- Covalon Technologies (TSXV:COV), a medical technology stock, posted a profitable fiscal Q1 2025 ending December 31, 2024
- The company has generated positive net income in each of the past four quarters
- Covalon is a leading medical technology stock improving patient outcomes in wound care, vascular access and surgical consumables
- Covalon Technologies stock has added 118.32 per cent year-over-year but only 91.95 per cent since 2020
Covalon Technologies (TSXV:COV), a medical technology stock, posted a profitable fiscal Q1 2025 ending December 31, 2024. Here are the highlights:
- Revenue growth of 75 per cent year-over-year (YoY), including 73 per cent growth in the US Medical Consumables segment and the addition of 21 new hospital customers.
- Gross profit of C$5 million at a 61.2 per cent margin, representing a 75 per cent increase YoY.
- Adjusted EBITDA of C$1.6 million, up by C$2.8 million YoY.
- Earnings per share of C$0.04, up by C$0.07 YoY, on net income of C$1.2 million.
This marks the fourth-straight quarter of positive net income for Covalon, generating C$610,000 in Q4 2024, C$1.45 million in Q3 2024 and C$1.46 million in Q2 2024.
Leadership insights
“Covalon achieved strong revenue growth driven by the success of our US Medical Consumables business, which remains our primary focus,” Brent Ashton, Covalon’s chief executive officer, said in a statement. “This growth resulted in significant increases in gross profit and earnings compared to the prior year. Our adjusted EBITDA for the trailing twelve months ended December 31, 2024, was C$7.6 million, compared to an adjusted EBITDA loss of C$4 million for the trailing twelve-month period ended December 31, 2023. While we are reporting exceptional year-over-year growth of more than 75 per cent, we did experience a slight sequential slowdown in our US Collagen business due to some normalization in our channel inventory. We expect this slowdown to reverse in the second half of fiscal 2025, supported by ongoing conversations and forecasts received from our customers. Additionally, we are very pleased with the performance of our US Vascular Access and Surgical Consumables business, which grew more than 20 per cent sequentially over the previous quarter.”
About Covalon Technologies
Covalon is a medical technology stock improving patient outcomes in wound care, vascular access and surgical consumables.
Covalon Technologies stock (TSXV:COV) is down by 10.06 per cent trading at C$2.86 per share as of 12:56 pm ET. The stock has added 118.32 per cent year-over-year but only 91.95 per cent since 2020.
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(Top photo of Covalon Technologies’ IV Clear dressing: Covalon Technologies)
