Executive Summary

Q4 2024 revenue was $61.3M, up 3% YoY; Adjusted EBITDA was $13.4M (21.8% margin), down 8.8% YoY as margins compressed versus Q4 2023’s 24.6% despite a return to positive sequential organic growth of ~1% .
Fiscal 2024 revenue reached a record $245.9M (+16.2% YoY) with Adjusted EBITDA of $57.9M (23.5% margin); recurring revenue was ~78%, supported by scale in resupply programs .
Management emphasized confidence in returning to “consistent, historical organic growth” in calendar 2025; demand/referral trends have strengthened and the recurring resupply base expanded to ~172,000 patients as of 9/30/2024 .
External headwinds reduced FY2024 revenue by ~$5M (Medicare 75/25 relief pause and Medicare Advantage changes) and ~$3M impacted cash collections tied to the Change Healthcare cyberattack—issues largely quantified and navigated by year-end .

What Went Well and What Went Wrong

What Went Well

Positive sequential organic revenue growth (~1%) in Q4 2024 signaled momentum recovery; recurring revenue base remained strong (~78% in FY2024), with resupply patients at ~172,000 as of 9/30/2024 .
Scale and diversification supported record FY revenue and sustained EBITDA margins; CFO highlighted strengthening trends across major product categories entering 2025 .
CEO underscored a resilient operating model and disciplined approach to inorganic growth, targeting sustained expansion and profitability: “We have a high confidence level in our ability to return to consistent, historical organic growth levels” .

What Went Wrong

Q4 EBITDA margin compressed to 21.8% (vs 24.6% in Q4 2023); Adjusted EBITDA fell to $13.4M from $14.7M YoY .
FY2024 revenue headwinds totaled ~$8M: ~$5M from Medicare reimbursement changes and capitated MA withdrawals, plus ~$3M impact to cash collections from Change Healthcare cyberattack .
Quarterly EPS was not disclosed in Q4 materials; net loss was $3.2M in Q4, and FY net loss was $6.8M (–$0.16 per diluted share), limiting per-share comparability on a quarterly basis .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$59.6	$64.0	$61.3
Adjusted EBITDA ($USD Millions)	$14.7	$14.2	$13.4
Adjusted EBITDA Margin (%)	24.6%	22.3%	21.8%
Net Income (Loss) ($USD Millions)	$(1.3)	$(1.7)	$(3.2)
Diluted EPS ($USD)	N/A (not disclosed quarterly)	N/A (not disclosed quarterly)	N/A (not disclosed quarterly)

Notes:

Q3 2024 metrics represent the prior quarter for trend; Q4 2023 provides YoY comparison.
Quarterly EPS was not disclosed in the Q4 press release/8-K. Net loss figures are provided.

Segment/KPI Highlights

KPI / Segment	Period	Value
Recurring Revenue (% of total)	FY 2024	~78%
Resupply Program patients	As of 9/30/2024	~172,000
Unique patients served (quarter)	Q4 2024	~153,000 (vs ~147,000 in Q4 2023)
Unique set-ups/deliveries	FY 2024	~854,000 (vs ~754,000 FY 2023)
Respiratory resupply set-ups/deliveries	FY 2024	~480,000 (vs ~396,000 FY 2023)
Cash on hand	9/30/2024	$16.2M
Net Debt / Adjusted EBITDA Leverage	Q4 2024	1.6x
Credit availability	9/30/2024	$34.7M total ($13.7M revolver, $21M DDTL)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic revenue growth trajectory	Calendar 2024 (from Q3)	“Building momentum… expecting consistent margin performance for remainder of calendar year”	“High confidence in return to consistent, historical organic growth levels in calendar 2025”	Raised qualitative outlook timing to 2025
Margin outlook	Calendar 2024	Expect consistent margin performance (Q3 commentary)	No explicit numeric margin guidance for Q4; reiterated scalable model and confidence entering 2025	Maintained qualitative stance
Revenue/EPS numeric guidance	—	None disclosed	None disclosed	Maintained (no numeric guidance)
Dividends	—	Not mentioned	Not mentioned	—

No explicit numeric ranges were provided for revenue, margins, OpEx, OI&E, tax rate, or segments in Q4 materials; guidance remained qualitative with emphasis on returning to historical organic growth during 2025 .

Earnings Call Themes & Trends

Note: The Q4 2024 earnings call transcript was not available in the document catalog during this review (the company scheduled the call for Dec 17, 2024) . We track narrative across available periods.

Topic	Previous Mentions (Q-2)	Previous Mentions (Q-1: Q3 2024)	Current Period (Q4 2024)	Trend
Reimbursement/macro (Medicare 75/25, MA changes)	Not found in catalog	Absorbing expiration of 75/25; MA capitated agreement impacts cited	~$5M FY revenue headwind quantified	Headwinds persisted but quantified/managed
Change Healthcare cyberattack impact	Not found in catalog	Eligibility/collections disruptions; higher bad debt %	~$3M cash collections impact estimated	Impact moderated; collections normalizing
Resupply program scale	Not found in catalog	Strong growth; recurring revenue 82% in Q3	Recurring ~78% in FY; resupply patients ~172k	Scaled sustainably; core to margin
Inorganic strategy/M&A environment	Not found in catalog	Improving environment; disciplined acquisitions; NCIB optionality	Maintain disciplined approach to inorganic growth; strong balance sheet	Steady emphasis
Demand/referrals across respiratory categories	Not found in catalog	Steady demand across CPAP/BiPAP/oxygen etc.	“Strengthening trends” and steady demand/referrals	Stable to improving
Geographic footprint/scale	Not found in catalog	~135 locations; ~350k active patients LTM	~135 locations; ~314k active patients LTM	Stable footprint; patient count definition differences noted

Management Commentary

CEO: “We have a high confidence level in our ability to return to consistent, historical organic growth levels… By combining these initiatives with our disciplined approach to inorganic growth, we aim to strengthen our market position and deliver sustained growth.”
CFO: “In the fourth quarter, we returned to positive sequential organic revenue growth… supported by solid referral activity and steady demand… We will return to consistent, historical organic growth levels in calendar 2025.”
Strategic stance: Emphasis on demographic tailwinds (aging population, chronic respiratory conditions), recurring revenue expansion via resupply, and scalable operating model to support profitability .

Q&A Highlights

The Q4 2024 earnings call transcript was not available in the catalog at the time of review; no Q&A details or clarifications could be extracted. The company scheduled the call for Dec 17, 2024; we will update this section upon transcript availability .

Estimates Context

Wall Street consensus estimates via S&P Global were not retrievable due to a system request limit; therefore, comparisons to consensus on Q4 revenue and EPS are unavailable at this time. Values would be retrieved from S&P Global; currently unavailable due to daily limit.
Given qualitative guidance and margin compression versus Q4 2023, we expect estimates focus to center on cadence of organic growth re-acceleration and the sustainability of EBITDA margin in 2025, pending formal consensus retrieval .

Key Takeaways for Investors

Sequential organic growth returned in Q4 2024; recurring revenue base and resupply scale remain robust—critical for margin durability and cash generation .
Margin compression in Q4 vs prior year reflects lingering external pressures; watch FY2025 margin trajectory as reimbursement/cyber issues fade and operating leverage resumes .
Management’s confidence in restoring historical organic growth in 2025, coupled with disciplined M&A optionality and liquidity ($34.7M total credit availability), supports a balanced growth/return profile .
External headwinds now quantified (~$5M revenue and ~$3M collections impact); monitor ongoing reimbursement policy developments and payer dynamics into 2025 for residual risk .
Near-term trading: narrative likely hinges on confirmation of growth/margin inflection in upcoming Q1/Q2 calls; lack of numeric guidance adds uncertainty until consensus data and transcripts are available .
Medium-term: demographic tailwinds and recurring revenue mix underpin a resilient model; execution on resupply scale and selective acquisitions should drive sustainable growth and potential margin recovery .
Data updates pending: add consensus comparisons and call Q&A details once S&P data and the Q4 transcript are accessible.

Quipt Home Medical Corp. (QIPT)·Q4 2024 Earnings Summary