Nutex Health, Inc. Q4 FY2025 earnings call

Tom Vo mentioned the past year was one of exceptional growth, operational discipline and innovation. The organization is committed to a patient - first culture. Capital allocation strategy centers on four priority areas: share repurchases, growth at existing hospitals (investing in ER and inpatient volume initiatives), early expansion of IPA and Health division, and real estate development strategy. Warren Hosseinion discussed Population Health Management division with approximately 40,000 members across the platform, 4 operational IPAs profitable in 2025, and plans to expand IPAs. Wes Bamburg talked about volume growth, operational focus on service offerings, staffing models, cost management with operational costs down, and high patient satisfaction with an average rating of 4.8 out of 5.

Total revenue reached $875.3 million in 2025, an 82% increase from $479.9 million in 2024. Net income increased to $52.1 million in 2025 from $7.8 million in 2024. Adjusted EBITDA rose $25.6 million, up 152.6% from $102.8 million in the prior year. Hospitals recorded 188,300 total patient visits in 2025, up 11.8% from 168,400 in 2024. The current portion of long-term debt decreased slightly, net long-term debt increased, net cash from operating activities was $248.1 million for the 12 months ended December 25, 2025, and cash on hand grew to $186 million as of 12/31 2025 from $41 million a year earlier. In the fourth quarter, a one - time $55 million revenue reduction related to arbitration claims, but excluding this adjustment, Q4 2025 adjusted revenue would be about $206.7 million. Operating cash flow remained strong in Q4 2025. Hospital division revenue in 2025 was $844.2 million, with mature hospitals' revenue increasing by 73.4% for the year. Population Health division had a slight revenue growth of 0.7% to $31 million in 2025.

Plans to open 5 to 6 facilities in 2026 and 2027, with 3 locations on track to open in 2026 (Jacksonville, West Little Rock and San Antonio). Real estate development strategy involves evaluating opportunities to develop micro hospitals using a capital - efficient model and potentially recycling capital through sale - leaseback transactions.

Uncertainties in the arbitration and IDR process, potential future true - ups, impact of regulatory changes such as the No Surprises Act and its related enforcement acts.

Q: Thomas McGovern asked about IDR submission rates and collection.

A: Jon Bates and Tom Vo discussed that submission rates have shifted, with trend moving positively, less submissions as payers pay better, and collection rates around 85% with high legal determination wins.

Q: Thomas McGovern asked about reopening a hospital in Texas and 2026 openings.

A: Tom Vo said the Ambo Hospital was reopened due to better reimbursement and improved inpatient focus, and plans to open 5 - 6 facilities in 2026 and 2027 with a real estate strategy to recycle capital.

Q: Eugene Mannheimer asked about true - ups.

A: Jon Bates discussed when they learned about true - ups, most ineligible claims were for ER visits, and true - ups could happen anytime and would be accounted for as soon as known.