Q2 2026 NeuPath Health Inc Earnings Call Transcript
Key Points
- Revenue grew 7% to $23.2 million in Q2 2026, excluding a one-time prior year payment, indicating strong organic growth.
- Adjusted EBITDA increased 3% to $1.7 million in Q2 2026, with year-to-date growth of 8% to $3.2 million.
- Capacity utilization improved to 56% from 52%, and patient visits reached a record high, growing 6% in the quarter.
- Onboarded six new physicians post-quarter, including an anesthesiologist and neurologist, expanding service lines to include migraine treatment.
- New academic affiliation with an Ontario university will bring up to 40 medical students for training, building a long-term physician pipeline.
- Arthrosomide procedure is gaining traction with a $1.5 million run rate, expected to grow to over $2 million in the next 6-12 months.
- Company remains under-levered at 0.4 times, providing capacity for M&A and growth initiatives.
- New Guelph facility is on track to open in early Q4 2026, with three physicians already assigned.
- Share buyback program continues, with 1.4 million shares repurchased and canceled in the past 18 months.
- M&A pipeline is active, with expectations to announce at least one transaction in the back half of 2026.
- Adjusted EBITDA in Q2 was lower than expected due to professional fees for recruiting physicians from the US and Europe, including immigration costs.
- Operational downtime from a fluoroscopy suite issue at one clinic negatively impacted revenue and adjusted EBITDA in Q2.
- New Guelph facility opening was delayed by a couple of weeks due to construction issues, now slated for early Q4 instead of late Q3.
- Arthrosomide has a slightly lower gross margin due to expensive material costs, though it contributes a 10% EBIT margin.
- New physicians typically take about six months to ramp up to scale, delaying revenue contribution.
- Academic affiliation with TMU is expected to take 3-5 years to have a meaningful revenue impact.
- Tax restructuring in the quarter involved amalgamation, leading to a $0.9 million deferred tax asset recognition, which may complicate financials.
- Capital allocation is shifting from share buybacks to growth capital, potentially reducing buyback activity.
- Capacity utilization varies by facility, with some clinics already operating evenings and weekends, indicating potential strain on resources.
- Non-insured services like vitamin and ketamine infusions are still in pilot stages, with uncertain adoption.
Good morning everyone and welcome to New Path Health's Q2 2026 earnings call. Today is August the 13, 2026. Financial statements and MD&A have been filed and are available on the SEDAR+ website. Stephen Lemieux, Chief Executive Officer; and Jeff Zagaras, New Path's Chief Financial Officer, will present the company's financial results and provide a business update followed by Q&A session. Investors are encouraged to submit their questions via the Q&A box and we will address them at the end of the session. Please make your questions clear and succinct.
Welcome, gentlemen, and please begin your presentation.
Thank you everyone for joining us. We're just going to go through a brief presentation on the quarter and then we'll open the floor up to questions.
So just a quick recap about NewPath. So we are one of Canada's largest operators of community-based medical facilities, focusing on treating chronic and MSK pain. We have
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