Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $221.4 million, an increase of 11% year-over-year [4] - Total revenue for FY2025 was $853.7 million, up nearly 12% year-over-year [5] - Adjusted EBITDA for FY2025 was $34.5 million, compared to $16.5 million in FY2024, with a margin increase from 2.2% to approximately 4% [5][23] - Net loss for FY2025 was $35.3 million, compared to a net loss of $23.2 million in FY2024 [22] Business Line Data and Key Metrics Changes - Center-level contribution margin for FY2025 was $153.6 million, with a margin of 18%, up 70 basis points from FY2024 [5][20] - The census at the end of FY2025 was approximately 7,740 participants, reflecting a 10% year-over-year increase [5][13] - Member months in Q4 2025 were 23,000, an increase of approximately 10.5% compared to Q4 FY2024 [14] Market Data and Key Metrics Changes - The company experienced a 10% year-over-year increase in census growth in FY2025 [9] - The guidance for FY2026 projects a census of 7,900-8,100 participants and member months of 91,600-94,400 [9][25] Company Strategy and Development Direction - The company aims to expand access to PACE services for seniors, advocating for new pathways such as a Medicare-only option [8] - The focus is on integrating care to manage costs effectively, with approximately 40% of care delivered directly at centers [7][11] - The company is investing in technology and operational improvements to enhance efficiency and scalability [10][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complex environment due to recent legislation affecting value-based care models [6] - The company expects to face challenges from Medicaid redetermination processes impacting census growth in FY2026 [54] - The guidance for FY2026 reflects continued momentum, projecting total revenue of $900 million-$950 million and adjusted EBITDA of $56 million-$65 million [9][25] Other Important Information - The company incurred $431.2 million in external provider costs during FY2025, a 7% increase from FY2024 [15] - The company completed a share repurchase program, acquiring approximately 1,426,000 shares for $7.3 million [25] Q&A Session Summary Question: Impact of member mix on margins and cost trends - Management indicated that the member mix has normalized, balancing community and assisted living participants, which impacts risk scores and revenue [31][32] Question: V-28 Medicare Advantage payment model implications - Management expects the transition to the V-28 model to be a headwind for revenue growth over the next few years [35][37] Question: Outlook for EBITDA margins and margin expansion - Management confirmed expectations for continued margin expansion, driven by clinical value initiatives and operational improvements [40][44] Question: Opportunities for automation and cost efficiencies - Management is exploring AI-driven tools and partnerships to enhance operational efficiency and care quality [46][49] Question: Medicaid redetermination impact on census and member progression - Management clarified that the redetermination process will create a headwind in the first half of FY2026, but gross enrollment trends will remain stable [54][56]