment and intangible assets which primarily occurred upon the closure of certain dental practice locations and the subsequent disposal of leasehold improvements and equipment that could not be transferred to other dental practices. (f) Represents the loss on modification of the Company's outstanding credit facilities upon entering into an amended and restated credit agreement. (g) Represents post-employment benefits provided to the Company's former President. (h) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. Article content PF Adjusted EBITDA Article content 'PF Adjusted EBITDA' in respect of a period means Adjusted EBITDA for that period plus the Company's estimate of the additional Adjusted EBITDA that it would have recorded if it had acquired each of the dental practices that it acquired during that period on the first day of that period, calculated in accordance with the methodology described in the reconciliation table in 'Reconciliation of Non-IFRS Measures'. Both creditors and the Company use PF Adjusted EBITDA to assess our borrowing capacity, which management believes, given the highly acquisitive nature of our business, is more reflective of our operating performance. We also use PF Adjusted EBITDA to determine components of employee compensation. The most comparable IFRS measure to PF Adjusted EBITDA is Net loss and comprehensive loss. Article content (a) Represents the additional Adjusted EBITDA that we estimate would have been recorded if the Company's dental practice acquisitions had occurred on the first day of the applicable reporting period. These estimates are based on the amount of Practice-Level EBITDA budgeted by us to be earned by the relevant practices at the time of their acquisition by us. There can be no assurance that if we had acquired these practices on the first day of the applicable reporting period, they would have actually generated such budgeted Practice-Level EBITDA, nor is this estimate indicative of future results. Article content PF Adjusted EBITDA after rent Article content 'PF Adjusted EBITDA after rent' in respect of a period means PF Adjusted EBITDA less interest and principal repayments on leases and lease interest and principal repayments on acquisitions. Both creditors and the Company use PF Adjusted EBITDA after rent to assess our borrowing capacity, which management believes, given the highly acquisitive nature of our business, is more reflective of our operating performance. The most comparable IFRS measure to PF Adjusted EBITDA after rent is Net loss and comprehensive loss. Article content PF Revenue Article content 'PF Revenue' in respect of a period means revenue for that period plus the Company's estimate of the additional revenue that it would have recorded if it had acquired each of the dental practices that it acquired during that period on the first day of that period. Given the highly acquisitive nature of our business, management believes PF Revenue is more reflective of our operating performance. We use PF Revenue to determine components of employee compensation. Article content Article content The most comparable IFRS measure to PF Revenue is revenue. Article content Net debt / PF Adjusted EBITDA after rent Ratio Article content 'Net debt / PF Adjusted EBITDA after rent Ratio' means non-current borrowings divided by PF Adjusted EBITDA after rent. We use Net debt / PF Adjusted EBITDA after rent Ratio to assess our borrowing capacity. Article content Same Practice Revenue Growth Article content 'Same Practice Revenue Growth' in respect of a period means the percentage change in revenue derived from Established Practices in that period as compared to revenue from the same dental practices in the corresponding period in the immediately prior year. Article content About Forward-Looking Information Article content This release includes forward-looking information and forward-looking statements within the meaning of applicable Canadian securities legislation, including the Article content Securities Act (Ontario) Article content . Forward-looking information includes, but is not limited to, statements about the Company's objectives, strategies to achieve those objectives, our financial outlook, and the Company's beliefs, plans, expectations, anticipations, estimates, or intentions. Forward-looking information includes words like could, expect, may, anticipate, assume, believe, intend, estimate, plan, project, guidance, outlook, target, and similar expressions suggesting future outcomes or events. Article content Our forward-looking information includes, but is not limited to, statements regarding the declaration of future dividends; and the information and statements under 'Third Quarter 2025 Outlook' relating to our goals for the third quarter of 2025 for Revenue, Same Practice Revenue Growth, Adjusted EBITDA Margin, PF Adjusted EBITDA after rent attributable to practices acquired in 2025 and our medium-term expectations regarding Same Practice Revenue Growth and Net Debt / PF Adjusted EBITDA after rent Ratio. Such forward-looking information relating to these metrics are not projections; they are goals based on the Company's current strategies and may be considered forward-looking information under applicable securities laws and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management. Article content The purpose of disclosing such forward-looking information is to provide investors with more information concerning the financial results that the Company currently believes are achievable based on the assumptions below. Readers are cautioned that the information may not be appropriate for other purposes. While these targets are based on underlying assumptions that management believes are reasonable in the circumstances, readers are cautioned that actual results may vary materially from those described above. Article content Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in actions, events, conditions, results, performance or achievements to be different or materially different from those projected in the forward-looking statements. Forward-looking information is based on many factors and assumptions including, but not limited to, the impact of, and the enrollment of patients in, the CDCP; expectations regarding the Company's business, operations and capital structure; that the Company's acquisition program continues as it has historically, including the Company maintaining its ability to continue to make and integrate acquisitions at attractive valuations including a reduction in acquisition purchase multiples as compared to prior periods; the prevailing business environment; the Company's financial and operating results and financial condition; the Company's need for funds to finance ongoing operations or growth conditions; the Company's ability to realize pricing increases, materially driven by Provincial fee guides; a continued increase in patient visit volumes through patient recall and insourcing initiatives that drive the expansion of service offerings and frequency of visits to contribute to optimal patient care; the impact of the investments the Company has made in its corporate infrastructure and teams, and the upgrades to its core information technology systems; the Company's ability to mitigate anticipated supply chain disruptions, geopolitical risks, inflationary pressures and labour shortages, and generate cash flow; no changes in the competitive environment or legal or regulatory developments affecting our business; and visits by patients to our Practices at or above the same rate as current visits. Article content Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of known and unknown risk factors, many of which are beyond the control of the Company, and could cause actual results to differ materially from the forward-looking statements. Such risks include, but are not limited to, the Company's potential inability to successfully execute its growth strategy and complete additional acquisitions; its dependence on the integration and success of its acquired dental practices; its dependence on the parties with which the Company has contractual arrangements and obligations; changes in relevant laws, governmental regulations and policy and the costs incurred in the course of complying with such changes; risks relating to the current economic environment, including the impact of any tariffs and retaliatory tariffs on the economy; risk associated with disease outbreaks; competition in the dental industry; increases in operating costs; litigation and regulatory risk; and the risk of a failure in internal controls and other factors described under 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2024. Accordingly, we warn readers to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding the Company's future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. All of the forward-looking information in this release is qualified by the cautionary statements herein. Article content About Dentalcorp Article content Article content Article content Article content Article content Contacts Article content For investor inquiries, please contact: Article content Investor Relations Article content Article content Nick Xiang Article content Article content Vice President, Corporate Finance Article content Article content Article content Article content (416) 558-8338 x 866 Article content Media Article content Article content Sebastien Bouchard Article content Article content Article content
National Post
26 minutes ago
- National Post
Repare Therapeutics Provides Business Update and Reports Second Quarter 2025 Financial Results
Article content Entered into worldwide licensing agreement with Debiopharm for lunresertib Article content $109.5 million in cash and cash equivalents and marketable securities Article content CAMBRIDGE, Mass. & MONTREAL — Repare Therapeutics Inc. ('Repare' or the 'Company') (Nasdaq: RPTX), a clinical-stage precision oncology company, today reported financial results for the second quarter ended June 30, 2025. Article content 'We remain focused on exploring strategic alternatives and partnerships across our portfolio to enhance long-term shareholder value, as exemplified by our recent worldwide licensing agreement with Debiopharm for lunresertib and out-licensing of early-stage discovery platforms to DCx,' said Steve Forte, President, Chief Executive Officer and Chief Financial Officer of Repare. 'In parallel to evaluating these strategic opportunities for our remaining programs, we expect to deliver initial data from the LIONS and POLAR trials in the fourth quarter.' Article content Second Quarter 2025 and Recent Portfolio Highlights: Article content Entered into a worldwide licensing agreement with Debiopharm for lunresertib In July 2025, Repare entered into an exclusive worldwide licensing agreement with Debiopharm International S.A. ('Debiopharm') for lunresertib, a first-in-class precision oncology PKMYT1 inhibitor. Under the terms of the agreement, Repare will receive a $10 million upfront payment, and is eligible to receive up to $257 million in potential clinical, regulatory, commercial and sales milestones, including up to $5 million in potential near-term payments, and single-digit royalties on global net sales. This agreement builds on the success of Repare and Debiopharm's clinical study and collaboration agreement to explore the synergy between lunresertib and Debio 0123, a potential best-in-class, brain penetrant and highly selective WEE1 inhibitor. Debiopharm will assume sponsorship of the MYTHIC study and take over existing and future development activities related to lunresertib. Article content Announced out-licensing of its discovery platforms to DCx Biotherapeutics In May 2025, Repare out-licensed its early-stage discovery platforms, including certain platform and program intellectual property, to DCx Biotherapeutics Corporation ('DCx'), a newly-launched Canadian biotechnology company developing next generation precision drug conjugates supported by Amplitude Ventures. In connection with this agreement, Repare received a $1 million upfront payment and is expected to receive $3 million in near-term payments. In addition, Repare received a 9.99% equity position in DCx, including certain dilution protection rights, and is eligible to receive potential future out-licensing, clinical and commercial milestone payments, as well as low single-digit sales royalties for the development of certain products by DCx. In connection with this transaction, Repare recognized a $5.7 million gain during the quarter. Article content RP-3467: Potential best-in-class, oral Polθ ATPase/helicase inhibitor Repare is conducting a Phase 1 clinical trial of RP-3467 (POLAR), dosing patients alone and in combination with the poly-ADP ribose polymerase (PARP) inhibitor, olaparib. POLAR is a multicenter, open-label, dose-escalation Phase 1 clinical trial designed to investigate the safety, pharmacokinetics, pharmacodynamics, and preliminary clinical activity of RP-3647 alone or in combination with olaparib in adults with locally advanced or metastatic epithelial ovarian cancer, metastatic breast cancer, metastatic castration-resistant prostate cancer, or pancreatic adenocarcinoma. Upcoming expected milestone: Q4 2025: Topline safety, tolerability and early efficacy data from the POLAR trial in monotherapy and in combination with olaparib. Article content RP-1664: First-in-class, oral selective PLK4 Inhibitor Repare completed enrolment of 29 patients in its Phase 1 LIONS clinical trial, evaluating RP-1664 as a monotherapy in adult and adolescent patients with TRIM37-high solid tumors. LIONS is a first-in-human, multicenter, open-label Phase 1 clinical trial designed to investigate safety, pharmacokinetics, pharmacodynamics and the preliminary efficacy of RP-1664. Upcoming expected milestone: Article content Second Quarter 2025 Financial Results Article content Cash, cash equivalents and marketable securities: Cash, cash equivalents and marketable securities as of June 30, 2025 were $109.5 million. Revenue from collaboration agreements: Revenue from collaboration agreements were $0.3 million for the three and six months ended June 30, 2025, respectively, as compared $1.1 million and $53.5 million for three and six months ended June 30, 2024. Research and development expense, net of tax credits (Net R&D): Net R&D expenses were $14.3 million and $34.6 million for the three and six months ended June 30, 2025, respectively, as compared to $30.1 million and $63.1 for the three and six months ended June 30, 2024. General and administrative (G&D) expenses: G&A expenses were $6.0 million and $13.7 million for the three and six months ended June 30, 2025, respectively, compared to $8.3 million and $16.9 million for the three and six months ended June 30, 2024. Net loss: Net loss was $16.7 million, or $0.39 per share, and $46.8 million, or $1.09 per share, in the three and six months ended June 30, 2025, respectively, compared to $34.8 million, or $0.82 per share, and $21.6 million, or $0.51 per share, in the three and six months ended June 30, 2024, respectively. Article content About Repare Therapeutics Inc. Article content Repare Therapeutics is a clinical-stage precision oncology company enabled by its proprietary synthetic lethality approach to the discovery and development of novel therapeutics. Repare Therapeutics has developed highly targeted cancer therapies focused on genomic instability, including DNA damage repair. The Company's clinical-stage pipeline includes RP-3467, a Phase 1 Polθ ATPase inhibitor; and RP-1664, a Phase 1 PLK4 inhibitor. For more information, please visit and follow @Reparerx on X (formerly Twitter) and LinkedIn. Article content Forward-Looking Statements Article content This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 and securities laws in Canada. All statements in this press release other than statements of historical facts are 'forward-looking statements. These statements may be identified by words such as 'aims,' 'anticipates,' 'believes,' 'could,' 'estimates,' 'expects,' 'forecasts,' 'goal,' 'intends,' 'may,' 'plans,' 'possible,' 'potential,' 'seeks,' 'will' and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding: the Company's licensing arrangements with Debiopharm and DCx, including the potential benefits of such transactions and the receipt of clinical and commercial milestone payments and royalties under such agreements; the Company's plans for exploring strategic alternatives and partnerships across the clinical portfolio; and the design, objectives, initiation, timing, progress and results of current and future clinical trials of the Company's product candidates including the advancement of its two ongoing clinical trials. These forward-looking statements are based on the Company's expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties that could cause the Company's clinical development programs, future results or performance to differ materially from those expressed or implied by the forward-looking statements. Many factors may cause differences between current expectations and actual results, including: the Company's ability to successfully pursue a strategic transaction on attractive terms, or at all; the potential that success in preclinical testing and earlier clinical trials does not ensure that later clinical trials will generate the same results or otherwise provide adequate data to demonstrate the efficacy and safety of a product candidate; the impacts of macroeconomic conditions, including tariffs and other trade policies, the conflict in Ukraine and the conflict in the Middle East, fluctuations in inflation and uncertain credit and financial markets, on the Company's business, clinical trials and financial position; unexpected safety or efficacy data observed during preclinical studies or clinical trials; clinical trial site activation or enrollment rates that are lower than expected; the Company's ability to realize the benefits of its collaboration and license agreements; changes in expected or existing competition; changes in the regulatory environment; the uncertainties and timing of the regulatory approval process; and unexpected litigation or other disputes. Other factors that may cause the Company's actual results to differ from those expressed or implied in the forward-looking statements in this press release are identified in the section titled 'Risk Factors' in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission ('SEC') and the Québec Autorité des Marchés Financiers ('AMF') on March 3, 2025, and in other filings made with the SEC and AMF from time to time, including the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. The Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise, except as otherwise required by law. For more information, please visit and follow Repare on X (formerly Twitter) at @RepareRx and on LinkedIn at Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue: Collaboration agreements $ 250 $ 1,073 $ 250 $ 53,477 Operating expenses: Research and development, net of tax credits 14,283 30,075 34,553 63,045 General and administrative 6,029 8,317 13,681 16,935 Restructuring 3,384 — 6,649 — Total operating expenses 23,696 38,392 54,883 79,980 Gain on sale of technology and other assets 5,666 — 5,666 — Loss from operations (17,780 ) (37,319 ) (48,967 ) (26,503 ) Other income (expense), net Realized and unrealized gain on foreign exchange 66 6 64 37 Interest income 1,236 2,894 2,774 5,862 Other expense, net (18 ) (29 ) (40 ) (53 ) Total other income, net 1,284 2,871 2,798 5,846 Loss before income taxes (16,496 ) (34,448 ) (46,169 ) (20,657 ) Income tax expense (248 ) (326 ) (618 ) (955 ) Net loss $ (16,744 ) $ (34,774 ) $ (46,787 ) $ (21,612 ) Other comprehensive loss: Unrealized loss on available-for-sale marketable securities $ (17 ) $ (21 ) $ (62 ) $ (162 ) Total other comprehensive loss (17 ) (21 ) (62 ) (162 ) Comprehensive loss $ (16,761 ) $ (34,795 ) $ (46,849 ) $ (21,774 ) Net loss per share attributable to common shareholders – basic and diluted $ (0.39 ) $ (0.82 ) $ (1.09 ) $ (0.51 ) Article content Article content Article content Investor Relations & Media Contact: Article content Article content Matthew DeYoung Article content Article content Article content Article content
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Expedia shares soar on upbeat forecast, U.S. travel rebound
A traveller walks through the domestic departures level at Toronto's Pearson International Airport, which remained unaffected, on Thursday, July 3, 2025. THE CANADIAN PRESS/Chris Young Shares of Expedia surged more than 17 per cent in premarket trading on Friday, after the online travel agent raised its full-year gross bookings forecast and struck an optimistic tone on the recovery in U.S. travel demand. Expedia is the latest travel company to hint at a rebound in demand, following weakness earlier this year when consumers fretted over the economic impact of President Donald Trump's tariff policies. 'Since the beginning of July, we've seen an uptick in overall travel demand, particularly in the U.S.,' CEO Ariane Gorin said on the earnings call on Thursday. The company expects 2025 gross bookings to grow between 3 per cent to 5 per cent, up 1 percentage point from its earlier forecast. Morningstar analyst Dan Wasiolek expects bookings growth to accelerate further to 7 per cent in 2026 as demand improves alongside policy visibility. Tariffs had disrupted travel spending, 'but it appears prospective U.S. travelers are prepared to book again,' said Danni Hewson, head of financial analysis at AJ Bell. Expedia has also been focusing on simplifying its organizational structure by eliminating roles, streamlining operations and deploying generative AI technology. Its second-quarter margin grew by 190 basis points, surpassing the company's May guidance of a 75- to 100-basis-point increase. The biggest fundamental takeaway is that Expedia's continued strategic focus and tighter expense controls are driving more consistent results, said Baird analyst Michael Bellisario. Expedia also joined industry peers Marriott MAR.O and Airbnb ABNB.O in noting strong bookings from higher-income consumers while lower-income consumers were more cautious with discretionary spending. Expedia's shares trade at about 12.01 times their forward profit estimates, below the industry median of 14.19. Reporting by Aishwarya Jain in Bengaluru; Editing by Devika Syamnath, Reuters
