Dentalcorp Holdings Ltd. reported record-high adjusted free cash flow in its second quarter, driven by continued growth through practice acquisitions and increased patient volumes under the federal dental plan.
“We generated a record $45.6 million in adjusted free cash flow in the second quarter of 2025, representing an increase of approximately 12 per cent over the same quarter in 2024,” said Graham Rosenberg, CEO and chair of Dentalcorp.
“This led to continued deleveraging, with our net debt to pro forma adjusted EBITDA after rent ratio decreasing to 3.65 times—a reduction of 0.46 times from Q2 2024—marking our seventh consecutive quarter of deleveraging,” he added.
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“Looking ahead, we anticipate minimal CDCP-related visit deferrals for the remainder of the year, as the program is now fully deployed.”
Acquisition and CDCP
The company acquired eight new practice locations during the quarter, expected to generate $3.8 million in pro forma adjusted EBITDA after rent at a 6.3-times multiple. For the first half of 2025, acquisitions totalled $12.1 million at a 7.1-times multiple, expanding Dentalcorp’s national footprint to 575 locations.
President and CFO Nate Tchaplia said the company expects to carry this momentum into the third quarter, projecting same-practice revenue growth of 3.0 to 5.0 per cent, total revenue growth of 10.0 to 12.0 per cent, and a 20-basis-point improvement in adjusted EBITDA margin over Q3 2024, to 18.6 per cent.
Dentalcorp said it delivered care to more than 125,000 patients under the Canadian Dental Care Plan (CDCP) during the quarter, with 95 per cent of its clinics now serving eligible patients.
“Second-quarter 2025 same-practice revenue growth was impacted by [CDCP] visit deferrals, as the newly eligible 18-to-64 age group began receiving treatment in July,” said Tchaplia. “Looking ahead, we anticipate minimal CDCP-related visit deferrals for the remainder of the year, as the program is now fully deployed.”