Exchange: TWO | Sector: Healthcare | Industry: Medical Care Facilities
Q2 2025
Published: Jun 30, 2025
Earnings Highlights
Revenue of $547.94M up 83.5% year-over-year
EPS of $-0.08 decreased by 3% from previous year
Gross margin of 16.6%
Net income of -3.40M
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Healthconn Corp (6665.TWO) QQ2 2025 Results – Revenue Surges 83% YoY to TWD 547.94M; Net Loss Widens Despite EBITDA Positive underpinned by SG&A intensity
Executive Summary
Healthconn Corp delivered robust revenue growth in QQ2 2025, with revenue totaling TWD 547.94 million, up 83.5% year over year. The company achieved EBITDA of TWD 6.50 million and reported a positive operating metric that, however, did not translate into net profitability for the quarter, as net income came in at a loss of TWD 3.40 million and earnings per share (EPS) of -0.075. The divergence between EBITDA and net income was driven by ongoing SG&A investments and taxation effects, highlighting a path to profitability that hinges on achieving operating leverage and better cost containment.
Profitability remained challenged, with gross margin at 16.6% and operating margin at -0.87%. The net margin stood at -0.62%, underscoring that even with top-line strength, higher SG&A (SG&A and R&D combined total approximately 99.7 million in the quarter) and other expense dynamics suppressed bottom-line results. The balance sheet depicts a disciplined liquidity and modest leverage profile, with current ratio at ~1.76 and debt-to-equity at ~0.32, while cash per share sits at 8.24 TWD. No cash dividends were indicated. Management commentary, where available, is not provided in the dataset for this quarter, limiting qualitative insight from calls or presentations.
Looking forward, the key driver for Healthconn remains the monetization of its health management services ecosystem, including Smart Health 365 and corporate health programs. The absence of transcript-based guidance necessitates reliance on reported metrics and strategic positioning. Given the mix of growth alongside profitability headwinds, the investment thesis hinges on management’s ability to scale recurring services, optimize SG&A, and translate revenue growth into sustained free cash flow and earnings expansion. The company operates with limited public peer benchmarks in the dataset, constraining direct relative comparisons.”,
Key Performance Indicators
Revenue
547.94M
QoQ: 0.00% | YoY:83.52%
Gross Profit
91.02M
16.61% margin
QoQ: 0.00% | YoY:69.49%
Operating Income
-4.77M
QoQ: 0.00% | YoY:-13.87%
Net Income
-3.40M
QoQ: 0.00% | YoY:-3 289.67%
EPS
-0.08
QoQ: 0.00% | YoY:-3 360.87%
Revenue Trend
Margin Analysis
Key Insights
QQ2 2025 revenue: 547,939,000 TWD
YoY change: +83.5% (from 298,573,000 TWD in QQ2 2024)
QoQ change: 0.0% (data indicates flat QoQ in the supplied metrics)
Implication: Strong top-line expansion driven by the scaling of health management services, but the lack of QoQ growth suggests quarterly volatility or mix effects that merit tracking in upcoming quarters.
Gross profit: 91,024,000 TWD; gross margin: 16.6%
Financial Highlights
Revenue analysis
- QQ2 2025 revenue: 547,939,000 TWD
- YoY change: +83.5% (from 298,573,000 TWD in QQ2 2024)
- QoQ change: 0.0% (data indicates flat QoQ in the supplied metrics)
- Implication: Strong top-line expansion driven by the scaling of health management services, but the lack of QoQ growth suggests quarterly volatility or mix effects that merit tracking in upcoming quarters.
Operating Profitability
- Operating income: -4,766,000 TWD; operating margin: -0.87%
- EBITDA: 6,501,000 TWD; EBITDA margin ~1.19%
- YoY operating income change: -13.9% (negative swing)
- Implication: Operating leverage has not yet materialized; SG&A and other operating expenses are absorbing the top-line growth.
Net Income and EPS
- Net income: -3,397,000 TWD; net margin: -0.62%
- EPS: -0.075; diluted EPS: -0.075
- YoY net income change: -3,289.67% (from positive net income in QQ2 2024)
- Implication: Bottom-line profitability remains a critical hurdle despite EBITDA being positive; tax effects and other income/expenses contribute to the annualized negative result.
Cash Flow and liquidity
- Operating cash flow per share: 0.305
- Free cash flow per share: -0.175
- Cash per share: 8.24
- Current ratio: 1.758; quick ratio: 1.412; cash ratio: 0.509
- Capex coverage ratio: 0.636
- Debt metrics: debt ratio 0.194; debt/equity 0.315; total debt to capitalization 0.240
- Implication: Liquidity remains adequate, with modest leverage. Operating cash flow generation is positive on a per-share basis, but free cash flow is negative, signaling capital spending or working capital needs that may constrain cash returns to shareholders in the near term.
Efficiency and activity
- Receivables turnover: 2.04x; days sales outstanding: 44.11 days
- Inventory turnover: 2.86x; days inventory outstanding: 31.52 days
- Payables turnover: 2.71x; days payables outstanding: 33.19 days
- Asset turnover: 0.385; Fixed asset turnover: 2.88
- Implication: Efficiency metrics indicate moderate collection and inventory cycles; working capital management is an area for potential improvement to bolster cash flow.
Valuation indicators (as of 2025-06-30)
- Price-to-book: 1.296x; Price-to-sales: 2.07x; Price-to-earnings: negative (-83.44x)
- Enterprise value multiple: 180.66x; price to operating cash flows: 81.92x
- Dividend yield: 0%
- Implication: Valuation reflects limited profitability and high growth expectations; the negative earnings backdrop emphasizes the need for sustained cash flow expansion and margin normalization.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
547.94M
83.52%
0.00%
Gross Profit
91.02M
69.49%
0.00%
Operating Income
-4.77M
-13.87%
0.00%
Net Income
-3.40M
-3 289.67%
0.00%
EPS
-0.08
-3 360.87%
0.00%
Key Financial Ratios
currentRatio
1.76
grossProfitMargin
16.6%
operatingProfitMargin
-0.87%
netProfitMargin
-0.62%
returnOnAssets
-0.24%
returnOnEquity
-0.39%
debtEquityRatio
0.32
operatingCashFlowPerShare
$0.31
freeCashFlowPerShare
$-0.18
priceToBookRatio
1.3
priceEarningsRatio
-83.44
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No QQ2 2025 earnings call transcript data was provided. As a result, there are no management quotes or thematic highlights to extract. When transcript material becomes available, the following structure should be used: - Strategy: summarize management’s growth strategy, key investments, and pivots; - Operations: note cost controls, efficiency initiatives, and service-line performance; - Market conditions: capture guidance on competitive dynamics and regulatory factors; - Outlook: extract explicit guidance, targets, and confidence levels with context.
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Forward Guidance
No explicit forward guidance was provided in the data. Given the topline expansion and ongoing profitability challenges, the base-case outlook suggests continued revenue growth from expanded health management and corporate wellness services, with a critical need to achieve meaningful operating leverage. Management would ideally articulate targets for gross margin stabilization, SG&A optimization, and free cash flow growth to convert EBITDA gains into net income improvements.
Assessment by scenario:
- Base case: Moderate margin recovery as scale increases; SG&A re-baselining over time; breakeven on net income achieved in subsequent quarters as revenue growth matures.
- Bull case: Greater mix improvement toward high-margin services, higher contract wins with corporate clients, and successful cost containment that expands EBITDA margin toward mid-to-high single digits.
- Bear case: Continued SG&A/S&M pressure or slower-than-expected contract wins, resulting in persistent negative net income and weak cash flow despite revenue growth.
Key factors investors should monitor: (1) trajectory of SG&A as a percentage of revenue, (2) progression of recurring revenue from Smart Health 365 and corporate health programs, (3) working capital efficiency and free cash flow realization, (4) any guidance on regional expansion, regulatory/reimbursement changes, and (5) any disclosed milestones for profitability targets.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
6665.TWO Focus
16.61%
-0.87%
-0.39%
-83.44%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Investment thesis remains a mix of growth and profitability risk. The QQ2 2025 results show meaningful topline expansion but a continuation of net losses and modest EBITDA, underscoring the need for operating leverage to materialize. The company’s balance sheet remains healthy with solid liquidity and low leverage, which provides flexibility to fund growth initiatives and cost-optimization measures. The absence of transcript-based guidance limits visibility into management’s near-term targets. Investors should monitor: (1) the pace of SG&A optimization and gross-margin stabilization, (2) the trajectory of free cash flow and capital expenditure management, (3) progression of recurring revenue streams from health-management services, and (4) any strategic updates on corporate contracts and geographic expansion. If Healthconn can convert topline growth into sustained earnings expansion and improved FCF, the stock could re-rate on a more favorable margin profile; otherwise, the current valuation would reflect ongoing profitability risk despite strong revenue growth.
Key Investment Factors
Growth Potential
Growth potential centers on scaling Healthconn’s integrated health management services (including Smart Health 365) and expanding corporate wellness contracts to drive recurring revenue and higher-margin service mix as utilization expands.
Profitability Risk
Key risks include ongoing profitability headwinds due to SG&A intensity, potential variability in contract timing, regulatory/reimbursement shifts in Taiwan, and reliance on service mix that may affect gross margins. The lack of publicly disclosed peer benchmarks limits relative risk assessment.
Financial Position
Liquidity remains satisfactory (current ratio 1.76, quick ratio 1.41). Leverage is modest (debt-to-equity ~0.32; debt ratio 0.194). Cash per share is robust at 8.24, but free cash flow is negative in the quarter, indicating capital expenditure or working capital needs that could constrain distributions and deleveraging efforts in the near term.
SWOT Analysis
Strengths
YoY revenue growth of 83.5% driven by scale-up of health management services
Positive EBITDA of 6.50m supports near-term operating viability
Healthy liquidity metrics (current ratio 1.76, quick ratio 1.41) and modest leverage (debt/equity ~0.32)
Cash per share of 8.24 supports balance sheet resilience and optionality
Weaknesses
Net loss for QQ2 2025 despite revenue growth
Operating margin negative (-0.87%) and net margin negative (-0.62%)
Significant SG&A outlays (SG&A ~66.1m; selling ~29.5m; SG&A total ~95.5m) relative to gross profit
Negative free cash flow per share (-0.175) signaling cash burn potential without immediate earnings leverage
Opportunities
Expansion of Smart Health 365 and corporate wellness programs to broaden recurring revenue
Potential improvements in gross margin through service-mix optimization and scale effects
Stable liquidity with modest leverage enabling investment in growth initiatives
Threats
Profitability normalization challenges if SG&A remains elevated
Regulatory/reimbursement dynamics in Taiwan healthcare could impact margins
Dependence on continuous growth in health-management services amid competition and market cyclicality