Quipt Reports Largely Stable Results, Looks for Long-Term Success

WILDER, Kentucky—An increase in chronic respiratory conditions and an aging population continue to boost demand for respiratory and other devices, Quipt Home Medical Corp. said February 11 in its quarterly earnings report. 

The home medical equipment (HME) company, which offers respiratory and sleep equipment such as oxygen concentrators, nebulizers, CPAP and BiPAP devices along with remote patient monitoring and mobility and daily living aids, posted an earnings per share of -$.03, surpassing its forecasted -$.08 per share, and overall revenue for the first quarter of 2025 came in at $61.4 million, down 2% year over year and slightly short of the forecast of $61.7 million.

The company is continuing to expand, growing to 135 locations in 26 states, and is focused on its respiratory business, which makes up about 77% of Quipt’s product mix, said CEO and Chairman Greg Crawford. Resupply is also central, he added. 

“As demand for home-based health-care solutions grow, we are exploring new ways to expand our reach, including entering into untapped markets and fostering strategic partnerships with payers, referral sources and health care providers,” Crawford said. “Our competitive strengths lie in the unique combination of our expanding national footprint, growing market share and deep clinical expertise.”

While some in the industry have predicted that widespread use of weight-loss medications like Ozempic—and subsequent weight reduction for patients—might lead to a drop in sleep apnea diagnoses and/or a reduction in treatment use. However, Crawford said, it appears that’s not happening.

“We are pleased to report that GLP-1 medications continue to have no impact on demand,” Crawford said in an earnings call February 11. “Referral activity for new device setups remain solid while replacement supply volumes continued to demonstrate strong and consistent performance.” 

In fact, a study shows that apnea patients prescribed GLP-1 agonists appear to be more compliant with their sleep therapy, exhibiting higher resupply rates, he said. 

“We believe GLP-1 medications will serve the long-term tailwind for our sleep business, introducing more motivated patients into the health care system as they focus on improving their overall health,” Crawford said. “Additionally, the regulatory environment remains stable and we are not seeing any significant headwinds over the near term.”

Quipt completed 221,000 unique setups and deliveries in the first quarter of 2025, a 3% increase over the same quarter last year. Resupply setups and deliveries were 1% higher at 124,000, and the overall customer base also grew 1% comparing Dec. 31, 2024 to the same date in 2023. Revenue was down 2%, from $62.6 million in the first quarter (Q1) of 2024 to $61.4 million in Q1 2025, which Chief Financial Officer Hardik Mehta partly attributed to the end of the Medicare 75/25 blended rate for durable medical equipment. 

“Although this change is still under legislative review and could return, its immediate cessation had a negative impact on our revenue and operating results,” Mehta said.  “Moreover, in certain regions, we also experienced the withdrawal of Medicare Advantage members due to a capitated agreement engaged with other providers in the industry.”

Nonetheless, officials emphasized stability and said they are focused on enhancing operational efficiency. “We are pleased with the results so far and we plan to deliver steady margins throughout the year as we continue to refine our processes and optimize our cost structure,” Mehta said. 

Officials said future challenges could include regulatory changes such as Medicare reimbursement rates.