CareRx Reports Results for the Third Quarter of 2026
Resident growth and higher revenue were accompanied by lower quarterly earnings, narrower margins and reduced operating cash flow.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
CareRx (CHHHF) reported third-quarter 2026 revenue of C$95.3 million, with higher resident volumes but lower earnings and operating cash flow. Net income fell to C$241,000 from C$1.55 million a year earlier. Adjusted EBITDA, a non-IFRS earnings measure, declined to C$8.1 million from C$8.3 million; its margin narrowed to 8.5% from 9.0%. Operating cash flow fell to C$6.5 million from C$10.1 million.
Average beds serviced rose to 93,225 from 91,298, and approximately 3,000 retirement residents were onboarded under a national customer contract. Net debt increased to C$29.6 million despite lower borrowings. CareRx renewed authorization to repurchase up to 1,750,000 shares and replaced its credit facility with a National Bank of Canada agreement. It also declared a quarterly dividend payable January 7, 2027, and plans to relocate its corporate and registered office to Richmond Hill in early 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 revenue increased to C$95.280 million from C$93.220 million a year earlier.
- Moderate pointAverage beds serviced increased to 93,225, versus 91,298 a year earlier and 91,719 in Q2 2026.
- Moderate pointNew national customer contract added approximately 3,000 retirement residents in Q3 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Replacement credit agreement with National Bank of Canada closed; CareRx expects lower overall capital costs.
- Moderate pointNine-month revenue increased to C$282.774 million from C$274.160 million in 2025.
6 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Renewed buyback authorization permits cancellation of up to 1,750,000 shares from September 17, 2026, through September 16, 2027.
- Minor pointShare repurchases totaled approximately C$830,000 for approximately 258,000 shares during September 1–October 31, 2026.
- Minor pointBorrowings fell to C$40.261 million at September 30, 2026, from C$44.309 million a year earlier.
- Minor pointNine-month adjusted EBITDA increased to C$24.505 million from C$24.121 million in 2025.
- Minor pointNine-month basic adjusted EBITDA per share rose to C$0.39 from C$0.38 in 2025.
- Minor pointTotal liabilities declined to C$135.192 million from C$136.406 million at September 30, 2025.
Negative
- Moderate pointQ3 net income fell to C$241,000 from C$1.550 million; basic and diluted EPS fell to C$0.00 from C$0.02.
- Moderate pointQ3 operating cash flow fell to C$6.461 million from C$10.076 million, versus C$3.7 million in Q2 2026.
- Moderate pointCash and equivalents declined to C$10.655 million from C$15.541 million at September 30, 2025.
- Minor pointQ3 adjusted EBITDA declined to C$8.064 million from C$8.345 million, versus C$8.0 million in Q2 2026.
- Minor pointQ3 adjusted EBITDA margin narrowed to 8.5%, versus 9.0% a year earlier and 8.6% in Q2 2026.
9 minor points
- Minor pointNet debt rose to C$29.606 million from C$28.768 million at September 30, 2025.
- Minor pointNet debt to adjusted EBITDA increased to 0.89 from 0.86 a year earlier.
- Minor pointQ3 net finance costs rose to C$2.083 million from C$1.674 million a year earlier.
- Minor pointQ3 transaction, restructuring and other costs increased to C$201,000 from C$121,000 a year earlier.
- Minor pointQ3 share-based compensation expense increased to C$631,000 from C$502,000 a year earlier.
- Minor pointQ3 diluted adjusted EBITDA per share fell to C$0.12 from C$0.13 a year earlier.
- Minor pointNine-month net income fell to C$1.773 million from C$2.338 million; EPS declined to C$0.03 from C$0.04.
- Minor pointNine-month operating cash flow declined to C$17.079 million from C$21.219 million in 2025.
- Minor pointNine-month adjusted EBITDA margin narrowed to 8.7% from 8.8% in 2025.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - November 4, 2026) - CareRx Corporation (TSX: CRRX) ("CareRx" or the "Company"), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today reported its financial results for the third quarter ended September 30, 2026.
Highlights for the Third Quarter of 2026
- Average Beds Serviced1 increased to 93,225 in Q3 2026 from 91,298 Average Beds Serviced in Q3 2025 (91,719 - Q2 2026).
- Revenue increased to
$95.3 million in Q3 2026, compared to$93.2 million in Q3 2025 ($93.6 million - Q2 2026). - Adjusted EBITDA1 decreased to
$8.1 million in Q3 2026, compared to$8.3 million in Q3 2025 ($8.0 million - Q2 2026). - Adjusted EBITDA Margin1 decreased to
8.5% in Q3 2026 from9.0% in Q3 2025 (8.6% - Q2 2026). - Cash from Operations decreased to
$6.5 million in Q3 2026, compared to$10.1 million in Q3 2025 ($3.7 million - Q2 2026).
"CareRx successfully onboarded approximately 3,000 new retirement residents in the third quarter, following our recently announced win of a new national customer," said Puneet Khanna, President and Chief Executive Officer of CareRx. "We were able to commence service quickly in communities across the country, while providing seamless and timely service to our new residents. That efficiency speaks to the strength of the CareRx platform and the value our team brings every day. We are confident that our pharmacy network and our team is equipped to handle additional scale and support our future growth."
Notable Events
The Company onboarded approximately 3,000 new retirement residents in Q3, pursuant to the previously announced long-term contract entered into with a national seniors home operator.
On September 15, 2026, the TSX approved the renewal of the Company's normal course issuer bid ("NCIB"), allowing the Company to repurchase for cancellation up to 1,750,000 of its common shares during the period from September 17, 2026, to September 16, 2027. In the period from September 1 - October 31, 2026, the Company repurchased approximately 258,000 common shares, pursuant to its current and prior NCIB, having an aggregate value of approximately
$830,000 .On August 27, 2026, the Company announced that it had closed a new credit agreement with National Bank of Canada, replacing the Company's existing credit facility. The new credit agreement is expected to provide the Company with greater financial flexibility, dedicated capacity to invest in the business, and to reduce the overall cost of capital.
CareRx will consolidate its real estate portfolio by relocating its corporate and registered office from Toronto to Richmond Hill in early 2027. CareRx's offices will operate adjacent to the Company's Richmond Hill, Ontario fulfilment centre.
Subsequent to the end of Q3, the Company closed one of its pharmacy locations in Western Canada and relocated the beds serviced by this pharmacy to another CareRx fulfilment centre.
The Company's Board of Directors declared a quarterly dividend of
$0.022 cents per common share.
FINANCIAL RESULTS
| For the three month periods ended September 30, | For the nine month periods ended September 30, | |||||
| (Thousands of Canadian dollars except per share amounts and percentages) | 2026 | 2025 | 2024 | 2026 | 2025 | 2024 |
| $ | $ | $ | $ | $ | $ | |
| Revenue | 95,280 | 93,220 | 92,836 | 282,774 | 274,160 | 274,533 |
| EBITDA1 | 7,221 | 7,713 | 6,612 | 21,487 | 21,270 | 19,154 |
| Adjusted EBITDA1 | 8,064 | 8,345 | 7,775 | 24,505 | 24,121 | 22,737 |
| Adjusted EBITDA per share - Basic | ||||||
| Adjusted EBITDA Margin1 | ||||||
| Net income (loss) | 241 | 1,550 | (360) | 1,773 | 2,338 | (2,256) |
| Per share - Basic and Diluted | ( | ( | ||||
| Cash provided by operations | 6,461 | 10,076 | 12,240 | 17,079 | 21,219 | 29,590 |
| Total Assets | 243,623 | 223,672 | 219,517 | 243,623 | 223,672 | 219,517 |
| Total Liabilities | 135,192 | 136,406 | 139,465 | 135,192 | 136,406 | 139,465 |
1 Non-IFRS measure or non-IFRS ratio. For further information, including descriptions of the composition of each measure or ratio and reconciliations of the measure to the comparable measures under IFRS, see the "Non-IFRS Measures, Non-IFRS Ratios and Other Measures" section of this press release.
Financial Performance - Q3 2026
- Adjusted EBITDA1 and Adjusted EBITDA margin1 each decreased from Q3 2025. The Company's increase in Average Beds Serviced and cost savings initiatives were offset by the previously announced ward beds changes in Ontario.
- Net Debt1 increased to
$29.6 million , compared to Q3 2025 ($28.8 million ). The increase was attributable to a decrease in cash and cash equivalents ($10.7M in Q3 2026, as compared to$15.5M in Q3 2025), notwithstanding a reduction in the Company's borrowings ($40.3M in Q3 2026, as compared to$44.3M in Q3 2025).
Q4 2026 Dividend
The Company's Board of Directors has declared a dividend of CAD
Conference Call
The Company will host a conference call to discuss its third quarter of 2026 financial results on Thursday, November 5, 2026, at 8:30 a.m. Eastern Time (ET). To dial direct and enter the call through an operator, dial 647-849-3320 or 1-833-752-4643.
A live webcast of the conference call, including the slide presentation, will be available on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/) and can be accessed by copying and pasting this link into a browser: https://www.gowebcasting.com/15011. Please connect at least 15 minutes prior to the conference call.
The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/).
About CareRx Corporation
CareRx is Canada's leading provider of pharmacy services to seniors living and other congregate care communities (long-term care homes, retirement homes, assisted living facilities and group homes). We are a national organization with a large network of pharmacy fulfillment centers strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimens. We take an active role in working with our home operator partners to promote resident health, staff education and medication system quality and efficiency.
For additional information, please contact:
Neil Weber
Investor Relations
LodeRock Advisors
neil.weber@loderockadvisors.com
Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements" and "financial outlook" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, but are not limited to, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, and statements about possible future events, including statements about the Company's ability to handle additional scale and support future growth, the expected benefits of the Company's credit facility with National Bank of Canada, the anticipated relocation of the Company's corporate and registered office, and the payment of dividends. Statements constituting a financial outlook in this press release include those regarding the impact of the new credit agreement on the Company, namely the anticipated financial flexibility, capacity to invest in the business, and expected reduction in the Company's cost of capital. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's beliefs as of the date hereof and are based on information currently available to management. Statements including a financial outlook are included for the purpose of providing management's perspective on the Company's anticipated future business operations and financial results and such outlook may not be appropriate for other purposes.
Forward-looking statements, including statements containing a financial outlook, are based on management's perception of historical trends, current conditions, and future developments, as well as assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to known and unknown risks and uncertainties (many of which are beyond the control of the Company) that could cause actual results to differ materially from those contemplated by such statements. Forward-looking statements, including those containing a financial outlook, are based on assumptions, with respect to future interest rates, the Company's net leverage, the Company's strategies and plans for growth, and the potential availability of capital. Factors and risks that could cause actual results to differ from those contemplated by the forward-looking statements in this press release include, but are not limited to, changes in interest rates and other economic conditions, the Company's general business risks, the Company's exposure to and reliance on government regulation and funding, reliance on contracts with key care operators, and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. The foregoing risks and factors are not an exhaustive list of the factors that may impact the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements. The factors underlying current expectations are dynamic and subject to change.
Any forward-looking statement (including any financial outlook) speaks only as of the date of such statement, and other than as specifically required by applicable laws, the Company is under no obligation and it expressly disclaims any such obligation to update or alter the forward-looking statements, including those constituting a financial outlook, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.
Non-IFRS Measures, Non-IFRS Ratios and Other Measures
This press release includes certain measures which have not been prepared in accordance with IFRS, including: "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted EBITDA per share", "Net Debt" and "Net Debt to Adjusted EBITDA". These non-IFRS measures and non-IFRS ratios are not standardized financial measures recognized under IFRS and, accordingly, readers are cautioned that these measures may differ from, and may not be comparable to, similarly-named measures reported by other issuers. With respect to "EBITDA" and "Adjusted EBITDA", net income (loss) is the most directly comparable financial measure determined in accordance with IFRS. With respect to "Net Debt", Cash and cash equivalents and Borrowings are the most directly comparable financial measures determined in accordance with IFRS. The non-IFRS measures and ratios presented this press release should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.
The Company defines "EBITDA" as earnings before depreciation and amortization, finance costs, net, and income tax expense (recovery). "Adjusted EBITDA" is defined as EBITDA before transaction, restructuring and other costs, change in fair value of contingent consideration liability, impairments, (gain) loss on disposal of assets and share-based compensation expense. "Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by revenue. "Adjusted EBITDA per share" is defined as Adjusted EBITDA divided by the weighted average outstanding shares. "Net Debt" is defined as the principal balance of the Company's borrowings net of cash and cash equivalents. "Net Debt to Adjusted EBITDA" is defined as Net Debt divided by the Company's run-rate Adjusted EBITDA annualized based on the current quarter's Adjusted EBITDA. Management of the Company believes that these non-IFRS measures and non-IFRS ratios provide useful information to investors regarding the Company's financial condition and results of operations as they provide additional key metrics of performance. The Company believes that EBITDA provides insight to investors into the Company's earnings by removing certain non-operational items from the presentation of income or loss. In addition, pursuant to the Company's agreements with its senior lender, it is required to comply with certain financial performance covenants which are based on or incorporate EBITDA into the calculation of the covenant. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives. The Company uses Adjusted EBITDA Margin to assess the efficiency of its operations by comparing Adjusted EBITDA for the period against revenues. The Company believes that Adjusted EBITDA per share can provide shareholders with useful information, contextualizing Adjusted EBITDA by factoring in changes to the Company's outstanding shares. The Company believes Net Debt and Net Debt to Adjusted EBITDA provides useful information to investors and other stakeholders as it reflects the Company's overall financial leverage and liquidity position. Management uses Net Debt and Net Debt to Adjusted EBITDA as a measure of the Company's ability to meet its financial obligations and manage its capital structure.
In addition to the foregoing non-IFRS measures and ratios, the Company uses certain key performance indicators, including Average Beds Serviced, to compare the financial performance of the Company's operations between periods. Average Beds Serviced is a supplementary financial measure which is not a standardized financial measure recognized under IFRS and, accordingly, readers are cautioned that this measure may differ from, and may not be comparable to, similarly-named measures reported by other issuers. Average Beds Serviced is calculated as the simple average of the number of residents serviced by the Company at the end of each month in the applicable period.
Reconciliation of Non-IFRS Measures
| For the three month periods ended September 30, | For the nine month periods ended September 30, | |||
| 2026 | 2025 | 2026 | 2025 | |
| (Thousands of Canadian Dollars except per share amounts) | $ | $ | $ | $ |
| Net income | 241 | 1,550 | 1,773 | 2,338 |
| Depreciation and amortization | 4,445 | 4,489 | 13,403 | 13,790 |
| Finance costs, net | 2,083 | 1,674 | 5,104 | 5,142 |
| Deferred tax expense | 452 | - | 1,207 | - |
| EBITDA | 7,221 | 7,713 | 21,487 | 21,270 |
| Transaction, restructuring and other costs | 201 | 121 | 1,042 | 1,061 |
| Change in fair value of contingent consideration liability | - | 15 | 26 | 60 |
| Share-based compensation expense | 631 | 502 | 1,702 | 1,450 |
| Loss on disposal of assets | 11 | (6) | 248 | 280 |
| Adjusted EBITDA | 8,064 | 8,345 | 24,505 | 24,121 |
| Adjusted EBITDA Margin | ||||
| Weighted average number of shares - basic (in thousands) | 63,440 | 62,987 | 63,209 | 62,695 |
| Adjusted EBITDA per share - basic | ||||
| Weighted average number of shares - diluted (in thousands) | 65,150 | 64.909 | 64,926 | 64,616 |
| Adjusted EBITDA per share - diluted | ||||
| As at September 30, 2026 | As at September 30, 2025 | |
| (thousands of Canadian Dollars) | $ | $ |
| Cash and cash equivalents | 10,655 | 15,541 |
| Borrowings | 40,261 | 44,309 |
| Net Debt | 29,606 | 28,768 |
| Net Debt to Adjusted EBITDA | 0.89 | 0.86 |
1 Non-IFRS measure, non-IFRS ratio, or supplementary financial measure. These measures are not standardized financial measures recognized under IFRS and may not be comparable to similar measures disclosed by other issuers. See the "Non-IFRS Measures, Non-IFRS Ratios and Other Measures" section of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322537
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were CareRx's third-quarter 2026 revenue and earnings?
CareRx reported C$95.280 million in revenue and C$241,000 in net income for the quarter ended September 30, 2026. Revenue increased from C$93.220 million a year earlier, while net income declined from C$1.550 million. Basic and diluted earnings per share were C$0.00, compared with C$0.02.
Why did CareRx's adjusted EBITDA decline in Q3 2026?
CareRx attributed the decline to previously announced Ontario ward bed changes, which offset increased average beds serviced and cost-saving initiatives. Adjusted EBITDA decreased to C$8.064 million from C$8.345 million a year earlier.
What pharmacy consolidation did CareRx complete after Q3 2026?
CareRx closed one Western Canadian pharmacy location after the quarter ended and transferred the beds it serviced to another CareRx fulfilment centre.