Financial Data and Key Metrics Changes - The company reported revenue of $218.1 million, representing a 13% year-over-year increase [8][23] - Adjusted EBITDA was $10.8 million, with a margin of 4.9%, improving more than 3.5 times compared to the same quarter last year [9][29] - The net loss was $11.1 million, compared to a net loss of $6.2 million in the same quarter last year [28] Business Line Data and Key Metrics Changes - Census grew to approximately 7,530 participants, reflecting a 10% annual increase [9][11] - Center level contribution was $40.7 million, with an 18.7% margin, improving by approximately 110 basis points year-over-year [8][26] - External provider costs were $107.9 million, a 7.9% increase year-over-year, but cost per participant decreased [24][25] Market Data and Key Metrics Changes - The increase in member months was primarily due to growth in existing California and Colorado centers, along with new centers in Florida [23][24] - The company experienced a modest sequential growth due to seasonal headwinds during Medicare's Annual Enrollment Period [11][12] Company Strategy and Development Direction - The company is focused on operational excellence and building a scalable, tech-enabled platform for sustainable growth [10][18] - There is an emphasis on integrating pharmacy services into the clinical model to improve medication adherence and reduce costs [17][18] - The company is actively engaging with policymakers to advocate for the PACE model, which is seen as a high-value solution for seniors [7][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate policy uncertainties and maintain operational predictability [19][20] - The company reaffirmed its fiscal year 2025 guidance, expecting ending census between 7,750 and 7,850 participants [31] Other Important Information - The company has made strategic progress in its pharmacy initiative, successfully transitioning to in-house pharmacy services [17] - There was a significant increase in corporate general and administrative expenses due to the accrual of a stockholder lawsuit settlement [27][28] Q&A Session Summary Question: Initial 2026 guidance and Medicare/Medicaid rate development - Management indicated that it is early for 2026 guidance but expects reasonable Medicare rates and some positive indications for Medicaid rates [34][36][39] Question: Changes in pharmacy utilization trends - Management noted no significant changes in pharmacy utilization trends, emphasizing that their reimbursement model differs from traditional Medicare Advantage [40][41] Question: Engagement with regulators regarding PACE - Management highlighted increased engagement with regulators, focusing on the value of PACE and the populations served [44][45][48] Question: De novo losses and enrollment trends - Management confirmed that de novo losses are tracking with expectations and that census growth is consistent with projections [66][71] Question: Cost of care and investments - Management discussed investments in insourcing services and the impact on cost of care, indicating a potential for normalized growth rates moving forward [72][75]

Financial Data and Key Metrics Changes - The company reported revenue of $218.1 million, representing a 13% year-over-year increase from $193.1 million in the same quarter last year [8][23] - Adjusted EBITDA was $10.8 million, with a margin of 4.9%, significantly improving from $3 million in the third quarter of fiscal year 2024 [9][30] - The net loss for the quarter was $11.1 million, compared to a net loss of $6.2 million in the same quarter last year [29] Business Line Data and Key Metrics Changes - Census grew to approximately 7,530 participants, reflecting a 10% annual increase [10][23] - Center level contribution was $40.7 million, with an 18.7% margin, improving by approximately 110 basis points year-over-year [8][27] - External provider costs were $107.9 million, a 7.9% increase compared to the same quarter last year, driven by an increase in member months [25][26] Market Data and Key Metrics Changes - The increase in member months was primarily due to growth in existing California and Colorado centers, along with new centers in Florida [24] - The company experienced a modest sequential growth in census due to seasonal headwinds during Medicare's Annual Enrollment Period [12] Company Strategy and Development Direction - The company is focused on operational excellence and greater organizational efficiency, aiming to build a scalable, tech-enabled platform for sustainable growth [11][19] - The transformation efforts are described as more ambitious than previous improvement initiatives, with a comprehensive approach to reimagine operations and value creation [11][20] - The company is actively engaging with policymakers to advocate for the PACE model, emphasizing its value for seniors and the healthcare system [7][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a healthcare environment marked by policy uncertainty, reaffirming fiscal year 2025 earnings guidance [6][33] - The company is optimistic about the long-term value of the PACE model, which is seen as resilient in uncertain policy environments [20][21] - Management highlighted the importance of maintaining strong cost discipline while delivering quality outcomes for participants [14][19] Other Important Information - The company has successfully integrated pharmacy services into its clinical model, which is expected to enhance medication adherence and reduce costs [18] - The flu vaccination rate for participants is reported at 77%, significantly above the national average for seniors [15] Q&A Session Summary Question: Initial 2026 guidance and Medicare/Medicaid rate development - Management indicated that it is early for 2026 guidance but expects reasonable Medicare rates and some positive indications for Medicaid rates [36][38] Question: Changes in pharmacy utilization trends - Management noted no significant changes in pharmacy utilization trends, emphasizing that their reimbursement model differs from traditional Medicare Advantage [42][43] Question: Engagement with regulators regarding PACE - Management confirmed increased engagement with regulators, focusing on the value of PACE and the populations served, while addressing potential risks related to eligibility and state budgets [46][49] Question: De novo losses and enrollment trends - Management reported that de novo losses are tracking with expectations, with positive momentum in new markets [66][68] Question: Cost of care and investments - Management acknowledged increased costs due to insourcing certain services but expects a more normalized growth rate going forward [73][75]

Core Insights - DXC Technology has appointed William Pieroni as Global Strategy and Growth Leader for Insurance Software & Business Process Services, aiming to enhance strategy and growth in the insurance sector [1][3] Company Overview - DXC Technology is a leading global technology services provider, recognized in the Fortune 500, with over 40 years of innovation in the insurance sector [1][6] - The company supports more than 1,000 customers and has processed over 1 billion policies through its solutions, with 21 of the world's top 25 insurers relying on DXC for critical software and services [4] Leadership Appointment - William Pieroni brings over 25 years of experience in insurance, technology, and enterprise transformation, having previously served as CEO of ACORD and held senior roles at Marsh McLennan, Aon, State Farm, IBM, Accenture, and McKinsey & Company [2][3] - His role at DXC will involve defining strategic priorities, guiding global growth initiatives, and enhancing the firm's position within the global insurance ecosystem [3] Strategic Focus - The appointment reflects DXC's commitment to industry leadership, intelligent growth, and long-term value creation, with a focus on delivering competitive differentiation and operational excellence across the insurance value chain [1][3]