Tue, May 20, 8:14 PM (29 days ago)
**Ontrak, Inc. (OTRK) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2.0 million, down 25% from $2.7 million in Q1 2024, primarily due to a decrease in total average enrolled members. - **Gross Profit:** $746,000, down 56% from $1.7 million in Q1 2024, resulting in a gross margin of 37%, down from 64%. - **Operating Loss:** $5.9 million, up 37% from $4.3 million in Q1 2024, due to increased operating expenses and higher interest costs. - **Net Loss:** $6.9 million, up 56% from $4.5 million in Q1 2024. - **Cash Flow:** Negative $2.7 million, an improvement from negative $3.3 million in Q1 2024, due to better accounts receivable collections and cash flow management. **Key Metrics and Trends:** - **Callable Outreach Pool:** Increased by 45% for WholeHealth+ and introduced Ontrak Engage with 22,152 eligible members. - **Operating Expenses:** Increased by 10%, driven by higher research and development, sales and marketing, and general and administrative costs. - **Interest Expense:** Increased significantly due to higher average outstanding loan balances. **Uncertainties and Future Operations:** - **Going Concern:** Significant doubt about the ability to continue as a going concern due to substantial net losses, negative cash flows, and debt obligations. - **Debt:** $14.4 million of secured debt outstanding, with potential acceleration of repayment if covenants are not met. - **Capital Raising:** Actively seeking additional capital, but success is uncertain due to market conditions and business prospects. - **Customer Terminations:** Negative impact on operations due to customer terminations, leading to disenrollment of members. **Management's Outlook:** - **Growth Strategy:** Pursuing execution of growth strategy and discussions with prospects and existing customers. - **Capital Needs:** Requires additional capital to fund operations through the next 12 months. - **Risk Factors:** Various risks and uncertainties could materially affect results of operations or financial condition. **Ticker:** OTRK