Financial Data and Key Metrics Changes - For the fourth quarter, revenue was $76.2 million, an increase of 26% year-over-year. For the full year, revenue totaled $270.3 million, up approximately 21% compared to 2024 [18] - Adjusted EBITDA for the fourth quarter was $18.2 million, with a full-year record of $61.4 million, representing a margin of approximately 22.7% [21] - Free cash flow totaled $28.1 million for the year, more than doubling from $11.6 million in 2024 [22] Business Line Data and Key Metrics Changes - Equipment and supply sales increased by $19.4 million or approximately 63% year-over-year, driven by sleep resupply and maternal health contributions [19] - Ventilator rentals increased by $12.2 million, or roughly 10%, reflecting higher patient volumes [20] - PAP therapy patient count reached 34,528, representing growth of 62% year-over-year, with new sleep patient setups increasing 70% compared to the prior year [10] Market Data and Key Metrics Changes - Maternal health contributed approximately 3% of revenue in 2025, with $9 million associated with maternal health products [14] - The diversification of revenue streams is evident, with ventilation revenue decreasing from 56% in 2024 to 51% in 2025, while sleep increased from 16% to 20% [20] Company Strategy and Development Direction - The company aims to build a cash-generating home care platform with multiple growth engines, focusing on high-touch clinical models and technology-enabled approaches [4] - Maternal health is viewed as a scalable extension of the platform and an important long-term growth opportunity [15] - The company is prioritizing organic growth and evaluating disciplined, accretive acquisition opportunities while returning capital to shareholders through share repurchases [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunity, noting strong early signals in the business as they enter 2026 [4] - The company expects net revenue in the range of $310 million to $320 million for 2026, representing approximately 17% year-over-year growth [26] - Management anticipates a return to a more normalized quarterly growth pattern beginning in the second quarter of 2026 [27] Other Important Information - The company ended the year with $13.5 million in cash and approximately $46 million available under existing credit facilities, effectively having no net debt [23] - The company has begun reducing debt associated with the Lehan acquisition, supported by ongoing cash generation [24] Q&A Session Summary Question: What is the top priority for the Lehan acquisition expansion? - Management indicated that expanding the payer network is the top priority, alongside training sales staff to support growth [33][34] Question: How does the sales force feel about training and expansion? - Management confirmed that cross-training of sales representatives is underway, with a focus on integrating new product lines into existing sales efforts [36][38] Question: How will margin stability be maintained with a diversified revenue stream? - Management noted that scalability in G&A and technology improvements will help maintain margins, despite the challenges of diversifying revenue streams [39][40] Question: What are the key assumptions underlying the current revenue guidance? - Management clarified that they are not forecasting rapid growth in ventilators due to the NCD transition but expect significant growth in sleep and maternal health segments [46][47] Question: How does the reduction in respiratory therapists affect service revenue? - Management explained that the number of respiratory therapists is driven by patient volumes and that they expect growth in 2026 as patient numbers increase [48]

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $76.2 million, a 26% increase year-over-year, while full-year revenue totaled $270.3 million, up approximately 21% compared to 2024 [18] - Adjusted EBITDA for Q4 was $18.2 million, with a record full-year Adjusted EBITDA of $61.4 million, representing a margin of approximately 22.7% [20][21] - Free cash flow more than doubled year-over-year to $28.1 million, with Q4 free cash flow at $10.8 million [22][29] Business Line Data and Key Metrics Changes - Equipment and supply sales increased by $19.4 million or approximately 63% year-over-year, driven by growth in sleep resupply and maternal health from the Lehan acquisition [19] - Ventilator rentals increased by $12.2 million, or roughly 10%, reflecting higher patient volumes [19] - PAP therapy patient count reached 34,528, representing a 62% year-over-year growth, while resupply patients increased by 49% year-over-year [10][11] Market Data and Key Metrics Changes - The company noted a significant long-term opportunity in in-home ventilation, despite a moderation in patient growth due to updated National Coverage Determination (NCD) requirements [6][8] - The maternal health segment contributed approximately 3% of revenue in 2025, with expectations for significant growth as the company expands its payer network [14][19] Company Strategy and Development Direction - The company aims to build a diversified home care platform with multiple growth engines, focusing on high-touch clinical models and technology-enabled approaches [4][10] - Maternal health is viewed as a scalable extension of the platform and a long-term growth opportunity, with plans to expand beyond the original footprint of the Lehan acquisition [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunity, citing strong early signals in the business and a solid foundation for growth due to regulatory clarity [4][10] - The company anticipates 2026 net revenue in the range of $310 million to $320 million, representing approximately 17% year-over-year growth, with Adjusted EBITDA guidance of $65 million to $69 million [25][26] Other Important Information - The company ended the year with $13.5 million in cash and approximately $46 million available under credit facilities, effectively having no net debt [23][29] - A new share repurchase program for 2026 was authorized, reflecting confidence in cash flows and long-term outlook [24][29] Q&A Session Summary Question: What is the top priority for the Lehan acquisition expansion? - Management indicated that expanding the payer network is the top priority, along with training sales staff to support growth [34] Question: How does the company assess the need to add or reduce respiratory therapist capacity? - The number of respiratory therapists is driven by patient volumes, and management expects growth in 2026 as patient numbers increase [50] Question: What are the key assumptions underlying the current revenue guidance? - Management noted that while vent growth is not forecasted to be aggressive due to NCD adjustments, significant growth is expected in sleep and maternal health segments [48]