QIPT Stock Forecast & Price Target

Quipt Home Medical is expected to achieve an Adjusted EBITDA of $55.2 million, reflecting a slight margin improvement to 23.2%, indicating effective operational management and a conservative yet positive revenue outlook. Management has noted more stable trends in equipment rental and resupply, suggesting a potential for sustainable growth in the company's core operations. Additionally, the consistent cost of inventory sold relative to revenue at 27.9% indicates a stable cost structure, further supporting the company’s financial health and profitability.

Quipt Home Medical Corp reported F2Q revenue of $57.4 million, falling short of the consensus estimate of $61.8 million, marking a decline of 6% year-over-year and 6.5% quarter-over-quarter. The company faced significant headwinds, including a decline in patient referrals from Humana’s PPO plans, the full impact of a terminated supply contract valued at $2.5 million, and decreased resupply volumes early in the quarter linked to patient deductible resets. Additionally, respiratory resupply setups and deliveries decreased by 4% year-over-year, exacerbating the challenges to growth in this critical segment of the business.