Summary of INVO Fertility FY Conference Call Company Overview - **Company Name**: INVO Fertility - **Ticker Symbol**: IVF (NasdaqCM) - **Industry**: Fertility healthcare - **Business Model**: Operates clinics providing patient care and develops medical devices for fertility treatment, specifically the INVOcell device [3][4] Market Insights - **Market Size**: The U.S. fertility market is estimated to be between $5 billion and $7 billion annually, spread across approximately 460 clinics [4] - **Growth Trends**: The market is experiencing steady growth, but high treatment costs remain a barrier for many potential patients, leading to a significant number of untreated cases each year [4][5] - **Government Initiatives**: Recent policy updates aim to improve affordability, which is expected to increase demand for fertility services [7] Company Growth Strategy Organic Growth - **Key Drivers**: - Increasing outreach programs to boost patient flow - Adding new services and resources to existing clinics - Expanding clinic operations to handle more patient volume [9][10] Acquisition Strategy - **Acquisition Focus**: Acquisitions are a key strategy for near and intermediate-term growth, with a robust pipeline of potential opportunities [11][12] - **Recent Acquisitions**: The company is nearing completion of an acquisition in Indianapolis and has previously acquired a clinic in 2023 [11][12] - **Long-term Growth**: Building new clinics is seen as a significant long-term growth opportunity, with successful examples in Birmingham, Alabama, and Atlanta, Georgia [12] Recent Performance and Initiatives - **Patient Flow Initiatives**: Increased social media presence and targeted advertising are being implemented to attract more patients [15] - **Telehealth Expansion**: Telehealth capabilities have been introduced to improve patient convenience and operational efficiency [17] - **Device Sales Growth**: There has been year-over-year growth in device sales, with renewed focus on training and support for the INVOcell device [19][20] Challenges and Opportunities - **Acquisition Challenges**: While there are many acquisition opportunities, the complexity of closing deals presents a challenge [23] - **Team Expertise**: The company believes it has the necessary expertise to navigate these challenges and meet acquisition objectives for the year [24] Investor Takeaways - **Outlook for 2026**: The company is optimistic about growth prospects, combining organic growth efforts with acquisitions to enhance overall performance [26] - **Positioning**: The management team feels that the company is well-positioned to achieve significant progress and success in 2026 [26]

Core Viewpoint - INVO Fertility is now exclusively focused on the growing fertility market following the divestiture of a majority stake in NAYA Therapeutics, aiming to expand access to advanced fertility treatments and capitalize on supportive policy shifts in the U.S. [1][3] Financial Performance - Revenue for Q1 2025 was $1,637,185, representing a 4% increase from $1,576,286 in Q1 2024 [6] - Consolidated clinic revenue increased by 5% to $1,621,553 compared to $1,537,199 in the previous year [6] - Total revenue from all clinics, including consolidated and equity method clinics, was $1,943,763, up 4% from $1,869,513 [6] - The net loss for the quarter was $(17.4) million, significantly higher than $(1.6) million in the prior year, primarily due to a non-cash impairment charge of $14.6 million related to NAYA Therapeutics [6][11] - Adjusted EBITDA was $(606,551), compared to $(427,467) in the previous year, excluding losses from NAYA TX [6][7] Strategic Focus - The company has sharpened its focus on its core mission as a fertility company, implementing initiatives to accelerate organic clinic growth and exploring acquisitions for expansion [3][4] - The divestiture of NAYA TX is expected to allow both INVO Fertility and NAYA TX to concentrate on their respective opportunities, with INVO Fertility aiming for cash flow break-even and profitability [4][3] Business Model - INVO Fertility is dedicated to expanding assisted reproductive technology (ART) care, focusing on building, acquiring, and operating fertility clinics, including INVO Centers that offer the intravaginal culture (IVC) procedure [8] - The IVC procedure, enabled by the proprietary INVOcell medical device, provides a more natural and affordable experience compared to traditional IVF, with comparable results at a lower cost [8]