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]
Nutex Health (NUTX) - 2025 Q2 - Earnings Call Transcript