What is Nutex Health's gross profit margin?

What were the key takeaways from Nutex Health's earnings call?

What guidance did Nutex Health's management provide for the next earnings period?

What factors drove the changes in Nutex Health's revenue and profit?

What does Nutex Health do and what are its main business segments?

What is the market's earnings forecast for Nutex Health next quarter?

What is the revenue and EPS growth rate for Nutex Health year over year?

Did Nutex Health beat or miss consensus estimates last quarter?

- **Revenue explosion**: Q2 2025 revenue up 220% YoY to $244M, driven by 350% growth in Hospital Division. Gross margin 51.1% vs. 29.7% YoY.
- **Arbitration success**: 85% win rate in federal arbitration, 75%+ collection rate. $167.7M arbitration revenue (71% of Hospital Division).
- **Buyback & growth**: $25M stock buyback announced; 15 new hospitals in pipeline, 2 opening Q4 2025.
- **Financial strength**: $96.7M cash, 442% YoY operating cash flow growth. Noncash accounting adjustments with no cash impact.
- **Defensive move**: Rebutted short seller claims, emphasizing regulatory compliance and industry-wide arbitration trends.

**【CEO Summary Section】**
- Q2 2025 revenue reached $244 million, a 220% YoY increase, driven by Hospital Division growth (350% YoY). Gross profit margin improved to 51.1%, up from 29.7% in Q2 2024.
- Patient visits rose 10.6% YoY to 45,573, with mature hospitals showing 0.6% QoQ growth. Arbitration revenue contributed 71% of Hospital Division income.
- Defended against a short seller report, emphasizing compliance with No Surprises Act (NSA) and federal arbitration rules. Filed Form 8-K to clarify processes.
- Launched $25M stock buyback program and advanced 15 new hospital projects, targeting high-growth markets.

**【CFO Financial Commentary】**
- Q2 2025 adjusted EBITDA was $73.3 million vs. $6.8 million YoY. Operating cash flow grew 442% YoY to $27.1 million.
- Delays in 10-Q filing due to reclassifying $10-20M stock-based compensation as liabilities; noncash adjustments with no impact on revenue or cash flow.
- Arbitration collection rate 75%+; 85% of submitted claims won. G&A expenses reduced to 5.1% of revenue (14% YoY).
- Cash balance of $96.7M as of June 30, 2025, supporting growth and buybacks.

**【Population Health Division Update】**
- Q2 2025 revenue $7.7M (down 9.2% YoY) but operating income improved to $0.1M vs. -$0.6M YoY. IPA network expanded to 300+ primary care physicians.
- Focused on value-based care and risk-based arrangements, targeting 1-2 new IPAs annually.

**【Clinical Quality & Cost Management】**
- Patient satisfaction >96%, with 4.7/5 Google ratings. Labor costs 14.7% of revenue, lower than industry peers.
- Supply costs optimized via GPOs, reducing spend 3% YoY despite volume growth.

**【Q&A Highlights】**
- Restatement timeline: 60 days to file Q2 10-Q; no material changes to operations.
- Q3 2025 cash flow strong, consistent with prior quarters.
- 2 hospitals set to open in Q4 2025; 4 more in 2026 pipeline.
- EBITDA margin compression due to arbitration costs and new hospital prep expenses.

- **Revenue Surge**: Q1 2025 revenue up 214% to $11.8 million, driven by hospital growth and arbitration wins.
- **Profitability Breakthrough**: Net income of $14.6 million vs. $400M loss in Q1 2024, with EBITDA turning positive.
- **Operational Efficiency**: 16.4% labor cost ratio and 55.9% gross margin highlight lean model success.
- **Growth Pipeline**: Three new Texas hospitals set to open in 2025, targeting high-growth markets.
- **Arbitration Momentum**: 80%+ win rate, 200-300% collections uplift, and legislative tailwinds.


**【CEO Summary Section】**
- Total revenue reached $11.8 million, a 214% increase from Q1 2024, driven by hospital division growth and arbitration efforts.
- Patient visits rose 20.5% to 48,269, with mature hospitals growing 5.3%.
- Net income attributable to Nutex Health was $14.6 million, compared to a $400 million loss in Q1 2024.
- Plans to open three new hospitals in Texas by Q3/Q4 2025, targeting high-demand markets.
- Emphasis on cost optimization, revenue cycle management, and arbitration process improvements.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $72.8 million, up from a negative $400,000 in Q1 2024.
- Gross profit margin improved to 55.9% from 15.1%, driven by higher arbitration revenue and cost control.
- Operating expenses as a percentage of revenue decreased to 4.7% from 12.8%.
- Cash in bank increased to $87.7 million, up 101.1% from Q4 2024.
- Net cash flow from operations was $51 million, surpassing 2024 full-year cash flow.

**【President & COO Operational Updates】**
- Population Health division revenue grew 5.4% to $7.8 million, with 40,000+ patients enrolled in risk-based arrangements.
- Labor costs as a percentage of net revenue remained low at 16.4%, reflecting efficient operations.
- Supply costs decreased 28% due to vendor realignment and GPO savings.
- AI investments in patient check-ins and staffing optimization to enhance productivity.

**【Q&A Key Highlights】**
- Arbitration process showing steady-state trends, with 80%+ win rate and 200-300% collections increase.
- Cash deployment priorities: new hospital openings, population health expansion, and potential M&A.
- Bill HR-9572 proposed penalty for delayed arbitration payments could accelerate cash flow.
- Acuity mix and inpatient growth expected to continue, supported by specialist additions.
- AR balance of $295 million includes 68% tied to arbitration, with strong collection momentum.


Nutex Health Inc. (NUTX) Q1 2025 Earnings Conference Call Transcript

- **Revenue Explosion**: 94% YoY growth to $479.9M, fueled by $169.7M from arbitration wins. Adjusted EBITDA jumped 1,022% to $123.7M.
- **Arbitration Dominance**: 80% win rate on 60-70% of claims, with 150-250% reimbursement increases. 73% of 2024 revenue growth linked to arbitration.
- **Hospital Expansion**: 4 new hospitals in 2024, 3 under construction for 2025, and 4-6 planned for 2026-2028. Mature hospitals targeting 5-7% visit growth.
- **Cost Efficiency**: Gross margin improved to 55%, operating expenses as % of revenue halved to 4.9%. Cash surged 98% to $44M.
- **AI Innovation**: Piloting AI tools to reduce costs and improve patient flow, with early-stage success in clinical documentation and scheduling.


**【CEO Summary Section】**
- **Revenue Growth**: Full-year 2024 revenue reached $479.9 million, up 94% from $247.6 million in 2023. Adjusted EBITDA surged 1,022% to $123.7 million from $10.8 million. Net income turned positive at $52 million versus a $46 million loss in 2023.
- **Patient Volume**: Total visits increased 17% to 168,388, with mature hospitals growing 6.5%. Arbitration process contributed $169.7 million in additional revenue, accounting for 73% of total growth.
- **Arbitration Success**: 60-70% of claims submitted to IDR achieved an 80% win rate, with reimbursement increases of 150-250%. Collections are typically 60-70% upfront, with the remainder paid later.
- **Hospital Expansion**: Opened 4 new hospitals in 2024 (Green Bay, Milwaukee, Post Falls, Tampa) and planning 3-4 openings in 2025. Long-term pipeline includes 2026-2028 expansions.
- **Debt Management**: Despite new hospital openings, net long-term debt decreased from $26 million to $22 million, reflecting fiscal discipline.

**【CFO Financial Commentary】**
- **Q4 2024 Highlights**: Revenue grew 270% to $257.6 million, driven by $169.7 million from arbitration. Gross profit margin improved to 55% (vs. 19% in 2023). Operating income rose $140 million to $114.2 million, with net income at $61.7 million.
- **Cost Efficiency**: Facility-level operating costs as a percentage of revenue dropped to 45% (vs. 81% in 2023). G&A expenses decreased to 4.9% of revenue (from 12.2%).
- **Balance Sheet**: Cash increased 98% to $44 million. Accounts receivable rose to $232 million due to arbitration receivables. Net cash from operations improved to $21.9 million.

**【COO Operational Update】**
- **Patient Care Expansion**: Added specialists to handle higher acuity cases, reducing transfers and increasing inpatient admissions. Observation stays grew 30%.
- **Cost Management**: Despite industry inflation, maintained flat costs through lean operations and supply chain optimization. Staff turnover rates are below industry average.
- **AI Integration**: Piloting AI tools for patient check-ins, predictive staffing, and clinical documentation to enhance efficiency and reduce costs.

**【Q&A Key Takeaways】**
- **Arbitration Outlook**: 60-70% of claims will continue to go through arbitration, with an 80% win rate expected. Insurance companies may adjust payments to avoid arbitration costs.
- **Hospital Pipeline**: 3 hospitals under construction for 2025 openings, with 4-6 planned for 2026-2028. Mature hospitals targeting 5-7% visit growth through service line expansion.
- **Revenue Per Visit**: 2024 average of $2,600 (vs. $1,514 in 2023), driven by acuity mix and arbitration recoveries.
- **Population Health**: Managed 40,000 patients with $30.9 million in revenue, focusing on strategic IPA expansion in Phoenix and Dallas.


Nutex Health (NUTX)-1 Apr 25-2024 Q4 Earnings call transcript

- **Revenue Growth Accelerates**: Q3 2024 revenue up 26% YoY to $78.8M, with mature hospitals driving 20.7% expansion.
- **Profitability Transformation**: Adjusted EBITDA jumps 938% to $13.5M, net loss narrows 38% YoY.
- **Strategic Momentum**: 2024 on track for 4 new hospitals, with Q4 openings and 2025 pipeline of 4+ facilities.
- **NSA Arbitration Impact**: 60-80% of claims in arbitration, potential 70-80% win rate could add $10M+ in 2025 revenue.
- **Operational Excellence**: 20.1% YoY cash flow growth, 12.5% G&A expense reduction, and 15%+ supply chain savings.

**【CEO Summary Section】**
- Total revenue for Q3 2024 reached $78.8 million, up 26% YoY, driven by mature hospitals growing 20.7% and new hospital openings.
- Adjusted EBITDA surged 938% to $13.5 million, reflecting operational improvements and cost controls.
- Strategic initiatives include opening 2-4 new hospitals annually, expanding inpatient services, and leveraging the No Surprises Act (NSA) for better reimbursement.
- Q4 2024 expects seasonal volume growth, with two new hospitals set to open in November and December.

**【CFO Financial Commentary】**
- Net loss attributable to Nutex Inc. was $8.8 million (Q3 2024), including $6.7 million non-cash warrant liability and $2 million stock-based compensation.
- Operating income improved 122% YoY to $9.7 million, with mature hospitals visits up 3.8%.
- Cash flow from operations increased 20.1% YoY to $23.1 million, supported by strong collections and reduced days sales outstanding.

**【COO Operational Efficiency】**
- Labor cost optimization via new scheduling and analytics software (Q1 2025 deployment) targeting 15%+ supply chain savings.
- Community engagement initiatives, including health fairs and educational seminars, drove 19.6% visit growth in first 9 months of 2024.
- Decentralized local leadership model enables rapid response to community needs, with 7.7% visit growth in mature hospitals.

**【Q&A Highlights】**
- **Hospital Openings**: 2025 pipeline includes 4 hospitals, with Florida opening delayed by hurricane but still on track for Q4 2024 completion.
- **NSA Arbitrations**: 60-80% of claims entering arbitration process, with industry win rate 70-80% and potential double-digit revenue upside.
- **Cost Controls**: 2024 G&A expenses reduced 12.5% of revenue, with 2025 focus on national contracts for DME, waste management, and pharmaceuticals.
- **Capital Expenditures**: 2024 CapEx down 33% YoY, with 2025 equipment spend aligned to new hospital openings and technology upgrades.

NUTX

NUTX fundamentals

Earnings Call

You can ask Aime