QIPT Stock Forecast & Price Target

Quipt Home Medical Corp is projected to achieve an Adjusted EBITDA of $55.2 million with a margin of 23.2%, indicating a slight improvement in operational efficiency despite a revised revenue outlook. Management has noted stable trends in both equipment rental and resupply, suggesting a positive trajectory for the company's core services as it approaches the midpoint of F3Q25. Furthermore, the cost of inventory sold as a percentage of revenue has remained consistent at 27.9% over the past six months, reflecting solid cost management practices and stability in the company's financial performance.

Quipt Home Medical reported disappointing financial results for the second fiscal quarter, with revenues of $57.4 million, significantly below the consensus of $61.8 million, reflecting a 6% decline year-over-year and a 6.5% decline quarter-over-quarter. The company faced challenges primarily due to a decrease in patient referrals from Humana’s PPO plans, the impact of a terminated supply contract, and reduced resupply volumes associated with patient deductible resets. Additionally, the decline in respiratory resupply setups and deliveries by 4% year-over-year further highlights Quipt's struggles to maintain volume growth in a competitive market.