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Investing.com -- Dentalcorp reported first-quarter results that topped analyst expectations and confirmed its outlook for the full year.
The company, which operates the largest network of dental clinics in Canada, posted a revenue of C$409.4 million, ahead of the C$404.6 million estimated by analysts.
Adjusted EBITDA rose 11.5% year-over-year to C$75.9 million, beating the consensus estimates by 1.4% and ahead of the guidance of C$74.4 million to C$75.1 million.
Dentalcorp posted a net loss of C$10.2 million for the period ending March 31, narrowing from a loss of C$11.7 million a year earlier. On an adjusted basis, earnings came in at C$20.7 million, down from C$24.7 million in the same quarter last year.
The company reported a pre-tax loss of C$9.3 million, compared to C$11.8 million a year ago.
SG&A expenses climbed to C$131.5 million from C$122.9 million. Cost of revenue also grew, reaching C$204.4 million compared to C$186 million in the prior-year period.
Looking to the second quarter, Dentalcorp expects revenue to grow 9% to 10%, landing between C$435.8 million and C$439.8 million, compared to the consensus projection of C$440.7 million.
SPRG is forecast to rise 3% to 5%, while adjusted EBITDA for Q2 is expected to reach between C$81.5 million and C$82.2 million, with a margin improvement of 20 basis points to 18.7%.
The company reaffirmed its full-year outlook, continuing to project adjusted EBITDA in the range of C$317.8 million to C$320.7 million, and revenue between C$1.699 billion and C$1.715 billion—reflecting anticipated annual growth of 10% to 11%.
RBC Capital Markets reiterated an Outperform rating on Dentalcorp after the report, noting that the stock is trading at a more "attractive" valuation than its peers, with its 2025 estimated EBITDA multiples at approximately 9.6x (IFRS) and 10.2x (GAAP). In comparison, similar companies are trading at a median multiple of about 13.6x for both IFRS and GAAP EBITDA.