Financial Data and Key Metrics Changes - For Q3 2025, net revenue reached $36.2 million, a record high, reflecting a $1.2 million or 3.3% increase from the prior year [12] - Gross profit for the quarter was $20.8 million, also a record, representing a $1.8 million or 9.3% increase year-over-year [14] - Adjusted EBITDA for Q3 2025 was $8.3 million, an increase of $400,000 or 5.6% from the previous year [16] 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 [12] - Oncology net revenue rose by nearly $700,000 or 3.6%, while wound care revenue surged by 116% to $2 million, primarily due to increased volume from partnerships and acquisitions [13] - Device solutions net revenue decreased by $400,000 or 2.9%, attributed to lower biomedical services revenue and a significant equipment sale in the prior year [13] Market Data and Key Metrics Changes - The company secured a significant new contract with a large hospital system for oncology, contributing to increased market share and revenue growth [9] - A multi-year contract extension with a national insurance payer included a price increase and enhanced service coverage, indicating strong contract relationships [10] Company Strategy and Development Direction - The company is focusing on integrating AI and automation in its billing processes to improve efficiency and reduce costs [7] - Strategic priorities include executing with discipline, delivering profitable growth, and driving long-term value creation for shareholders [20] - The company aims to target an adjusted EBITDA margin of 20% or greater and revenue growth between 6%-8% over the next four years [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the biomedical services segment but emphasized that profitability is a key driver of shareholder value [11] - The company is optimistic about future growth in patient services, particularly in wound care and oncology, despite anticipated headwinds in device solutions [27] Other Important Information - The company generated over $17 million in operating cash flow year-to-date, an increase of $4.8 million from the prior year [16] - Net debt decreased by $5.7 million during Q3 2025, with available liquidity totaling nearly $55 million as of September 30, 2025 [18] Q&A Session Summary Question: Enhancements in wound care business - Management discussed ongoing improvements in AI and automation for the revenue cycle, which are expected to enhance efficiency [22][23] Question: Impact of biomedical services contract changes - The revenue reduction from the contract is estimated at $6-$7 million annually, but the changes will lead to improved operating income due to reduced costs [24][25][26] Question: Growth profile of patient services vs. device solutions - Future growth is expected to be stronger in patient services, particularly in wound care, while device solutions may face headwinds due to contract adjustments [27] Question: Balancing margin improvement with revenue momentum - Management emphasized focusing on areas with lower capital requirements and higher returns on invested capital to balance margin and revenue growth [30][31] Question: Updates on pricing negotiations with Smith & Nephew - Management reported positive developments in the market for pneumatic compression devices, with increased placements expected [61][62]