- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MODV(Delisted)

MODV fundamentals

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