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OnTrack Inc. (OTRK), a leading provider of behavioral health solutions, has seen its stock price touch a 52-week low, reaching a price level of $1.41. According to InvestingPro data, the company’s financial health score is rated as WEAK, with concerning metrics including negative EBITDA of -$17.4M and rapid cash burn. This latest price movement underscores a challenging period for the company, which has experienced a significant downturn over the past year. The stock’s performance reflects a stark 1-year change, with OnTrack Inc. shares plummeting by nearly 43%. With a market capitalization of just $5.93M and a concerning return on assets of -124%, investors are closely monitoring the company’s strategic initiatives and market position. The stock hovers at this low point, which marks a critical juncture for the company’s financial outlook and investor confidence. For deeper insights into OTRK’s financial health and 12 additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Ontrak Health announced a significant partnership with Intermountain Health. This collaboration is projected to increase Ontrak’s annualized revenue from existing customers by an estimated 25%, raising the forecasted annualized revenue to between $14 million and $16 million. Ontrak also reported its third-quarter financial results for 2024, revealing a revenue of $2.6 million, a 31% decrease compared to the same period last year. Despite this, the company secured new customer acquisitions and expansions, including a substantial partnership with Sentara Health Plans. These are the latest developments for Ontrak Health.
In the earnings call, the company anticipates a 12% to 23% sequential increase in Q4 2024 revenues, with new customer and expansion opportunities representing potential for a 75% to 100% increase in annual revenue. However, bearish highlights from the call include a decrease in revenue per member per month due to new customer pricing structures and a drop in gross margin to 62% in Q3 from 65.6% in Q2. Despite these factors, Ontrak’s pipeline includes 26 additional active prospects representing approximately 15 million planned lives, signaling potential for future growth.
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