CareRx (CRRX) investor relations material

Executive summary

• Q1 2026 revenue reached CAD 93.9 million, up from CAD 89.6 million in Q1 2025, driven by growth in average beds serviced and cost savings initiatives.

• Adjusted EBITDA increased to CAD 8.4 million from CAD 7.8 million, with margin improving to 9.0% from 8.7%.

• Net income rose to CAD 1.2 million from CAD 0.2 million year-over-year, reflecting operational improvements.

• Growth was driven by onboarding new beds and ongoing cost savings and efficiency initiatives.

• Recognized for excellence with the Public Protector Award and inclusion in The Globe and Mail's 2026 Women Lead Here list.

Financial highlights

• Revenue increased to CAD 93.9 million from CAD 89.6 million year-over-year, primarily due to higher average beds serviced (92,036 vs. 87,675).

• Adjusted EBITDA rose to CAD 8.4 million from CAD 7.8 million, with margin at 9.0%.

• Net income improved to CAD 1.2 million from CAD 0.2 million year-over-year.

• Cash from operations was CAD 6.9 million, down from CAD 7.4 million, mainly due to changes in non-cash working capital.

• Adjusted EBITDA per share (basic and diluted) was CAD 0.13, up from CAD 0.12 year-over-year.

Outlook and guidance

• Ontario Ministry of Health will maintain the annual long-term care pharmacy capitation rate at CAD 1,500 per licensed bed, reversing planned reductions and providing funding stability.

• Removal of funding for unoccupied licensed ward beds may reduce capitation fees by up to CAD 2 million in 2026, with actual impact dependent on LTC redevelopment pace.

• Actively evaluating mitigation strategies and remains focused on achieving double-digit EBITDA margin through accelerated cost and efficiency initiatives.

• Management remains focused on driving sustained growth and collaborating with government partners.

• Continued focus on expanding beds serviced and operational efficiencies.