MILWAUKEE, Dec. 16, 2025 /PRNewswire/ -- The Ademi Firm is investigating Quipt (Nasdaq: QIPT) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Kingswood and Forager. Click here to learn how to join our investigation and obtain additional information or contact us at [email protected] or toll-free: 866-264-3995. There is no cost or obligation to you. In the transaction, Quipt shareholders will receive $3.65 per share, valuing Quipt at approximate ...

Core Insights - Quipt Home Medical Corp. (NASDAQ:QIPT) specializes in in-home monitoring and disease management services for patients with chronic conditions, facing competition from other healthcare service providers [1] Financial Performance - On December 15, 2025, QIPT reported an earnings per share (EPS) of -$0.08, missing the estimated EPS of $0.03 [2][6] - The company's revenue was $68.3 million, falling short of the expected $105 million [2][6] - Despite the earnings miss, the stock experienced a 34.1% increase, opening at $3.50 the following day, attributed to a surge in options trading activity [2][6] Options Trading Activity - There was a significant increase in options trading, with 5,781 call options purchased, compared to an average of 418 [3] - This surge in options trading likely contributed to the stock's price increase [3] Market Metrics - QIPT's market capitalization stands at $152 million, with a beta of 0.59, indicating lower volatility compared to the market [3] - The company has a quick ratio of 0.75 and a current ratio of 1.15, suggesting it can cover its short-term liabilities [4] - The debt-to-equity ratio is 0.71, indicating moderate leverage [4] - The negative price-to-earnings ratio of -14.75 and negative earnings yield of -6.78% highlight ongoing financial challenges [4] Valuation Ratios - QIPT's price-to-sales ratio is 0.61, and its enterprise value to sales ratio is 0.93, reflecting how the market values its sales [5] - The enterprise value to operating cash flow ratio is 6.73, suggesting the company is valued at 6.73 times its operating cash flow, a key metric for assessing financial health [5]

NEW YORK, Dec. 15, 2025 /PRNewswire/ -- Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating Quipt Home Medical Corp. (NASDAQ: QIPT) related to its sale to affiliates of Kingswood Capital Management, LP. Under the terms of the p ...

Revenue Performance - Q4 2025 revenue was $68.3 million, an 11% increase from $61.3 million in Q4 2024, with a sequential organic growth of 5% from Q3 2025[5] - Fiscal year 2025 revenue was $245.4 million, slightly down from $245.9 million in fiscal year 2024[5] - Recurring revenue for Q4 2025 accounted for 80% of total revenue, driven by the growth in the resupply platform[5] Profitability Metrics - Adjusted EBITDA for Q4 2025 was $14.9 million, representing 21.8% of revenues, compared to $13.4 million (21.9%) in Q4 2024, marking an 11% increase[5] - Adjusted EBITDA for fiscal year 2025 was $55.9 million (22.8% of revenue), down 3% from $57.7 million (23.5%) in fiscal year 2024[5] - Net loss for Q4 2025 was ($3.6) million, or ($0.08) per diluted share, compared to ($2.9) million, or ($0.07) per diluted share in Q4 2024[5] Customer Growth - The customer base increased by 10% year over year to 346,000 unique patients served in fiscal year 2025[5] - Unique set-ups/deliveries increased by 7% to 917,000 in fiscal year 2025, including 486,000 respiratory resupply set-ups[5] Cash Flow and Financial Health - Cash flow from operating activities was $37.7 million for the year ended September 30, 2025, compared to $35.4 million for the previous year[5] - The Company maintains a conservative balance sheet with a Net Debt to Adjusted EBITDA Leverage Ratio of 1.8x[5]

Company Operations - Quipt Home Medical Corp. operates in 27 states in the US, focusing on durable medical equipment for chronic conditions, particularly respiratory diseases[24]. - As of September 30, 2025, the Company had approximately 1,600 employees and operates in 27 states, facing competition from both large national and regional DME providers[51][46]. Financial Performance - The company has been negatively impacted by inflation and rising interest rates, affecting its financial performance[19]. - Supply chain disruptions and labor shortages in the US have adversely affected Quipt's operations[19]. - Quipt's financial condition is influenced by private third-party payors' efforts to control costs, which may lead to lower reimbursement rates[19]. - Changes in governmental reimbursement policies could significantly affect Quipt's revenue and financial condition[22]. - The Company has no current plans to pay cash dividends on its Common Shares for the foreseeable future, which may affect returns on investment[30]. - The Company has no customers accounting for 10% or more of its consolidated revenue, primarily earning revenue through reimbursements from government and private health insurance[49]. - The Company recognized a foreign currency loss of approximately $367,000 due to unfavorable exchange rate movements during the twelve months ended September 30, 2025[333]. - The company has not employed any foreign currency hedging programs, which could lead to significant effects on net income due to fluctuations in the Canadian dollar against the US dollar[334]. - With $87,583,000 of borrowings on the credit facility, a 1% increase in interest rates would result in an additional $335,830 of annual interest expense[335]. Strategic Growth and Acquisitions - Quipt's strategic growth plan includes acquisitions, but the success of this strategy is uncertain[19]. - The Company has entered into an Arrangement Agreement to be acquired for US$3.65 per Share, with the transaction expected to close in the first half of 2026[25][27]. - The acquisition will result in the Company being de-listed from The Nasdaq Capital Market and the Toronto Stock Exchange, ceasing to be a Canadian "reporting issuer" post-transaction[28]. - The Company acquired 100% of Mediserve Medical Equipment for a total purchase price of $2,616,000, funded from cash on hand[40]. - The Company also acquired a 60% interest in Hart Medical Equipment for $17,372,000 in cash and the repayment of $3,261,000 in indebtedness, funded through borrowings under its senior credit facility[41]. - The Company aims to create shareholder value by expanding its geographical footprint through strategic acquisitions and enhancing patient compliance with technology solutions[35][36]. Regulatory and Operational Risks - The company relies on a limited number of suppliers for patient service equipment, which poses operational risks[19]. - Quipt's operations are subject to various regulatory requirements, and failure to comply could result in penalties[22]. - The company may need additional capital to fund growth, which may not be available on acceptable terms[22]. - The company has entered into interest rate swap agreements for $54,000,000 of principal to receive a fixed rate during the year ended September 30, 2025[335]. Competition - The company faces competition from numerous providers in the sleep therapy and home respiratory equipment markets, which could impact revenues[19].

Core Viewpoint - Quipt Home Medical Corp. reported strong financial results for Q4 and fiscal year 2025, highlighting organic growth and operational resilience despite industry challenges [5][6]. Financial Highlights - Q4 2025 revenue was $68.3 million, an 11% increase from $61.3 million in Q4 2024, with a sequential organic growth of 5% from Q3 2025 [6]. - Recurring revenue constituted 80% of total revenue in Q4 2025, driven by the resupply platform [6]. - Adjusted EBITDA for Q4 2025 was $14.9 million (21.8% of revenues), up from $13.4 million (21.9% of revenues) in Q4 2024, marking an 11% increase [6]. - Fiscal year 2025 revenue was $245.4 million, slightly down from $245.9 million in fiscal year 2024 [6]. - Adjusted EBITDA for fiscal year 2025 was $55.9 million (22.8% of revenue), compared to $57.7 million (23.5% of revenue) in fiscal year 2024, representing a 3% decrease [6]. - Net loss for Q4 2025 was ($3.6) million, or ($0.08) per diluted share, compared to a loss of ($2.9) million, or ($0.07) per diluted share in Q4 2024 [6]. - Net loss for fiscal year 2025 was ($10.7) million, or ($0.24) per diluted share, compared to ($6.8) million, or ($0.16) per diluted share in fiscal year 2024 [6]. - Cash flow from operating activities was $37.7 million for the year ended September 30, 2025, up from $35.4 million for the year ended September 30, 2024 [6]. - The company had $12.9 million in cash on hand as of September 30, 2025, compared to $11.3 million as of June 30, 2025 [6]. - The Net Debt to Adjusted EBITDA Leverage Ratio was 1.8x, indicating a conservative balance sheet [6][14]. Operational Highlights - The customer base increased by 10% year over year, serving 346,000 unique patients in fiscal year 2025 compared to 314,000 in fiscal year 2024 [6]. - Unique set-ups/deliveries rose to 917,000 in fiscal year 2025, a 7% increase from 854,000 in fiscal year 2024 [6]. - Respiratory resupply set-ups/deliveries increased by 1% to 486,000 in fiscal year 2025 from 480,000 in fiscal year 2024, attributed to technology and centralized intake processes [6].

Core Viewpoint - Quipt Home Medical Corp. has entered into a definitive agreement for acquisition by a special purpose acquisition vehicle, valuing the company at approximately US$260 million, with shareholders receiving US$3.65 per share in cash [1][2]. Transaction Details - The acquisition is an all-cash transaction with no financing conditions, funded by Kingswood Capital Management and Forager Capital Management [2]. - The transaction will result in Quipt becoming a privately held company, ceasing to report in the U.S. and Canada [2][11]. - The expected closing of the transaction is during the first half of 2026, subject to customary closing conditions [10]. Shareholder Value - The purchase price represents a 162% premium to Quipt's stock price on May 19, 2025, and a 54% premium to the 30-day volume-weighted average price (VWAP) as of December 12, 2025 [6][7]. - The transaction provides immediate liquidity and certainty of value to shareholders [6]. Board and Advisory Process - The Quipt Board of Directors, after a comprehensive review with financial advisors, unanimously recommends that shareholders vote in favor of the transaction [4]. - Fairness opinions from Truist and Evans & Evans confirmed that the transaction is fair from a financial perspective for Quipt shareholders [6][7]. Voting Support - Directors and executive officers holding approximately 11.4% of the shares have entered into Voting Support Agreements to vote in favor of the transaction [9]. - Forager Fund, LP, holding approximately 9.5% of the shares, has also agreed to vote in favor of the transaction [9]. Future Growth Potential - Kingswood and Forager expressed excitement about partnering with Quipt to support its next growth chapter as a private entity, focusing on expanding in strategic markets and investing in technology and clinical care [3].

Core Viewpoint - The Board of Quipt Home Medical Corp. has been criticized for failing to capitalize on apparent acquirer interest and has damaged its credibility through poor execution and significant shareholder value loss [1] Company Performance - Bradley L. Radoff, along with affiliates, owns approximately 4.9% of the outstanding common shares of Quipt Home Medical Corp. [1]

Core Viewpoint - Lakeview Opportunity Fund, LLC, a nearly 5% owner and top 5 shareholder of Quipt Home Medical Corp, believes that the Company's Board of Directors has failed to act in the best interests of shareholders by not engaging with a credible bidder during a strategic review process [1] Group 1 - Lakeview Investment Group has expressed concerns regarding the Board's lack of good faith in negotiations [1] - The Company is under scrutiny for not conducting a transparent and viable strategic review [1]

Core Viewpoint - Quipt Home Medical Corp. (QIPT) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, which reflects the changing earnings picture of a company [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Company Performance and Investor Sentiment - The rising earnings estimates for Quipt Home Medical suggest an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. - Over the past three months, the Zacks Consensus Estimate for Quipt Home Medical has increased by 41.4%, indicating a significant positive revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Quipt Home Medical's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].