Ontrak Reports $10.8 Million Revenue Decline and $25.5 Million Net Loss for Fiscal Year 2024

Ontrak, Inc. reported a revenue of $10.8 million for the fiscal year ending December 31, 2024, a decrease of 15% from $12.7 million in 2023. The decline in revenue was primarily attributed to a reduction in the average number of enrolled members, following notifications from two significant health plan customers regarding their intent to discontinue services. The company also experienced a net loss of $25.5 million, slightly improved from a loss of $27.9 million in the previous year, reflecting a decrease in operating expenses due to strategic workforce reductions and cost optimization initiatives.

In terms of operational metrics, Ontrak's callable outreach pool, which represents individuals identified for potential enrollment in its WholeHealth+ program, increased significantly to 25,556 members by the end of 2024, compared to just 2,161 members at the end of 2023. This growth was driven by the expansion of the WholeHealth+ program to a larger commercial population and the introduction of the Ontrak Engage program, which began offering services on an à la carte basis in early 2024.

The company undertook several strategic developments during the year, including a 1-for-15 reverse stock split effective September 23, 2024, aimed at maintaining compliance with Nasdaq listing requirements. Additionally, Ontrak entered into a new agreement with Acuitas, its largest stockholder, to purchase $5 million in Keep Well Notes, which are part of its financing strategy. However, Ontrak has faced challenges, including the loss of key customers and a reduction in workforce, with approximately 20% of employee positions eliminated in February 2024 to reduce costs.

As of December 31, 2024, Ontrak had a total cash balance of $5.7 million and outstanding secured debt of approximately $13.6 million under the Keep Well Agreement. The company reported a cash burn rate of $1.1 million per month and indicated that it would require additional capital to fund operations beyond the second quarter of 2025. Management expressed concerns about the company's ability to continue as a going concern, emphasizing the need for further capital to support ongoing operations and growth initiatives.

Looking ahead, Ontrak aims to expand its customer base and enhance its service offerings while navigating the challenges posed by customer terminations and market conditions. The company is actively pursuing discussions with potential customers and exploring additional financing options to bolster its financial position. However, uncertainties regarding market acceptance of its programs and the potential for further customer losses remain significant risks to its future performance.