Total revenue reached $7.2 million, a 2.5 % year‑over‑year increase, driven by a 9.4 % rise in direct patient care services revenue to $4.0 million and a 5.3 % decline in the traditional leasing segment to $3.1 million. The growth in the Rhode Island and Puebla, Mexico centers contributed significantly to the top‑line lift.
Gross margin improved to 22.1 %, up 15.8 % to $1.6 million, as higher treatment volumes and a shift toward the higher‑margin direct‑patient segment offset lower leasing margins. The company’s operating leverage is improving as new centers scale and integration costs recede.
Net loss fell 91.8 % to $17,000, a turnaround from the $207,000 loss reported in the prior year quarter. Earnings per share were $0.00, missing the consensus estimate of $0.04, reflecting the company’s still‑high cost base and the absence of the one‑time bargain‑purchase gain that drove 2024 profitability.
Management highlighted continued investment in new facilities, including the Puebla center’s strong 263 % annual growth and plans for a Guadalajara site in Q2 2026. CFO Scott Frech emphasized cost discipline and the receding integration costs as the company scales its direct‑care model.
Analysts noted the pre‑market rise in the stock, driven by optimism around operational improvements and EBITDA growth, but cautioned that the EPS miss and revenue shortfall against estimates temper enthusiasm. The company remains in a growth‑stage transition, focusing on expanding its direct‑patient footprint while managing the decline in its legacy leasing business.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.