Financial Data and Key Metrics Changes - Total revenue for Q2 2025 reached $244 million, a 220% increase from $76.1 million in Q2 2024 [7][30] - Gross profit was $124.8 million, representing 51.1% of total revenue, compared to $22.6 million or 29.7% in Q2 2024 [7][33] - Adjusted EBITDA for Q2 2025 was $73.3 million, up from $6.8 million in Q2 2024 [8][34] - Net cash from operating activities for the first half of 2025 was $78.2 million, compared to $16.3 million in the same period of 2024 [9][37] Business Line Data and Key Metrics Changes - The hospital division generated $236.3 million in revenue for Q2 2025, a 350% increase from $76.1 million in Q2 2024 [31] - Revenue from mature hospitals increased by 203% in 2025 compared to 2024 [31] - Population health division revenue increased by 9.2% to $7.7 million in Q2 2025 from $8.5 million in Q2 2024 [32][44] Market Data and Key Metrics Changes - Total patient visits reached 45,573 in Q2 2025, a 10.6% increase from 41,208 in Q2 2024 [7][49] - For the first half of 2025, total patient visits were 93,842, a 15.5% increase from 81,276 in the same period of 2024 [9][49] Company Strategy and Development Direction - The company is focused on expanding its micro hospital model, with over 15 hospital projects in development [21] - Plans to launch one to two independent physician associations (IPAs) annually to enhance care coordination [22][44] - A stock repurchase program of up to $25 million has been authorized to enhance shareholder value [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued evolution and efficiency of the federal arbitration process [19] - The company is navigating industry trends while remaining committed to delivering value to patients and shareholders [23] - Management highlighted the importance of compliance with the No Surprises Act and the independent dispute resolution process [10][16] Other Important Information - The company is addressing a delay in filing its Q2 2025 10-Q due to reevaluation of stock-based compensation accounting [25][26] - Adjustments to liabilities are expected to increase by $10 to $50 million, with a corresponding decrease in reported equity [28] - The company has a strong balance sheet with total assets of just under $855 million as of June 30, 2025 [37] Q&A Session Summary Question: Timeline for restatement process and filing amended reports - Management is actively working on the restatement and aims to complete it within the 60-day timeline set by Nasdaq [55][56] Question: Collection rates for arbitration awards and recourse for insurers - Approximately 75% of IDR awards have been collected, with ongoing efforts to improve collection rates [58][63] Question: Update on new hospital openings and strategies for mature hospitals - Two new hospitals are expected to open in late 2025, with ongoing marketing efforts to increase patient volume in mature hospitals [70][73] Question: EBITDA margin compression and revenue per visit - EBITDA margins have been affected by increased supplier payments and arbitration costs, but overall cash collections remain strong [79][82]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached $211.8 million, a 214% increase from $67.5 million in Q1 2024 [6][14] - Adjusted EBITDA was $72.8 million, up from a negative $0.4 million in the same quarter last year [6][20] - Net income attributable to Newtek Health was $14.6 million or $2.65 per basic share, compared to a net loss of $0.4 million or a loss of $0.08 per basic share in Q1 2024 [6][19] - Cash in the bank increased to $87.7 million from $43.5 million at year-end 2024 [7][20] - Net cash flow from operating activities was $51 million, compared to $3.1 million in the same period in 2024 [7][21] Business Line Data and Key Metrics Changes - The hospital division generated $203.9 million in revenue, a 240% increase from $60 million in Q1 2024, with $105 million tied to arbitration efforts [14] - Mature hospitals saw a revenue increase of 860.5% compared to the same period in 2024 [14] - The population health division revenue increased by 5.4% to $7.8 million from $7.4 million in Q1 2024 [15][28] Market Data and Key Metrics Changes - Total patient visits reached 48,269, a 20.5% increase from 40,068 in Q1 2024 [5][29] - Mature hospitals experienced a 5.3% increase in visits, indicating sustained demand for services [5][15] Company Strategy and Development Direction - The company plans to open three additional hospitals in 2025, with a pipeline extending to 2028 that includes over 10 projects [12][25] - The growth strategy focuses on increasing patient volume, expanding services, optimizing revenue through efficient management, and maintaining disciplined cost control [12][33] - The micro hospital model is emphasized as a key growth area, providing efficient access and high-quality care [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the arbitration process, noting an 80% win rate and increased facility collections [9][11] - The company is well-positioned for continued growth, leveraging its experience and strong balance sheet [12][33] - Management highlighted the importance of community engagement and business development in driving patient volume [30][76] Other Important Information - The arbitration process has been refined, with a significant percentage of billable visits submitted through the arbitration portal [8][9] - Legislative developments, such as the proposed Murphy Act, could enhance payment timeliness and revenue [11][72] Q&A Session Summary Question: Is Q1 performance repeatable in future quarters? - Management indicated that while Q1 shows positive trends, it is still early in Q2 to predict consistency [37][43] Question: How is the company managing prior quarter revenue recognition? - Management noted that they are improving accuracy in revenue recognition based on historical data and ongoing trends [56][60] Question: Will the addition of new arbitrators accelerate the process? - Management believes that adding more arbitrators will help reduce backlog and improve the arbitration process [62][63] Question: How does arbitration revenue impact future comparisons? - Management clarified that there is currently no penalty for timely payments, but future legislative changes could enhance revenue [71][72] Question: Was there any seasonality impact on hospital visits? - Management confirmed that this year's flu season was longer, contributing to increased visits, but overall growth is attributed to improved community awareness [75][76] Question: What is the timeline for opening new hospitals? - The three new hospitals are expected to open in the third and fourth quarters of 2025, all located in Texas [80]