Canada's CareRx Q1 revenue and adjusted EBITDA rise

CareRx

07/05/2026 24:31

Overview

Canada pharmacy services provider's Q1 revenue and adjusted EBITDA rose yr/yr but missed analyst expectations

Company serviced more beds and improved adjusted EBITDA margin in Q1

Outlook

CareRx estimates up to C$2 mln reduction in 2026 capitation fees from funding changes

Company says financial impact of Ontario funding changes remains uncertain

CareRx is evaluating mitigation strategies to offset net impact of Ontario capitation changes

Result Drivers

BEDS SERVICED GROWTH - Increase in average beds serviced contributed to higher revenue and adjusted EBITDA

COST SAVINGS - Cost savings initiatives supported improved adjusted EBITDA and margin

Company press release: ID:nNFC5HPDfw

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$93.92 mln
C$95.93 mln (4 Analysts)
Q1 Net Income
C$1.17 mln
Q1 Adjusted EBITDA
Miss
C$8.42 mln
C$8.58 mln (4 Analysts)
Q1 Adjusted EBITDA Margin
9.00%
Q1 EBITDA
C$7.76 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the drug retailers peer group is "buy"

Wall Street's median 12-month price target for CareRx Corp is C$5.38, about 46.9% above its May 6 closing price of C$3.66

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)