Latest news with #Adjusted EBITDA
National Post
2 days ago
- Business
- National Post
WELL Health Reports Record Revenue, Adjusted EBITDA, and Adjusted Net Profit in Q2-2025, Upgrades Guidance, and Delivers First-Ever Quarter With More Than 1 Million Patient Visits in Canada
Article content WELL achieved record quarterly revenues of $356.7 million in Q2-2025, an increase of 57% compared to Q2-2024 driven by organic growth and acquisitions. Excluding the impact from Circle Medical's deferred revenue adjustments or 'CM Deferrals', revenue would have been $347.0 million in Q2-2025, representing 53% year-over-year growth. Results were positively impacted during the quarter by the addition of $40.5 million of revenue from the inclusion of HEALWELL AI. WELL achieved record Adjusted EBITDA (1) of $49.7 million in Q2-2025, an increase of 231% compared to Q2-2024. Excluding the impact from CM Deferrals, Adjusted EBITDA would have been $40.0 million in Q2-2025. Improved EBITDA led to record Adjusted Net Income of $25.8 million or $0.10/share which was 532% higher than Q2-2024 and IFRS Net Income of approximately $17M for the quarter. Canadian Patient Services revenue was $114.5 million in Q2-2025, an increase of 49% compared to $76.7 million in Q2-2024, partially driven by organic growth of 17.8% Consolidated gross margins increased by 423 bps to 44.5%. Excluding CM Deferrals, consolidated gross margins would have increased by 270 bps to 43.0%. WELL reaffirms its previously provided annual guidance for annual revenue between $1.40 billion to $1.45 billion with Adjusted EBITDA between $190 million to $210 million. Excluding CM Deferrals, WELL reaffirms guidance for annual revenue between $1.35 billion to $1.40 billion and Adjusted EBITDA between $140 million and $160 million, In both cases, WELL is pleased to improve guidance to the upper half of the guidance ranges noted above. Article content VANCOUVER, British Columbia — WELL Health Technologies Corp. (TSX: WELL, OTCQX: WHTCF) (the ' Company ' or ' WELL '), a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce its interim consolidated financial results for the quarter ended June 30, 2025. Article content Hamed Shahbazi, Chairman and CEO of WELL commented, 'I am very proud of our performance this quarter as it reflects a very significant milestone in our history with best-ever performances across most of our key financial metrics. We delivered record performances across Revenue, Adjusted EBITDA, Adjusted Net Income, and patient visits. Furthermore, we would have reported best-ever Free Cash Flow Available to Shareholders had we not had elevated cash taxes and capital expenditures due to new investments made in our Canadian clinics, executive health and longevity health portfolios, which have historically delivered excellent returns on capital invested (ROIC). Importantly, we also delivered $17M in IFRS net profit for the quarter demonstrating our ability to deliver on all key adjusted and non-adjusted metrics. Article content I'm also very pleased to commemorate that we delivered more than 1 million patient visits in Canada during the quarter for the first time ever reflecting 38% YoY growth; approximately a third of which came from organic growth. It's important to remember the significance of each of those visits and how vital it can be to a person's health and wellness. This awareness, along with our growing scale and relevance in the healthcare ecosystem, is top of mind for us. We think about it every day as we are committed to making the investments that are designed to help healthcare providers deliver the best care and patient outcomes possible. Article content One positive by-product of our investments is the growing productivity of our providers. The average provider at WELL grew its number of patient visits by 22%. While there are many contributors to this improvement, we believe improved tooling and technology to be one of those key reasons.' Article content Mr. Shahbazi further added, 'We are also very pleased to report our first quarter with the inclusion of HEALWELL AI, a company that we helped launch and incubate almost two years ago and in which we took a majority voting control position this past April. Yesterday HEALWELL reported record financial performance along with its first profitable quarter on an Adjusted EBITDA basis and signalled its intent to become a pure-play SaaS and Services company now that it has achieved significant scale in delivering data science and healthcare software expertise to large enterprise customers in 11 countries globally. In parallel, we continue to evaluate strategic alternatives for our U.S. assets to simplify our business and sharpen our focus on our core Canadian operations. Across the WELL ecosystem, our teams are focused on driving sustainable, profitable growth and delivering meaningful impact through technology, innovation, and operational excellence.' Article content Eva Fong, WELL's Chief Financial Officer, commented, 'Our second quarter results demonstrate the strength of our operating model and disciplined approach to capital allocation. Year to date, we have completed fourteen transactions and are pleased to report fifteen signed LOIs representing approximately $134 million in revenues. Our high-quality pipeline of acquisition opportunities mostly includes targets across Canadian Clinics and WELLSTAR. Also, notably our WELLSTAR platform delivered another strong 'Rule of 40' performance with strong organic revenue growth and healthy Adjusted EBITDA margins, while executing on its M&A pipeline. WELLSTAR's goal is to exceed $100 million in revenues next year with continued strong margins and growth metrics. Overall, we remain committed to improving margin profile and operating leverage across the organization, while evaluating strategic opportunities to streamline and optimize our portfolio. With a strong balance sheet and increasing cash generation, we are well-positioned to support long-term growth and return value to shareholders.' Article content WELL achieved record quarterly revenue of $356.7 million in Q2-2025, an increase of 57% compared to revenue of $227.3 million generated in Q2-2024. This growth was mainly driven by organic growth, acquisitions that have occurred over the last twelve months and the addition of $40.5 million of revenue in Q2-2025 from the inclusion of HEALWELL, as per IFRS reporting requirements following the company's execution of a call option to acquire voting shares of HEALWELL on April 1, 2025, relating to our majority voting position with HEALWELL. Excluding the impact of 'CM Deferrals', revenue would have reached $347.0 million, representing a 53% increase compared to the previous year. Adjusted Gross Profit (1) was $158.7 million in Q2-2025, an increase of 73% compared to Adjusted Gross Profit of $91.5 million in Q2-2024. Adjusted Gross Margin (1) percentage was 44.5% during Q2-2025 compared to Adjusted Gross Margin percentage of 40.3% in Q2-2024. The increase in Adjusted Gross Margin percentage was primarily driven by revenue mix and the addition of higher margin HEALWELL revenue, while being offset by the addition of lower margin Provider Staffing revenue from the acquisition of Harmony in January 2025. Adjusted EBITDA (1) was $49.7 million in Q2-2025, an increase of 231% compared to Adjusted EBITDA of $15.0 million in Q2-2024. Excluding the impact of CM Deferrals, Adjusted EBITDA would have reached $40.0 million, representing a 166% increase compared to the previous year. Adjusted EBITDA Attributable to WELL shareholders was $37.5 million in Q2-2025, an increase of 215% compared to Adjusted EBITDA Attributable to WELL shareholders of $11.9 million in Q2-2024. Adjusted Net Income (1) was $25.8 million, or $0.10 per share in Q2-2025, compared to Adjusted Net Income of $4.1 million, or $0.02 per share in Q2-2024. Free Cash Flow Available to Shareholders (or FCFA2S) was $11.7 million in Q2-2025 an increase of 34% compared to FCFA2S of $8.7 million in Q2-2024. Note that FCFA2S was impacted by elevated cash taxes and capital expenditures which were focused on investments in upgrading our clinical portfolio. : Article content Canadian Patient Services revenue was $114.5 million in Q2-2025, an increase of 49% compared to $76.7 million in Q2-2024. U.S. Patient Services revenue was $184.8 million in Q2-2025, an increase of 38% compared to $133.7 million in Q2-2024. WELLSTAR, the Company's pure-play SaaS technology subsidiary, achieved revenue of $15.2 million in Q2-2025, an increase of 49% compared to $10.2 million in Q2-2024. WELLSTAR's growth was driven by healthy organic growth and acquisitions. Article content Second Quarter 2025 Patient Visit Metrics: Article content WELL achieved a total of 1.7 million patient visits in Q2-2025, an increase of 21% compared to 1.4 million patient visits in Q2-2024. Canadian Patient Services visits increased 38% while US Patient Services visits decreased 1%, on a year-over-year basis. Notably, the Company achieved over 1 million patient visits across its Canadian operations, a new quarterly milestone. Growth in patient visits over the past year was primarily driven by acquisitions as well as double-digit organic growth, including the clinic absorption program. Article content In addition, WELL achieved over 2.7 million Care Interactions (2) in Q2-2025, representing approximately 10.8 million patient interactions on an annualized run-rate basis. Article content Second Quarter 2025 Business Highlights: Article content On April 1, 2025, the Company and the pre-HEALWELL founders amended the terms of the conditional call option held by the Company to acquire up to 30.8 million Class A Subordinate Voting Shares of HEALWELL at $0.125 per share and 30.8 million Class B Multiple Voting shares of HEALWELL at $0.0001 per share such that it became exercisable, and the Company exercised the call option to acquire such shares for total consideration of $3.9 million. On April 1, 2025, the release conditions were satisfied related to the Company's January 21, 2025, subscription for HEALWELL shares and the Company received 0.5 million Class A voting shares and 0.25 million share purchase warrants with each warrant exercisable into one Class A Subordinate Voting share at $2.50 per share for a period of 36 months in accordance with the terms of the subscription agreement. Article content As of April 1, 2025, the Company held 97.2 million Class A Subordinate Shares and 30.8 million Class B Multiple Voting shares of HEALWELL, representing approximately 37% of the economic interest and approximately 69% of the voting rights in HEALWELL on a non-diluted basis. As a result, the Company obtained control of HEALWELL under IFRS, and accordingly, began to consolidate the financial results of HEALWELL as a subsidiary of the Company effective April 1, 2025. Article content On May 6, 2025, the Company announced the rebranding of its cybersecurity division as CYBERWELL and the appointment of Jeffrey Engle as CEO. CYBERWELL consolidates four firms: Source44, SeekIntoo, Cycura, and Proack Security into a unified cybersecurity company. The division will focus on recurring revenue, acquisitions, and international expansion. WELL noted plans for CYBERWELL to potentially be spun out in the future and serve as a key growth engine. Article content On May 7, 2025, WELLSTAR announced the launch of Nexus AI, a new AI-powered clinical documentation solution available across Canada. The product is initially focused on AI scribing and will expand through partnerships across the WELL ecosystem. Nexus AI is supported by government funding for up to 10,000 providers through Canada Health Infoway's AI Scribe pilot program. Article content On May 28, 2025, the Company announced that subsidiaries of HEALWELL and WELLSTAR, Intrahealth, Pentavere, and OceanMD, were selected as recipients of Canada Health Infoway's 2025 Vendor Innovation Program. The program supports the development and implementation of real-world interoperability solutions aligned with national digital health priorities. The selected projects aim to enhance data quality, care coordination, and access to standardized health information across Canada, with deployments planned in five provinces. Three of the eight recipients are affiliated with the WELL and HEALWELL group. Article content On June 24, 2025, the Company announced the availability of over 45,000 new primary care patient openings across its clinic network in Ontario, Alberta, and Manitoba. The expansion is enabled by investments in physician recruitment, including the onboarding of internationally trained medical graduates, and the implementation of digital infrastructure powered by WELLSTAR Technologies. The Company's National Patient Registration system, supported by OceanMD's eForms, online booking, and automated triage tools, is streamlining access and enabling clinics to accelerate the creation of new patient panels. Article content Events Subsequent to June 30, 2025: Article content On July 8, 2025, the Company announced the completion of two clinic acquisitions in British Columbia, effective July 1, 2025. The acquired clinics include a personalized health clinic in Vancouver and a multidisciplinary clinic in Burnaby, expanding the Company's presence in preventative health and specialty care. Article content On July 8, 2025, the Company announced an expansion and extension of its senior secured credit facility, led by Royal Bank of Canada, increasing total capacity to approximately $200 million and extending the maturity to 2027. The revised facility converts the accordion feature into a revolving credit line, enhancing the Company's financial flexibility to support continued growth. Article content On July 15, 2025, the Company announced that its majority-owned subsidiary, WELLSTAR Technologies Corp., executed three letters of intent for acquisitions expected to contribute approximately $15 million in ARR, $16 million in annual revenue, and over $5 million in Adjusted EBITDA on a run-rate basis. The targets deliver high-margin SaaS solutions that expand WELLSTAR's clinician enablement platform and support its strategy of disciplined, accretive growth. Article content On July 16, 2025 HEALWELL acquired the remaining 49% of Pentavere Research Group Inc. ('Pentavere'), by exercising a call option that it had previously negotiated at the time of its original acquisition of a majority interest in Pentavere in 2023. Pursuant to the call option, HEALWELL acquired all of the remaining issued and outstanding shares of Pentavere for an aggregate purchase price of $13,978 which was satisfied with the issuance of 10,161,562 HEALWELL Class A Subordinate Voting Shares. With 100% ownership of Pentavere, HEALWELL intends to deepen integration between its AI businesses and accelerate commercialization of AI products across healthcare offerings. Article content Outlook: Article content WELL intends to continue its focus on maintaining strong performance, while strategically enhancing operations in the pursuit of organic growth and profitability. WELL is expecting its momentum to continue in the second half of the year across its key business units. WELL's objective is to invest in and achieve significant growth while effectively managing its costs and delivering cash flow to shareholders. Article content Management is pleased to reaffirm its 2025 annual guidance for revenue to be between $1.40 billion to $1.45 billion, representing 52% to 58% annual growth compared to 2024. Excluding the impact of the CM Deferrals, the Company's annual revenue guidance would be between $1.35 billion to $1.40 billion. This annual revenue guidance only includes announced acquisitions; however, WELL expects to be in the upper half of this guidance range with the inclusion of planned acquisitions in the second half of the year. Article content Furthermore, management is pleased to increase its guidance for annual Adjusted EBITDA to be in the upper half of its previously provided guidance of $190 million to $210 million. Excluding the impact of CM Deferrals, the Company is similarly improving its guidance for annual Adjusted EBITDA to be in the upper half of its previously provided guidance of $140 million to $160 million. This improvement of the Company's annual Adjusted EBITDA guidance only includes announced acquisitions. Article content WELL continues to allocate capital thoughtfully in order to activate both organic and inorganic growth. The Company expects to continue to fund its acquisitions from its own cash flow as well as planned divestitures ensuring compounding gains over time on a per share basis. The Company also continues to focus most of its M&A and capital allocation activity in Canada where it is experiencing its strongest returns. Article content Conference Call: Article content WELL will release its Second Quarter 2025 financial results for the period ended June 30, 2025, on Thursday, August 14, 2025. The Company will hold a conference call and simultaneous webcast to discuss its results on the same day at 1:00 pm ET (10:00 am PT). Article content Please use the following dial-in numbers: 1-800-717-1738 (Toll Free) or 1-289-514-5100 (International). Article content Please see SEDAR for complete copies of the Company's condensed interim consolidated financial statements and interim MD&A for the quarter ended June 30, 2025. Article content Quarter ended Six months ended June 30, 2025 March 31, 2025 June 30, 2024 Restated June 30, 2025 June 30, 2024 Restated $'000 $'000 $'000 $'000 $'000 Revenue 356,673 294,137 227,312 650,810 450,795 Cost of sales (excluding depreciation and amortization) (197,934) (176,665) (135,766) (374,599) (265,108) Adjusted Gross Profit (1) 158,739 117,472 91,546 276,211 185,687 Adjusted Gross Margin (1) 44.5% 39.9% 40.3% 42.4% 41.2% Adjusted EBITDA (1) 49,735 27,577 15,045 77,312 35,280 Net income (loss) 16,998 (41,886) 105,574 (24,888) 119,357 Adjusted Net Income (1) 25,771 7,508 4,080 33,279 21,287 Earnings (Loss) per share, basic (in $) 0.05 (0.19) 0.42 (0.14) 0.47 Earnings (Loss) per share, diluted (in $) 0.05 (0.19) 0.41 (0.14) 0.45 Adjusted Net Income per share, basic (in $) 0.10 0.03 0.02 0.13 0.09 Adjusted Net income per share, diluted (in $) 0.10 0.03 0.02 0.13 0.09 Reconciliation of net income (loss) to Adjusted EBITDA (1): Net income (loss) for the period 16,998 (41,886) 105,574 (24,888) 119,357 Depreciation and amortization 25,395 19,546 17,307 44,941 33,867 Income tax expense (recovery) 5,923 (1,229) (6,392) 4,694 (8,832) Interest income (463) (519) (279) (982) (517) Interest expense 12,909 11,406 9,689 24,315 19,230 Rent expense on finance leases (5,407) (4,688) (4,129) (10,095) (8,243) Share-based payments 5,815 2,465 4,765 8,280 10,242 Foreign exchange (gain) loss (1,032) 84 (72) (948) (104) Time-based earnout expense 5,137 215 15 5,352 2,127 Change in fair value of investments (12,751) 35,235 (116,327) 22,484 (130,284) Change in fair value of derivative liability (2,130) – – (2,130) – Gain on disposal of assets and investments – (24) – (24) (11,284) Share of net loss (income) of associates 117 2,380 (177) 2,497 887 Transaction, restructuring and integration costs expensed 2,797 3,870 2,609 6,667 6,091 Legal settlements and defense (recovery) costs (3,573) (31) 1,709 (3,604) 1,990 Other items – 753 753 753 753 Adjusted EBITDA (1) 49,735 27,577 15,045 77,312 35,280 Attributable to WELL shareholders 37,458 20,293 11,914 57,751 27,619 Attributable to Non-controlling interests 12,277 7,284 3,131 19,561 7,661 Adjusted EBITDA (1) WELL Corporate (8,544) (6,519) (5,320) (15,063) (10,087) Canada and others 25,151 18,671 13,032 43,822 27,506 US operations 33,128 15,425 7,333 48,553 17,861 Adjusted EBITDA (1) attributable to WELL shareholders WELL Corporate (8,544) (6,519) (5,320) (15,063) (10,087) Canada and others 22,777 17,209 12,645 39,986 26,892 US operations 23,225 9,603 4,589 32,828 10,814 Adjusted EBITDA (1) attributable to Non-controlling interests Canada and others 2,374 1,462 387 3,836 614 US operations 9,903 5,822 2,744 15,725 7,047 Reconciliation of net income (loss) to Adjusted Net Income (1): Net income (loss) for the period 16,998 (41,886) 105,574 (24,888) 119,357 Amortization of acquired intangible assets 17,432 13,034 11,361 30,466 22,881 Time-based earnout expense 5,137 215 15 5,352 2,127 Share-based payments 5,815 2,465 4,765 8,280 10,242 Change in fair value of investments (12,751) 35,235 (116,327) 22,484 (130,284) Change in fair value of derivative liability (2,130) – – (2,130) – Share of net loss (income) of associates 117 2,380 (177) 2,497 887 Other items – 753 753 753 753 Non-controlling interest included in net income (loss) (4,847) (4,688) (1,884) (9,535) (4,676) Adjusted Net Income (1) 25,771 7,508 4,080 33,279 21,287 Article content Footnotes: Article content Non-GAAP financial measures and ratios. In addition to results reported in accordance with IFRS, the Company uses certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include Adjusted Net Income, Adjusted Net Income Per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cash Flow. The Company believes these supplementary financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business. Adjusted Net Income and Adjusted Net Income per Share The Company defines Adjusted Net Income as net income (loss), after excluding the effects of share-based payments, amortization of acquired intangible assets, time-based earnout expense, change in fair value of investments, change in fair value of derivative liability, non-controlling interests, and revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships. Adjusted Net Income Per Share is Adjusted Net Income divided by weighted average number of shares outstanding. The Company believes that these non-GAAP financial measures provide useful information to analyze our results, enhance a reader's understanding of past financial performance and allow for greater understanding with respect to key metrics used by management in decision making. More specifically, the Company believes Adjusted Net Income is a financial metric that tracks the earning power of the business that is available to WELL shareholders. EBITDA and Adjusted EBITDA EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization. The Company defines Adjusted EBITDA as EBITDA (i) less net rent expense on premise leases considered to be finance leases under IFRS and (ii) before transaction, restructuring, and integration costs, time-based earn-out expense, change in fair value of investments, change in fair value of derivative liability, share of loss of associates, foreign exchange gain/loss, and share-based payments, (iii) revenue precluded from recognition under IFRS 15 that relates to certain patient services revenue that the Company believes should be recognized as revenue based on its contractual relationships, and (iv) gains/losses that are not reflective of ongoing operating performance. The Company considers Adjusted EBITDA a financial metric that measures cash that the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance in accordance with IFRS. Adjusted Gross Profit and Adjusted Gross Margin The Company defines Adjusted Gross Profit as revenue less cost of sales (excluding depreciation and amortization) and Adjusted Gross Margin as adjusted gross profit as a percentage of revenue. Adjusted gross profit and adjusted gross margin should not be construed as an alternative for revenue or net income (loss) determined in accordance with IFRS. The Company does not present gross profit in its consolidated financial statements as it is a non-GAAP financial measure. The Company believes that adjusted gross profit and adjusted gross margin are meaningful metrics that are often used by readers to measure the Company's efficiency of selling its products and services. Adjusted Free Cash Flow The Company defines Adjusted Free Cash Flow Attributable to Shareholders as Adjusted EBITDA Attributable to Shareholders, less cash interest, less cash taxes and less capital expenditures. Adjusted Net income, Adjusted Net Income per Share, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Margin, and Adjusted Free Cash Flow are not recognized measures for financial statement presentation under IFRS and do not have standardized meanings. As such, these measures may not be comparable to similar measures presented by other companies and should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with IFRS. Total Care Interactions are defined as Total Patient Visits plus Technology Interactions plus Billed Provider Hours. Article content Chief Executive Officer, Chairman and Director Article content Article content About WELL Health Technologies Corp. Article content WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 34,000 healthcare providers between the US and Canada and power the largest owned and operated healthcare ecosystem in Canada with more than 165 clinics supporting primary care, specialized care, and diagnostic services. In the United States WELL's solutions are focused on specialized markets such as the gastrointestinal market, women's health, primary care, and mental health. WELL is publicly traded on the Toronto Stock Exchange under the symbol 'WELL' and on the OTC Exchange under the symbol 'WHTCF'. To learn more about WELL, please visit: Article content Forward-Looking Statements Article content This news release may contain 'Forward-Looking Information' within the meaning of applicable Canadian securities laws, including, without limitation: information regarding the Company's goals, strategies and growth plans, including expected acquisitions and divestitures Company and HEALWELL; expectations regarding continued revenue and EBITDA growth; the Company's expectations pertaining to annual guidance for annual revenue and Adjusted EBITDA; the expected benefits and synergies of completed acquisitions; capital allocation plans in the form of more acquisitions or share repurchases; expected patient visits; and the expected financial performance as well as information in the 'Outlook' section herein. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as 'may', 'should', 'will', 'could', 'intend', 'estimate', 'plan', 'anticipate', 'expect', 'believe' or 'continue', or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL's comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL 's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including: risks regarding the timing and amount of recognition or revenue and earnings; direct and indirect material adverse effects from adverse market conditions; risks inherent in the primary healthcare sector in general; regulatory and legislative changes; that future results may vary from historical results; inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies of acquisitions; that market competition may affect the business, results and financial condition of WELL and other risk factors identified in documents filed by WELL under its profile at including its most recent Annual Information Form and its Management, Discussion and Analysis. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise. Article content This news release contains future-oriented financial information and financial outlook information (collectively, 'FOFI') about estimated annual run-rate revenue and Adjusted EBITDA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL's anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein. Article content Article content Article content Article content Article content Contacts Article content For further information: Article content Article content Tyler Baba Article content Article content Article content
Globe and Mail
3 days ago
- Business
- Globe and Mail
VIQ Solutions Posts Fifth Straight Positive Adjusted EBITDA Quarter
VIQ Solutions Inc. ('VIQ' or 'the Company') (TSX: VQS), a global leader in AI-powered digital documentation, today announced financial results for the three and six months ended June 30, 2025. The Company reported continued margin expansion, its fifth consecutive quarter of positive Adjusted EBITDA, and secured its largest SaaS deployment to date, reinforcing its leadership in secure, evidence-based transcription for regulated sectors. Second Quarter 2025 Financial Highlights Revenue: $10.4 million, decrease of 10%, from the same period in the prior year, reflecting the timing of customer volumes and market conditions. Gross Margin: 48%, up from 45.5% from the same period in the prior year, driven by automation and productivity gains. Adjusted EBITDA: $1 million, increase of $0.2 million or 24% from the same period in the prior year, marking the fifth consecutive quarter of positive results. Adjusted Operating Loss: $0.8 million, compared to $0.6 million from the same period in the prior year. First Half 2025 Financial Highlights Revenue: $20 million, decrease of 7%, from the same period in the prior year, reflecting the timing of customer volumes and market conditions. Gross Margin: Nearly 50%, up from 44.9% from the same period in the prior year, driven by automation and productivity gains. Adjusted EBITDA: $1.8 million, increase of $1.1 million or 164% from the same period in the prior year, reflecting sustained cost discipline and efficiency gains. Adjusted Operating Loss: $1.5 million, an improvement of $0.9 million. Strategic and Operational Highlights Landmark SaaS Court Deployment: In July 2025, VIQ secured its largest SaaS engagement to date, implementing NetScribe® across 9 judicial districts and 22 counties in the U.S. Midwest. This milestone accelerates VIQ's transition to a higher-margin, subscription-based revenue model. AI-Driven Workflow Automation: The deployment integrates NetScribe®, aiAssist™, Advanced Formatter, supporting internally produced transcription with scalability and optional add-ons including domain-specific language models, advanced post-processing rules, multilingual support, and automated summarization. First Half 2025 Organic Bookings Momentum: VIQ secured $1.9 million of new bookings during first half of 2025, supporting ongoing gross margin expansion and strengthening long-term free cash flow prospects. Management Commentary 'In the first half of 2025, VIQ delivered 164% growth in Adjusted EBITDA, expanded gross margins to nearly 50%, and achieved our fifth consecutive quarter of positive EBITDA,' said Alexie Edwards, CFO of VIQ Solutions. 'While we reported a net loss, this includes approximately $2.0 million in non-cash expenses, such as depreciation, amortization, and stock-based compensation, with $1.1 million recorded in Q2. These charges impact earnings per share but do not affect our cash flow.' 'With our largest SaaS deployment now in motion, increased bookings, and a clear focus on strengthening the balance sheet and reducing debt, we are expanding our financial flexibility to reinvest in growth. Our AI-driven platform and automation strategy continue to fuel stronger margins and sustained EBITDA gains, laying the foundation for long-term growth and value creation.' A copy of the Company's unaudited financial statements and accompanying MD&A for the three and six months ended June 30, 2025 (collectively, the 'Financial Information') will be available under the Company's profile on SEDAR+ at Conference Call Details VIQ will host a conference call and webcast to discuss Financial Information on August 14, 2025, at 11:00 a.m. (Eastern time). The call will consist of updates by Alexie Edwards, VIQ's Chief Financial Officer followed by a question-and-answer period. Investors may access a live webcast of the call on the Company's website at or by dialing 1-888-440-4052 (North America toll-free) or +1-646-960-0827 (international) to be connected to the call by an operator using conference ID number 4983233. Participants should dial at least 10 minutes before the call starts. A replay of the webcast will be available on the Company's website through the same link approximately one hour after the conference call concludes. For more information about VIQ, please visit About VIQ Solutions VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost. Forward-looking Statements Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, 'forward-looking statements') under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward-looking statements typically contain statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project' or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions 'may' or 'will' occur. These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company's ability to accelerate automation, optimize costs, and improve scalability in the future, expected margin improvement, the Company's focus and its priorities, the filing of the Financial Information on SEDAR+ and the conference call to discuss the Company's financial results. Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce and product optimization, cost reductions from the Company's workflow solutions and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used. Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the 'Risk Factors' section of the Company's annual information form and in the Company's other materials filed with the Canadian securities regulatory authorities. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. Non-IFRS Measures The Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are provided by management to provide additional insight into our performance and financial condition. VIQ believes non-IFRS measures are an important part of the financial reporting process and are useful in communicating information that complements and supplements the consolidated financial statements. Adjusted EBITDA and adjusted operating loss are not measures recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and adjusted operating loss may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and adjusted operating loss should not be construed as alternatives to net income (loss) as determined in accordance with IFRS. For a reconciliation of net income (loss) to Adjusted EBITDA and adjusted operating loss please see the Company's MD&A for three and six months ended June 30, 2025. To evaluate the Company's operating performance as a complement to results provided in accordance with IFRS, the term 'Adjusted EBITDA' refers to net income (loss) before adjusting earnings for stock-based compensation, depreciation, amortization, interest expense, accretion, and other financing expense, (gain) loss on revaluation of options, (gain) loss on revaluation of restricted share units, gain (loss) on revaluation of derivative warrant liability, restructuring costs, strategic review costs, loss on modification of debt, impairment of property and equipment, impairment of goodwill and intangibles, other expense (income), foreign exchange (gain) loss, current and deferred income tax expense. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of the Company. We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, impairment of goodwill and intangibles, loss on modification or extinguishment of debt, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company's operating performance. The term 'adjusted operating loss' refers to net income (loss) excluding the impact of strategic review costs. Management believes it is appropriate to adjust for this item because strategic review costs do not relate to operating activities of the Company and is useful supplemental information as it provides an indication of the results generated by the Company's main business activities. The presentation of this measure enables investors and analysts to better understand the underlying performance of our business activities. We calculate 'bookings' for a given period as the estimated contract value (for services tied to volume) of our recurring client contracts entered into during the period from (i) new clients and (ii) net upgrades by existing clients within the same workload, plus the actual (not annualized) estimated value of professional services consulting, advisory or project-based orders received, software licenses, subscriptions, SaaS, and hardware during the period. Trademarks This press release includes trademarks, such as 'NetScribe', which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this press release may appear without the ® or TM symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names, and services marks to the fullest extent under applicable law. Trademarks that may be used in this press release, other than those that belong to VIQ, are the property of their respective owners. June 30, 2025 December 31, 2024 Assets Current assets Cash $ 1,117,164 $ 1,573,341 Trade and other receivables, net of allowance for doubtful accounts 4,422,766 3,768,699 Inventories 25,914 23,508 Prepaid expenses and other deposits 890,576 1,183,496 Non-current assets 6,456,420 6,549,044 Restricted cash 177,560 169,097 Property and equipment, net 541,883 654,223 Right-of-use assets, net 349,610 153,794 Intangible assets 5,183,967 5,661,614 Goodwill 11,929,976 11,628,213 Total assets $ 24,639,416 $ 24,815,985 Liabilities Current liabilities Trade and other payables and accrued liabilities $ 6,846,250 $ 5,673,346 Income taxes payable 61,890 29,765 Share-based payment liability 643 19,366 Derivative warrant liability 38,019 35,238 Current portion of long-term debt 17,099,730 15,988,401 Current portion of lease obligations 206,345 204,802 Contract liabilities 1,475,909 1,635,041 Non-current liabilities 25,728,786 23,585,959 Long-term lease obligations 167,884 – Other long-term liabilities 924,371 949,622 Total liabilities 26,821,041 24,535,581 Shareholders' equity Capital stock 77,665,053 77,593,993 Contributed surplus 9,364,786 9,145,162 Accumulated other comprehensive loss (1,341,494 ) (1,356,521 ) Deficit (87,869,970 ) (85,102,230 ) Total shareholders' equity (2,181,625 ) 280,404 Total liabilities and shareholders' equity $ 24,639,416 $ 24,815,985 VIQ Solutions Inc. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (Expressed in US dollars, unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue $ 10,445,488 $ 11,575,614 $ 20,024,513 $ 21,497,287 Cost of sales 5,436,220 6,312,797 10,040,105 11,841,912 Gross profit 5,009,268 5,262,817 9,984,408 9,655,375 Expenses Selling and administrative expenses 3,866,110 4,328,687 7,676,752 8,639,461 Research and development expenses 179,957 155,416 320,476 320,526 Stock-based compensation 292,682 111,283 291,865 139,816 Gain on revaluation of RSUs (21,482 ) (18,534 ) (19,553 ) (47,311 ) Loss (gain) on revaluation of the derivative Warrant liability 8,260 7,479 1,238 (49,686 ) Foreign exchange gain (354,295 ) (590,719 ) (438,327 ) (487,886 ) Depreciation 175,864 194,237 340,547 389,221 Amortization 658,581 813,889 1,366,158 1,620,346 Interest expense 439,704 405,965 928,326 794,889 Accretion and other financing costs 456,029 425,216 875,059 752,094 Restructuring costs (recovery) 37,349 5,874 36,066 (3,820 ) Strategic review costs 119,124 – 1,294,726 – Other income (1,911 ) (10,208 ) (8,118 ) (21,413 ) Total expenses 5,855,972 5,828,585 12,665,215 12,046,237 Current income tax expense 52,654 6,063 86,933 21,107 Income tax expense 52,654 6,063 86,933 21,107 Net loss for the period $ (899,358 ) $ (571,831 ) $ (2,767,740 ) $ (2,411,969 ) Exchange (loss) gain on translation of foreign operations 16,115 (483,076 ) 15,027 (795,107 ) Comprehensive loss for the period $ (883,243 ) $ (1,054,907 ) $ (2,752,713 ) $ (3,207,076 ) Net loss per share Basic (0.02 ) (0.01 ) (0.05 ) (0.05 ) Diluted (0.02 ) (0.01 ) (0.05 ) (0.05 ) Weighted average number of common shares outstanding – basic 52,563,142 51,348,578 52,449,214 48,065,488 Weighted average number of common shares outstanding – diluted 52,563,142 51,348,578 52,449,214 48,065,488 The following is a reconciliation of Net Loss to Adjusted EBITDA, the most directly comparable IFRS measure for the three and six months ended June 30, 2025, and 2024: Three months ended June 30 Six months June 30 (Unaudited) 2025 2024 2025 2024 Net Loss (899,358) (571,831) (2,767,740) (2,411,969) Add: Depreciation 175,864 194,237 340,547 389,221 Amortization 658,581 813,889 1,366,158 1,620,346 Interest expense 439,704 405,965 928,326 794,889 Current income tax (recovery) expense 52,654 6,063 86,933 21,107 EBITDA 427,445 848,323 (45,776) 413,594 Accretion and other financing costs 456,029 425,216 875,059 752,094 Gain on revaluation of RSUs (21,482) (18,534) (19,553) (47,311) Loss (Gain) on revaluation of the derivative warrant liability 8,260 7,479 1,238 (49,686) Restructuring costs 37,349 5,874 36,066 (3,820) Strategic Review Costs 119,123 - 1,294,726 - Other income (1,911) (10,208) (159,978) (21,413) Stock-based compensation 292,682 111,283 291,865 139,816 Foreign exchange gain (354,295) (590,719) (438,327) (487,886) Adjusted EBITDA 963,201 778,714 1,835,320 695,388 The following is a reconciliation of Net Loss to Adjusted operating loss, the most directly comparable IFRS measure for the three and six months ended June 30, 2025, and 2024:
National Post
3 days ago
- Business
- National Post
VIQ Solutions Posts Fifth Straight Positive Adjusted EBITDA Quarter
Article content MISSISSAUGA, Ontario — VIQ Solutions Inc. ('VIQ' or 'the Company') (TSX: VQS), a global leader in AI-powered digital documentation, today announced financial results for the three and six months ended June 30, 2025. The Company reported continued margin expansion, its fifth consecutive quarter of positive Adjusted EBITDA, and secured its largest SaaS deployment to date, reinforcing its leadership in secure, evidence-based transcription for regulated sectors. Article content Second Quarter 2025 Financial Highlights Article content Revenue: $10.4 million, decrease of 10%, from the same period in the prior year, reflecting the timing of customer volumes and market conditions. Gross Margin: 48%, up from 45.5% from the same period in the prior year, driven by automation and productivity gains. Adjusted EBITDA: $1 million, increase of $0.2 million or 24% from the same period in the prior year, marking the fifth consecutive quarter of positive results. Adjusted Operating Loss: $0.8 million, compared to $0.6 million from the same period in the prior year. Article content First Half 2025 Financial Highlights Article content Revenue: $20 million, decrease of 7%, from the same period in the prior year, reflecting the timing of customer volumes and market conditions. Gross Margin: Nearly 50%, up from 44.9% from the same period in the prior year, driven by automation and productivity gains. Adjusted EBITDA: $1.8 million, increase of $1.1 million or 164% from the same period in the prior year, reflecting sustained cost discipline and efficiency gains. Adjusted Operating Loss: $1.5 million, an improvement of $0.9 million. Article content Landmark SaaS Court Deployment: In July 2025, VIQ secured its largest SaaS engagement to date, implementing NetScribe® across 9 judicial districts and 22 counties in the U.S. Midwest. This milestone accelerates VIQ's transition to a higher-margin, subscription-based revenue model. AI-Driven Workflow Automation: The deployment integrates NetScribe®, aiAssist™, Advanced Formatter, supporting internally produced transcription with scalability and optional add-ons including domain-specific language models, advanced post-processing rules, multilingual support, and automated summarization. First Half 2025 Organic Bookings Momentum: VIQ secured $1.9 million of new bookings during first half of 2025, supporting ongoing gross margin expansion and strengthening long-term free cash flow prospects. Article content Management Commentary Article content 'In the first half of 2025, VIQ delivered 164% growth in Adjusted EBITDA, expanded gross margins to nearly 50%, and achieved our fifth consecutive quarter of positive EBITDA,' said Alexie Edwards, CFO of VIQ Solutions. 'While we reported a net loss, this includes approximately $2.0 million in non-cash expenses, such as depreciation, amortization, and stock-based compensation, with $1.1 million recorded in Q2. These charges impact earnings per share but do not affect our cash flow.' Article content 'With our largest SaaS deployment now in motion, increased bookings, and a clear focus on strengthening the balance sheet and reducing debt, we are expanding our financial flexibility to reinvest in growth. Our AI-driven platform and automation strategy continue to fuel stronger margins and sustained EBITDA gains, laying the foundation for long-term growth and value creation.' Article content A copy of the Company's unaudited financial statements and accompanying MD&A for the three and six months ended June 30, 2025 (collectively, the 'Financial Information') will be available under the Company's profile on SEDAR+ at Conference Call Details Article content VIQ will host a conference call and webcast to discuss Financial Information on August 14, 2025, at 11:00 a.m. (Eastern time). The call will consist of updates by Alexie Edwards, VIQ's Chief Financial Officer followed by a question-and-answer period. Article content Investors may access a live webcast of the call on the Company's website at or by dialing 1-888-440-4052 (North America toll-free) or +1-646-960-0827 (international) to be connected to the call by an operator using conference ID number 4983233. Participants should dial at least 10 minutes before the call starts. Article content A replay of the webcast will be available on the Company's website through the same link approximately one hour after the conference call concludes. Article content About VIQ Solutions Article content VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost. Article content Forward-looking Statements Article content Certain statements included in this press release constitute forward-looking statements or forward-looking information (collectively, 'forward-looking statements') under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Article content Forward-looking statements typically contain statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project' or similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions 'may' or 'will' occur. These statements are only predictions. Forward-looking statements in this press release include but are not limited to statements with respect to the Company's ability to accelerate automation, optimize costs, and improve scalability in the future, expected margin improvement, the Company's focus and its priorities, the filing of the Financial Information on SEDAR+ and the conference call to discuss the Company's financial results. Article content Forward-looking statements are based on several factors and assumptions which have been used to develop such statements, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding, among other things, recent initiatives, cost savings from workforce and product optimization, cost reductions from the Company's workflow solutions and that sales and prospects may increase revenue. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used. Article content Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the factors described in greater detail in the 'Risk Factors' section of the Company's annual information form and in the Company's other materials filed with the Canadian securities regulatory authorities. Article content These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Such estimates and assumptions may prove to be incorrect or overstated. The forward-looking statements contained in this press release are made as of the date of this press release and the Company expressly disclaims any obligations to update or alter such statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. Article content Non-IFRS Measures Article content The Company prepares its financial statements in accordance with IFRS. Non-IFRS measures are provided by management to provide additional insight into our performance and financial condition. VIQ believes non-IFRS measures are an important part of the financial reporting process and are useful in communicating information that complements and supplements the consolidated financial statements. Article content Adjusted EBITDA and adjusted operating loss are not measures recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, Adjusted EBITDA and adjusted operating loss may not be comparable to similar measures presented by other issuers. Investors are cautioned that Adjusted EBITDA and adjusted operating loss should not be construed as alternatives to net income (loss) as determined in accordance with IFRS. For a reconciliation of net income (loss) to Adjusted EBITDA and adjusted operating loss please see the Company's MD&A for three and six months ended June 30, 2025. Article content To evaluate the Company's operating performance as a complement to results provided in accordance with IFRS, the term 'Adjusted EBITDA' refers to net income (loss) before adjusting earnings for stock-based compensation, depreciation, amortization, interest expense, accretion, and other financing expense, (gain) loss on revaluation of options, (gain) loss on revaluation of restricted share units, gain (loss) on revaluation of derivative warrant liability, restructuring costs, strategic review costs, loss on modification of debt, impairment of property and equipment, impairment of goodwill and intangibles, other expense (income), foreign exchange (gain) loss, current and deferred income tax expense. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of the Company. Article content We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, impairment of goodwill and intangibles, loss on modification or extinguishment of debt, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of the Company's operating performance. Article content The term 'adjusted operating loss' refers to net income (loss) excluding the impact of strategic review costs. Management believes it is appropriate to adjust for this item because strategic review costs do not relate to operating activities of the Company and is useful supplemental information as it provides an indication of the results generated by the Company's main business activities. The presentation of this measure enables investors and analysts to better understand the underlying performance of our business activities. Article content We calculate 'bookings' for a given period as the estimated contract value (for services tied to volume) of our recurring client contracts entered into during the period from (i) new clients and (ii) net upgrades by existing clients within the same workload, plus the actual (not annualized) estimated value of professional services consulting, advisory or project-based orders received, software licenses, subscriptions, SaaS, and hardware during the period. Article content Trademarks Article content This press release includes trademarks, such as 'NetScribe', which are protected under applicable intellectual property laws and are the property of VIQ. Solely for convenience, our trademarks referred to in this press release may appear without the ® or TM symbol, but such references are not intended to indicate, in any way, that we will not assert our rights to these trademarks, trade names, and services marks to the fullest extent under applicable law. Trademarks that may be used in this press release, other than those that belong to VIQ, are the property of their respective owners. Article content June 30, 2025 December 31, 2024 Assets Current assets Cash $ 1,117,164 $ 1,573,341 Trade and other receivables, net of allowance for doubtful accounts 4,422,766 3,768,699 Inventories 25,914 23,508 Prepaid expenses and other deposits 890,576 1,183,496 Non-current assets 6,456,420 6,549,044 Restricted cash 177,560 169,097 Property and equipment, net 541,883 654,223 Right-of-use assets, net 349,610 153,794 Intangible assets 5,183,967 5,661,614 Goodwill 11,929,976 11,628,213 Total assets $ 24,639,416 $ 24,815,985 Liabilities Current liabilities Trade and other payables and accrued liabilities $ 6,846,250 $ 5,673,346 Income taxes payable 61,890 29,765 Share-based payment liability 643 19,366 Derivative warrant liability 38,019 35,238 Current portion of long-term debt 17,099,730 15,988,401 Current portion of lease obligations 206,345 204,802 Contract liabilities 1,475,909 1,635,041 Non-current liabilities 25,728,786 23,585,959 Long-term lease obligations 167,884 – Other long-term liabilities 924,371 949,622 Total liabilities 26,821,041 24,535,581 Shareholders' equity Capital stock 77,665,053 77,593,993 Contributed surplus 9,364,786 9,145,162 Accumulated other comprehensive loss (1,341,494 ) (1,356,521 ) Deficit (87,869,970 ) (85,102,230 ) Total shareholders' equity (2,181,625 ) 280,404 Total liabilities and shareholders' equity $ 24,639,416 $ 24,815,985 Article content VIQ Solutions Inc. Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (Expressed in US dollars, unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue $ 10,445,488 $ 11,575,614 $ 20,024,513 $ 21,497,287 Cost of sales 5,436,220 6,312,797 10,040,105 11,841,912 Gross profit 5,009,268 5,262,817 9,984,408 9,655,375 Expenses Selling and administrative expenses 3,866,110 4,328,687 7,676,752 8,639,461 Research and development expenses 179,957 155,416 320,476 320,526 Stock-based compensation 292,682 111,283 291,865 139,816 Gain on revaluation of RSUs (21,482 ) (18,534 ) (19,553 ) (47,311 ) Loss (gain) on revaluation of the derivative Warrant liability 8,260 7,479 1,238 (49,686 ) Foreign exchange gain (354,295 ) (590,719 ) (438,327 ) (487,886 ) Depreciation 175,864 194,237 340,547 389,221 Amortization 658,581 813,889 1,366,158 1,620,346 Interest expense 439,704 405,965 928,326 794,889 Accretion and other financing costs 456,029 425,216 875,059 752,094 Restructuring costs (recovery) 37,349 5,874 36,066 (3,820 ) Strategic review costs 119,124 – 1,294,726 – Other income (1,911 ) (10,208 ) (8,118 ) (21,413 ) Total expenses 5,855,972 5,828,585 12,665,215 12,046,237 Current income tax expense 52,654 6,063 86,933 21,107 Income tax expense 52,654 6,063 86,933 21,107 Net loss for the period $ (899,358 ) $ (571,831 ) $ (2,767,740 ) $ (2,411,969 ) Exchange (loss) gain on translation of foreign operations 16,115 (483,076 ) 15,027 (795,107 ) Comprehensive loss for the period $ (883,243 ) $ (1,054,907 ) $ (2,752,713 ) $ (3,207,076 ) Net loss per share Basic (0.02 ) (0.01 ) (0.05 ) (0.05 ) Diluted (0.02 ) (0.01 ) (0.05 ) (0.05 ) Weighted average number of common shares outstanding – basic 52,563,142 51,348,578 52,449,214 48,065,488 Weighted average number of common shares outstanding – diluted 52,563,142 51,348,578 52,449,214 48,065,488 Article content The following is a reconciliation of Net Loss to Adjusted EBITDA, the most directly comparable IFRS measure for the three and six months ended June 30, 2025, and 2024: Article content Three months ended June 30 Six months June 30 (Unaudited) 2025 2024 2025 2024 Net Loss (899,358) (571,831) (2,767,740) (2,411,969) Add: Depreciation 175,864 194,237 340,547 389,221 Amortization 658,581 813,889 1,366,158 1,620,346 Interest expense 439,704 405,965 928,326 794,889 Current income tax (recovery) expense 52,654 6,063 86,933 21,107 EBITDA 427,445 848,323 (45,776) 413,594 Accretion and other financing costs 456,029 425,216 875,059 752,094 Gain on revaluation of RSUs (21,482) (18,534) (19,553) (47,311) Loss (Gain) on revaluation of the derivative warrant liability 8,260 7,479 1,238 (49,686) Restructuring costs 37,349 5,874 36,066 (3,820) Strategic Review Costs 119,123 – 1,294,726 – Other income (1,911) (10,208) (159,978) (21,413) Stock-based compensation 292,682 111,283 291,865 139,816 Foreign exchange gain (354,295) (590,719) (438,327) (487,886) Adjusted EBITDA 963,201 778,714 1,835,320 695,388 Article content The following is a reconciliation of Net Loss to Adjusted operating loss, the most directly comparable IFRS measure for the three and six months ended June 30, 2025, and 2024: Article content Article content Article content Article content Article content Contacts Article content Media Contact: Article content Article content Jacob Manning VIQ Solutions Article content Article content Article content
Yahoo
07-08-2025
- Business
- Yahoo
a.k.a. Brands U.S. Net Sales Up 14% in Q2, Upgrades FY Outlook
By Karen Roman a.k.a. Brands Holding Corp. (NYSE: AKA) said second quarter net sales increased 7.8% to $160.5 million compared to $148.9 million the year prior, the fifth consecutive quarter of growth. The number of orders rose 6.8% mainly driven by growth in the U.S., where net sales went up 14%, the company stated. Adjusted EBITDA was $7.5 million, or 4.7% of net sales, compared to $8.0 million, or 5.4% of net sales the prior year, it said. The company updated its fiscal outlook for 2025 and now expects net sales of $608 – $612 compared to the previous range of $600 – $610, and adjusted EBITDA of $24.5 – $27.5 compared to $24.0 – $27.5. 'As we look ahead, I'm confident that we are well positioned to continue growing awareness across our brand portfolio, capture additional market share and drive profitable growth over the near and long term,' said Ciaran Long, the company's CEO. READ MORE The ONE Group Q2 Revenue Continues To Rise Amidst New Venue Openings Never Miss our Weekly Highlights Contact: Exec Edge Editor@ Click to follow us on LinkedIn Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
