ModivCare Inc.

Consolidated revenue was $650.7 million, down 5% year over year and 2% sequentially. Net loss was $50.4 million versus $22.3 million a year ago. Adjusted net loss was $24.5 million, or negative $1.71 per share. Adjusted EBITDA was $32.6 million, essentially flat year over year but lower sequentially. Free cash flow was negative $86.2 million. Segment highlights included NEMT revenue of $449 million and adjusted EBITDA of $27.8 million with a 6.2% margin, PCS revenue of $181.8 million with adjusted EBITDA of $12.2 million, and monitoring revenue of $18.1 million with adjusted EBITDA of $5.2 million and a 29% margin. Management did not provide formal 2025 guidance, but said it expects meaningful improvement in cash flow generation as the year progresses and through 2026 as contract structures, pricing, and working capital improve.

Heath Sampson framed the quarter around five enterprise objectives: customer growth, digitization, operating simplification, deleveraging, and client-centric supportive care. He emphasized that the company is getting benefits from new contract wins, repricing, automation, and restructuring, while also noting that some legacy contract losses and working-capital pressure are largely behind the business. His tone was constructive but measured, repeatedly stressing execution, urgency, and patience around strategic alternatives and deleveraging.

Barbara Gutierrez was not on the call for remarks, but Heath Sampson covered the financial commentary in her stead, citing the key numbers: revenue of $650.7 million, adjusted EBITDA of $32.6 million, net loss of $50.4 million, interest expense of $38.8 million, cash of $116 million, revolver borrowings of $269 million, and negative free cash flow of $86.2 million. He pointed to a company-wide G&A reduction initiative targeting about $25 million in annualized savings, mostly labor-related, and said several large NEMT customers are moving to faster-settling structures that should improve cash conversion. He also said the company collected about $30 million of 2024 receivables in April, roughly two months early, and expects AR and working-capital needs to come down as contracts are restructured.

Analysts focused on cash flow timing, debt-service lumpiness, and the path to positive cash generation. Sampson said the business should be viewed on an annual basis because of large debt payments in Q2 and Q4, declined to give exact quarterly forecasts, but said a positive cash flow quarter is possible this year. He also explained the $2 million settlement as a personal care case and said the strategic alternatives process is active, with timing dependent on getting the right value for all stakeholders, not on forcing a sale.