0001104659-26-058465
SEC filingRevenue declined 76% to $628M due to the P&HS business sale and a commercial payor contract termination, while net loss narrowed 74% to $6.5M.
Revenue for the first quarter of 2026 was $627.8 million, a decrease of 76.1% compared to $2.6 billion in the prior year. The decline was primarily driven by the sale of the P&HS business and the termination of a commercial payor contract, which together removed a substantial portion of the revenue base. The transition of agreements and services is expected to continue through the first half of 2026, with timing dependent on the successor provider's ability to transition customers.
Net loss improved to $6.5 million from $24.9 million in the prior year, a 74.1% reduction. The improvement was driven by higher operating income and lower interest expense, partially offset by tax provisions. Diluted EPS improved to -$0.08 from -$0.32.
Based on signed commitments and planned actions, management expects sufficient liquidity to meet obligations for the twelve months following the financial statement issuance. The interest rate on Term Loan A is based on Term SOFR or Base Rate plus an Applicable Rate, depending on debt ratings or leverage ratio. The company regularly evaluates financing alternatives to enhance its capital structure.
The transition of agreements and services from the terminated payor contract is ongoing and dependent on the successor provider's ability to transition customers. Management continues to focus on optimizing the remaining business and managing liquidity through the transition period.