Dentalcorp Holdings Ltd. reported record-high adjusted free cash flow in its second quarter, pushed by continued progress via observe acquisitions and elevated affected person volumes underneath the federal dental plan.
“We generated a record $45.6 million in adjusted free cash flow in the second quarter of 2025, representing a rise of roughly 12 per cent over the identical quarter in 2024,” stated Graham Rosenberg, CEO and chair of Dentalcorp.
“This led to continued deleveraging, with our web debt to professional forma adjusted EBITDA after hire ratio lowering to three.65 instances—a discount of 0.46 instances from Q2 2024—marking our seventh consecutive quarter of deleveraging,” he added.
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“Looking forward, we anticipate minimal CDCP-related go to deferrals for the rest of the yr, as this system is now totally deployed.”
Acquisition and CDCP
The firm acquired eight new observe areas throughout the quarter, anticipated to generate $3.8 million in professional forma adjusted EBITDA after hire at a 6.3-times a number of. For the primary half of 2025, acquisitions totalled $12.1 million at a 7.1-times a number of, increasing Dentalcorp’s nationwide footprint to 575 areas.
President and CFO Nate Tchaplia stated the corporate expects to hold this momentum into the third quarter, projecting same-practice income progress of three.0 to five.0 per cent, complete income progress of 10.0 to 12.0 per cent, and a 20-basis-point enchancment in adjusted EBITDA margin over Q3 2024, to 18.6 per cent.
Dentalcorp stated it delivered care to greater than 125,000 sufferers underneath the Canadian Dental Care Plan (CDCP) throughout the quarter, with 95 per cent of its clinics now serving eligible sufferers.
“Second-quarter 2025 same-practice income progress was impacted by [CDCP] go to deferrals, because the newly eligible 18-to-64 age group started receiving therapy in July,” stated Tchaplia. “Looking forward, we anticipate minimal CDCP-related go to deferrals for the rest of the yr, as this system is now totally deployed.”