Financial Data and Key Metrics Changes - The company reported total revenue of $52.2 million for Q1 2025, representing a 15% increase compared to Q1 2024 [19] - EBITDA increased by 153% year-over-year, reaching $2 million for the quarter [5][23] - The gross profit for the quarter was $23.3 million, up 7% from the previous year, with a gross margin of 44.6% [21][22] - GAAP net income improved to $300,000 from a loss of $1.5 million a year ago [22] Business Line Data and Key Metrics Changes - The payer business revenue grew by 33% year-over-year, with payer sessions totaling approximately 350,000, an increase of 23% [19][20] - Direct to Enterprise (DTE) revenue for the quarter was $9.6 million, down 3% year-over-year [21] - Consumer revenue declined by over $2 million compared to the same quarter in 2024, as most new members utilized insurance coverage [21] Market Data and Key Metrics Changes - The company now covers nearly 200 million lives, a growth of over 40% year-over-year [20] - The Medicare population showed strong patient outcomes, with 84% of members demonstrating clinical improvement [10] Company Strategy and Development Direction - The company is focused on enhancing engagement among members with insurance coverage, aiming to optimize the user experience through technological improvements [6][8] - A new psychiatry offering was launched, targeting individuals aged 18 and older, which has seen increased demand [11][12] - The company is actively pursuing partnerships, such as with BART Technologies, to expand its reach into the teen mental health market [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for 2025, expecting continued demand for affordable in-network care [19] - The company is not directly affected by tariffs and has shifted its strategy to focus on an insured patient base, reducing reliance on out-of-pocket spending [18] - The management highlighted the importance of maintaining high-quality care and positive outcomes as a key differentiator in the market [8] Other Important Information - The company has implemented AI initiatives to enhance client engagement and streamline clinical assessments [15][16] - The balance sheet remains strong, with $108 million in cash and cash equivalents at the end of Q1 [23] Q&A Session Summary Question: How will the positive clinical data for Medicare Advantage be used to market to other plans? - Management noted significant interest from MA plans and the potential for developing deeper relationships with specific plans in the future [29][30] Question: What is the marketing budget for the year? - The company is taking a portfolio approach to marketing, adjusting budgets based on data-driven insights and ROI [32][34] Question: How broadly is the easy button for switching between EAP and insurance coverage rolled out? - The rollout is ongoing, plan by plan, and has shown a significant positive impact on user engagement [36][38] Question: How has data retention changed with technology enhancements? - Management indicated that session velocity metrics are up 5% year-over-year, and they are seeing positive impacts from marketing investments [44] Question: Can you discuss the economics of the Bark partnership? - The partnership allows easy access to Talkspace for Bark users, with the app preloaded on Bark phones, enhancing referral opportunities [62][64] Question: What are the metrics used to measure quality in the Medicare population? - The company measures quality through service quality, clinical quality, client experience, productivity, and documentation [84][88] Question: Are there any impacts from behavioral health funding cuts? - Management stated that cuts have primarily affected in-person therapy and believe it may create opportunities for virtual models [91][92]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 4.2% year-over-year to $774 million, with full-year revenue exceeding $3.1 billion, marking a 7.7% increase over 2023 [8][21] - Same facility patient days grew by 3.2% in Q4, remaining stable between 3% and 4% throughout the quarter [8][21] - Adjusted EBITDA for Q4 2024 was $153.1 million, with an adjusted EBITDA margin of 19.8%, down from 22.8% in the same quarter last year [22][23] - Adjusted income attributable to Acadia stockholders per diluted share was $0.64 for Q4 2024, compared to $0.85 for the prior year period [25] Business Line Data and Key Metrics Changes - Same facility revenue grew by 4.7% compared to Q4 2023, driven by patient day growth and a 1.4% increase in revenue per patient day [21] - Startup losses related to new facilities were $11.2 million in Q4 2024, a $6 million year-over-year increase [23] Market Data and Key Metrics Changes - The company reported a more stable labor environment in 2024, which supported recruitment and retention initiatives [9] - The company anticipates adding between 800 and 1,000 total beds in 2025, continuing to address the mental health and addiction crisis in the U.S. [18][19] Company Strategy and Development Direction - The company is focused on transforming patient care and has invested heavily in technology to enhance safety and care delivery [11][12] - Acadia's growth strategy includes completing construction on approximately 1,300 beds in 2024, with 776 of these beds becoming operational [15][17] - The company aims to maintain a balanced approach to growth and free cash flow generation, expecting to return to free cash flow positive by the end of 2026 [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and goals, emphasizing the importance of expanding access to specialized care [19] - The outlook for 2025 includes revenue guidance of $3.3 billion to $3.4 billion and adjusted EBITDA guidance of $675 million to $725 million [27][28] - Management acknowledged challenges from underperforming facilities but maintained a cautious approach to guidance [29][30] Other Important Information - The company has authorized a new $300 million share repurchase program, which will be executed based on market conditions [44] - The company expects capital spending in the range of $630 million to $690 million for 2025, with a significant portion allocated to expansion spending [28] Q&A Session Summary Question: Can you provide insights on financing plans and cash flow expectations? - Management confirmed refinancing existing bank facilities and upsizing to about a billion dollars, with expectations of returning to cash flow positive by the end of 2026 [47][48] Question: How do you view the growth outlook and margin assumptions post-2025? - Management expects revenue growth of 7% to 9% and EBITDA growth of 8% to 10% in the years following 2025, with a focus on balancing capital expenditures and free cash flow [62][66] Question: What is the current status of referral activity and its impact on growth? - Management reported that referral issues are less of a challenge now, with ongoing efforts to improve relationships with key referral sources [99][102] Question: What actions are being taken to improve underperforming facilities? - Management is conducting comprehensive reviews of underperforming facilities, focusing on business development, leadership, and technology adoption [118][122]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 4.2% year-over-year to $774 million, with full-year revenue exceeding $3.1 billion, marking a 7.7% increase over 2023 [8][21] - Same facility patient days grew by 3.2% in Q4, remaining stable between 3% and 4% throughout the quarter [8][21] - Adjusted EBITDA for Q4 2024 was $153.1 million, with an adjusted EBITDA margin of 19.8%, down from 22.8% in the same quarter last year [22][23] - Adjusted income attributable to Acadia stockholders per diluted share was $0.64 for Q4 2024, compared to $0.85 for the prior year period [25] Business Line Data and Key Metrics Changes - Same facility revenue grew by 4.7% compared to Q4 2023, driven by patient day growth and a 1.4% increase in revenue per patient day [21] - Startup losses related to new facilities were $11.2 million in Q4 2024, a $6 million increase year-over-year [23] Market Data and Key Metrics Changes - The company reported a more stable labor environment in 2024, which supported recruitment and retention initiatives [9] - The company anticipates adding between 800 and 1,000 total beds in 2025, reflecting ongoing demand for behavioral health services [18] Company Strategy and Development Direction - The company is focused on transforming the lives of patients and communities by providing specialized behavioral health care [10] - Acadia is committed to expanding access to care, with a strong pipeline of potential partnerships with leading health systems [19] - The company plans to moderate the pace of bed additions to 600 to 800 beds per year starting in 2026, balancing growth and free cash flow generation [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and goals, emphasizing the need to address the mental health and addiction crisis in the U.S. [19] - The company expects to return to free cash flow positive by the end of 2026, driven by new bed contributions and reduced startup costs [50][51] Other Important Information - The Board of Directors authorized a new $300 million share repurchase program, subject to market conditions [44] - The company recorded a $4 million increase in reserves for self-insured professional and general liability claims, reflecting unfavorable industry trends [23][34] Q&A Session Summary Question: Follow-up on capital commitments and cash flow - Management confirmed refinancing existing bank facilities and upsizing to about a billion dollars, with expectations of cash flow returning to positive by the end of 2026 [47][48] Question: Clarification on first-quarter guidance - Management indicated that the first quarter is expected to contribute less to the full year than typical, with startup losses anticipated to be high [55][56] Question: Update on referral activity - Management noted that referral issues are less of a challenge now, focusing on a small number of underperforming facilities [99][102] Question: Long-term growth outlook and margin assumptions - Management reiterated a balanced approach to growth, expecting revenue growth of 7% to 9% and EBITDA growth of 8% to 10% in the coming years [62][66] Question: Update on underperforming facilities - Management is conducting comprehensive reviews of underperforming facilities, focusing on business development, leadership, and technology adoption [118][122]