Cano Health (NYSE:CANO) witnessed a dramatic decline of over 46% in its stock price pre-market today following the issuance of a warning about its going concern status, coupled with an announcement about its exploration of a potential sale.
Cano Health disclosed its current inadequacy of liquidity to meet its financial obligations for the next year, encompassing operational, investment, and financing needs.
In a statement, Cano Health expressed management’s assessment that there exists significant uncertainty regarding the company’s ability to maintain operations as a going concern within the upcoming year.
During the second quarter, Cano Health reported total revenue of $766.7 million, which fell short of the projected $829 million. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) exhibited a loss of $149.7 million, a stark contrast to the anticipated profit of $12 million.
The company’s loss per share for the period amounted to $0.51, worse than the predicted loss of $0.40 per share.