Modivcare Inc. reported its financial results for the first quarter ended March 31, 2025, on May 8, 2025. The company's revenue decreased by 4.9% year-over-year to $650.7 million, down from $684.5 million in the prior-year period. This decline primarily reflects contract attrition in the NEMT segment and lower volumes in Personal Care Services (PCS) and Monitoring.
The net loss for Q1 2025 significantly widened to $50.4 million, compared to a net loss of $22.3 million in Q1 2024. Adjusted EBITDA saw a modest increase to $32.6 million from $32.1 million in the prior-year quarter. However, net contract receivables increased to $108.5 million, up from $95.2 million last quarter, mainly due to higher utilization on shared risk contracts.
The company's liquidity position showed considerable strain, with operating cash flow being a use of $82.1 million and free cash flow recorded as negative $86.2 million. Modivcare ended the quarter with $116.0 million in cash and remained fully drawn on its revolving credit facility. The company stated it has taken targeted actions to accelerate collections and improve working capital efficiency.
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