Nova Leap Health Corp. Posts Q1 2025 Results

Core Viewpoint - Nova Leap Health Corp. reported its financial results for Q1 2025, showing revenue growth but a decline in Adjusted EBITDA and net income, while focusing on acquisitions and expansion in the home health care sector [2][4][6]. Financial Performance - Q1 2025 revenues reached $7,093,624, marking a 7.7% increase from Q4 2024 and a 10.3% increase from Q1 2024 [2]. - Adjusted EBITDA for Q1 2025 was $289,060, a decrease of 30.0% from Q4 2024 and 20.1% from Q1 2024 [4][12]. - The gross profit margin was stable at 39.0% in Q1 2025, compared to 39.1% in Q4 2024 and 38.0% in Q1 2024 [7]. Operational Highlights - The company generated an income from operating activities of $75,152 in Q1 2025, down from $186,709 in Q1 2024 and $221,184 in Q4 2024 [7][12]. - A net loss of $78,299 was recorded in Q1 2025, contrasting with net income of $473,073 in Q1 2024 and $886,268 in Q4 2024 [7]. Acquisition Strategy - The company completed two acquisitions in Nova Scotia in January and May 2025, totaling CAD$1,770,000, financed through loans and cash [7][8]. - Nova Scotia has become the fastest-growing segment of the business due to these acquisitions [6]. Future Outlook - The company anticipates setting a record for quarterly revenues in Q2 2025, surpassing the previous record from Q1 2022 [6]. - Despite expected revenue growth, Adjusted EBITDA may lag due to ongoing investments in operations and expansion [9]. Financial Position - As of March 31, 2025, the company had available cash of $1,333,115 and access to an unutilized revolving credit facility of $1,043,406 [7]. - Total demand loans and promissory notes outstanding were $2,526,202, resulting in a leverage ratio of 1.70 times to Adjusted EBITDA for the 12-month period ending March 31, 2025 [7]. Industry Context - Nova Leap operates in the rapidly growing home health care services sector, focusing on individual and family-centered care, particularly for dementia patients [10]. - The company has been recognized for its growth, ranking 42 in Canada's Top Growing Companies in 2021 [10].