Pacific Smiles Group (PSQ) H1 2025 earnings summary

Executive summary

• Patient fees reached $160.3m for H1 FY25, up 9% year-on-year, driven by a 4.8% increase in appointments and improved utilisation, with no new centres opened.

• Underlying EBITDA rose 16.8% year-on-year to $16.3m, with underlying NPAT up 51.5% to $6.7m, reflecting operational efficiencies.

• Net cash position was $8.1m, temporarily impacted by $9.9m in takeover-related costs, but the business remained debt free.

• Statutory net loss after tax of $2.0m for HY25, down from a $4.4m profit in HY24, due to significant one-off takeover costs.

• Genesis Capital, via Beam Dental Bidco, acquired 89.27% voting power as of 25 February 2025, with a focus on organic and M&A growth.

Financial highlights

• Revenue increased 10% year-on-year to $99.0m for H1 FY25; gross profit up 10.4% to $94.2m.

• Underlying EBITDA margin to revenue improved to 16.5% (+97bp YoY); EBIT margin to revenue rose to 9.1%.

• Underlying net profit was $6.7m, up nearly 52% from the prior period; statutory net loss was $2.0m due to one-off costs.

• Basic and diluted EPS: (1.2) cents (HY24: 2.8 cents); underlying EPS: 4.2 cents.

• Free cash flow was $3.8m, temporarily reduced by $9.9m in change of ownership costs.

Outlook and guidance

• Full-year FY25 guidance reaffirmed: patient fees of $310m–$318m (+6.2% to 9.0% YoY), underlying EBITDA of $31.2m–$34.2m (+10.6% to 21.3% YoY).

• Year-to-date patient fees up 9.7% YoY to $208.1m, with growth from higher appointment volumes and price increases.

• No new centres planned; focus on optimising existing network and enhancing patient/practitioner experience.

• Fair Work Determination wage increase of 4.25% applied from 1 July 2024.

• Positioned for growth under new ownership, leveraging operational efficiencies and digital innovation.