Cardiff Lexington Corporation reported third‑quarter 2025 revenue of $3.06 million, a 125.6% year‑over‑year increase that reflects a 42% settlement‑realization rate and the expansion of its Nova Ortho and Spine network. Gross profit rose to $1.91 million, up 437.8% from $0.32 million in Q3 2024, driven by higher gross margins and improved pricing power in the orthopedic segment.
Operating income for the quarter was $643,279, a 209.9% jump from the $-585,000 loss reported in Q3 2024. The lift is largely attributable to the higher gross margin and disciplined cost management, which offset the impact of a one‑time $1.7 million accounting charge that depressed the prior‑year comparable.
Despite the operating‑income turnaround, the company posted a net loss of $1.1 million, compared with a $2.0 million loss in Q3 2024. The loss is driven by a rise in interest expense to $1.8 million from $1.4 million, reflecting the company’s high debt burden and the near‑maximum utilization of its credit line. Management disclosed substantial doubt about the company’s ability to continue as a going concern without additional capital.
Revenue is concentrated in the Nova Ortho and Spine segment, which accounted for the bulk of the $3.06 million in sales. Cash on hand was $232,000 at September 30, 2025, and the company’s line of credit is almost fully drawn, underscoring liquidity constraints that could limit future expansion unless new financing is secured.
Management reiterated its strategy to raise capital and pursue a Nasdaq listing, but no new guidance was issued for the remainder of 2025. The company’s focus on operational efficiency and settlement realization is clear, yet the persistent net loss and high interest costs signal that the growth trajectory will need to be supported by additional funding to avoid a liquidity crisis.
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