- **Revenue Decline**: Q1 revenue down 5% YoY due to NEMT contract losses and lower PCS hours.
- **Cost Savings Progress**: $25M G&A savings target, with $8M impact from contract repricing.
- **Cash Flow Concerns**: Negative free cash flow ($86.2M) in Q1, but April collections improved by $30M.
- **Strategic Focus**: Accelerating automation, reducing shared-risk contracts, and exploring divestitures to improve capital efficiency.

**【CEO Strategic Objectives Overview】**
- **5 Core Objectives**: Grow customer relationships, digitize platforms, optimize operations, improve capital efficiency, and deliver client-centric care.
- **NEMT Wins**: Secured $52M in new contracts, with $38M in-year revenue, and submitted $246M in renewals.
- **Pipeline Strength**: 2026 pipeline exceeds $500M in potential contract value.
- **Loss Mitigation**: Lost $15M contract due to vendor consolidation, highlighting retention focus.

**【Financial Results】**
- **Revenue**: $650.7M (-5% YoY), driven by NEMT contract attrition and lower PCS hours.
- **Net Loss**: $50.4M (up from $22.3M YoY) due to higher interest expenses.
- **Adjusted EBITDA**: $32.6M (flat YoY), with NEMT margin improving to 6.2%.
- **Key Metrics**: Revenue per member/month up 16% YoY to $6.35, Monitoring referrals +45% YoY in Indiana.

**【Q&A Highlights】**
- **Cash Flow Challenges**: Q1 free cash flow negative ($86.2M) due to working capital build, but April collections improved by $30M.
- **Contract Receivables**: AR rose $109M YoY due to shared-risk contracts, expected to stabilize with 2026 contract restructuring.
- **G&A Savings**: $25M annualized target, primarily from labor reductions in corporate and shared services.
- **Strategic Alternatives**: Board committee evaluating divestitures, with Monitoring segment nearing readiness for separation.

ModivCare (MODV)-8 May 25-2025 Q1 Earnings call transcript

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