Financial Data and Key Metrics Changes - The company reported net revenue of $36.2 million for Q3 2025, a record high, representing a $1.2 million or 3.3% increase from the prior year [12] - Gross profit reached $20.8 million, also a record, with a 9.3% increase over the prior year [14] - Adjusted EBITDA for Q3 2025 was $8.3 million, reflecting a 5.6% increase from the previous year [15] - The net debt decreased by $5.7 million during the third quarter, despite stock repurchases totaling $2.2 million [17] Business Line Data and Key Metrics Changes - Patient Services net revenue increased by $1.6 million or 7.6%, driven by higher treatment volumes in oncology and wound care [13] - Oncology revenue increased by nearly $700,000 or 3.6%, while wound care revenue surged by 116% to $2 million, primarily due to volume increases from partnerships and acquisitions [13] - Device Solutions net revenue decreased by $400,000 or 2.9%, mainly due to lower revenue in biomedical services [13] Market Data and Key Metrics Changes - The company secured a significant new contract with a large hospital system for its oncology business, contributing to increased market share [9] - A multiyear contract extension with a national insurance payer was secured, providing enhanced service coverage and a price increase [10] Company Strategy and Development Direction - The company is focusing on leveraging strategic competencies in its Patient Solutions segment, particularly in wound care, to lower processing costs and improve efficiency [5] - The integration of the Apollo acquisition is aimed at streamlining billing processes and enhancing operational efficiency [5] - The company is committed to executing profitable growth and driving long-term value creation for shareholders [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain revenue growth between 6% to 8% and an adjusted EBITDA margin of 20% or greater for the full year [20] - The management acknowledged challenges in the Biomedical Services segment but emphasized the importance of profitability as a key driver of shareholder value [11] Other Important Information - The company is implementing AI and automation enhancements to improve efficiency in its operations [6] - A contract amendment with the largest Biomedical Services customer is expected to reduce revenue by $6 million to $7 million annually but will improve operating income by reducing costs [11] Q&A Session Summary Question: Can you talk about enhancements in the wound care business? - Management highlighted the successful implementation of a new revenue cycle system that incorporates AI and automation, leading to improved efficiency [25][26] Question: What is the impact of the biomedical service contract changes? - The revenue from the contract is expected to decrease by 40%, but the new structure will improve profitability significantly [28][30] Question: How do you balance margin improvement with revenue momentum? - The focus is on correcting areas with lower margins and prioritizing growth in segments that require less capital investment [38] Question: Are there additional opportunities in oncology? - Management indicated ongoing focus on wound care and patient services, with potential for growth in these areas [41] Question: What are the expected impacts of the ERP expenses? - ERP expenses will taper off significantly in 2026, but some maintenance costs will remain [48] Question: Will there be one-time expenses related to the contract transition? - There will be some low, manageable costs associated with reallocating team members [62]