ModivCare Earnings Call Transcripts
Fiscal Year 2025
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Q1 revenue declined 5% year-over-year to $650.7 million, with net loss rising due to higher interest expense. New contracts, digital transformation, and $25 million in G&A savings support improved cash flow and capital efficiency as contract structures are optimized.
Fiscal Year 2024
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2024 saw significant disruption from Medicaid redetermination and MA reimbursement cuts, leading to flat revenue growth and a 20% decline in adjusted EBITDA. Strategic actions included capital raises, cost reductions, and a shift to fee-for-service contracts, with a focus on monetizing select platforms and improving cash flow in 2025.
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Q3 2024 results met expectations with $702M revenue and $43M Adjusted EBITDA, driven by operational improvements and cost savings. The company is transitioning to fee-for-service contracts, expects 2025 Adjusted EBITDA to rise ~10%, and is working on long-term debt solutions.
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Q2 2024 results were in line with expectations, with $698M revenue and $45M Adjusted EBITDA, driven by strong NEMT performance and sequential PCS improvement. Guidance was reaffirmed for revenue but lowered for Adjusted EBITDA due to PCS headwinds, while cost-saving and digital initiatives continue to drive efficiencies.
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Transformation efforts are driving margin improvement and cost savings, with automation and digital integration central to both NEMT and PCS businesses. State and MCO contracts remain stable, and deleveraging is a key focus, supported by strong EBITDA and cash flow initiatives.