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 cuts, leading to flat revenue and lower EBITDA, but cost savings and strategic capital actions stabilized the business. The company is transitioning to fee-for-service contracts, monetizing select assets, and expects margin normalization by 2026.
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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.