Financial Performance - Total revenue for the three months ended December 31, 2025, was $80,996,000, representing a 32% increase from $61,381,000 in the same period of 2024[16] - Operating income for the quarter was $1,024,000, compared to $448,000 in the prior year, indicating a significant improvement in operational performance[16] - The net loss for the three months ended December 31, 2025, was $1,053,000, slightly improved from a net loss of $1,084,000 in the same period of 2024[16] - Adjusted EBITDA for the three months ended December 31, 2025, was $17,812,000, compared to $13,997,000 for the same period in 2024, reflecting a growth of 27%[80] - The company reported a net loss of $1,053,000 for the three months ended December 31, 2025, a slight improvement from a net loss of $1,084,000 for the same period in 2024[91] - Adjusted EBITDA increased to $17,812,000 for the three months ended December 31, 2025, compared to $13,997,000 for the same period in 2024, reflecting a growth of approximately 27%[96] Revenue Sources - Rentals of medical equipment generated $31,984,000 in revenue, up from $24,321,000, while sales of medical equipment and supplies increased to $49,012,000 from $37,060,000[16] - The number of patients serviced increased to 210,000, up from 157,000, representing a growth of 33.7% year-over-year[80] - The Company completed the acquisition of Mediserve Medical Equipment on July 1, 2025, and a 60% interest in Hart Medical Equipment on September 1, 2025, expanding its market presence[78] - The Company completed acquisitions of Mediserve and Hart, with Hart accounting for 20% of total revenues for the three months ended December 31, 2025[120] Expenses and Costs - For the three months ended December 31, 2025, total operating expenses increased to $41,571,000, up from $30,398,000 in the same period of 2024, representing a year-over-year increase of approximately 36.7%[62] - Stock-based compensation expense for the three months ended December 31, 2025, was $982,000, compared to $207,000 for the same period in 2024, reflecting an increase of approximately 373.9%[59] - The company reported payroll and employee benefits expenses of $27,256,000 for the three months ended December 31, 2025, compared to $19,782,000 in 2024, marking an increase of approximately 37.5%[62] - The cost of inventory sold for the three months ended December 31, 2025, was $22,775,000, or 28.1% of revenue, down from 28.9% in the same period of 2024[83] Assets and Liabilities - Cash and cash equivalents at the end of the period were $10,543,000, down from $12,916,000 at the end of the previous quarter[20] - Total assets decreased to $280,657,000 as of December 31, 2025, from $283,289,000 as of September 30, 2025[15] - Total liabilities decreased to $167,663,000 from $171,192,000 during the same period[15] - The net carrying value of long-term debt was $83,168,000 as of December 31, 2025, down from $86,635,000 as of September 30, 2025[44] - The Company’s intangible assets, net, decreased to $75,889,000 as of December 31, 2025, from $77,560,000 as of September 30, 2025[41] - As of December 31, 2025, total lease liabilities amounted to $19,496,000, consisting of $16,553,000 in operating leases and $2,943,000 in finance leases[52] Acquisition and Future Plans - The company entered into an Arrangement Agreement on December 14, 2025, for the acquisition of all common shares at a price of $3.65 per share[22] - The transaction is expected to close in the first half of 2026, subject to regulatory and shareholder approvals[24] - Upon completion of the acquisition, the company will become privately held and will be delisted from the Nasdaq Capital Market and the Toronto Stock Exchange[25] - The company aims to drive organic revenue growth and achieve operational net profit while expanding Adjusted EBITDA in the fiscal year ending September 30, 2026[79] Risks and Considerations - The completion of the Arrangement is subject to customary closing conditions, including shareholder approval, which may delay or jeopardize the transaction[124] - The Arrangement could disrupt ongoing operations and adversely affect relationships with vendors, customers, and employees[125] - If the Arrangement is not completed, the trading price of the company's common shares may decline, and the company may incur significant costs related to the transaction[127] - The Arrangement Agreement imposes restrictions on business conduct, limiting the company's ability to pursue strategic initiatives[128] - Ongoing litigation related to the Arrangement may delay or prevent its consummation, potentially leading to substantial costs[129] - The company may be required to pay a termination fee if the Arrangement Agreement is terminated under certain circumstances, impacting financial condition[127] - Limitations on soliciting competing proposals may discourage third parties from making more favorable offers[130] Cash Flow - Net cash flow provided by operating activities was $8,941,000 for the three months ended December 31, 2025, remaining relatively flat compared to $9,300,000 for the same period in 2024[101] - Net cash flow used in investing activities decreased to $1,948,000 for the three months ended December 31, 2025, from $3,648,000 for the same period in 2024, a reduction of approximately 47%[102] - Net cash flow used in financing activities increased to $9,439,000 for the three months ended December 31, 2025, compared to $5,522,000 for the same period in 2024, an increase of approximately 71%[103] Other Information - The Company recognized a foreign currency gain of $73,000 during the three months ended December 31, 2025, due to favorable exchange rate movements[115] - The Company has not reported any defaults upon senior securities during the reporting period[132] - No directors or officers adopted or terminated any trading plans during the three months ended December 31, 2025[134]

CINCINNATI, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ: QIPT; TSX: QIPT), a U.S. based home medical equipment provider, focused on end-to-end respiratory care, is pleased to announce the filing of its definitive proxy statement and management information circular (the “Circular”) in connection with Quipt’s upcoming special meeting (the “Meeting”) of the holders (the “Shareholders”) of Quipt’s common shares (the “Shares”) to be held on March 3, 2026, at 10:0 ...

Core Viewpoint - The Ademi Firm is investigating Quipt for potential breaches of fiduciary duty and other legal violations related to its transaction with Kingswood and Forager [1][3]. Transaction Details - Quipt shareholders are set to receive $3.65 per share, which values the company at approximately $260 million, inclusive of its existing outstanding debt [2]. - The transaction agreement imposes significant penalties on Quipt for accepting competing bids, which raises concerns about the board's fiduciary responsibilities to all shareholders [3]. Investigation Focus - The investigation will examine the conduct of Quipt's board of directors to determine if they are fulfilling their fiduciary duties amid the transaction [3]. - The Ademi Firm specializes in shareholder litigation related to buyouts, mergers, and individual shareholder rights [3].

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]

Core Viewpoint - Monteverde & Associates PC is investigating the proposed sale of Quipt Home Medical Corp. to affiliates of Kingswood Capital Management, LP, where shareholders are expected to receive $3.65 per share in cash, raising questions about the fairness of the deal [1]. Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm is located in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Transaction Details - The proposed transaction involves Quipt Home Medical Corp. selling to Kingswood Capital Management, with shareholders set to receive $3.65 per share [1]. - The investigation aims to determine if the deal is fair for shareholders [1].

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]