Inspire Veterinary Partners Reports First Quarter 2025 Financial Results

Rhea-AI Summary

Inspire Veterinary Partners (NASDAQ:IVP) reported Q1 2025 financial results showing revenue declines across all segments. Total revenue decreased 25% to $3.6 million, with services revenue down 23% to $2.7 million and product revenue falling 30% to $0.9 million. The company reduced its net loss by 29% to $2.4 million, primarily due to a 27% decrease in operating expenses. Despite revenue challenges, IVP made strategic moves including: signing a LOI to acquire a Florida animal hospital with potential $1.8M revenue contribution, achieving a 400% increase in doctor hires compared to 2024, completing a $2.0M direct offering, and expanding operations under the 'Family Pet Care' brand in Maryland. As of March 31, 2025, cash and equivalents stood at $1.7 million.

Positive

• Net loss decreased by 29% ($1.0 million) to $2.4 million
• Operating expenses reduced by 27% ($2.1 million)
• 400% increase in doctor hires compared to 2024
• Potential acquisition could add $1.8 million in revenue
• Completed $2.0 million registered direct offering

Negative

• Total revenue declined 25% to $3.6 million
• Services revenue decreased 23% to $2.7 million
• Product revenue fell 30% to $0.9 million
• Reduced DVM capacity and operational disruptions affected Q1 performance
• Customers purchasing fewer products per visit

Insights

Financial Analyst

Despite 25% revenue decline, IVP reduced losses by 29% through operational discipline while positioning for future growth through clinician hiring and acquisition plans.

Looking at Inspire Veterinary Partners' Q1 2025 results reveals a company navigating significant challenges while laying groundwork for recovery. The 25% revenue decline to $3.6 million merits careful analysis within context. This decrease stems partially from the strategic divestiture of their Kauai location, but also reflects operational disruptions and reduced veterinarian capacity affecting core operations.

The revenue breakdown shows services declining 23% to $2.7 million and product revenue falling more steeply at 30% to $0.9 million. The sharper product revenue drop indicates customers are spending less per visit, suggesting potential consumer financial pressure or reduced visit frequency.

Management's cost discipline is evident in the 27% reduction in operating expenses, which helped narrow the net loss by $1.0 million or 29% to $2.4 million. This improved operational efficiency comes despite industry-wide revenue pressures.

The 400% increase in doctor hires compared to all of 2024 addresses a critical growth constraint in the veterinary sector – clinician capacity. This staffing improvement positions IVP to expand operating days across multiple locations, a potential catalyst for organic growth.

The $2.0 million capital raise, though modest, provides some financial flexibility with $1.7 million cash remaining at quarter-end. Their LOI for a Florida hospital acquisition could add $1.8 million in revenue, representing potential inorganic growth of 50% relative to current quarterly revenue.

IVP's focus on real estate strategy and branded expansion in the Mid-Atlantic demonstrates longer-term strategic planning despite current headwinds. The planned replication of their Texas facility model across their platform suggests standardization efforts that could improve operational efficiency.

VIRGINIA BEACH, VA / ACCESS Newswire / May 16, 2025 / Inspire Veterinary Partners, Inc. (Nasdaq:IVP) ("Inspire" or the "Company"), an owner and provider of pet health care services throughout the U.S., today reported financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights Compared to Prior Year Period

• Total revenue of approximately $3.6 million, a decrease of 25%

• Services revenue of approximately $2.7 million, a decrease of 23%

• Product revenue of $0.9 million, a decrease of 30%

• Total operating expenses decreased by 27%

• Net loss decreased by $1.0 million or 29%

First Quarter 2025 Operational Highlights

• Entered an exclusive, non-binding letter of intent to acquire 100% ownership interest in one animal hospital located in central Florida. If completed, the acquisition could potentially add up to approximately $1.8 million in (unaudited) revenue

• Oversaw a 400% increase in doctor hires over all of 2024, setting the company up to expand operating days in several clinics

• Completed a registered direct offering for aggregate gross proceeds of approximately $2.0 million

• Appointed Samatha A. Ciulla as Director of Business Development to oversee Inspire's business development, including the expansion into new markets, formation of partnerships and pursuit of strategic acquisitions

• Engaged STNL Advisors, a full-service net lease advisory firm, to review the Company's real estate portfolio and provide strategic guidance on opportunities to expand, update and add new facilities

• Registered the trade name 'Family Pet Care' in the state of Maryland as part of a planned expansion in the Mid-Atlantic region. Inspire intends to replicate the design of its Texas based Family Pet Care state-of-the-art facility in new or future upgrades across the Company's platform

Executive Commentary
"During the first quarter of 2025 Inspire continued to be margin minded and reduce our losses despite the challenges with year over year revenues across our industry," said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "We also turned the corner on the crucial hiring of clinicians with doctor hires already outpacing all of last year. We believe our work in 2024, and the first quarter of this year sets IVP up for growth with our existing portfolio and expansion to new markets through a return to acquisitions."

First Quarter 2025 Financial Overview
All comparisons are made versus the same period in 2023 unless otherwise stated.

For the first quarter of 2025, total revenue was approximately $3.6 million, a decrease of 25%.

Service revenue for first quarter of 2025 decreased $0.8 million or 23%, to $2.7 million. The decrease in service revenue is mainly attributed to the sale of the company's former Kauai location and its exclusion from 2025 results. On a comparable basis, service revenue declined year-over-year, primarily due to reduced DVM capacity and operational disruptions in January.

Product revenue for first quarter 2025 decreased $0.4 million, or 30%, to $0.9 million. The overall decrease was a result of customers purchasing less products per visit and the exclusion of the Kauai location from 2025 results.

Total operating expenses decreased $2.1 million or 27%. The decrease was primarily due to the sale of the Kauai location and its exclusion from 2025 results and the decreases in IR agency contracts and marketing agreements the Company entered during the first quarter of 2024 following the February 2024 public acquisition.

Net loss for the first quarter of 2025 decreased $1.0 million, or 29%, to $2.4 million. The decline in net loss is primarily attributable to the exclusion of the operating expenses associated with a clinic sale, decreases in operating expenses associated with the cost associated with the February 2024 public raise during the period, and the IR agency consulting agreement

Balance Sheet
As of March 31, 2025, the Company had cash and cash equivalents of approximately $1.7 million.

About Inspire Veterinary Partners, Inc.
Inspire Veterinary Partners is an owner and provider of pet health care services throughout the US. As the Company expands, it expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.

For more information, please visit: www.inspirevet.com.

Connect with Inspire Veterinary Partners, Inc.
Facebook
https://www.facebook.com/InspireVeterinaryPartners/

LinkedIn
https://www.linkedin.com/company/inspire-veterinary-partners/

Forward-Looking Statements
This press release contains forward-looking statements regarding the Company's current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, statements by the Company relating to the completion of the offering, the satisfaction of customary closing conditions related to the offering, the intended use of proceeds from the offering, receipt of Stockholder Approval as well as risks and uncertainties related to the satisfaction of customary closing conditions related to anticipated acquisitions, or factors that result in changes to the Company's anticipated results of operations related to acquisitions. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Investor Contact
CoreIR
Matt Blazei
516-386-0430
mattb@coreir.com

General Inquires
Morgan Wood
Mwood@inspirevet.com

Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Balance Sheets

		March 31,				December 31,
		2025				2024
Assets
Current assets:
Cash and cash equivalents		$	1,738,033			$	523,690
Accounts receivable, net			4,376				40,675
Inventory			475,152				516,650
Prepaid expenses and other current assets			683,687				942,456
Total current assets			2,901,248				2,023,471
Restricted cash - non-current			120,000				200,000
Property and equipment, net			6,280,246				6,382,788
Right-of-use assets			1,802,006				1,879,729
Intangibles assets			1,481,352				1,633,927
Goodwill			8,022,082				8,022,082
Other assets			53,997				53,997
Total assets		$	20,660,931			$	20,195,994
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable		$	1,769,991			$	1,979,503
Accrued expenses			643,311				285,770
Operating lease liabilities			163,193				183,981
Loans payable, net of discount			1,737,846				2,340,020
Notes payable, net of discount			3,157,641				3,410,465
Total current liabilities			7,471,982				8,199,739
Operating lease liabilities, non-current			1,901,083				1,943,487
Notes payable - noncurrent			8,283,910				8,490,763
Total liabilities			17,656,975				18,633,989
Commitments and Contingencies (Note 15)
Stockholder's Equity
Common stock - Class A, $0.0001 par value, 4 million shares authorized, 2,119,551 and 1,176,059 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.			211				117
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,020,750 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.			302				302
Additional paid-in capital			41,768,760				37,911,867
Accumulated deficit			(38,765,317	)			(36,350,281	)
Total stockholder's equity			3,003,956				1,562,005
Total liabilities and stockholder's equity		$	20,660,931			$	20,195,994

Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Statements of Operation

		For the Three Months Ended March 31,
		2025				2024
Service revenue		$	2,741,029			$	3,545,599
Product revenue			898,180				1,285,968
Total revenue			3,639,209				4,831,567
Operating expenses
Cost of service revenue (exclusive of depreciation and amortization, shown separately below)			2,139,278				2,709,147
Cost of product revenue (exclusive of depreciation and amortization, shown separately below)			785,409				1,016,107
General and administrative expenses			2,446,438				2,873,343
Depreciation and amortization			275,392				367,197
Debt extinguishment loss			-				728,278
Total operating expenses			5,646,517				7,694,072
Loss from operations			(2,007,308	)			(2,862,505	)
Other income (expenses):
Interest income			8				2
Interest expense			(407,736	)			(559,289	)
Total other expenses			(407,728	)			(559,287	)
Loss before income taxes			(2,415,036	)			(3,421,792	)
Benefit for income taxes			-				-
Net loss			(2,415,036	)			(3,421,792	)
Net loss per Class A and B common shares:
Basic and diluted		$	(0.43	)		$	(0.88	)
Weighted average shares outstanding per Class A and B common shares:
Basic and diluted			5,555,588				3,894,331

Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

		For the Three Months Ended March 31,
		2025				2024
Cash flows from operating activities:
Net loss		$	(2,415,036	)		$	(3,421,792	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			275,392				347,382
Amortization of debt issuance costs			4,455				-
Amortization of debt discount			261,766				379,313
Amortization of operating right of use assets			77,723				53,831
Amortization of issuance costs			-				15,825
Issuance of class A common stock for services			-				286,696
Loss on debt modification			-				728,278
Issuance of class A common stock in connection with general release agreement			-				20,000
Issuance of Class A common stock and pre-funded warrants in connection with commitment shares			-				600,000
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable			36,299				(312,915	)
Due from former owners			-				32,519
Inventory			41,498				25,852
Prepaid expenses and other current assets			258,769				(1,642,552	)
Accounts payable			(209,512	)			315,165
Accrued expenses			357,541				(403,107	)
Cumulative Series A preferred stock dividends payable			-				(92,322	)
Other assets, net			-				(61,094	)
Operating lease liabilities			(63,192	)			(40,108	)
Net cash used in operating activities			(1,374,297	)			(3,169,029	)
Cash flows from investing activities:
Purchase of property and equipment			(20,275	)			(156,945	)
Net cash used in investing activities			(20,275	)			(156,945	)
Cash flows from financing activities:
Proceeds from issuance of class A common stock and warrants, net of issuance costs			2,145,521				-
Proceeds from issuance of class A common stock and pre-funded warrants, net of issuance costs			1,711,466				3,375,458
Net proceeds from loans payable			-				549,185
Payments on loans payable			(863,940	)			(1,032,540	)
Proceeds from issuance of convertible series A preferred stock			-				200,000
Proceeds from convertible note payable			-				500,000
Repayment of note payable			(464,132	)			(276,013	)
Repayment of convertible debentures			-				(100,000	)
Net cash provided by financing activities			2,528,915				3,216,090
Net increase (decrease) in Cash, cash equivalents and restricted cash			1,134,343				(109,884	)
Cash, cash equivalents and restricted cash, beginning of period			723,690				378,961
Cash, cash equivalents and restricted cash, end of period		$	1,858,033			$	269,077
Supplemental Disclosure of Cash Flow Information
Interest payments during the year		$	1,552,313			$	188,952
Income tax refund		$	151,796			$	-
Noncash investing and financing activity
Series A Preferred Stock Dividend		$	-			$	271,245
Acquisition of assets through operating leases		$	-			$	1,031,523
Issuance of common stock in connection with business acquisition		$	-			$	400,000
Issuance of convertible series A preferred stock due to conversion of bridge note		$	-			$	4,440,688
Issuance of class A common stock due to conversion of convertible debentures		$	-			$	4,414,317

SOURCE: INSPIRE VETERINARY PARTNERS, INC.

View the original press release on ACCESS Newswire

FAQ

What were Inspire Veterinary Partners (IVP) key financial results for Q1 2025?

In Q1 2025, IVP reported total revenue of $3.6M (down 25%), services revenue of $2.7M (down 23%), product revenue of $0.9M (down 30%), and reduced net loss by 29% to $2.4M.

How much did IVP reduce their operating expenses in Q1 2025?

IVP reduced total operating expenses by $2.1 million or 27% compared to the same period last year.

What strategic initiatives did IVP announce in Q1 2025?

IVP signed a LOI to acquire a Florida animal hospital, increased doctor hires by 400%, completed a $2.0M direct offering, and expanded the 'Family Pet Care' brand to Maryland.

What caused the revenue decline for IVP in Q1 2025?

The revenue decline was primarily due to the sale of the Kauai location, reduced DVM capacity, operational disruptions in January, and customers purchasing fewer products per visit.

What was IVP's cash position as of March 31, 2025?

As of March 31, 2025, IVP had cash and cash equivalents of approximately $1.7 million.