0001628280-26-015168
SEC filingNutex Health reported strong financial performance for FY 2025, with total revenue of $875.3 million, a significant increase from $479.9 million in FY 2024. Gross profit was $444.3 million, and operating income reached $275.6 million. Net income attributable to Nutex Health Inc. was $70.8 million, compared to $52.1 million in the prior year. Basic earnings per share were $11.13, up from $10.23. The company's hospital division was the primary growth driver, with revenue increasing to $844.2 million from $449.1 million, largely due to successful participation in the Independent Dispute Resolution (IDR) process under the No Surprises Act, higher patient visits, and increased utilization of premium services. The company ended the year with $185.6 million in cash and cash equivalents, up from $40.6 million, and generated $248.1 million in net cash from operating activities.
Nutex Health Inc. reported robust financial results for the fiscal year ended December 31, 2025. Total revenue was $875.3 million, a substantial increase of 82.4% from $479.9 million in 2024. Gross profit more than doubled to $444.3 million, with gross margin improving to 50.8% from 40.9%. Operating income was $275.6 million, up 110.9% from $130.7 million. Net income attributable to Nutex Health Inc. reached $70.8 million, a 36.0% increase from $52.1 million. Basic earnings per share were $11.13, compared to $10.23 in the prior year. The company's performance was primarily driven by its hospital division, which benefited from the No Surprises Act's Independent Dispute Resolution (IDR) process, higher patient volumes, and increased utilization of observation and inpatient services.
Revenue is derived from two main segments: the hospital division and the population health management division. The hospital division generated $844.2 million in revenue, representing 96.4% of total revenue and an 88.0% increase from $449.1 million in 2024. This growth was attributed to successful participation in the IDR process, an 11.8% increase in patient visits to 188,279, and higher revenue per visit due to increased utilization of premium services. The population health management division contributed $31.1 million in revenue, a slight increase from $30.9 million. This division recognizes revenue from capitation and management fees for services to Independent Physician Associations (IPAs). The company operates 26 hospital facilities across 12 states and had approximately 38,000 members across its IPA platforms as of the filing date.
Gross margin expanded significantly to 50.8% in 2025 from 40.9% in 2024, reflecting the higher revenue contribution from the IDR process and operational leverage. Operating margin was 31.5%. Operating costs and expenses totaled $431.0 million, with payroll at $158.1 million, contract services at $190.3 million (largely driven by IDR-related costs), medical supplies at $17.2 million, depreciation and amortization at $20.5 million, and other expenses at $44.8 million. Corporate and other costs were $168.7 million, which included $117.0 million in stock-based compensation (primarily one-time obligations for under-construction and ramping hospitals) and $51.7 million in general and administrative expenses. The company's effective tax rate was approximately 26.3%.
Net cash provided by operating activities was strong at $248.1 million, driven by net income of $180.4 million and adjustments including $117.0 million in stock-based compensation. Net cash used in investing activities was $5.2 million, primarily for acquisitions of property and equipment and asset acquisitions. Net cash used in financing activities was $97.9 million, mainly due to $74.3 million in distributions to noncontrolling interest owners and net repayments of debt. Free cash flow (operating cash flow less capital expenditures) was $242.9 million. The balance sheet shows total assets of $918.5 million, including $185.6 million in cash and cash equivalents, $538.8 million in total current assets, and $94.6 million in property and equipment, net. Total liabilities were $495.1 million, with total equity of $423.4 million. The company had $43.5 million in total debt outstanding.
Management expects to open four new hospital facilities in 2026, with these facilities either under construction or in advanced planning stages. The company also anticipates launching one to three additional IPAs per year, principally in geographic areas around existing micro-hospitals. Growth strategy includes expanding clinical services at existing facilities, opening or acquiring new micro-hospital facilities, and establishing IPAs in locales where it operates micro-hospitals. The company faces risks including regulatory uncertainty, ongoing litigation (a securities class action and derivative actions), and dependence on the IDR process for revenue. The No Surprises Enforcement Act, introduced in Congress in July 2025, could impact future collections if enacted. The company aims to increase stockholder value through earnings growth and cash flow generation.