Modivcare Inc. ( (MODV) ) has released its Q1 earnings. Here is a breakdown of the information Modivcare Inc. presented to its investors.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Modivcare Inc. is a technology-enabled healthcare services company that offers integrated supportive care solutions aimed at improving health outcomes, primarily operating in the non-emergency medical transportation (NEMT), personal care services (PCS), and in-home monitoring sectors.
In its first quarter of 2025, Modivcare reported a service revenue of $650.7 million, marking a 4.9% decline from the previous year, alongside a net loss of $50.4 million. The company emphasized its strategic focus on securing new contracts, enhancing automation, and reducing general and administrative expenses to drive long-term value.
The company’s NEMT segment saw a 6.3% decrease in revenue year-over-year, while PCS revenue slightly decreased by 1.0%. The Monitoring segment experienced a 9.8% drop in revenue. Despite these declines, Modivcare executed $105.0 million in new financing to support its transformation efforts and expects targeted cost reductions to yield over $20 million in annualized savings.
Modivcare’s adjusted EBITDA stood at $32.6 million, representing 5.0% of service revenue. The company also reported a negative free cash flow of $86.2 million, attributed to working capital build and higher interest expenses. Efforts are underway to improve working capital efficiency and accelerate collections.
Looking ahead, Modivcare’s management remains optimistic about maintaining positive momentum through strategic initiatives and operational improvements, aiming to enhance performance and build a more connected organization.