Financial Data and Key Metrics Changes - The company reported total revenues of $239.7 million for Q2 2026, a 14.7% increase compared to $209 million in Q2 2025 [20] - Adjusted EBITDA for the quarter was $22.2 million, significantly up from $5.9 million in Q2 2025, achieving an adjusted EBITDA margin of 9.2% [26][27] - Net income for the quarter was $11.8 million, compared to a net loss of $13.5 million in Q2 2025 [26] Business Line Data and Key Metrics Changes - The company served approximately 8,010 participants across 20 centers, reflecting a 7.1% growth year-over-year [19] - Member months increased to 23,960, a 7.9% rise compared to Q2 2025 [19] - The central level contribution margin was $52.8 million, up from $37.1 million in Q2 2025, representing a margin of 22% [24] Market Data and Key Metrics Changes - The company experienced a favorable blended rate environment for Medicaid this fiscal year, which was better than initial assumptions [10] - The increase in capitation rates was primarily due to annual increases in Medicaid and Medicare rates, partially offset by revenue reserves [20] Company Strategy and Development Direction - The company is focused on strengthening revenue integrity, particularly around Medicaid eligibility and redeterminations, which has shown positive results [8] - There is a commitment to improving participant experience through systematic feedback and service recovery initiatives [12] - The governance structure has evolved to support operational and clinical improvements, with key leadership changes to enhance oversight [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and raised full-year fiscal 2026 guidance, expecting total revenue between $925 million and $950 million [17][30] - The company acknowledged the inherent variability in a full-risk, highly regulated model but emphasized that the platform is increasingly operating as designed [17] Other Important Information - The company ended the quarter with $83.2 million in cash and cash equivalents and $42.8 million in short-term investments [28] - Positive cash flow from operations was recorded at $21.4 million for the quarter [28] Q&A Session Summary Question: Can you walk through some of the variables going into margin expectations for the back half of the year? - Management noted that Q3 is typically a softer quarter due to slower enrollment gains and the impact of flu season [34] Question: How is the shift in V28 impacting risk scores and subsequent RAF scoring? - Management indicated that while there are challenges, the unique elements of the PACE model, such as the frailty adjuster, provide some protection against the impacts of V28 [40] Question: Where are you seeing success in Medicaid redeterminations? - Management highlighted improvements in internal processes and collaboration with state-level processes as key factors in reinstating Medicaid coverage for participants [44][47] Question: What specific areas within the patient journey could be most impactful for participant experience? - Management emphasized the importance of aligning participant expectations with their experiences, particularly during onboarding and service recovery [54][56]