Quipt reports Q2 increase, announces plans to add diabetes

CINCINNATI – Quipt Home Medical reported revenue of $64 million for its second fiscal quarter 2024, a 10% increase year over year. 

Revenues for the six months ended March 31, 2024, were $129.3 million, a 31% increase year over year. 

“We are very proud of the resilience of our business and our ability to maintain our strong margin profile amid certain industry-related challenges experienced during fiscal Q2,” said Greg Crawford, CEO and chairman. “We have observed several positive trends with respect to equipment setups, including within our sleep segment, and we have seen no change in favorable referral patterns. To facilitate a return to our historical revenue growth trajectory, we are working diligently to enhance our ongoing organic growth initiatives, such as expanding into continuum markets, and cross selling our end-to-end respiratory solution, which provides a unique go-to-market approach.” 

Other notes on the quarter:  

• Quipt announced it plans to expand into the diabetes market. 
• The company absorbed a revenue impact in the quarter resulting from the expiration of the Medicare 75/25 blended reimbursement rate on Jan. 1, 2024. The 75/25 blended rate had been providing rate relief in certain regions. Additionally, Quipt experienced the withdrawal of Medicare Advantage members in certain regions due to a capitated agreement with other providers in the industry. 
• The company remains focused on the ongoing objective of returning to an 8% to 10% annualized organic revenue growth pace and continues to implement its strategic growth initiatives on this front. 
• Adjusted EBITDA for the quarter was $14.9 million (23.3% of revenue) compared to $13.1 million (22.5% of revenue), representing a 14% increase. Adjusted EBITDA for the six months ended March 31, 2024, increased to $30.2 million, representing a 37% increase.