Medical Facilities (DR) Q1 2026 earnings summary

Executive summary

• Facility service revenue rose 10.8% year-over-year to $67.1 million for Q1 2026, driven by favorable payer mix and higher orthopedic and spine procedure volumes.

• Income from operations increased 17.6% to $12.8 million, and EBITDA grew 13.8% to $15.7 million compared to Q1 2025.

• Completed the sale of a 64% ownership interest in Oklahoma Spine Hospital for $46 million in January 2026, strengthening the balance sheet.

• Returned $3.8 million to shareholders through repurchase of 318,400 shares under the NCIB.

• Continued a multi-year track record of capital returns to shareholders, including share repurchases.

Financial highlights

• Net income from continuing operations surged 86.2% year-over-year to $13.1 million.

• Basic EPS rose to $0.45 from $0.12, and fully diluted EPS increased to $0.21 from $0.12 year-over-year.

• Consolidated cash balance at quarter end was $86.3 million, up from $43.4 million at December 31, 2025.

• Net working capital increased to $67.1 million from $54 million sequentially.

• Distributable cash flow (C$) declined 25.1% to C$6.8 million, while distributions per share rose 23.1% to C$0.089.

Outlook and guidance

• Evaluating alternatives to further return capital to shareholders, with updates to be provided.

• Strong cash position and financial flexibility support continued investment in hospitals and capital returns.

• Focus remains on executing strategy, operational performance, and delivering long-term value.

• Management highlights ongoing commitment to shareholder returns and operational investments.