Financial Data and Key Metrics Changes - Total patient visits increased to 45,573 in Q2 2025, a 10.6% increase from 2024, and total patient visits for the first half of 2025 reached 93,842, a 15.5% increase from 2024 [7][36] - Total revenue for Q2 2025 was $244,000,000, up 220% from $76,100,000 in Q2 2024, with gross profit at $124,800,000 or 51.1% of total revenue compared to $22,600,000 or 29.7% in the same period of 2024 [7][30] - Adjusted EBITDA for Q2 2025 was $73,300,000, compared to $6,800,000 in Q2 2024, indicating significant operational improvement [7][34] - Net cash from operating activities for the first half of 2025 was $78,200,000, compared to $16,300,000 in the same period of 2024 [8] Business Line Data and Key Metrics Changes - The hospital division generated $236,300,000 in revenue for Q2 2025, a 350% increase from $76,100,000 in Q2 2024, with independent dispute resolution revenue accounting for approximately 71% of this [30] - Revenue from mature hospitals increased by 203% in 2025 compared to 2024 [30] - The population health division revenue increased by 9.2% to $7,700,000 in Q2 2025 from $8,500,000 in Q2 2024 [31][44] Market Data and Key Metrics Changes - Total visits at the hospital division for the first half of 2025 were 93,842, an increase of 15.5% from 81,276 in the same period of 2024 [36] - The company collected $311,000,000 in cash for the first half of 2025, with approximately 55% related to arbitration revenue [36] Company Strategy and Development Direction - The company is focused on expanding its micro hospital model, with over 15 hospital projects in development, including two confirmed openings by the end of 2025 [22] - The strategy includes launching one to two independent physician associations (IPAs) annually to enhance care coordination [22][43] - A stock repurchase program of up to $25,000,000 has been authorized to enhance shareholder value [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued evolution and efficiency of the federal arbitration process, which is critical for revenue cycle management [19] - The company is navigating industry trends while remaining committed to delivering value to patients and shareholders [22] - Management highlighted the importance of compliance with the No Surprises Act and the independent dispute resolution process to secure fair compensation [9][12] Other Important Information - The company is addressing a delay in filing its Q2 2025 10-Q due to reevaluation of accounting treatment for stock-based compensation obligations [25][26] - The estimated impact of corrections on total liabilities is projected to increase by approximately $10 to $50 million, with a corresponding decrease in reported equity [28] Q&A Session Summary Question: Timeline for restatement process and filing amended reports - Management is actively working on the restatement and aims to complete the necessary filings within the 60-day timeline provided by Nasdaq [55][56] Question: Collection rates and recourse for arbitration awards - The company has collected over 75% of arbitration awards and is working to improve collection rates further, with various approaches to ensure timely payments from insurers [58][63] Question: Updates on new hospital openings and strategies for mature hospitals - Two new hospitals are expected to open in late 2025, while efforts are being made to retain patients in mature hospitals to increase revenue [69][72] Question: EBITDA margin and factors affecting it - The EBITDA margin has been affected by increased supplier payments and arbitration costs, but overall cash collections remain strong [77][80] Question: Revenue per visit and organic growth - Revenue per visit has seen low single-digit growth from an organic perspective, with ongoing monitoring of reimbursement trends [81][82]