Financial Data and Key Metrics Changes - The adjusted EBITDA for Q3 2025 was $87 million, exceeding expectations, with a full-year adjusted EBITDA outlook of $270-$290 million [4][6] - Consolidated revenue decreased by just under $54 million due to portfolio restructuring, partially offset by strong same-unit growth of 8% and same-unit pricing up about 7.5% [6][8] - Operating cash flow generated in Q3 was $138 million, compared to $96 million in the prior year, driven by higher earnings and increased cash flow from accounts receivable [8][9] Business Line Data and Key Metrics Changes - Same-unit pricing increase was driven by solid revenue cycle management (RCM) cash collections, increased patient acuity in neonatology, and an increase in contract administrative fees [6][28] - Salary growth for the third quarter was modestly below the previous five-quarter average of 3-3.5% [7] - A net gain on investments in divested businesses was $21 million, contributing to other non-operating income [7] Market Data and Key Metrics Changes - The company maintained a strong market position with over 1,300 physicians and 1,170 advanced practice providers across 322 locations in 33 states [11] - The company has a comprehensive clinical data warehouse with 37 million patient days and 2 million NICU admissions, supporting its research productivity [11] Company Strategy and Development Direction - The company is focused on enhancing technological support and has developed a proprietary system called BabySTEPS to assist clinicians in caring for high-risk NICU patients [12][13] - The company aims to strengthen its operations in pediatric surgery, neurology, and cardiac intensive care, while continuing to build partnerships with hospital systems [16][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant healthcare headwinds but sees many opportunities to strengthen operations and results [17] - The company is optimistic about the potential benefits of exchange credits for expecting mothers, although the exact impact remains uncertain [37] Other Important Information - The company repurchased 1.2 million shares in the quarter, totaling 1.7 million shares to date [4] - The company ended the quarter with cash of $340 million and net debt of just over $260 million, reflecting a net leverage of just under one times [9] Q&A Session Summary Question: Thoughts on capital deployment and share repurchase - Management has been aggressively buying back shares and is exploring various opportunities for growth, both internally and externally [20] Question: Impact of portfolio restructuring on market dynamics - Management believes the restructuring has strengthened the company’s focus and improved the environment for recruiting new practices [21][22] Question: Breakdown of strong pricing in the quarter - Strong pricing was driven by RCM collections, increased acuity, and contract administrative fees, with expectations for stability in payer mix [27][28] Question: Guidance on seasonality and volume factors - Management indicated that there are no significant changes in volumes expected, but variability may arise as the year ends [30][31] Question: Long-term outlook and potential opportunities - Management is optimistic about future partnerships with hospital systems and believes financial strength will provide additional opportunities [38][40]