Q3 2025 Nutex Health Inc Earnings Call

Speaker #1: Text Health 2Q and 3Q 2025 financial results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #1: If anyone wants to require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jennifer Rodriguez of Investor Relations.

Speaker #1: Please go

Speaker #1: ahead. Good morning, everyone, and

Jennifer Rodriguez: Good morning, everyone, and welcome to Nutex Health's combined second and third quarter 2025 earnings call. I'm Jennifer Rodriguez, and I'm pleased to moderate today's discussion. Thank you for joining us as we review our performance and outline our plans for the future. This call is being recorded for future reference. With me today are our key leaders, Dr. Tom Vo, Chairman and CEO; Jon Bates, Chief Financial Officer; Dr.

Speaker #2: Welcome to Nutex Health's combined second and third quarter 2025 earnings call. I'm Jennifer Rodriguez, and I'm pleased to moderate today's discussion. Thank you for joining us as we review our performance and outline our plans for the future.

Speaker #2: This call is being recorded for future reference. With me today are our key leaders, Dr. Tom Vo, Chairman and CEO; Jon Bates, Chief Financial Officer; Dr. Warren Hosseinion, President; and we would like to formally welcome our new Chief Operating Officer, Wesley Bamberg.

Operator: Warren Hosseinion, President, and we would like to formally welcome our new Chief Operating Officer, Wesley Bamberg. They will provide insights into our financial results, operational progress, and strategic direction, followed by a Q&A session. Before we begin, a few reminders. Today's discussion may include forward-looking statements based on management's current expectations. These are subject to risks and uncertainties that could cause actual results to differ. For details, please refer to our press release and Form 10-Q and our other SEC filings. We'll also discuss non-GAAP measures like adjusted EBITDA, with reconciliations available in our press release and Form 10-Q. With that, I'm pleased to turn the call over to Dr. Tom Vo, our Founder and CEO. Dr. Vo, the floor is yours. Thank you, Jen, and good morning, everyone.

Warren Hosseinion, President, and we would like to formally welcome our new Chief Operating Officer, Wesley Bamberg. They will provide insights into our financial results, operational progress, and strategic direction, followed by a Q&A session. Before we begin, a few reminders. Today's discussion may include forward-looking statements based on management's current expectations. These are subject to risks and uncertainties that could cause actual results to differ. For details, please refer to our press release and Form 10-Q and our other SEC filings. We'll also discuss non-GAAP measures like adjusted EBITDA, with reconciliations available in our press release and Form 10-Q. With that, I'm pleased to turn the call over to Dr. Tom Vo, our Founder and CEO. Dr. Vo, the floor is yours.

Speaker #2: They will provide insights into our financial results, operational progress, and strategic direction, followed by a Q&A session. Before we begin, a few reminders. Today's discussion may include forward-looking statements based on management's current expectations; these are subject to risks and uncertainties that could cause actual results to differ.

Speaker #2: For details, please refer to our press release and form 10Q. And our other SEC filings. We'll also discuss non-GAAP measures like adjusted EBITDA with reconciliations available in our press release and form 10Q.

Speaker #2: With that, I'm pleased to turn the call over to Dr. Tom Vo, our founder and CEO. Dr. Vo, the floor is

Speaker #2: yours. Thank you,

Tom Vo: Thank you, Jen, and good morning, everyone. I am pleased to report Nutex Health's second and third quarter 2025 results, which reflect continued momentum following a strong 2024 and first quarter of this year. Our commitment to accessible, high-quality, patient-centered care remains the foundation of our growth and operational stability. We have completed the restatement of 2024 and first quarter of 2025 with only minor adjustments that did not materially impact revenue, adjusted EBITDA, or cash positions. Jon will further provide details. However, with these amendments finalized, our financials now benefit from independent verification by two PCAOB audit firms. Having completed a full-year audit for 2024, we expect the 2025 audit process to be significantly more efficient. Operationally, Q3 2025 shows steady progress, with total patient visits reaching 46,232, an 11% increase from 41,668 in Q3 2024. Financially, revenue reached $267.8 million, up from $240 million in Q3 2024.

Speaker #3: Jen. And good morning, everyone. I am pleased to report New Text Health's second and third quarter 2025 results. Which reflect continued momentum following a strong 2024 and first quarter of this year.

Operator: I am pleased to report Nutex Health's second and third quarter 2025 results, which reflect continued momentum following a strong 2024 and first quarter of this year. Our commitment to accessible, high-quality, patient-centered care remains the foundation of our growth and operational stability. We have completed the restatement of 2024 and first quarter of 2025 with only minor adjustments that did not materially impact revenue, adjusted EBITDA, or cash positions. Jon will further provide details. However, with these amendments finalized, our financials now benefit from independent verification by two PCAOB audit firms. Having completed a full-year audit for 2024, we expect the 2025 audit process to be significantly more efficient. Operationally, Q3 2025 shows steady progress, with total patient visits reaching 46,232, an 11% increase from 41,668 in Q3 2024. Financially, revenue reached $267.8 million, up from $240 million in Q3 2024.

Speaker #3: Our commitment to accessible, high-quality, patient-centered care remains the foundation of our growth and operational stability. We have completed the restatement of 2024 and the first quarter of 2025.

Speaker #3: With only minor adjustments that did not materially impact revenue, adjusted EBITDA, or cash positions, Jon will further provide details. However, with these amendments finalized, our financials now benefit from independent verification by two PCAOB audit firms.

Speaker #3: Having completed a full year audit for 2024, we expect the 2025 audit process to be significantly more efficient. Operationally, Q3 2025 shows steady progress.

Speaker #3: With total patient visits reaching 46,232, an 11% increase from 41,668 in Q3 2024. Financially, revenue reached $267.8 million, up from $240 million in Q3 2024.

Speaker #3: Adjusted EBITDA grew to $98.5 million, from $9.7 million. Net income was $55.4 million, compared to an $8.8 million loss last year. Our balance sheet remains strong.

Operator: Adjusted EBITDA grew to $98.5 million from $9.7 million, and net income was $55.4 million compared to an $8.8 million loss last year. Our balance sheet remains strong, with cash increasing to $166 million from $40.6 million at year-end 2024, and operating cash flow through the first three quarters totaling $177.8 million versus $23 million in the prior year. Our long-term debt remains low at $25.6 million. These results reflect our focus on increasing patient volume, expanding inpatient services, optimizing costs, and improving revenue cycle management. Looking ahead, we are well-positioned for 2026 and beyond. We remain on track to open three new hospitals in 2025. Red River opened last week, and Houston and St. Louis are both scheduled to be open by year-end. Our 2026 pipeline includes three to four hospitals, with planning already underway for new hospital openings in 2027 and 2028.

Adjusted EBITDA grew to $98.5 million from $9.7 million, and net income was $55.4 million compared to an $8.8 million loss last year. Our balance sheet remains strong, with cash increasing to $166 million from $40.6 million at year-end 2024, and operating cash flow through the first three quarters totaling $177.8 million versus $23 million in the prior year. Our long-term debt remains low at $25.6 million. These results reflect our focus on increasing patient volume, expanding inpatient services, optimizing costs, and improving revenue cycle management. Looking ahead, we are well-positioned for 2026 and beyond. We remain on track to open three new hospitals in 2025. Red River opened last week, and Houston and St. Louis are both scheduled to be open by year-end. Our 2026 pipeline includes three to four hospitals, with planning already underway for new hospital openings in 2027 and 2028.

Speaker #3: Cash increasing to 166 million from 40.6 million at year-end 2024, and operating cash flow through the first three quarters totaling 177.8 million versus 23 million in the prior year.

Speaker #3: Our long-term debt remains low at 25.6 million. These results reflect our focus on increasing patient volume, expanding inpatient services, optimizing costs, and improving revenue cycle management.

Speaker #3: Looking ahead, we are well positioned for 2026 and beyond. We remain on track to open three new hospitals in 2025. Red River opened last week, and Houston and St.

Speaker #3: Louis are both scheduled to be opened by year-end. Our 2026 pipeline includes three to four hospitals, with planning already underway for new hospital openings in 2027 and 2028.

Speaker #3: To provide a little bit more context for Jon's discussion on the share earnouts, I'd like to give a brief history of New Text Health.

Operator: To provide a little bit more context for Jon's discussion on the share earnouts, I'd like to give a brief history of Nutex Health. We have evolved through three distinct phases since 2011. The initial growth as a freestanding management company where we were instrumental in the opening of 23 freestanding ERs, of which seven were later converted into micro-hospitals. Note that Nutex did not have any equity ownership in these early ERs. The second phase began in 2017 when Nutex expanded into micro-hospitals and where we opened 14 hospitals as a managed company, again without any equity ownership in any of these hospitals. In 2022, we successfully consolidated 21 hospitals and hospital outpatient departments to transform into a publicly traded company through a share exchange program where former hospital owners exchanged the hospital shares for Nutex shares.

To provide a little bit more context for Jon's discussion on the share earnouts, I'd like to give a brief history of Nutex Health. We have evolved through three distinct phases since 2011. The initial growth as a freestanding management company where we were instrumental in the opening of 23 freestanding ERs, of which seven were later converted into micro-hospitals. Note that Nutex did not have any equity ownership in these early ERs. The second phase began in 2017 when Nutex expanded into micro-hospitals and where we opened 14 hospitals as a managed company, again without any equity ownership in any of these hospitals. In 2022, we successfully consolidated 21 hospitals and hospital outpatient departments to transform into a publicly traded company through a share exchange program where former hospital owners exchanged the hospital shares for Nutex shares.

Speaker #3: We have evolved through three distinct phases since 2011. The initial growth as a freestanding management company where we were instrumental in the opening of 23 freestanding ERs.

Speaker #3: Of which seven were later converted into micro-hospitals. Note that New Text did not have any equity ownership in these early ERs. The second phase began in 2027, when New Text expanded into micro-hospitals.

Speaker #3: And where we opened 14 hospitals as a managed company. Again, without any equity ownership in any of these hospitals. In 2022, we successfully consolidated 21 hospitals and hospital outpatient departments transformed into a publicly traded company through a share exchange program.

Speaker #3: Where former hospital owners exchanged the hospital shares for New Text shares. In addition to the 21 facilities at merger, there were 17 additional hospitals that were under development as of 2022.

Operator: In addition to the 21 facilities at merger, there were 17 additional hospitals that were under development as of 2022. These under development hospitals were given the same considerations as the open hospital and had the right to roll their local shares up to Nutex shares at the conclusion of their second year anniversary. Note that all new future hospitals that began development after April of 2022 will not and did not have the share exchange option. Jon will also explain this in more details later. Today, Nutex Health owns and operates 25 locations across 11 states, with over 15 facilities in the pipeline under development. Building micro-hospitals requires significant capital, regulatory expertise, and operational discipline, creating a very high barrier to entry.

In addition to the 21 facilities at merger, there were 17 additional hospitals that were under development as of 2022. These under development hospitals were given the same considerations as the open hospital and had the right to roll their local shares up to Nutex shares at the conclusion of their second year anniversary. Note that all new future hospitals that began development after April of 2022 will not and did not have the share exchange option. Jon will also explain this in more details later. Today, Nutex Health owns and operates 25 locations across 11 states, with over 15 facilities in the pipeline under development. Building micro-hospitals requires significant capital, regulatory expertise, and operational discipline, creating a very high barrier to entry.

Speaker #3: These under-development hospitals were given the same considerations as the open hospital and had the right to roll their local shares up to New Text shares at the conclusion of their second-year anniversary.

Speaker #3: Note that all new future hospitals that began development after April of 2022 will not and did not have the share exchange option. Jon will also explain this in more details later.

Speaker #3: Today, Nutex Health owns and operates 25 locations across 11 states. Over 15 facilities in the pipeline under micro-hospitals require significant capital, regulatory building expertise, and operational discipline.

Speaker #3: Creating a very high barrier to entry. This is one reason why our motto is very unique in the marketplace and why we have so much demand around the country to develop and operate these hospitals.

Operator: This is one reason why our model is very unique in the marketplace and why we have so much demand around the country to develop and operate these hospitals. Despite these challenges, we have maintained a strong track record of growth and profitability, with physician retention exceeding 95%. Our facilities have improved the lives of hundreds of physicians, thousands of healthcare workers, and hundreds of thousands of patients. Integrity and resilience define us, and we will continue to adapt and thrive amid changing conditions. I am extremely proud of everything that we have accomplished in the past 14 years, and we look forward to building on this success for years to come. I will now turn the call over to Jon Bates, our CFO. Jon? Thank you, Tom, and good morning, everyone.

This is one reason why our model is very unique in the marketplace and why we have so much demand around the country to develop and operate these hospitals. Despite these challenges, we have maintained a strong track record of growth and profitability, with physician retention exceeding 95%. Our facilities have improved the lives of hundreds of physicians, thousands of healthcare workers, and hundreds of thousands of patients. Integrity and resilience define us, and we will continue to adapt and thrive amid changing conditions. I am extremely proud of everything that we have accomplished in the past 14 years, and we look forward to building on this success for years to come. I will now turn the call over to Jon Bates, our CFO. Jon?

Speaker #3: Despite these challenges, we have maintained a strong track record of growth and 95%. Our facilities have improved exceeding the lives of hundreds of profitability with position retention physicians.

Speaker #3: Healthcare workers and hundreds of thousands of patients define us. Integrity and resilience are at our core, and we will continue to adapt and thrive amid changing conditions.

Speaker #3: I am extremely proud of everything that we have accomplished in the past 14 years. And we look forward to building on the success for years to come.

Speaker #3: I will now turn the call over to Jon Bates, our CFO.

Speaker #3: Jon, Thank you, Tom.

Jon Bates: Thank you, Tom, and good morning, everyone. I'm happy to present Nutex Health's financial performance for the periods including the full year of 2024 with the restated 10-KA that we filed on Tuesday, 18 November 2024, the first quarter of 2025 with the restated 10-QA filed on Tuesday, 18 November 2024 as well, the second quarter of 2025 with the 10-Q filed on Tuesday, 18 November 2024, and then finally the third quarter of 2025 with the 10-Q that we filed on Wednesday, 19 November 2025, with the completion of these filings bringing us into full compliance with NASDAQ. First, we will discuss the full year of 2024. The good news with this filing is that the changes from the original 2024 10-K filed were non-cash in nature, with most of all the changes being just reclassifications within the balance sheet.

Speaker #2: And good morning, everyone. I'm happy to present New Text Health's financial performance for the periods including the full year of 2024 with the restated 10K that we filed on Tuesday, November 18th, the first quarter of 2025 with the restated 10QA filed on Tuesday, November 18th as well, the second quarter of 2025 with the 10Q filed on Tuesday, November 18th, and then finally the third quarter of 2025 with the 10Q that we filed on Wednesday, November 19th.

Operator: I'm happy to present Nutex Health's financial performance for the periods including the full year of 2024 with the restated 10-KA that we filed on Tuesday, 18 November 2024, the first quarter of 2025 with the restated 10-QA filed on Tuesday, 18 November 2024 as well, the second quarter of 2025 with the 10-Q filed on Tuesday, 18 November 2024, and then finally the third quarter of 2025 with the 10-Q that we filed on Wednesday, 19 November 2025, with the completion of these filings bringing us into full compliance with NASDAQ. First, we will discuss the full year of 2024. The good news with this filing is that the changes from the original 2024 10-K filed were non-cash in nature, with most of all the changes being just reclassifications within the balance sheet.

Speaker #2: With the completion of these filings bringing us into full compliance with NASDAQ. First, we will discuss the full year of 2024. The good news with this filing is that the changes from the original '24 10K filed were non-cash in nature with most of all the changes being just reclassifications within the balance sheet.

Speaker #2: To highlight those, the major balance sheet accounts that were affected by these non-cash adjustments were: number one, we corrected the reclassification of non-cash stock compensation obligations totaling $16.4 million related to under construction and ramping hospitals from equity to liability.

Operator: To highlight those, the major balance sheet accounts that were affected by these non-cash adjustments were: number one, we corrected the reclassification of non-cash stock compensation obligations totaling $16.4 million related to under construction and ramping hospitals from equity to liability. We reclassified related party accounts payable balances of $3.5 million from liabilities to equity. Third, we reclassified $2.9 million of restricted balances out of cash and cash equivalents and into short-term investments. Finally, number four, we increased accrued income taxes by $0.5 million. When compared to the previously issued financial statements, the changes resulted in an overall increase to liabilities of $13.4 million, a decrease in equity of the same amount, $13.4 million, and a very nominal increase in net income of $0.5 million.

To highlight those, the major balance sheet accounts that were affected by these non-cash adjustments were: number one, we corrected the reclassification of non-cash stock compensation obligations totaling $16.4 million related to under construction and ramping hospitals from equity to liability. We reclassified related party accounts payable balances of $3.5 million from liabilities to equity. Third, we reclassified $2.9 million of restricted balances out of cash and cash equivalents and into short-term investments. Finally, number four, we increased accrued income taxes by $0.5 million. When compared to the previously issued financial statements, the changes resulted in an overall increase to liabilities of $13.4 million, a decrease in equity of the same amount, $13.4 million, and a very nominal increase in net income of $0.5 million.

Speaker #2: And we reclassified related party accounts payable balances of $3.5 million from liabilities to equity. Third, we reclassified $2.9 million of restricted balances out of cash and cash equivalents and into short-term investments.

Speaker #2: And finally, number four, we increased accrued income taxes by half a million dollars. When compared to the previously issued financial statements, the changes resulted in an overall increase to liabilities of $13.4 million, a decrease in equity of the same amount, $13.4 million, and a very nominal increase in net income of half a million dollars.

Speaker #2: These adjustments, as noted before, were non-cash in nature, had no material effect on key metrics including revenue, liquidity, short and long-term debt, operating cash flow, adjusted EBITDA, or number of patients as of and for the periods presented therein, and had an immaterial impact on net income.

Operator: These adjustments, as noted before, were non-cash in nature, had no material effect on key metrics including revenue, liquidity, short and long-term debt, operating cash flow, adjusted EBITDA, or number of patients as of and for the periods presented therein, and had an immaterial impact on net income. As we mentioned when this restatement work began, we believe there was no fundamental impact to the operations of the business, and after completing the work, we confirm that belief. You can see that the 2024 year was a record year for the company with 93.8% revenue growth, adjusted EBITDA of $124.1 million, and a 464.4% increase in gross profit, which laid a really strong foundation for what we will discuss shortly for each of the first three quarters of 2025. Next, we'll go through the first quarter of 2025 relatively briefly as well.

These adjustments, as noted before, were non-cash in nature, had no material effect on key metrics including revenue, liquidity, short and long-term debt, operating cash flow, adjusted EBITDA, or number of patients as of and for the periods presented therein, and had an immaterial impact on net income. As we mentioned when this restatement work began, we believe there was no fundamental impact to the operations of the business, and after completing the work, we confirm that belief. You can see that the 2024 year was a record year for the company with 93.8% revenue growth, adjusted EBITDA of $124.1 million, and a 464.4% increase in gross profit, which laid a really strong foundation for what we will discuss shortly for each of the first three quarters of 2025. Next, we'll go through the first quarter of 2025 relatively briefly as well.

Speaker #2: As we mentioned, when this restatement work began, we believe there was no fundamental impact to the operations of the business. And after completing the work, we confirmed that belief.

Speaker #2: You can see that the 2024 year was a record year for the company with 93.8% revenue growth, adjusted EBITDA of $124.1 million, and a 464.4% increase in gross profit.

Speaker #2: Which laid a really strong foundation for what we will discuss shortly for each of the first three quarters of 2025. So next, we'll go through the first quarter of 2025 relatively briefly as well.

Speaker #2: I'd like to discuss previously for the 2024 period, the changes from the original 10Q that was filed were again non-cash in nature and had no fundamental impact to the operations of the business.

Operator: Like discussed previously for the 2024 period, the changes from the original 10-Q that was filed were again non-cash in nature and had no fundamental impact to the operations of the business. The major change, major balance sheet accounts that were affected by these non-cash adjustments for the first quarter of 2024, excuse me, first quarter of 2025, were, number one is we corrected the reclassification of non-cash stock compensation obligations totaling $20.7 million related to under construction and ramping hospitals from equity to liability, just like we did in 2024. Similarly, number two, we reclassified related party accounts payable of $3.5 million from liabilities to equity, which was the same exact line item in the 2024 work above. We were just carrying it forward into this period. Third item was the reclassification of $2.9 million of restricted balances out of cash and cash equivalents into short-term investments.

Like discussed previously for the 2024 period, the changes from the original 10-Q that was filed were again non-cash in nature and had no fundamental impact to the operations of the business. The major change, major balance sheet accounts that were affected by these non-cash adjustments for the first quarter of 2024, excuse me, first quarter of 2025, were, number one is we corrected the reclassification of non-cash stock compensation obligations totaling $20.7 million related to under construction and ramping hospitals from equity to liability, just like we did in 2024. Similarly, number two, we reclassified related party accounts payable of $3.5 million from liabilities to equity, which was the same exact line item in the 2024 work above. We were just carrying it forward into this period. Third item was the reclassification of $2.9 million of restricted balances out of cash and cash equivalents into short-term investments.

Speaker #2: The major changes to the balance sheet accounts that were affected by these non-cash adjustments for the first quarter of '25, excuse me, the first quarter of '24, were: number one, we corrected the reclassification of non-cash stock compensation obligations totaling $20.7 million related to under-construction and ramping hospitals from equity to liability.

Speaker #2: Just like we did in 2024. Similarly, number two, we reclassified related party accounts payable of 3.5 million from liabilities to equity, which was the same exact line item in the '24 work above.

Speaker #2: We were just carrying it forward into this period. Third item was the reclassification of 2.9 million of restricted balances out of cash and cash equivalents into short-term investments.

Speaker #2: Again, same exact item in 2024. They were just carrying forward into this period. And then the last item was we increased the accrued income tax expense by 2.4 million.

Operator: Again, same exact item in 2024. They were just carrying forward into this period. The last item was we increased the accrued income tax expense by $2.4 million. When compared to the previously issued financial statements, the changes resulted in an overall net increase to liabilities of $19.6 million, with a similar decrease to equity of $19.6 million, and an increase in net income of $6.6 million. These adjustments were non-cash in nature, had no material effect on key metrics including revenue, liquidity, short and long-term debt, operating cash flow, adjusted EBITDA, or number of patients as of and for the periods presented therein, and included a small positive impact on net income.

Again, same exact item in 2024. They were just carrying forward into this period. The last item was we increased the accrued income tax expense by $2.4 million. When compared to the previously issued financial statements, the changes resulted in an overall net increase to liabilities of $19.6 million, with a similar decrease to equity of $19.6 million, and an increase in net income of $6.6 million. These adjustments were non-cash in nature, had no material effect on key metrics including revenue, liquidity, short and long-term debt, operating cash flow, adjusted EBITDA, or number of patients as of and for the periods presented therein, and included a small positive impact on net income.

Speaker #2: So when compared to the previously issued financial statements, the changes resulted in an overall net increase to liabilities of 19.6 million, and with a similar decrease to equity of 19.6 million.

Speaker #2: And an increase in net income of 6.6 million. These adjustments were non-cash in nature, had no material effect on key metrics including revenue, liquidity, short and long-term debt, operating cash flow, adjusted EBITDA, or number of patients as of and for the periods presented therein, and included a small positive impact on net income.

Speaker #2: As we mentioned when this restatement work began, just like in 2024, we believe there was no fundamental impact to the operations of the business.

Operator: As we mentioned when this restatement work began, just like in 2024, we believe there was no fundamental impact to the operations of the business, and after completing the work, we confirmed that belief. Therefore, we aren't going to spend much more time discussing the first quarter of 2025 as it was materially the same as originally reported, with a solid net income attributable to Nutex Health of $21.2 million, a record high gross profit of 55.9% in the quarter, a record high of $51 million in net cash from operating activities, and a record high cash balance of $84.7 million at the end of the quarter.

As we mentioned when this restatement work began, just like in 2024, we believe there was no fundamental impact to the operations of the business, and after completing the work, we confirmed that belief. Therefore, we aren't going to spend much more time discussing the first quarter of 2025 as it was materially the same as originally reported, with a solid net income attributable to Nutex Health of $21.2 million, a record high gross profit of 55.9% in the quarter, a record high of $51 million in net cash from operating activities, and a record high cash balance of $84.7 million at the end of the quarter.

Speaker #2: And as after completing the work, we confirmed that belief. Therefore, we aren't going to spend much more time discussing the first quarter of '25 as it was materially the same as originally reported, with a solid net income attributable to New Text of 21.2 million, a record high gross profit of 55.9% in the quarter, a record high 51 million in net cash from operating activities, and a record high cash balance of 84.7 million at the end of the quarter.

Speaker #2: So now let's discuss the key financial metrics for the second quarter and year-to-date June '25 period versus the same period in '24. And then we'll follow that with a discussion of the third quarter and year-to-date December '25 period versus the same period in '24, highlighting percentage changes across revenue, adjusted EBITDA, net income, EPS, and other indicators all that were detailed in our Form 10Q for the quarter ended June '25 filed on November 18th.

Operator: Let's discuss the key financial metrics for the second quarter and year-to-date June 2025 period versus the same period in 2024, and then we'll follow that with a discussion of the third quarter and year-to-date December 2025 period versus the same period in 2024, highlighting percentage changes across revenue, adjusted EBITDA, net income, EPS, and other indicators, all that were detailed in our Form 10-Q for the quarter ended June 2025 filed on 18 November 2025, and our 10-Q for the third quarter ended 30 September 2025, filed on 19 November 2025. To start, we're going to start on the second quarter of June 2025 and compare that to the second quarter period in 2024. For the second quarter of 2025, total revenue grew 217.5%, or $167.9 million, to $244 million versus $76.1 million for the same period in 2024.

Let's discuss the key financial metrics for the second quarter and year-to-date June 2025 period versus the same period in 2024, and then we'll follow that with a discussion of the third quarter and year-to-date December 2025 period versus the same period in 2024, highlighting percentage changes across revenue, adjusted EBITDA, net income, EPS, and other indicators, all that were detailed in our Form 10-Q for the quarter ended June 2025 filed on 18 November 2025, and our 10-Q for the third quarter ended 30 September 2025, filed on 19 November 2025. To start, we're going to start on the second quarter of June 2025 and compare that to the second quarter period in 2024. For the second quarter of 2025, total revenue grew 217.5%, or $167.9 million, to $244 million versus $76.1 million for the same period in 2024.

Speaker #2: And our 10Q for the third quarter ended September 30th, 2025, filed on November 19th. So to start, we're going to start on the second quarter of June '25 and compare that to the second quarter period in 2024.

Speaker #2: So for the second quarter of 2025, total revenue grew 217.5% or 167.9 million. The 244 million versus 76.1 million for the same period in 2024.

Speaker #2: Of the revenue increase, mature hospitals, which were hospitals that were open prior to December 31, 2021, and therefore provided two full years of comparative results, increased their revenue by 203% for the second quarter of '25 versus a similar period for '24.

Operator: Of the revenue increase, mature hospitals, which were hospitals that were open prior to 31 December 2021 and therefore provided two full years of comparative results, increased their revenue by 203% for the second quarter of 2025 versus a similar period for 2024. For the hospital division visits, we saw growth as well during the quarter as they increased by 10.6%, or 4,365 visits, to 45,573 visits in the second quarter of 2025 versus 41,208 visits in the same period in 2024, with mature hospitals growing at 0.6% in the second quarter of 2025 versus the second quarter of 2024.

Of the revenue increase, mature hospitals, which were hospitals that were open prior to 31 December 2021 and therefore provided two full years of comparative results, increased their revenue by 203% for the second quarter of 2025 versus a similar period for 2024. For the hospital division visits, we saw growth as well during the quarter as they increased by 10.6%, or 4,365 visits, to 45,573 visits in the second quarter of 2025 versus 41,208 visits in the same period in 2024, with mature hospitals growing at 0.6% in the second quarter of 2025 versus the second quarter of 2024.

Speaker #2: For the hospital division visits, we saw growth as well during the quarter. As they increased by 10.6% or 4,365 visits to 45,573 visits in the second quarter of '25 versus 41,208 visits in the same period in 2024.

Speaker #2: With mature hospitals growing at 0.6% in the second quarter, 2024 versus the second quarter of '20, excuse me, in the second quarter of '25 versus the second quarter of '24.

Speaker #2: Additionally, population health division had a revenue reduction of 0.8 million to 7.7 million in the second quarter of '25 from 8.5 million in the similar period in '24 due mostly to the divestiture of one small entity within the division in the third quarter of 2024.

Operator: Additionally, the population health division had a revenue reduction of $0.8 million to $7.7 million in the second quarter of 2025 from $8.5 million in a similar period in 2024, due mostly to the divestiture of one small entity within the division in the third quarter of 2024. We discussed the growth in the hospital revenue and visits that we've seen in the second quarter of 2025. Now let's discuss the overall facility. Yes. What was that? Okay. We discussed the growth in the hospital revenue and visits we have seen in the second quarter of 2025. Now let's discuss the overall facility and cost structure and improvements in that area. Total facility level operating costs and expenses represented only 48.8% or $119 million of total revenue for the second quarter of 2025 versus 70.3% or $53.5 million for the same period in 2024.

Additionally, the population health division had a revenue reduction of $0.8 million to $7.7 million in the second quarter of 2025 from $8.5 million in a similar period in 2024, due mostly to the divestiture of one small entity within the division in the third quarter of 2024. We discussed the growth in the hospital revenue and visits that we've seen in the second quarter of 2025. Now let's discuss the overall facility. Yes. What was that? Okay. We discussed the growth in the hospital revenue and visits we have seen in the second quarter of 2025. Now let's discuss the overall facility and cost structure and improvements in that area. Total facility level operating costs and expenses represented only 48.8% or $119 million of total revenue for the second quarter of 2025 versus 70.3% or $53.5 million for the same period in 2024.

Speaker #2: And we discussed the growth in the hospital revenue and visits that we've seen in the second quarter of '25. Now let's discuss overall facility yes.

Speaker #2: What was that? Okay. So we discussed the growth in hospital revenue and visits. We have seen, in the second quarter of 2025, now let's discuss the overall facility and cost structure and improvements in that area.

Speaker #2: Total facility total facility level operating costs and expenses represented only 48.8% or 119 million of total revenue for the second quarter of '25 versus 70.3% or 53 and a half million for the same period in '24.

Speaker #2: As a result of the revenue and facility cost improvement, our 2025 second quarter gross profit was 124.9 million, or 51.2% of total revenue, as compared to 22.6 million or 29.7% of revenue in the 2024 period.

Operator: As a result of the revenue and facility cost improvement, our 2025 second quarter gross profit was $124.9 million or 51.2% of total revenue, as compared to $22.6 million or 29.7% of revenue in the 2024 period. It's a 454% improvement in the second quarter of 2025 versus the second quarter of 2024. From a corporate and other cost perspective, the general and administrative expenses as a percentage of total revenue for the second quarter of 2025 decreased to 5.1% compared to 14% for the second quarter of 2024. Additionally, on our second quarter 2025 income statement, you will see a line item for stock-based compensation expenses. The amount for the second quarter of 2025 being $78.7 million, most of that expense is explained in our second quarter 2025 10-Q within note 11.

As a result of the revenue and facility cost improvement, our 2025 second quarter gross profit was $124.9 million or 51.2% of total revenue, as compared to $22.6 million or 29.7% of revenue in the 2024 period. It's a 454% improvement in the second quarter of 2025 versus the second quarter of 2024. From a corporate and other cost perspective, the general and administrative expenses as a percentage of total revenue for the second quarter of 2025 decreased to 5.1% compared to 14% for the second quarter of 2024. Additionally, on our second quarter 2025 income statement, you will see a line item for stock-based compensation expenses. The amount for the second quarter of 2025 being $78.7 million, most of that expense is explained in our second quarter 2025 10-Q within note 11.

Speaker #2: It's a $454% improvement in the second quarter of 2025 versus the second quarter of '24. From a corporate cost corporate and other cost perspective, the general and administrative expenses as a percentage of total revenue for the second quarter of 2025 decreased to 5.1% compared to 14% for the second quarter of 2024.

Speaker #2: Now, additionally, on our second quarter of 2025 income statement, you will see a line item for stock-based compensation. The amount for the second quarter of '25 is $78.7 million.

Speaker #2: Most of that expense is explained in our second quarter of 2025 10Q within note 11. Within that note, we explain the impact of hospitals subject to contribution agreements this time indicated in the earlier report.

Operator: In that note, we explain the impact of hospitals subject to the contribution agreement, as Tom indicated earlier before. In connection with the merger. On 1 April 2022, Nutex Health entered into certain contribution agreements with holders of equity interests of subsidiaries and affiliates. These agreements for these holders agreed to contribute certain equity interests and subsidiaries to Holdco in exchange for equity interests in Holdco. Included in these transactions were 17 subsidiaries that appeared to be under contribution at the time of merger. Excuse me, Jon, your line is breaking up. Okay. Are you able to hear now or not? Yes. Please continue. Okay.

In that note, we explain the impact of hospitals subject to the contribution agreement, as Tom indicated earlier before. In connection with the merger. On 1 April 2022, Nutex Health entered into certain contribution agreements with holders of equity interests of subsidiaries and affiliates. These agreements for these holders agreed to contribute certain equity interests and subsidiaries to Holdco in exchange for equity interests in Holdco. Included in these transactions were 17 subsidiaries that appeared to be under contribution at the time of merger.

Speaker #2: In connection with the merger of on April 1st of 2022, New Text Health Public Development entered into service contribution agreements with holders of equity interest of subsidy and subsidiaries and affiliates.

Speaker #2: These agreements for these holders agreed to contribute certain equity interest and subsidy and subsidiaries to hold in exchange for equity interest and hold. Included in these transactions were 17 subsidiaries to be on their official job at the time of merger.

[Company Representative]: Excuse me, Jon, your line is breaking up.

Speaker #2: Excuse me, John. Your line is breaking up.

Jon Bates: Okay. Are you able to hear now or not?

Speaker #1: Oh, okay. Are you able to hear now or

Speaker #1: not? Yes.

[Company Representative]: Yes. Please continue.

Speaker #2: Please continue.

Jon Bates: Okay.

Speaker #1: Okay. So, as we were talking about those 17 subsidiaries considered to be under construction at the time of the merger, the under-construction hospitals are hospitals that, at the time of the merger, had not started accepting patients and did not have any operating results to serve as a basis for valuation.

Operator: As we were talking about those 17 subsidiaries considered to be under construction at the time of the merger, the under construction hospitals are hospitals that at the time of the merger had not started accepting patients and did not have any operating results to serve as a basis for valuation. Once these hospitals have opened for two full years, which we denote as the measurement period, the equity holders of these hospitals are eligible to receive a one-time additional issuance of company common stock based upon the earnings of the hospital in the second year of their operations. Of the 17 under construction hospitals, six hospitals had measurement periods that ended on or before 30 June 2025.

As we were talking about those 17 subsidiaries considered to be under construction at the time of the merger, the under construction hospitals are hospitals that at the time of the merger had not started accepting patients and did not have any operating results to serve as a basis for valuation. Once these hospitals have opened for two full years, which we denote as the measurement period, the equity holders of these hospitals are eligible to receive a one-time additional issuance of company common stock based upon the earnings of the hospital in the second year of their operations. Of the 17 under construction hospitals, six hospitals had measurement periods that ended on or before 30 June 2025.

Speaker #1: So once these hospitals have opened for two, full years, which we denote as the measurement period, the equity holders of these hospitals are eligible to receive a one-time additional issuance of common company common stock based upon the earnings of the hospital in the second year of their operations.

Speaker #1: So, of the 17 under construction hospitals, six hospitals had measurement periods that ended on or before June 30, 2025. Four of those hospitals had measurement periods that end after June 2025, and there were three hospitals with no defined measurement period as they had not opened as of June 30.

Operator: Four of those hospitals had measurement periods that end after June 2025, and there were three hospitals with no defined measurement period as the three hospitals had not opened as of 30 June. The remaining four hospitals have no measurement period as their hospital development plans have been abandoned. For Q2 2025, the former equity holders of two hospitals are to receive an additional issuance of 602,798 common stock shares based on the trailing 12 months' results of the hospitals at the end of their measurement periods. With four of these hospitals in their measurement period currently, we are accruing for the stock issuance for each in current liabilities.

Four of those hospitals had measurement periods that end after June 2025, and there were three hospitals with no defined measurement period as the three hospitals had not opened as of 30 June. The remaining four hospitals have no measurement period as their hospital development plans have been abandoned. For Q2 2025, the former equity holders of two hospitals are to receive an additional issuance of 602,798 common stock shares based on the trailing 12 months' results of the hospitals at the end of their measurement periods. With four of these hospitals in their measurement period currently, we are accruing for the stock issuance for each in current liabilities.

Speaker #1: The remaining four hospitals have no measurement period as their hospital development plans have been abandoned. So for the second quarter of 2025, the former equity holders of two hospitals are to receive an additional issuance of 602,798 common stock shares based on the trailing 12 months results of the hospitals at the end of their measurement periods.

Speaker #1: With four of these hospitals in their measurement period currently, we are accruing for the stock issuance for each in current liabilities. In the second quarter of 2025, that accrual amounted to $24.2 million.

Operator: In the second quarter of 2025, that accrual amounted to $24.2 million that will be trued up each quarter until we get to the end of year two for each hospital, at which time a final calculation will be done and payment will be made 100% in company stock and recorded as non-cash stock expense, comp expense. Let's talk about operating income real quick. Operating income, including the negative impact of the $78.7 million in non-cash stock-based compensation for the second quarter of 2025, was $33.7 million compared to $5.3 million in the second quarter of 2024, representing a $28.4 million improvement quarter over quarter. Net loss attributable to Nutex Health was $17.7 million for the second quarter of 2025, which included the negative impact of the $78.7 million of non-cash stock comp expense noted previously.

In the second quarter of 2025, that accrual amounted to $24.2 million that will be trued up each quarter until we get to the end of year two for each hospital, at which time a final calculation will be done and payment will be made 100% in company stock and recorded as non-cash stock expense, comp expense. Let's talk about operating income real quick. Operating income, including the negative impact of the $78.7 million in non-cash stock-based compensation for the second quarter of 2025, was $33.7 million compared to $5.3 million in the second quarter of 2024, representing a $28.4 million improvement quarter over quarter. Net loss attributable to Nutex Health was $17.7 million for the second quarter of 2025, which included the negative impact of the $78.7 million of non-cash stock comp expense noted previously.

Speaker #1: That will be trued up each quarter until we get to the end of year two for each hospital. At which time, a final calculation will be done and payment will be made 100% in company stock and recorded as non-cash stock expense comp expense.

Speaker #1: So let's talk about operating income real quick. So operating income, including the negative impact of the 78.7 million in non-cash stock-based compensation, for the second quarter of 2025 was 33.7 million, compared to 5.3 million in the second quarter of '24, representing a 28.4 million improvement quarter over quarter.

Speaker #1: Net loss attributable to New Text was 17.7 million for the second quarter of '25, which included the negative impact of the 78.7 million of non-cash stock comp expense noted previously.

Speaker #1: The comparative net loss attributable to New Text was 0.4 million for the second quarter of '24, showing a 17.3 million decrease period over period.

Operator: The comparative net loss attributable to Nutex Health was $0.4 million for the second quarter of 2024, showing a $17.3 million decrease period over period. From an earnings per share perspective, our diluted EPS for the second quarter of 2025 was a loss of $2.95 a share compared to a loss of $0.07 a share in the second quarter of 2024. Adjusted EBITDA attributable to Nutex Health, which increased $64 million from $6.8 million in the second quarter of 2024 to $71.6 million in the second quarter of 2025. Now we finished the second quarter. Let's move for the second quarter of 2025. We'll do the six months ending June 2025 compared to the six months of 2024. Total revenue for the first six months of 2025 grew by 218% or $312 million to $455 million versus $143.5 million for the first six months of 2024.

The comparative net loss attributable to Nutex Health was $0.4 million for the second quarter of 2024, showing a $17.3 million decrease period over period. From an earnings per share perspective, our diluted EPS for the second quarter of 2025 was a loss of $2.95 a share compared to a loss of $0.07 a share in the second quarter of 2024. Adjusted EBITDA attributable to Nutex Health, which increased $64 million from $6.8 million in the second quarter of 2024 to $71.6 million in the second quarter of 2025. Now we finished the second quarter. Let's move for the second quarter of 2025. We'll do the six months ending June 2025 compared to the six months of 2024. Total revenue for the first six months of 2025 grew by 218% or $312 million to $455 million versus $143.5 million for the first six months of 2024.

Speaker #1: From an earnings per share perspective, our diluted EPS for the second quarter of 2025 was a loss of 2.952 dollars and 95 cents a share compared to a loss of 7 cents a share in the second quarter of 2024.

Speaker #1: Adjusted EBITDA attributable to New Text increased by $64 million, from $6.8 million in the second quarter of 2024 to $71.6 million in the second quarter of 2025.

Speaker #1: So now we finished the second quarter. Let's move or the second quarter of 2025. We'll do the six months ending June of '25 compared to the six months of '24.

Speaker #1: Total revenue for the first six months of '25 grew by 218% or 312 million. The 455 million versus 143.5 million for the first six months of '24.

Speaker #1: Of the total revenue increase, mature hospitals increased their revenue by 195.2% for the first six months of 2025 versus the same period in 2024.

Operator: Of the total revenue increase, mature hospitals increased their revenue by 195.2% for the first six months of 2025 versus the same period in 2024. Hospital division visits saw a similar growth as they increased by 15.5%, or 12,566 visits, to 93,842 visits in the first six months of 2025 versus 81,276 visits in the same period in 2024, with mature hospital visits growing at 15.5% in the six months into June versus the same period in 2024. Additionally, the population health division had a revenue decrease by 2% to $15.5 million in the first six months of 2025 from $15.9 million in the first six months of 2024. From a facility and corporate cost perspective, it also showed improvement for the first six months of 2025 relative to the same period in 2024.

Of the total revenue increase, mature hospitals increased their revenue by 195.2% for the first six months of 2025 versus the same period in 2024. Hospital division visits saw a similar growth as they increased by 15.5%, or 12,566 visits, to 93,842 visits in the first six months of 2025 versus 81,276 visits in the same period in 2024, with mature hospital visits growing at 15.5% in the six months into June versus the same period in 2024. Additionally, the population health division had a revenue decrease by 2% to $15.5 million in the first six months of 2025 from $15.9 million in the first six months of 2024. From a facility and corporate cost perspective, it also showed improvement for the first six months of 2025 relative to the same period in 2024.

Speaker #1: Hospital division visits saw a similar growth as they increased by 15.5% or 12,566 visits, to 93,842 visits in the first six months of '25 versus 81,276 visits in the same period in '24, with mature hospital visits growing at 15.5% in the six months into June versus the same period in 2024.

Speaker #1: Additionally, the population health division had increased had a revenue decrease by 2% to 15.5 million in the first six months of '25 from 15.9 million in the first six months of '24.

Speaker #1: From a facility and corporate cost perspective, it also showed improvement for the first six months of '25 relative to the same period in '24.

Speaker #1: Total facility-level operating costs and expenses represented 46.6% or 212.5 million. Of total revenue for the six months into June of '25 versus 77.2% or 110.8 million, for the same period in '24, which was a decrease of 30.6%.

Operator: Total facility level operating costs and expenses represented 46.6% or $212.5 million of total revenue for the six months into June of 2025 versus 77.2% or $110.8 million for the same period in 2024, which was a decrease of 30.6%. The gross profit for the six months into June of 2025 was $243 million or 53.4% of total revenue as compared to $32.7 million or 22.8% of total revenue in the same period in 2024, a $210 million increase for the six months into June of 2025 for the same six months of 2024. From a corporate and other cost perspective, the G&A expenses as a percentage of total revenue for the six months into 2025 decreased to 4.9% or $22.5 million from 13.5% or $19.3 million for the same period in 2024.

Total facility level operating costs and expenses represented 46.6% or $212.5 million of total revenue for the six months into June of 2025 versus 77.2% or $110.8 million for the same period in 2024, which was a decrease of 30.6%. The gross profit for the six months into June of 2025 was $243 million or 53.4% of total revenue as compared to $32.7 million or 22.8% of total revenue in the same period in 2024, a $210 million increase for the six months into June of 2025 for the same six months of 2024. From a corporate and other cost perspective, the G&A expenses as a percentage of total revenue for the six months into 2025 decreased to 4.9% or $22.5 million from 13.5% or $19.3 million for the same period in 2024.

Speaker #1: The gross profit for the six months into June of '25 was 243 million, or 53.4 million of total revenue, as compared to 32.7 million or 22.8% of total revenue in the same period in '24.

Speaker #1: A 210 million increase for the six months into June of '25 for the same six months of '24. From a corporate and other cost perspective, the G&A expenses as a percentage of total revenue for the six months into '25 decreased to 4.9% or 22.5 million, from 13.5% or 19.3 million for the same period in '24.

Speaker #1: Operating income for the six months ended June of '25 was 114 million compared to 6.7 million for the six months ended June of '24, and net income attributable to New Text Inc. improved by 4.2 million from a loss of 0.7 million for the six months of '24 to income of 3.5 million in the first six months of '25.

Operator: Operating income for the six months ended June 2025 was $114 million compared to $6.7 million for the six months ended June 2024. Net income attributable to Nutex Health improved by $4.2 million from a loss of $0.7 million for the six months of 2024 to income of $3.5 million in the first six months of 2025. Adjusted EBITDA attributable to Nutex Health increased $138 million, or 2,144%, from $6.4 million in the first six months of 2024 up to $144.4 million in the first six months of 2025. Now, lastly, let's go on to the results for the third quarter ended 30 September 2025 and compare those results to the third quarter of 2024. For the third quarter of 2025, our total revenue grew 240%, or $189 million, to $267 million versus $78.8 million for the third quarter of 2024.

Operating income for the six months ended June 2025 was $114 million compared to $6.7 million for the six months ended June 2024. Net income attributable to Nutex Health improved by $4.2 million from a loss of $0.7 million for the six months of 2024 to income of $3.5 million in the first six months of 2025. Adjusted EBITDA attributable to Nutex Health increased $138 million, or 2,144%, from $6.4 million in the first six months of 2024 up to $144.4 million in the first six months of 2025. Now, lastly, let's go on to the results for the third quarter ended 30 September 2025 and compare those results to the third quarter of 2024. For the third quarter of 2025, our total revenue grew 240%, or $189 million, to $267 million versus $78.8 million for the third quarter of 2024.

Speaker #1: And adjusted EBITDA attributable to New Text increased 138 million or 2,144% from 6.4 million in the first six months of '24 up to 144.4 million in the first six months of '25.

Speaker #1: Now, lastly, let's go on to the results for the third quarter into September 30th of '25 and compare those results to the third quarter of 2024.

Speaker #1: For the third quarter 2025, our total revenue grew 240% or 189 million, to 267 million versus 78.8 million for the third quarter of '24.

Speaker #1: The hospital division drove most of this growth, generating $260.2 million, up 262.8% from $71.1 million for the same quarter in 2024. Now, of the total revenue increase, mature hospitals, which are hospitals that opened prior to December 31, 2021, and therefore provided two full years of comparative results, increased their revenue by 208.9% for the third quarter of 2025 compared to the same period.

Operator: The hospital division drove most of this growth, generating $260.2 million, up 262.8% from $71.1 million for the same quarter in 2024. Now, of the total revenue increase, mature hospitals, which were hospitals that were opened prior to 31 December 2021 and therefore provided two full years of comparative results, increased their revenue by 208.9% for the third quarter of 2025 for the same quarter of 2024. Excuse me, Jon. Sorry, Jon, your line is distorting again. Okay. Is that better or not right now? Can you hear me? No, it's still breaking up. Okay. All right. Let's see. Tell me if that's any better at this point. No. Okay. I can continue, if you'd like, or if you'd like me to hold off. I'm not able to hear anything right now. No. Sorry, Jon, we still can't hear you. Okay.

The hospital division drove most of this growth, generating $260.2 million, up 262.8% from $71.1 million for the same quarter in 2024. Now, of the total revenue increase, mature hospitals, which were hospitals that were opened prior to 31 December 2021 and therefore provided two full years of comparative results, increased their revenue by 208.9% for the third quarter of 2025 for the same quarter of 2024.

Speaker #1: quarter in '24.

[Company Representative]: Excuse me, Jon. Sorry, Jon, your line is distorting again.

Speaker #2: Oh,

Speaker #2: excuse me, John. Sorry, John. Your line is distorting again.

Jon Bates: Okay. Is that better or not right now? Can you hear me?

Speaker #1: Okay. Is that better or not right now? You okay here?

[Company Representative]: No, it's still breaking up.

Speaker #2: No, it's still breaking up.

Jon Bates: Okay. All right. Let's see. Tell me if that's any better at this point.

Speaker #1: Okay. All right. Let's see. Tell me if that's any better at this

Speaker #1: point. All No. All right. Okay. So I can continue if you'd like, or would you like me to put off the not able to hear anything right

[Company Representative]: No.

Jon Bates: Okay. I can continue, if you'd like, or if you'd like me to hold off. I'm not able to hear anything right now.

Speaker #1: now?

[Company Representative]: No. Sorry, Jon, we still can't hear you.

Speaker #2: Sorry, John. We still can't hear you.

Jon Bates: Okay.

Speaker #1: Okay. So I can attempt to call back in if that's what needs to happen. Let's see. Can you hear me any better now?

Operator: I can attempt to call back in if that's what needs to happen. Let's see. Can you hear me any better now? Yep. Yep. You're clear now. All right. Is that better now? Yes, it is. Can you hear me now? Okay. I'll continue from here and tell me if you can't hear me. We were just talking about the total revenue increase. This is in the third quarter. I'll start back over for the third quarter. For the third quarter of 2025, our total revenue grew 240%, or $189 million, to $267.8 million versus the $78.8 million for the third quarter of 2024. The hospital division drove most of this growth, generating $260.2 million, up 262.8% from $71.7 million for the same quarter in 2024.

I can attempt to call back in if that's what needs to happen. Let's see. Can you hear me any better now?

[Company Representative]: Yep. Yep. You're clear now.

Speaker #2: Yep. Yep. You're clear now.

Jon Bates: All right. Is that better now?

Speaker #1: All right. Is that better now? Can you hear me now?

Speaker #2: Yes, it is.

[Company Representative]: Yes, it is.

Jon Bates: Can you hear me now? Okay. I'll continue from here and tell me if you can't hear me. We were just talking about the total revenue increase. This is in the third quarter. I'll start back over for the third quarter. For the third quarter of 2025, our total revenue grew 240%, or $189 million, to $267.8 million versus the $78.8 million for the third quarter of 2024. The hospital division drove most of this growth, generating $260.2 million, up 262.8% from $71.7 million for the same quarter in 2024.

Speaker #1: Okay. So I'll continue from here. And tell me if you can't hear me. So we were just talking about of the total revenue increase this is in the third quarter of—I'll start back over for the third quarter.

Speaker #1: So for the third quarter of 2025, our total revenue grew 240% or 189 million, to 267.8 million, versus the 78.8 million for the third quarter of '24.

Speaker #1: The hospital division drove most of this growth, generating 260.2 million up 262.8% from 71.7 million for the same quarter in '24. Of the total revenue increase, mature hospitals, which are hospitals or opened prior to December of '20, 31st of 2021, increased their revenue by 208.9% for the third quarter of '25 versus the third quarter of '24.

Operator: Of the total revenue increase, mature hospitals, which were hospitals that were opened prior to 31 December 2021, increased their revenue by 208.9% for the third quarter of 2025 versus the third quarter of 2024. Of the $260.2 million in hospital revenue, $182.1 million, or approximately 70%, related to a combination of both higher acuity claims as well as excessive independent dispute resolution process. With regard to arbitration-related revenue, due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our visits through the IDR process. We have one legal determination on over 85% of the claims submitted, and we currently have an average. Excuse me, Jon. Sorry. Again, it happened again. Should I just let Tom—should I hand it back to Tom? Yeah.

Of the total revenue increase, mature hospitals, which were hospitals that were opened prior to 31 December 2021, increased their revenue by 208.9% for the third quarter of 2025 versus the third quarter of 2024. Of the $260.2 million in hospital revenue, $182.1 million, or approximately 70%, related to a combination of both higher acuity claims as well as excessive independent dispute resolution process. With regard to arbitration-related revenue, due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our visits through the IDR process. We have one legal determination on over 85% of the claims submitted, and we currently have an average.

Speaker #1: Of the 260.2 million in hospital revenue, 182.1 million or approximately 70% related to a combination of both higher acuity claims as well as excessive independent dispute resolution process.

Speaker #1: With regard to arbitration-related revenue, due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our business through the IDR process.

Speaker #1: And we have one legal determination on over 85% of the claims submitted, and we currently have an average—

[Company Representative]: Excuse me, Jon. Sorry. Again, it happened again. Should I just let Tom—should I hand it back to Tom?

Speaker #2: Excuse me, John. Sorry. Again, it happened again. Should I just let Tom—should I hand it back to...

Speaker #2: Tom? Yeah.

Jon Bates: Yeah.

Speaker #1: Why don't you hand it back to Tom at this point, and we'll go from there.

Operator: Why don't you hand it back to Tom at this point, and we'll go from there? Okay. Dr. Vo? Apologize about technical difficulties. Can you hear me okay? Yes. Okay. Perfect. Okay. I think Jon was talking about the let's see here. Tom, we were talking about the can you hear me at all? The third quarter of 2025. Were you able to hear that at all or not? Yeah. We heard a little bit. We could hear you now, Jon, but I'm not sure what happened there. Go ahead, Jon. Yeah. I'll try to log back in. I'll try to call back in through my cell phone and see if maybe that works better. Okay? Give me one second. Apologize, everyone. Again, ladies and gentlemen, thank you for your patience as we worked through these technical difficulties. We will resume again shortly.

Why don't you hand it back to Tom at this point, and we'll go from there?

[Company Representative]: Okay. Dr. Vo?

Speaker #2: Okay. Dr. Bowe?

Tom Vo: Apologize about technical difficulties. Can you hear me okay?

Speaker #3: I I apologize about technical difficulties. Joe, can you hear me okay?

[Company Representative]: Yes.

Tom Vo: Okay. Perfect. Okay. I think Jon was talking about the let's see here.

Speaker #3: Okay. Perfect. Okay. I Yes. think, John, was talking about the—let's see

Speaker #3: here.

Jon Bates: Tom, we were talking about the can you hear me at all? The third quarter of 2025. Were you able to hear that at all or not?

Speaker #1: So, Tom, we were talking about the—can you.

Speaker #1: You hear me at all? The third quarter of 2025. Were you able to hear that at all or...?

Tom Vo: Yeah. We heard a little bit. We could hear you now, Jon, but I'm not sure what happened there. Go ahead, Jon.

Speaker #3: Yeah. We heard a little bit on it. We can hear you now, John, but I'm not sure what happened there. Go ahead, John.

Jon Bates: Yeah. I'll try to log back in. I'll try to call back in through my cell phone and see if maybe that works better. Okay? Give me one second.

Speaker #1: Yeah, I'll try to log back—I’ll try to call back in through my cell phone and see if maybe that works better. Okay? So give me one.

Speaker #1: second.

Tom Vo: Apologize, everyone.

Speaker #3: I

Speaker #3: I apologize, everyone.

Operator: Again, ladies and gentlemen, thank you for your patience as we worked through these technical difficulties. We will resume again shortly.

Speaker #2: Trying to get my—Gentlemen, thank you for your patience. As we work through these technical difficulties, we will resume again

Speaker #2: shortly. While we wait for

Operator: While we wait for Jon. Okay. Jon, are you there? Yes. Can you hear me or not? You can hear me okay? Yes. All right. I'm back. I'm going to start back over again with this last piece. Thank you. Can you hear me? Can you hear me okay? Tom, is it able to be heard? Okay. All right. I'm almost done, so we'll go through. Jon, if you can go over the stock-based compensation expense because I didn't hear that. For the second quarter, obviously, start. Tom, you ready for me to continue? Yes. Can you hear me okay? I'm going to continue right now. You let me know if you can hear me okay. All right. I'm going to finish with the third quarter. We were talking about just on the revenue side.

[Company Representative]: While we wait for Jon.

Speaker #3: John, okay.

[Company Representative]: Okay. Jon,

Jon Bates: are you there?

Speaker #1: Are you John, you want to—

Speaker #1: There? Can you hear me, or...?

[Company Representative]: Yes.

Speaker #2: Yes.

Jon Bates: Can you hear me or not? You can hear me okay?

Speaker #1: not? Can you

Speaker #3: Are you, John? Mm-hmm.

Speaker #1: hear me okay?

[Company Representative]: Yes.

Jon Bates: All right. I'm back. I'm going to start back over again with this last piece. Thank you. Can you hear me? Can you hear me okay? Tom, is it able to be heard? Okay. All right.

Speaker #1: All right. So I'm back. I'm going to start back Yes. over again. With this last piece?

Speaker #1: Okay. Thank you. Thank you, John.

Speaker #3: Can you hear me?

Speaker #1: Can you hear me okay, Tom? Is it able to be heard? Okay. All right. I'm almost done, so we'll go.

Tom Vo: I'm almost done, so we'll go through. Jon, if you can go over the stock-based compensation expense because I didn't hear that. For the second quarter, obviously, start.

Speaker #1: through.

Speaker #3: And if you can, go

Speaker #3: over the stack-based compensation expense because you didn't hear that. And then for the second quarter, because I think that was. Shareholders, and then obviously start with—

Jon Bates: Tom, you ready for me to continue?

Speaker #1: So, Tom, you ready for me to continue?

Tom Vo: Yes.

Jon Bates: Can you hear me okay? I'm going to continue right now. You let me know if you can hear me okay. All right. I'm going to finish with the third quarter. We were talking about just on the revenue side.

Speaker #1: Can you hear me Yes. okay?

Speaker #1: I'm going to continue right Okay. now. You let me know if it's—if you can hear me okay. All right. So I'm going to finish with the third quarter.

Speaker #1: We were talking about just on the revenue side. We were talking about on revenue. Of the 260.2 million in hospital revenue, 182.1 million or 70% related to the combination of both higher acuity claims as well as success through the IDR process.

Operator: We were talking about, on revenue of $260.2 million in hospital revenue, $182.1 million, or 70%, related to the combination of both higher acuity claims as well as access through the IDR process. With regard to the arbitration-related revenue, due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our visits through the IDR process. We have won a legal determination on over 85% of the claims submitted. We currently have an average collection rate of over 80% of the legal determination wins. Arbitration costs approximately between 24% to 26% of the arbitration revenue.

We were talking about, on revenue of $260.2 million in hospital revenue, $182.1 million, or 70%, related to the combination of both higher acuity claims as well as access through the IDR process. With regard to the arbitration-related revenue, due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our visits through the IDR process. We have won a legal determination on over 85% of the claims submitted. We currently have an average collection rate of over 80% of the legal determination wins. Arbitration costs approximately between 24% to 26% of the arbitration revenue.

Speaker #1: And with regard to the arbitration-related revenue, due to the continual underpayment from payers, we have continued to submit between 60 to 70 percent of our business through the IDR process.

Speaker #1: And we have won a legal determination on over 85% of the claims submitted, and we currently have an average collection rate of over 80% of the legal determination wins.

Speaker #1: Arbitration costs approximately between 24 to 26 percent of the arbitration revenue. Now, for hospital division visits, we saw growth as well during the quarter, as they increased 11% or 4,564 visits to 46,232 visits in the third quarter of '25 versus 41,668 visits in the same period in '24.

Operator: Now, for hospital division visits, we saw growth as well during the quarter as they increased 11%, or 4,564 visits, to 46,232 visits in the third quarter of 2025 versus 41,668 visits in the same period in 2024, while mature hospitals increased by 0.6% in the third quarter or decreased by 0.6% in the third quarter of 2025 versus the third quarter of 2024. Additionally, the population health division had a revenue increase of $0.5 million to $7.6 million in the third quarter of 2025 from $7.1 million in the similar period in 2024. We discussed the growth in the hospital revenue visits that we've seen in the third quarter of 2025. Now, let's discuss the overall facility and cost structure and improvements in that area.

Now, for hospital division visits, we saw growth as well during the quarter as they increased 11%, or 4,564 visits, to 46,232 visits in the third quarter of 2025 versus 41,668 visits in the same period in 2024, while mature hospitals increased by 0.6% in the third quarter or decreased by 0.6% in the third quarter of 2025 versus the third quarter of 2024. Additionally, the population health division had a revenue increase of $0.5 million to $7.6 million in the third quarter of 2025 from $7.1 million in the similar period in 2024. We discussed the growth in the hospital revenue visits that we've seen in the third quarter of 2025. Now, let's discuss the overall facility and cost structure and improvements in that area.

Speaker #1: While mature hospitals increased by 0.6% in the third quarter, or decreased by 0.6% in the third quarter of 2025 versus the third quarter of '24.

Speaker #1: Additionally, the population health division had a revenue increase of half a million to 7.6 million in the third quarter of '25 from 7.1 million in the similar period in '24.

Speaker #1: So we discussed the growth in the hospital revenue visits, and we've seen in the third quarter of '25. Now let's discuss the overall facility and cost structure and improvements in that area.

Speaker #1: Total facility-level operating costs and expenses represented only 42.2% or $112.9 million of total revenue for the third quarter of 2025, versus 72.2% or $56.9 million for the same period in 2024.

Operator: Total facility-level operating costs and expenses represented only 42.2% or $112.9 million of total revenue for the third quarter of 2025 versus 72.2% or $56.9 million for the same period in 2024. As a result of the revenue and facility cost improvement, our 2025 third quarter gross profit was $154.9 million or 57.8% of total revenue as compared to $21.9 million or 27.8% of total revenue in 2024, which was a 606.7% improvement in the third quarter of 2025 versus the third quarter of 2024. From a corporate and other cost perspective, the G&A expenses as a percentage of total revenue for the third quarter of 2025 decreased to 4.2% compared to 12.5% for the same period in 2024.

Total facility-level operating costs and expenses represented only 42.2% or $112.9 million of total revenue for the third quarter of 2025 versus 72.2% or $56.9 million for the same period in 2024. As a result of the revenue and facility cost improvement, our 2025 third quarter gross profit was $154.9 million or 57.8% of total revenue as compared to $21.9 million or 27.8% of total revenue in 2024, which was a 606.7% improvement in the third quarter of 2025 versus the third quarter of 2024. From a corporate and other cost perspective, the G&A expenses as a percentage of total revenue for the third quarter of 2025 decreased to 4.2% compared to 12.5% for the same period in 2024.

Speaker #1: As a result of the revenue and facility cost improvement, our 2025 third quarter gross profit was 154.9 million or 57.8% of total revenue, as compared to 21.9 million or 27.8% of total revenue in '24.

Speaker #1: Which was a 606.7% improvement in the third quarter of '25 versus the third quarter of '24. And to Decrease 4.2% compared to 12.5% for the same period in 2024 , and so , similar to what we talked about in the second quarter .

Speaker #1: On the third quarter income statement , you're going to see that same stock based comp line item with the amounts for the third quarter of 2025 being 13.2 million , and most of that expense is explained in the third quarter of 2025 10-q .

Operator: Similar to what we talked about in the second quarter, on the third quarter income statement, you're going to see that same stock-based comp line item with the amounts for the third quarter of 2025 being $13.2 million. Most of that expense is explained in the third quarter of 2025 10-Q, again, within note 11. I'm not going to read through all the specifics on it, but what I wanted to highlight was, remember, we had talked about, of the 17 under-construction hospitals that we started with currently as of the end of September, seven hospitals had measurement periods that had ended on or before 30 September 2025. Three hospitals had measurement periods that ended after 30 September 2025. There were three hospitals with no defined measurement periods, as the three hospitals have not opened yet as of 30 September.

Similar to what we talked about in the second quarter, on the third quarter income statement, you're going to see that same stock-based comp line item with the amounts for the third quarter of 2025 being $13.2 million. Most of that expense is explained in the third quarter of 2025 10-Q, again, within note 11. I'm not going to read through all the specifics on it, but what I wanted to highlight was, remember, we had talked about, of the 17 under-construction hospitals that we started with currently as of the end of September, seven hospitals had measurement periods that had ended on or before 30 September 2025. Three hospitals had measurement periods that ended after 30 September 2025. There were three hospitals with no defined measurement periods, as the three hospitals have not opened yet as of 30 September.

Speaker #1: Again , within note 11 . So I'm not going to read , you through know , all the specifics on it . But what I highlight was , remember , wanted talked we to about of the 17 under construction hospitals that we started with currently at the end of September , seven hospitals had measurement periods that that ended had on or before September 30th of 25 , three hospitals had measurement periods that end after September 30th of 25 .

Speaker #1: And there were three hospitals with no defined measurement periods . As the three hospitals have not opened yet . As of September 30th , then the remaining four hospitals out of that 17 have no measurement period , as their hospital development plans had been abandoned .

Operator: The remaining four hospitals out of that 17 have no measurement period as their hospital development plans had been abandoned. For the third quarter of 2025, the former equity holders of one hospital are to receive an additional issuance of 307,700 shares based on the trailing 12-month results of the hospitals at the end of their measurement period. With three of these hospitals in their measurement period currently, we are accruing for the stock issuance for each in our current liabilities. In the third quarter of 2025, that accrual amounted to $11.2 million that will be trued up each quarter until we get to the end of year two for each hospital, at which time a final calculation will be done and payment will be made 100% in company stock and recorded as a non-cash stock comp expense.

Speaker #1: So for the third quarter of former 25 , the equity holders of one hospital receive an additional issuance of 307,700 shares based on the trailing 12 month results of the hospitals at the end of their measurement period , with three of these hospitals measurement in their period .

The remaining four hospitals out of that 17 have no measurement period as their hospital development plans had been abandoned. For the third quarter of 2025, the former equity holders of one hospital are to receive an additional issuance of 307,700 shares based on the trailing 12-month results of the hospitals at the end of their measurement period. With three of these hospitals in their measurement period currently, we are accruing for the stock issuance for each in our current liabilities. In the third quarter of 2025, that accrual amounted to $11.2 million that will be trued up each quarter until we get to the end of year two for each hospital, at which time a final calculation will be done and payment will be made 100% in company stock and recorded as a non-cash stock comp expense.

Speaker #1: Currently , accruing we are for the stock issuance for each for in our current liabilities , and in the third quarter of 2025 , that accrual amounted to 11.2 million .

Speaker #1: That will be chewed up each quarter until we get to the end of the year; two for each hospital, at which time a final calculation will be done and payment will be made.

Speaker #1: 100% in company stock and recorded as a non-cash stock comp expense . Now , with related to operating income for the quarter , including the negative impact of 13.8 million of non-cash stock based compensation expense for the third quarter , was 130.4 million , compared to 9.7 million in the third quarter of 24 , representing quarter over $120.7 million improvement quarter .

Operator: Now, related to operating income for the quarter, including the negative impact of $13.9 million of non-stock-based compensation expense, for the third quarter was $130.4 million compared to $9.7 million in the third quarter of 2024, representing a $120.7 million improvement quarter over quarter. Net income attributable to Nutex Health was $55.4 million for the third quarter of 2025, including the negative impact of the $13.2 million non-cash stock-based compensation expense noted previously. The comparative net loss attributable to Nutex Health was $8.8 million for the third quarter of 2024, showing a $64.2 million increase period over period. From an earnings per share perspective, our diluted EPS for the third quarter was $7.76 a share compared to a loss of $1.72 per share in the third quarter of 2024, which is a $9.48 per share increase period to period.

Now, related to operating income for the quarter, including the negative impact of $13.9 million of non-stock-based compensation expense, for the third quarter was $130.4 million compared to $9.7 million in the third quarter of 2024, representing a $120.7 million improvement quarter over quarter. Net income attributable to Nutex Health was $55.4 million for the third quarter of 2025, including the negative impact of the $13.2 million non-cash stock-based compensation expense noted previously. The comparative net loss attributable to Nutex Health was $8.8 million for the third quarter of 2024, showing a $64.2 million increase period over period. From an earnings per share perspective, our diluted EPS for the third quarter was $7.76 a share compared to a loss of $1.72 per share in the third quarter of 2024, which is a $9.48 per share increase period to period.

Speaker #1: So net income attributable to Nutex Health, Inc. was 55.4 million for the third quarter of 25 , including the negative impact of the 13.2 million non-cash stock based compensation expense noted previously .

Speaker #1: The comparative net loss attributable to new Techs was 8.8 million for the third quarter of 24 , showing a $64.2 million increase period over period from an earnings per share perspective , our diluted EPs for the third quarter was $7.77 $0.76 a share , compared to a loss of $1.70 per share in the third quarter of 24 , which is a $99.48 per share increase period to period .

Speaker #1: And lastly , adjusted related to EBITDA attributed to new techs , it increased 88.9 million from 9.7 million in the third quarter of 24 to 98.5 million in the third quarter of 25 , and now , as the last item to discuss is the September nine months of of 30th of 2025 , compared to the same nine months ended September 30th of 2020 .

Operator: Lastly, related to adjusted EBITDA attributed to Nutex Health, it increased $88.9 million from $9.7 million in the third quarter of 2024 to $98.5 million in the third quarter of 2025. Now, the last item to discuss is going to be the nine months ended 30 September 2025 compared to the same nine months ended 30 September 2024. Total revenue for the nine months of 2025 grew by 225%, from $501.2 million to $723.6 million versus $222.3 million for the first nine months of 2024. The hospital division drove most of this growth, generating $700.5 million, up 251.4% from $199.4 million for the same period in 2024. Of the total revenue increase, mature hospitals increased their revenue by 200% for the first nine months of 2025 versus the same period in 2024.

Lastly, related to adjusted EBITDA attributed to Nutex Health, it increased $88.9 million from $9.7 million in the third quarter of 2024 to $98.5 million in the third quarter of 2025. Now, the last item to discuss is going to be the nine months ended 30 September 2025 compared to the same nine months ended 30 September 2024. Total revenue for the nine months of 2025 grew by 225%, from $501.2 million to $723.6 million versus $222.3 million for the first nine months of 2024. The hospital division drove most of this growth, generating $700.5 million, up 251.4% from $199.4 million for the same period in 2024. Of the total revenue increase, mature hospitals increased their revenue by 200% for the first nine months of 2025 versus the same period in 2024.

Speaker #1: For in total revenue for the nine months of 25 grew by 225% for 501.2 million to 723.6 million , versus 222.3 million for the first nine months of 24 .

Speaker #1: The hospital division drove most of this growth , generating 70 700.5 million , up 251.4% from 199.4 million for the same period in 20 .

Speaker #1: For so , of the total revenue increase , mature hospitals increased their revenue by 200% first nine months for the 25 versus of the same period 24 .

Speaker #1: in So of the 700 million in hospital revenue , 462.9 million , or approximately 66.1% , related to combination of both higher acuity as well as independent dispute resolution process and with regard to the arbitration related costs .

Operator: Of the $700 million in hospital revenue, $462.9 million, or approximately 66.1%, related to a combination of both higher acuity as well as access through the independent dispute resolution process. With regard to the arbitration-related costs, similar results that we discussed in the quarter. Due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our visits through the IDR process. We have won legal determinations on over 85% of the claims, and we have an average collection rate of over 80% on those legal determination wins. Again, arbitration costs approximate somewhere in the 24% to 26% of that revenue.

Of the $700 million in hospital revenue, $462.9 million, or approximately 66.1%, related to a combination of both higher acuity as well as access through the independent dispute resolution process. With regard to the arbitration-related costs, similar results that we discussed in the quarter. Due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our visits through the IDR process. We have won legal determinations on over 85% of the claims, and we have an average collection rate of over 80% on those legal determination wins. Again, arbitration costs approximate somewhere in the 24% to 26% of that revenue.

Speaker #1: Similar results to those that we discussed in the quarter. Due to the continual underpayment from payers, we have continued to submit between 60% to 70% of our visits to the IDR through the process.

Speaker #1: We have won legal determinations on over 85% of the claims, and we have an average collection rate of over 80% on those legal determination wins.

Speaker #1: Again , arbitration costs approximate somewhere in the 24 to 26% of that revenue . When it comes to visits , hospital division visits saw similar growth as they increased by 13.9% , or seven 17,130 visits 140,074 visits in the first nine months to of 25 , versus 122,944 visits in the same period of 24 , with mature hospital visits growing at 1.8% in the nine months ended September 2025 , versus the same period in 2024 .

Operator: When it comes to visits, hospital division visits saw similar growth as they increased by 13.9% or 17,130 visits to 140,074 visits in the first nine months of 2025 versus 122,944 visits in the same period of 2024, with mature hospital visits growing at 1.8% in the nine months ended September 2025 versus the same period in 2024. Population health had revenue increased by 1% to $23.1 million in the first nine months of 2025 from $23 million in the first nine months of 2024. Facility and corporate-level costs continued to show improvement in the first nine months of 2025 compared to the same period in 2024. You look at total facility-level operating costs represented about 45% or $325.4 million of total revenue for the nine months into September 2025 versus 75.4% or $167.7 million for the same period in 2024, which was a decrease of 30.4%.

When it comes to visits, hospital division visits saw similar growth as they increased by 13.9% or 17,130 visits to 140,074 visits in the first nine months of 2025 versus 122,944 visits in the same period of 2024, with mature hospital visits growing at 1.8% in the nine months ended September 2025 versus the same period in 2024. Population health had revenue increased by 1% to $23.1 million in the first nine months of 2025 from $23 million in the first nine months of 2024. Facility and corporate-level costs continued to show improvement in the first nine months of 2025 compared to the same period in 2024. You look at total facility-level operating costs represented about 45% or $325.4 million of total revenue for the nine months into September 2025 versus 75.4% or $167.7 million for the same period in 2024, which was a decrease of 30.4%.

Speaker #1: Population Health had revenue increased by 1% to 23.1 million in the first 25 , nine months of from 23 million in the months of 24 facility first nine and corporate level costs continue to show improvement in the first nine months of 25 , compared to the same period in 24 , and you look at total facility level operating costs represented about 45% , or 325.4 million of total revenue for the nine months ended September 25th , versus 75.4% , or 167.7 million , for the same period in 2024 , which was a decrease of 30.4% .

Speaker #1: gross profit for The the nine months ended September 25th was 398.1 million , or 55% of revenue . As compared to 54.6 million , or 24.6% of revenue , in the same period .

Operator: The gross profit for the nine months ended September 2025 was $398.1 million, or 55% of revenue, as compared to $54.6 million, or 24.6% of revenue, in the same period in 2024, which was a $343 million increase for the nine months of 2025 versus the same period in 2024. From a corporate and other cost perspective, the G&A expenses as a percentage of total revenue for the nine months ended September 2025 decreased to 4.7%, or $33.8 million, from 13.1%, or $29.2 million, for the same period in 2024. Operating income for the nine months ended 30 September 2025 was $244.7 million compared to $16.4 million in the nine months of 2024.

The gross profit for the nine months ended September 2025 was $398.1 million, or 55% of revenue, as compared to $54.6 million, or 24.6% of revenue, in the same period in 2024, which was a $343 million increase for the nine months of 2025 versus the same period in 2024. From a corporate and other cost perspective, the G&A expenses as a percentage of total revenue for the nine months ended September 2025 decreased to 4.7%, or $33.8 million, from 13.1%, or $29.2 million, for the same period in 2024. Operating income for the nine months ended 30 September 2025 was $244.7 million compared to $16.4 million in the nine months of 2024.

Speaker #1: In 24 , which was a $343 million increase for the nine months of 25 versus the same period in 24 . From a corporate and other cost perspective , the expenses as a percentage of total revenue for the nine months September of ended in 25 decreased to 4.7% , or 33.8 million , from 13.1% , or 29.2% , for the same period in 24 operating income .

Speaker #1: nine months ended For the September 30th of 25 244.7 million , was compared to 16.4 million in the in the same months 24 of , and then income attributable to new techs improved by 68.5 million from a loss of 9.5 million for the first nine months of 24 to income of 59 million in the first nine months of 25 .

Operator: Net income attributable to Nutex Health improved by $68.5 million from a loss of $9.5 million for the first nine months of 2024 to income of $59 million in the first nine months of 2025. Adjusted EBITDA attributable to Nutex Health increased $226.9 million, or over 1,400%, from $16.1 million in the first nine months of 2024 to $243 million in the first nine months of 2025. Finally, our balance sheet remains very strong, with cash and cash equivalents at 30 September 2025 at a record high of $166 million, up $125.4 million from $40.6 million as of the end of 2024. Our continued success with the collection efforts related to the independent dispute resolution process is allowing us to get paid more fairly for the services we provide and was a big part of this process.

Net income attributable to Nutex Health improved by $68.5 million from a loss of $9.5 million for the first nine months of 2024 to income of $59 million in the first nine months of 2025. Adjusted EBITDA attributable to Nutex Health increased $226.9 million, or over 1,400%, from $16.1 million in the first nine months of 2024 to $243 million in the first nine months of 2025. Finally, our balance sheet remains very strong, with cash and cash equivalents at 30 September 2025 at a record high of $166 million, up $125.4 million from $40.6 million as of the end of 2024. Our continued success with the collection efforts related to the independent dispute resolution process is allowing us to get paid more fairly for the services we provide and was a big part of this process.

Speaker #1: And adjusted EBITDA attributable to new techs increased 226.9 million , or over 1,400% , from 16.1 million first nine in the months of 2024 to 243 million in the first nine months of 2025 .

Speaker #1: Finally , our balance sheet remains very strong , with cash and cash equivalents at September 30th of 2025 at a record high of 166 million , up 125.4 million from 40.6 million as of the end of 2024 .

Speaker #1: Our continued success with collection the efforts the dispute related to independent resolution process is allowing us paid to get more fairly for the services we provide , and was a big part of this process with regard to accounts receivable .

Speaker #1: Our balance at September 30th was 387.4 million , an increase of 155 million from the 232.4 million at the end of December . With regard to cash flow , net cash from operating activities was very strong in 177.7 million for the nine months of 2025 , which was an increase of 154.6 million from the same period in 2024 .

Operator: With regard to accounts receivable, our balance at 30 September was $387.4 million, an increase of $155 million from the $232.4 million at the end of December. With regard to cash flow, net cash from operating activities was very strong at $177.7 million for the nine months of 2025, which was an increase of $154.6 million from the same period in 2024. On the liability side of our balance sheet, total bank or equity-type debt increased by $7.7 million to $49.1 million as of 30 September from $41.4 million at 31 December 2024, with the majority of this debt relating to items like equipment loans from our hospitals for MRIs, X-rays, ultrasounds, and CT machines.

With regard to accounts receivable, our balance at 30 September was $387.4 million, an increase of $155 million from the $232.4 million at the end of December. With regard to cash flow, net cash from operating activities was very strong at $177.7 million for the nine months of 2025, which was an increase of $154.6 million from the same period in 2024. On the liability side of our balance sheet, total bank or equity-type debt increased by $7.7 million to $49.1 million as of 30 September from $41.4 million at 31 December 2024, with the majority of this debt relating to items like equipment loans from our hospitals for MRIs, X-rays, ultrasounds, and CT machines.

Speaker #1: And then on the liability side of our of our balance sheet , total bank or equity type debt , increased by 7.7 million to 49.1 million as of September 30th , from 41.4 million at December 31st of 2024 , with the majority of this debt relating to items like equipment loans from our hospitals for MRIs , x rays , ultrasounds and CT machines .

Speaker #1: this Outside of , 40 plus million of bank type debt , the only other items material material that looked debt on the balance sheet of the like liabilities related to financing and operating lease liabilities , which are just future lease payments due to landlords on our hospital facilities .

Operator: Outside of this $40-plus million of bank-type debt, the only other item is material that looked like debt on the balance sheet of the liabilities related to financing and operating lease liabilities, which are just future lease payments due to landlords on our hospital facilities. We've discussed these in the past, so I'm not going to belabor this now, but I will say that most investors and analysts don't view these right-of-use liabilities as real operating debt, so I wanted to clarify that for you. With all of this said, our balance sheet remains very solid, and we continue to strengthen it with our positive operating performance. Our current financial position has put us in a very great spot to be able to execute on all of our initiatives in our 2025 operating plan, including the opening of the three new hospitals later this year, as Tom mentioned earlier.

Outside of this $40-plus million of bank-type debt, the only other item is material that looked like debt on the balance sheet of the liabilities related to financing and operating lease liabilities, which are just future lease payments due to landlords on our hospital facilities. We've discussed these in the past, so I'm not going to belabor this now, but I will say that most investors and analysts don't view these right-of-use liabilities as real operating debt, so I wanted to clarify that for you. With all of this said, our balance sheet remains very solid, and we continue to strengthen it with our positive operating performance. Our current financial position has put us in a very great spot to be able to execute on all of our initiatives in our 2025 operating plan, including the opening of the three new hospitals later this year, as Tom mentioned earlier.

Speaker #1: We've discussed these in the past , so I'm not going to belabor this now , but I will say that investors most and analysts don't view of use these right liabilities as real operating debt .

Speaker #1: So I wanted to that for you of this . With all said , sheet our balance remains very solid and we continue to strengthen it with our positive operating performance our current in financial position , as has put us in a very great spot to be able to execute on all of our initiatives in our 2025 operating plan , including the opening of the three new hospitals later this year .

Speaker #1: As Tom mentioned earlier . With that said , I apologize for any of the technical difficulties today , but I'm now going to turn it over to Warren Hosseinion .

Operator: With that said, I apologize for any of the technical difficulties today, but I'm now going to turn it over to Warren Hosseinion, our president. Thank you, Jon, and good morning, everyone. Thank you for joining us today. I'm pleased to provide an update on Nutex Health's population health division, which supports our commitment to value-based care. As a reminder, our overarching strategy at Nutex Health is to build an integrated healthcare delivery system combining hospitals and medical groups, also referred to as IPAs. Our IPAs are comprised of networks of primary care physicians and specialists located around our facilities. The IPAs enroll patients from different health plans and are responsible for the total care of these patients. By combining hospitals and IPAs, we believe we will be able to deliver care that is coordinated, cost-effective, and with better outcomes for our patients.

With that said, I apologize for any of the technical difficulties today, but I'm now going to turn it over to Warren Hosseinion, our president.

Speaker #1: Our president .

Speaker #2: Thank you . John , and good morning , everyone . Thank you for joining us today . I'm pleased to provide an update on Nutex Health, Inc. Population Health Division , which supports our commitment to value based care .

Warren Hosseinion: Thank you, Jon, and good morning, everyone. Thank you for joining us today. I'm pleased to provide an update on Nutex Health's population health division, which supports our commitment to value-based care. As a reminder, our overarching strategy at Nutex Health is to build an integrated healthcare delivery system combining hospitals and medical groups, also referred to as IPAs. Our IPAs are comprised of networks of primary care physicians and specialists located around our facilities. The IPAs enroll patients from different health plans and are responsible for the total care of these patients. By combining hospitals and IPAs, we believe we will be able to deliver care that is coordinated, cost-effective, and with better outcomes for our patients.

Speaker #2: As a reminder , our overarching strategy at Nutex Health, Inc. is to build an integrated health care delivery system combining hospitals and medical groups .

Speaker #2: Also referred to as IPAs . Our comprised IPAs are of networks of primary care physicians and specialists located around our facilities . The IPAs enrolled patients from different health plans and our responsible for the total these patients care of .

Speaker #2: By combining hospitals and IPAs , we believe we will be able to deliver care that is coordinated , cost effective , and with better outcomes for our patients .

Speaker #2: Our IPAs would send patients to our hospitals and our hospitals would deliver more efficient and cost effective care , reducing the medical loss ratios in our IPAs .

Operator: Our IPAs would send patients to our hospitals, and our hospitals would deliver more efficient and cost-effective care, reducing the medical loss ratios in our IPAs. This is a long-term strategy that will take several years to bear fruit, but we are in this for the long run at Nutex Health. One thing we would like to note is that the physicians in our IPAs can refer their non-IPA patients to our emergency rooms as well, and we are already starting to see this in Phoenix. We currently have over 40,000 patients enrolled in our IPAs in various risk-based arrangements. Of note, I am happy to report that we now have more than 1,900 Medicare Advantage members in our Houston Physicians IPA. In Phoenix, we now have over 30 primary care physicians and a robust specialist network.

Our IPAs would send patients to our hospitals, and our hospitals would deliver more efficient and cost-effective care, reducing the medical loss ratios in our IPAs. This is a long-term strategy that will take several years to bear fruit, but we are in this for the long run at Nutex Health. One thing we would like to note is that the physicians in our IPAs can refer their non-IPA patients to our emergency rooms as well, and we are already starting to see this in Phoenix. We currently have over 40,000 patients enrolled in our IPAs in various risk-based arrangements. Of note, I am happy to report that we now have more than 1,900 Medicare Advantage members in our Houston Physicians IPA. In Phoenix, we now have over 30 primary care physicians and a robust specialist network.

Speaker #2: This is a long-term strategy that will take several years to bear fruit, but we are in this for the long run.

Speaker #2: At Nutex Health, Inc. , one thing we would like to note is that the physicians in our IPAs can refer their non-ipa patients to our emergency rooms as well , and we are already starting to see this in Phoenix .

Speaker #2: We currently have over 40,000 patients enrolled in our IPAs in various risk-based arrangements. Of note, I am happy to report that we now have more than 1,900 Medicare Advantage members in our Houston Physicians IPA, Phoenix.

Speaker #2: We now have over 30 primary care physicians and a robust specialist network. Phoenix is currently in its first Medicare Annual Enrollment Period, and we will find out soon how many patients we have enrolled.

Operator: Phoenix is now currently in its first Medicare annual enrollment period, and we will find out soon how many patients we have enrolled. Our IPA in Los Angeles is still very profitable. Houston is now profitable as well, and Florida continues to be profitable. Margins continue to be moderated by ongoing investments in our new markets such as Phoenix, Dallas, and soon San Antonio. With that, I will now turn it over to Wes Bamberg, our Chief Operating Officer. Thank you, Warren, and good morning, everyone. I'm pleased to share the company's operational results, which demonstrate our ability to deliver high-quality care while achieving steady growth in service line development.

Phoenix is now currently in its first Medicare annual enrollment period, and we will find out soon how many patients we have enrolled. Our IPA in Los Angeles is still very profitable. Houston is now profitable as well, and Florida continues to be profitable. Margins continue to be moderated by ongoing investments in our new markets such as Phoenix, Dallas, and soon San Antonio. With that, I will now turn it over to Wes Bamberg, our Chief Operating Officer.

Speaker #2: IPA in Los Angeles Our is still very profitable . Houston is now profitable as well , and Florida continues to be profitable . Margins continue to be moderated by ongoing investments in our new markets , such as Phoenix and Dallas , and soon San Antonio .

Speaker #2: With that , I will now turn it over to Wes Bamberg , our chief operating officer .

Speaker #3: you , Warren , morning , everyone . I'm and good pleased to share the company's operational results , demonstrate which our to ability deliver high quality care while achieving steady growth service line in development .

Wes Bamberg: Thank you, Warren, and good morning, everyone. I'm pleased to share the company's operational results, which demonstrate our ability to deliver high-quality care while achieving steady growth in service line development.

Speaker #3: As previously reported, overall, our visits increased by 13.9% in the first nine months of 2025 compared to the same period in 2024.

Operator: As previously reported, our overall visits increased by 13.9% in the first nine months of 2025 compared to the same period in 2024, and our mature hospital visits increased by 1.8% in the first nine months of 2025 versus the same time period in 2024. Our continued growth reflects the successful execution of our core model. Specifically, this success is powered by our leadership team's focus on our key strategic growth objectives: increasing overall volume, developing new service lines, and expanding our observation and inpatient services to safely manage more complex patient needs. By leveraging our efficient operating model, we achieve superior patient outcomes and satisfaction, fueling our continued growth.

As previously reported, our overall visits increased by 13.9% in the first nine months of 2025 compared to the same period in 2024, and our mature hospital visits increased by 1.8% in the first nine months of 2025 versus the same time period in 2024. Our continued growth reflects the successful execution of our core model. Specifically, this success is powered by our leadership team's focus on our key strategic growth objectives: increasing overall volume, developing new service lines, and expanding our observation and inpatient services to safely manage more complex patient needs. By leveraging our efficient operating model, we achieve superior patient outcomes and satisfaction, fueling our continued growth.

Speaker #3: our And in mature hospital visits increased by 1.8% in the first nine months of 2025 versus the same time period in 2024 . Our continued growth reflects the successful execution of our core model .

Speaker #3: this Specifically , success is our powered by leadership team's focus on our key strategic growth objectives , increasing overall volume , developing new service lines , and expanding our observation and inpatient services to safely manage more complex patient needs .

Speaker #3: By leveraging our efficient operating model , we achieved superior patient outcomes and satisfaction , fueling our continued growth . Having joined Nutex Health, Inc. early October and with over 20 years of experience across working largest the publicly traded healthcare the companies in US , I have developed a comprehensive understanding of the critical elements required for sustained outperformance in the industry .

Operator: Having joined Nutex Health in early October and with over 20 years of experience working across the largest publicly traded healthcare companies in the US, I have developed a comprehensive understanding of the critical elements required for sustained outperformance in the industry. My initial observations confirm that Nutex possesses the fundamental strengths necessary to thrive in this evolving landscape. With a sound operational model, financial discipline, and uncompromising patient-centered philosophy, Nutex is exceptionally well-positioned for the future. These positive attributes are the key elements that will allow us to navigate industry challenges, expand our market share, and continue to serve as a trusted, high-value provider for the communities we support. I am confident that our best years of strategic growth and value creation lie ahead. Thank you, and back to you, Jen. Thank you, Wes, and thank you to Tom, Jon, and Warren for those updates.

Having joined Nutex Health in early October and with over 20 years of experience working across the largest publicly traded healthcare companies in the US, I have developed a comprehensive understanding of the critical elements required for sustained outperformance in the industry. My initial observations confirm that Nutex possesses the fundamental strengths necessary to thrive in this evolving landscape. With a sound operational model, financial discipline, and uncompromising patient-centered philosophy, Nutex is exceptionally well-positioned for the future. These positive attributes are the key elements that will allow us to navigate industry challenges, expand our market share, and continue to serve as a trusted, high-value provider for the communities we support. I am confident that our best years of strategic growth and value creation lie ahead. Thank you, and back to you, Jen.

Speaker #3: My initial observations that Newtech possesses the confirm fundamental strengths necessary to thrive in this evolving landscape . With a sound operational model , financial discipline and uncompromising , patient centered philosophy .

Speaker #3: is exceptionally well New text positioned for the future . These positive attributes are the key elements that will allow us to navigate industry challenges , expand our market share , and continue to serve as a trusted , high value provider for the communities we support .

Speaker #3: I am confident that our best years of strategic growth and value creation lie ahead . Thank you and back to you , Jen .

Speaker #4: Thank you , Wes , and thank you to Tom , John and Warren for those updates . We'll now move to the Q&A section .

Jennifer Rodriguez: Thank you, Wes, and thank you to Tom, Jon, and Warren for those updates.

Speaker #4: Operator . Please provide our instructions for callers .

Operator: We'll now move to the Q&A section. Operator, please provide instructions for our callers. Thank you. Ladies and gentlemen, if you would like to ask a question, please press Star 1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press Star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. One moment, please, while we pull for questions. The first question comes from the line of Anthony Vendetti with Maxim Group. Please proceed. Thank you. Maybe just I'll start with just a high-level question and then ask you a little bit about what happened at Red River Hospital, why was it closed, and I saw you just recently reopened it.

We'll now move to the Q&A section. Operator, please provide instructions for our callers.

Speaker #5: Thank you . Ladies and gentlemen , if you would like to ask a question , please press Star One on your telephone keypad and a confirmation tone will indicate your line is in the question queue .

Operator: Thank you. Ladies and gentlemen, if you would like to ask a question, please press Star 1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press Star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. One moment, please, while we pull for questions. The first question comes from the line of Anthony Vendetti with Maxim Group. Please proceed.

Speaker #5: You may press star two . If you would like to remove your question from the queue for participants using speaker equipment , and may be necessary to pick up your handset before pressing the star keys .

Speaker #5: moment please . While we pull for One questions . And the first question comes from the line of Anthony Venditti with Maxim Group .

Speaker #5: Please proceed . Thank you .

Speaker #6: Maybe just I'll start with just a high level question and then ask you a little bit what happened at Red River about . Microhospital why was it closed ?

Anthony Vendetti: Thank you. Maybe just I'll start with just a high-level question and then ask you a little bit about what happened at Red River Hospital, why was it closed, and I saw you just recently reopened it.

Speaker #6: And I saw you just recently reopened . It . Maybe just talk about the process there and then and then just in terms of the relationships you have the 25 facilities , now with with that you have open in 11 states , if you just maybe Tom , provide an overview of how you contract with with the physicians .

Operator: Maybe just talk about the process there. In terms of the relationships you have with the 25 facilities now that you have open in 11 states, if you could just maybe, Tom, provide an overview of how you contract with the physicians. I know, I think Jon mentioned on the call after the first year, they get an equity stake. Are they all pretty much follow the same template in terms of how you negotiate with the physicians that staff that hospital? Are there targets they need to reach to get that equity stake? Maybe just talk about that high level and then just talk about the situation at Red River. Thanks so much. Okay, great. Thank you very much, Anthony, for that question. I'll tackle the first question with Red River. Yes, you're correct.

Maybe just talk about the process there. In terms of the relationships you have with the 25 facilities now that you have open in 11 states, if you could just maybe, Tom, provide an overview of how you contract with the physicians. I know, I think Jon mentioned on the call after the first year, they get an equity stake. Are they all pretty much follow the same template in terms of how you negotiate with the physicians that staff that hospital? Are there targets they need to reach to get that equity stake? Maybe just talk about that high level and then just talk about the situation at Red River. Thanks so much.

Speaker #6: I know I think , you know , John on the mentioned call after the you know , they get an first year , equity stake .

Speaker #6: Are they all pretty much follow the same template ? You know , in terms of how you negotiate with the physicians staff , that hospital , are there targets they , that need to reach to get that equity stake talk about that high , maybe just level and then just talk about the situation at Red Thanks so River .

Speaker #6: much .

Speaker #7: Okay , great . Thank much , you very Anthony , for that question . So I'll tackle the first question with Red River .

Tom Vo: Okay, great. Thank you very much, Anthony, for that question. I'll tackle the first question with Red River. Yes, you're correct.

Speaker #7: So yes , you're correct . Red River was one of the 21 hospitals that that us when came with we merged . However , if you remember , in 20 , that was a really tough year for us with the introduction of the Act , Prices which resulted in a 35% reduction in revenue roughly .

Operator: Red River was one of the 21 hospitals that came with us when we merged. However, if you remember, in 2022, that was a relatively tough year for us with the introduction of the No Surprises Act, which resulted in a roughly 35% reduction in revenue. Because of the reduction in revenue at that time, Red River was not in a position to be profitable. In fact, it sustained operating losses. Subsequently, we had to close down Red River in addition to four other hospitals in 2023. Now that our reimbursement environment is better with arbitration, and on top of that, Sherman, as a town, has grown quite a bit in the past two years. There have been multiple IT companies moving in there. As an example, just right down the street from us, there is a company that's making chips.

Red River was one of the 21 hospitals that came with us when we merged. However, if you remember, in 2022, that was a relatively tough year for us with the introduction of the No Surprises Act, which resulted in a roughly 35% reduction in revenue. Because of the reduction in revenue at that time, Red River was not in a position to be profitable. In fact, it sustained operating losses. Subsequently, we had to close down Red River in addition to four other hospitals in 2023. Now that our reimbursement environment is better with arbitration, and on top of that, Sherman, as a town, has grown quite a bit in the past two years. There have been multiple IT companies moving in there. As an example, just right down the street from us, there is a company that's making chips.

Speaker #7: And because of the reduction in revenue at that time , Red River was not in a position to be profitable . And in it fact , sustained operating losses in .

Speaker #7: So subsequently closed down River Red . In addition to other hospitals in . So now that our reimbursement environment is better with arbitration top of and on that , Sherman , as a town has grown quite a bit past two years .

Speaker #7: There's been multiple it companies there . moving in So as an example , just right down the street from us , there is a company that's making Well , chips .

Speaker #7: not the chips , but they make the the waffles that the chip sits on . And so lots of economic development , a lot of new employers moving .

Operator: Well, not the chips, but they make the waffles that the chip sits on. Lots of economic development, a lot of new employers moving in town. A combination of that and better reimbursement, we just felt that it was time to reopen the hospital. Does that answer your question, Anthony? Yes, thanks. Maybe just to follow up to that on the physicians. The physician group that you contracted with when you reopened that hospital, is that a new group? How did that come about? Okay. Can you hear me okay? You cut out just a little bit, Tom, but go ahead. Okay. Yeah, I'm sorry about that. In any event, yes, the physician group is a brand new group, not the old group that was running it before.

Well, not the chips, but they make the waffles that the chip sits on. Lots of economic development, a lot of new employers moving in town. A combination of that and better reimbursement, we just felt that it was time to reopen the hospital. Does that answer your question, Anthony?

Speaker #7: So combination of that and better reimbursement . We just felt that it was time to reopen the hospital . Does that answer your question , Anthony ?

Speaker #6: thanks Yes , . Just , just maybe just a follow up to that on the on the physicians . So the physician group that you contracted with when you reopened that hospital , is that is that a new group ?

Anthony Vendetti: Yes, thanks. Maybe just to follow up to that on the physicians. The physician group that you contracted with when you reopened that hospital, is that a new group? How did that come about? Okay.

Speaker #6: Did you... how did that come about?

Speaker #7: hear me ? Okay . Okay . Can you Can you hear me ? Okay .

Speaker #6: You cut out just a little bit , Tom . But go ahead , okay ?

Tom Vo: Can you hear me okay?

Speaker #7: Yeah . I'm sorry about that . In any event . So . Yes , the physician group is a brand new group , not the group that old was running it before .

Anthony Vendetti: You cut out just a little bit, Tom, but go ahead.

Tom Vo: Okay. Yeah, I'm sorry about that. In any event, yes, the physician group is a brand new group, not the old group that was running it before.

Speaker #7: And the way that we've structured this is that exiled owns position 70% Group owns 30% . And we also a structured a physician staffing service contract with the physicians to essentially run the and staff .

Operator: The way that we've structured this is that Nutex Health owns 70%, the physician group owns 30%, and we also structured a physician staffing service contract with the physicians to essentially run the hospital and staff the hospital with us. When we rolled up our hospitals, Nutex Health owned an average of 80% of the hospitals. The minority shareholders owned roughly 20%. This model is very consistent with our previous structures that we contracted with the physicians. Okay. Does that sort of answer my second part of the question? Is this the template for most of the other micro-hospitals, or are there some situations where that template is different depending on the state that you're in? Excuse me. Pardon me, Anthony, but I think Tom disconnected real quick. One moment. We'll be right back. Anthony, can you hear me okay?

The way that we've structured this is that Nutex Health owns 70%, the physician group owns 30%, and we also structured a physician staffing service contract with the physicians to essentially run the hospital and staff the hospital with us. When we rolled up our hospitals, Nutex Health owned an average of 80% of the hospitals. The minority shareholders owned roughly 20%. This model is very consistent with our previous structures that we contracted with the physicians.

Speaker #7: hospital The hospital with us . And so when we rolled up our hospitals , textile owned an average of 80% of the hospitals , the minority shareholders own roughly 20% .

Speaker #7: And so this model is very with our consistent previous structures that we that we contracted with the physicians .

Speaker #6: Okay does that does that . So answer my second part of the question is the template for most of the other other microhospitals .

Anthony Vendetti: Okay. Does that sort of answer my second part of the question? Is this the template for most of the other micro-hospitals, or are there some situations where that template is different depending on the state that you're in?

Speaker #6: Or are there some situations where that that template depending on different that you're is in ?

[Company Representative]: Excuse me. Pardon me, Anthony, but I think Tom disconnected real quick. One moment. We'll be right back.

Speaker #5: Excuse me . Pardon me Anthony , but I think I think Tom disconnected real quick . One , one moment . .

Speaker #5: We'll be Anthony , can you

Speaker #1: Okay, this is—hear me? John.

Speaker #6: I can John , hear you . Fine . Yeah , totally . Clear . Yeah .

Speaker #1: So I think the answer to your last question is that the structure is very similar. There are no differences in the structure, in fact.

Jon Bates: Anthony, can you hear me okay? This is Jon.

Operator: This is Jon. Jon, I can hear you fine. Yeah. Totally clear. Yeah. I think the answer to your last question is the structure is very similar. There's no material differences in the structure. In fact, there's not a lot that you would expect to change state by state. I mean, certainly, there's different relationships with some of the doctor groups in general, but across the board, there's not really a major change or differentiator because of a certain state when we open these up. There's a lot that's improved and changed, as Tom indicated, at the Sherman location, both with the companies that are building in and around it, and just the whole structure and the way where Nutex is now versus where it was a couple of years ago.

Anthony Vendetti: Jon, I can hear you fine. Yeah. Totally clear.

Jon Bates: Yeah. I think the answer to your last question is the structure is very similar. There's no material differences in the structure. In fact, there's not a lot that you would expect to change state by state. I mean, certainly, there's different relationships with some of the doctor groups in general, but across the board, there's not really a major change or differentiator because of a certain state when we open these up. There's a lot that's improved and changed, as Tom indicated, at the Sherman location, both with the companies that are building in and around it, and just the whole structure and the way where Nutex is now versus where it was a couple of years ago.

Speaker #1: So there's not a lot that you would expect to change state by state . I mean certainly there's different relationships with doctor some of the groups in general .

Speaker #1: But but across the board there's not really a major , major change or differentiator because of a certain state . When we open these up .

Speaker #1: So and there's a lot that's improved in , in changed as Tom indicated at the Sherman location , both both with the companies that are building in and around it and just the whole structure and the way where new where new text is now versus where it was a couple years ago .

Speaker #1: So there's a lot of positive support for the concept of reopening it. And we're pretty excited about it being opened.

Operator: There are a lot of positives that support the concept for reopening it, and we're pretty excited about it being opened. Okay. Lastly, Jon, in terms of the structure, like you said, the templates are pretty similar across your micro-hospitals. Maybe just talk about the incentives the physicians have to get to profitability. Does their equity stake depend on that, or what metrics does it depend on after the first year or the second year? Maybe just give a little more color on that. That'd be helpful. Thanks. Anthony, are you talking about the non-earnout type ones, these ones that now are just opening up as in position without the earnout concept? Is that what you're asking, or are you asking specifically about those? Both. If you could just talk about the earnout ones versus the non-earnout, that'd be great. Correct.

There are a lot of positives that support the concept for reopening it, and we're pretty excited about it being opened.

Speaker #6: Okay . And then then just lastly , John , in terms of the structure , like you said , the most templates pretty similar across your microhospitals maybe just talk about the incentives the physicians have to get the profitability .

Anthony Vendetti: Okay. Lastly, Jon, in terms of the structure, like you said, the templates are pretty similar across your micro-hospitals. Maybe just talk about the incentives the physicians have to get to profitability. Does their equity stake depend on that, or what metrics does it depend on after the first year or the second year? Maybe just give a little more color on that. That'd be helpful. Thanks.

Speaker #6: their Does equity stake depend on that or what metrics does it depend on after ? Like the first year or the second year ?

Speaker #6: Maybe just give a little more color on that ? That'd be helpful . Thanks .

Speaker #1: So , Anthony , are you talking about the non earnout type ones ? These ones that now are just opening up as in position without the Earnout concept .

Jon Bates: Anthony, are you talking about the non-earnout type ones, these ones that now are just opening up as in position without the earnout concept? Is that what you're asking, or are you asking specifically about those?

Speaker #1: Is that asking, or are you asking specifically about those?

Speaker #6: you talk about Both . If the earnout ones versus the non . That'd be great . By the way .

Anthony Vendetti: Both. If you could just talk about the earnout ones versus the non-earnout, that'd be great. Correct.

Speaker #8: John , I'm back on . I apologize about that . Anthony really . Really , bad technical difficulties today . Okay . Yeah

Speaker #8: John , I'm back on . I apologize about that . Anthony really . Really , bad technical difficulties today . Okay . Yeah .

Operator: By the way, Jon, I'm back on. I apologize about that, Anthony. Really bad technical difficulty. Okay. Tom, I answered the question. Yes. I answered the first part. I think he's asking now about the structure of the earnout facilities, how it's different from, say, one like Sherman or something that's opening up. Anthony, as I know we've talked about in the past, the earnouts, which we've described pretty in detail in the Qs, remember those are we calculate the number of shares at the end of that two-year period, right, to go through and value what their position would be. There is, in this scenario, if they have a 20% stake or 30% stake, which is normally the case somewhere in that arrangement, somewhere around that amount, that on the earnouts, they ultimately resolve themselves at the end of the two-year period.

Tom Vo: By the way, Jon, I'm back on. I apologize about that, Anthony. Really bad technical difficulty.

Speaker #1: So so I Yeah answered the first part that I think he's asking now about the structure of the Earnout facilities , how it's different from , say , or something that's opening up .

Speaker #1: So so I Yeah answered the first part that I think he's asking now about the structure of the Earnout facilities , how it's different from , say , or something that's one like Sherman And so , Anthony is I so know we've talked about in the past the earnouts which described in pretty we've detail in the QS .

Speaker #1: Tom .

Speaker #8: I question

Speaker #8: . Yes .

Anthony Vendetti: Okay.

Jon Bates: Tom, I answered the question. Yes. I answered the first part. I think he's asking now about the structure of the earnout facilities, how it's different from, say, one like Sherman or something that's opening up. Anthony, as I know we've talked about in the past, the earnouts, which we've described pretty in detail in the Qs, remember those are we calculate the number of shares at the end of that two-year period, right, to go through and value what their position would be. There is, in this scenario, if they have a 20% stake or 30% stake, which is normally the case somewhere in that arrangement, somewhere around that amount, that on the earnouts, they ultimately resolve themselves at the end of the two-year period.

Speaker #1: Remember those? Those are how we calculate the number of shares at the end of that two-year period, right? To go through and value what their position would be.

Speaker #1: You know , there is in this scenarios , if they have a 20% stake or 30% stake , which is normally the case somewhere in the in that arrangement , somewhere around that amount that on the earnouts , they ultimately resolve themselves into the two year period .

Speaker #1: And where that earning structure is at the same multiple of course , that the original companies , when the company went public back in 2022 , the same calculator and all that , that's how they get given those shares based on their defined ownership at the beginning .

Operator: Where that earning structure is at the same multiple, of course, that the original companies, when the company went public back in 2022, the same calculator and all that, that's how they get given their shares based on their defined ownership at the beginning. You talk about incentives. Certainly, they're incented to do as well as they can, not only in the first two years. That's just to get the stock. In most scenarios, they're also operators and employees of the facility. They benefit from working in the facility and seeing the profit from that as well, and giving good outcomes, of course. They're tied in. In some cases, they have a relationship on the asset entity, which is the private side. Of course, there are employees and owners in the actual hospital side of it.

Where that earning structure is at the same multiple, of course, that the original companies, when the company went public back in 2022, the same calculator and all that, that's how they get given their shares based on their defined ownership at the beginning. You talk about incentives. Certainly, they're incented to do as well as they can, not only in the first two years. That's just to get the stock. In most scenarios, they're also operators and employees of the facility. They benefit from working in the facility and seeing the profit from that as well, and giving good outcomes, of course. They're tied in. In some cases, they have a relationship on the asset entity, which is the private side. Of course, there are employees and owners in the actual hospital side of it.

Speaker #1: And so you talk about incentives . Certainly there to do incentive to as well as they can , not only in the first two years .

Speaker #1: That's just to get the stock , but most in scenarios they're also operators . And you know , employees of the facility . So they benefit from , you know , working in the facility and seeing the profit from that as well and giving good outcomes .

Speaker #1: Of course . So they're tied in in some cases they have a relationship on the asset entity , which is the private side .

Speaker #1: Then of course , their employees and owners in the actual hospital side of it . And then they're also in a lot of cases , tied into the the doctor billing side , which the doctor billing side , which we do the billing for them .

Operator: They're also, in a lot of cases, tied into the doctor billing side, which we do the billing for them, but the doctors own 100% of that. They have a benefit on that side. That's for the earnout ones, right? These others that aren't affiliated with an earnout one, I think everything else we just described, I mean, they have an ownership in that facility as it becomes profitable. They benefit from that, and they share in the ups and the downs of the corporate group, which is the whole idea. We want everyone to be lockstep, side by side with each other as we grow. It takes time to do that. I think we have a great partnership in place, specifically in Sherman, along with all the other facilities as well. I think that's going pretty well.

They're also, in a lot of cases, tied into the doctor billing side, which we do the billing for them, but the doctors own 100% of that. They have a benefit on that side. That's for the earnout ones, right? These others that aren't affiliated with an earnout one, I think everything else we just described, I mean, they have an ownership in that facility as it becomes profitable. They benefit from that, and they share in the ups and the downs of the corporate group, which is the whole idea. We want everyone to be lockstep, side by side with each other as we grow. It takes time to do that. I think we have a great partnership in place, specifically in Sherman, along with all the other facilities as well. I think that's going pretty well.

Speaker #1: But the doctor's own 100% of that they have a benefit on that side . So that's the that's for the the earnout ones .

Speaker #1: Right . And then these others that aren't affiliated with an out run , I everything else think we just described , I mean , they are they have an ownership in that facility as it becomes profitable , they benefit from that .

Speaker #1: And they share in the ups and the downs of of the corporate group , which is the whole idea . We want everyone to to be lockstep , side by side with each other as we grow .

Speaker #1: takes time And it to do that . And I think we have a great partnership in place , specifically in Sherman , along with all other facilities as well .

Speaker #1: I think that's going pretty well . Tom , you can add that .

Speaker #8: Anthony . So , you know , you're right . I think John has Yeah . already hit the nail on the head for most .

Operator: Tom, you can add to that. Yeah. Anthony, you're right. I think Jon has already hit the nail on the head for most. For the ones that earn out and receive Nutex's share, in essence, their success is dependent on Nutex's success now. When the ocean rises, all the boats rise. I think that is a very nice privilege for physicians to have because that is very unique in healthcare. Not too many companies could offer stocks like that to healthcare employees. On top of that, like Jon said, the physician also has an equity ownership on the professional entity, which is the physician entity. The physician makes an hourly wage when they work. If the professional entity is profitable, then they will also be profitable in addition to owning Nutex stock.

Tom, you can add to that.

Tom Vo: Yeah. Anthony, you're right. I think Jon has already hit the nail on the head for most. For the ones that earn out and receive Nutex's share, in essence, their success is dependent on Nutex's success now. When the ocean rises, all the boats rise. I think that is a very nice privilege for physicians to have because that is very unique in healthcare. Not too many companies could offer stocks like that to healthcare employees. On top of that, like Jon said, the physician also has an equity ownership on the professional entity, which is the physician entity. The physician makes an hourly wage when they work. If the professional entity is profitable, then they will also be profitable in addition to owning Nutex stock.

Speaker #8: But for the ones that earn out and receive new tech, their success is, in essence, dependent on new tech success.

Speaker #8: Now . So that when the ocean rises , all the boat rides . And think that that so I is a very nice privilege .

Speaker #8: And for have , because physicians to that is very unique in healthcare . Not too many companies could offer stocks like that to to healthcare employees .

Speaker #8: And then on top of that , like John said , the physician also has equity ownership on the professional entity , which is physician the entity .

Speaker #8: And so the physician makes an hourly wage when they work. But then, if the professional entity is profitable, they will also be, in addition to owning new tech stock for the physicians that did not roll up their new tech shares, then they stay at the local level.

Speaker #8: And if the facility is profitable , then they get a minority quarterly distribution on top of their potential profitability on the physician side , as well as hourly work .

Operator: For the physicians that did not roll up their Nutex shares, they stay at the local level. If the facility is profitable, they get a minority distribution quarterly on top of their potential profitability on the physician side as well as hourly work. We treat the physicians very fairly. As you can see on our financials, we did a fair amount of minority equity distribution in the first nine months. You can see on the minority profit, the physicians also did very well. Okay. Great. No, that was very helpful. I'll jump back in the queue. Appreciate it. Thank you, Anthony. The next question comes from the line of Bill Sutherland with The Benchmark Company. Please proceed. Thank you. Good morning, guys. I think I'll just leave it at one question in the interest of time.

For the physicians that did not roll up their Nutex shares, they stay at the local level. If the facility is profitable, they get a minority distribution quarterly on top of their potential profitability on the physician side as well as hourly work. We treat the physicians very fairly. As you can see on our financials, we did a fair amount of minority equity distribution in the first nine months. You can see on the minority profit, the physicians also did very well.

Speaker #8: So we treat the physicians very fairly . And as you can see on our financials , we did a fair amount of minority equity and distribution in the first nine months .

Speaker #8: And then you can see on the minority profit, the physicians also did very well.

Speaker #8: .

Speaker #6: No , that was very Okay , great . helpful . I'll jump back in the queue . Appreciate it .

Anthony Vendetti: Okay. Great. No, that was very helpful. I'll jump back in the queue. Appreciate it.

Speaker #8: Thank you Anthony .

Jon Bates: Thank you, Anthony.

Speaker #5: The next question comes from the line of Bill Sutherland with the benchmark company . Please proceed . Thank you .

Operator: The next question comes from the line of Bill Sutherland with The Benchmark Company. Please proceed.

Speaker #9: Good morning guys . I think I'll just leave it at one question . In the interest of time , I'm curious , as this process moves ahead , the IDR process , are you starting to have any different kinds of discussions with some of the payers ?

Bill Sutherland: Thank you. Good morning, guys. I think I'll just leave it at one question in the interest of time.

Operator: I'm curious, as this process moves ahead, the IDR process, are you starting to have any different kinds of discussions with some of the payers as far as just wanting to have more productive negotiation talks prior to moving to the claims process? Yeah. Bill said, thank you for covering us, and thank you for being on the call. Yes, the answer is yes. Over the past, I would say, three to four months, we're hearing a lot more from payers to try to negotiate better in-network rate contracts. We evaluate every single one of them, and we take these very, very seriously. If the contract is fair and reasonable, we will definitely take it. We're in the process of evaluating all of them. That's right.

I'm curious, as this process moves ahead, the IDR process, are you starting to have any different kinds of discussions with some of the payers as far as just wanting to have more productive negotiation talks prior to moving to the claims process?

Speaker #9: As far just as , you know , wanting to have more productive negotiating talks prior to moving to , you know , the claims process ?

Speaker #8: Yeah . Bill , thank you for for covering us . And thank you for being on the call . But yes , the answer is yes .

Jon Bates: Yeah. Bill said, thank you for covering us, and thank you for being on the call. Yes, the answer is yes. Over the past, I would say, three to four months, we're hearing a lot more from payers to try to negotiate better in-network rate contracts. We evaluate every single one of them, and we take these very, very seriously. If the contract is fair and reasonable, we will definitely take it. We're in the process of evaluating all of them. That's right.

Speaker #8: Over the past , I would say 3 to 4 months . We're hearing a lot more from payers to try to negotiate better and that work rate contracts and we evaluate every single one of them .

Speaker #8: And we take these very , very seriously . And if the contract is fair and will definitely take it reasonable , we . And so we're in the process of evaluating all of them .

Speaker #8: right That's .

Speaker #9: And in that , in the course of doing that , as you move a pair away from , you know , realizing these , these claim the claim wins will it will it really result in the same kind of financial impact in of terms the on that business margins ?

Operator: In the course of doing that, as you move a payer away from realizing these claim wins, will it really result in the same kind of financial impact in terms of the margins on that business? Yeah, I can speak to that, Tom. I mean— Yeah, go ahead, Jon. The reality is, we'll see, right, as we go through. It depends on where the price points land. Remember, even when you determine a fair and reasonable payment, which hopefully we will be able to get and avoid having to go through the IDR process, one of the benefits of avoiding it is the fees related to going through it.

Bill Sutherland: In the course of doing that, as you move a payer away from realizing these claim wins, will it really result in the same kind of financial impact in terms of the margins on that business?

Speaker #1: Yeah , I can speak to that , Tom . I mean .

Speaker #8: Yeah , go ahead , John .

Speaker #1: So the reality is , well we'll see go through . It depends right as we on where the , the price points land .

Jon Bates: Yeah, I can speak to that, Tom. I mean—

Speaker #1: But remember , even when you when you determine a fair and reasonable payment , which hopefully we will we be able to get and avoid having to go through the order process .

Tom Vo: Yeah, go ahead, Jon.

Jon Bates: The reality is, we'll see, right, as we go through. It depends on where the price points land. Remember, even when you determine a fair and reasonable payment, which hopefully we will be able to get and avoid having to go through the IDR process, one of the benefits of avoiding it is the fees related to going through it.

Speaker #1: One of the benefits of avoiding it is the fees related to going through it . So I as we're early stage in where we some of these have been able to get , you know , a reasonable contract and avoid the necessity of going into the order process .

Operator: As we're early stage in some of these where we have been able to get a reasonable contract and avoid the necessity of going into the IDR process, so far, the perception is that the net impact when it comes to bottom line should be nominal because of the revenue. In some cases, you'll get similar revenue, maybe slightly less, but very close. You're removing 24% to 26% of the cost. It ends up being, I think, in a very similar position. It's early stage. I think as we finish out the year and walk into the first part of next year with all the other activity going on from a regulatory standpoint, I think we'll start to see movement one way or the other. We're watching it very closely.

As we're early stage in some of these where we have been able to get a reasonable contract and avoid the necessity of going into the IDR process, so far, the perception is that the net impact when it comes to bottom line should be nominal because of the revenue. In some cases, you'll get similar revenue, maybe slightly less, but very close. You're removing 24% to 26% of the cost. It ends up being, I think, in a very similar position. It's early stage. I think as we finish out the year and walk into the first part of next year with all the other activity going on from a regulatory standpoint, I think we'll start to see movement one way or the other. We're watching it very closely.

Speaker #1: So far , the perception is that the impact , net when it comes to bottom line , should be nominal because of the revenue in some cases , you know , you'll get similar revenue , maybe slightly but less , very but But close .

Speaker #1: you're , you know , removing 24 to 26% of the cost . So it ends up being , I think , in a very similar position .

Speaker #1: But it's early stage . And I think as we finish out the year and walk into the first part of next year with all the other on activity going from a regulatory standpoint , I think we'll start to see movement one way or the other , and we're watching it very We're very closely .

Speaker #1: interested as in having contracts , if we can , because that we like to avoid the all would process of having to go through the time and effort and cost of going through the process .

Operator: We're very interested, as Tom indicated, in having contracts if we can because we all would like to avoid the process of having to go through the time and effort and cost of going through the IDR process if we can avoid it. Yep. Sounds good. Thanks for all the color, guys. The next question comes from the line of Carl Byrnes with Northland Capital Markets. Please proceed. Thanks for the question, and congratulations on your success and progress. I'm just wondering, now that you've got greater history with respect to the IDR process, what are you thinking in terms of budgeting relative to timeline to break even on startups going forward? I have one quick follow-up. Thanks. Yeah. I think the call is a great question. Thanks for raising it.

We're very interested, as Tom indicated, in having contracts if we can because we all would like to avoid the process of having to go through the time and effort and cost of going through the IDR process if we can avoid it.

Speaker #1: whole If we can avoid it .

Speaker #9: Yep . good Sounds . Thanks for all the color guys .

Bill Sutherland: Yep. Sounds good. Thanks for all the color, guys.

Speaker #5: question comes The next of from the line Carl Burns Northland with Capital Markets . Please proceed .

Speaker #5: question comes The next of from the line Carl Burns Northland with Capital Markets . Please proceed .

Operator: The next question comes from the line of Carl Byrnes with Northland Capital Markets. Please proceed.

Speaker #6: for the question and

Speaker #6: congratulations .

Speaker #10: progress . your I'm just wondering , you know , now that you've got , you know , greater history with On respect to the process , you know , what are you thinking in IDR terms of budgeting relative to timeline to break even on startups going forward ?

Carl Byrnes: Thanks for the question, and congratulations on your success and progress. I'm just wondering, now that you've got greater history with respect to the IDR process, what are you thinking in terms of budgeting relative to timeline to break even on startups going forward? I have one quick follow-up. Thanks.

Speaker #10: And then I have one quick follow up . Thanks .

Speaker #1: Yeah , Carl , it's a great question . for Thanks for raising it . So yeah . No , there's no doubt that with the movement in the direction of the requirement to have to go through the order process , it's been a very successful process for , for us now it does , as we mentioned before , time to it takes get those those dollars in .

Jon Bates: Yeah. I think the call is a great question. Thanks for raising it.

Operator: Yeah, there's no doubt that with the movement in the direction of the—feel like the requirement to have to go through the IDR process, it's been a very successful process for us. It does, as we mentioned before, take time to get those dollars in. It can be anywhere between, say, five to seven months to fully realize and get paid on a claim that does go through the process. You get the first payment within 30 to 60 days, and then you have to go through that process. The long answer to your short question is the break-even process is moving up, certainly, and I think we'll continue to watch that closely. We budget for something taking somewhere between 12 to 15 months normally to get to a break-even position.

Yeah, there's no doubt that with the movement in the direction of the—feel like the requirement to have to go through the IDR process, it's been a very successful process for us. It does, as we mentioned before, take time to get those dollars in. It can be anywhere between, say, five to seven months to fully realize and get paid on a claim that does go through the process. You get the first payment within 30 to 60 days, and then you have to go through that process. The long answer to your short question is the break-even process is moving up, certainly, and I think we'll continue to watch that closely. We budget for something taking somewhere between 12 to 15 months normally to get to a break-even position.

Speaker #1: So it can be anywhere between , say 5 to 7 months to fully realize and get paid on , you know , a claim that does go through the process .

Speaker #1: You get the first payment within 30 to 60 days . And then you have to go through that process . So the long answer to your short question the break even is process is moving up .

Speaker #1: Certainly . But and I think we'll continue to watch that closely . But , you know , we budget for something taking somewhere between 12 to 15 months normally to get to a break even position .

Speaker #1: It probably shifts easily quarter by a if we continue to be successful in open things up . But but remember , it still takes from day one For 5 to 7 months .

Operator: It probably shifts easily by a quarter if we continue to be successful in opening these up. Remember, it still takes from day one, five to seven months for the dollars to come in at the fair and reasonable rate. As a result, you really can't see it prior to that point if you still end up having to submit 60% to 70% of our claims through the process. It certainly does improve.

It probably shifts easily by a quarter if we continue to be successful in opening these up. Remember, it still takes from day one, five to seven months for the dollars to come in at the fair and reasonable rate. As a result, you really can't see it prior to that point if you still end up having to submit 60% to 70% of our claims through the process. It certainly does improve.

Speaker #1: those the dollars to come in at the fair and reasonable rate . So as result , a you really prior see it can't to to that point .

Speaker #1: If you still end up having to submit 60 to 70% of our claims to the process . So . certainly does improve . And and actually what it gives probably us more is it might be , you know , a little bit of an improvement on getting to break But the bigger impact is on the back end in year one and year two , where you're just at a you're at a more solid , more reasonable .

Operator: Actually, what it gives us probably more is it might be a little bit of an improvement on getting to break even, but the bigger impact is on the back end in year one and year two where you're at a more solid, more reasonable, what we would expect level of profitability a little bit sooner on the back end. You still have to wait probably that first nine months to a year to get to a break-even scenario. Hopefully, that helps answer your question, Carl. No, great. Excellent. That's very helpful. Shifting gears a little bit, are you seeing other opportunities like Homer G. Phillips in St. Louis? What might we expect over the next 12, 24 months there? Thanks. Yes, Carl, are you referencing our St. Louis hospital, the former Homer G. Phillips Hospital? Exactly. Yeah. Yeah.

Actually, what it gives us probably more is it might be a little bit of an improvement on getting to break even, but the bigger impact is on the back end in year one and year two where you're at a more solid, more reasonable, what we would expect level of profitability a little bit sooner on the back end. You still have to wait probably that first nine months to a year to get to a break-even scenario. Hopefully, that helps answer your question, Carl.

Speaker #1: What we would expect level of profitability a little bit sooner on the back end . But you still have to wait . Probably that first nine months to a year to get to a break even scenario .

Speaker #1: So hopefully that helps answer your question . Carl .

Speaker #10: No . Great . Excellent . That's very helpful . And then shifting gears a bit , little are you other seeing Homer G .

Speaker #10: opportunities like Phillips and Saint Louis know what might be ? And you what might we expect over the next 12 , 24 months there ?

Carl Byrnes: No, great. Excellent. That's very helpful. Shifting gears a little bit, are you seeing other opportunities like Homer G. Phillips in St. Louis? What might we expect over the next 12, 24 months there? Thanks.

Tom Vo: Yes, Carl, are you referencing our St. Louis hospital, the former Homer G. Phillips Hospital?

Speaker #10: Thanks .

Speaker #8: So , so , yes . Kara , are you are you referencing our Saint Louis Hospital ? The former Homer H . Philip Hospital ?

Speaker #10: Exactly .

Speaker #6: Yeah .

Speaker #8: Yeah . So ? So that is on . That is on the be agenda to open this year . And we hope to open either mid or late December the .

Carl Byrnes: Exactly. Yeah.

Tom Vo: Yeah. That is on the agenda to be opened this year, and we hope to open either mid or late December. The strategy is essentially the same: providing the best customer service, providing accessibility care to that population. The location of where that hospital is is essentially very close to downtown St. Louis, which is essentially a healthcare desert. We hope to capitalize on that by providing the best care so that people can start using us. Does that answer your question, Carl?

Operator: That is on the agenda to be opened this year, and we hope to open either mid or late December. The strategy is essentially the same: providing the best customer service, providing accessibility care to that population. The location of where that hospital is is essentially very close to downtown St. Louis, which is essentially a healthcare desert. We hope to capitalize on that by providing the best care so that people can start using us. Does that answer your question, Carl? Yeah. Yeah. I'm wondering if there's other opportunities that you've presented with that are similar to that that could be opportunistic going forward. Oh, yes. The problem with micro-hospitals is that they just don't exist. Or if they do exist, they are located in areas where it is very difficult to make profitable.

Speaker #8: But strategy is essentially the same , providing the best service , providing accessibility care to that population . And the location of hospital where that is is essentially very close to downtown Saint Louis , which is essentially a .

Speaker #8: Healthcare desert. And so we hope to capitalize on that by providing the best care so that people can start using us.

Speaker #8: Does that answer your question , Carl ? Yeah , yeah .

Speaker #6: And .

Speaker #6: then I'm

Speaker #10: wondering if there's , you know , other opportunities that you were presented with that are similar to that , that , that could be opportunistic going forward ?

Carl Byrnes: Yeah. Yeah. I'm wondering if there's other opportunities that you've presented with that are similar to that that could be opportunistic going forward.

Speaker #8: yes Oh . The problem with are Microhospitals just don't exist . Or if they do exist , they are located in areas where it is very difficult to make profitable .

Tom Vo: Oh, yes. The problem with micro-hospitals is that they just don't exist. Or if they do exist, they are located in areas where it is very difficult to make profitable.

Speaker #8: And why so that's historically build , we've had to these from the ground up . And I think we mentioned this because if , if a hospital doesn't exist , then Nutex Health, Inc. does not have a hospital to operate in .

Operator: That's why historically we've had to build these from the ground up. I think we mentioned this because if a hospital doesn't exist, then Nutex Health does not have a hospital to operate in. However, there are certain hospitals that are existing out there that we strategically look to acquire. Yes, we are essentially on the lookout to acquire any of those existing hospitals, assuming that they fit all of our criteria. Yes, there are opportunities out there, few and far in between, but you just have to look. Understood. Cool. Great. Congrats again. Thanks. Thank you, Carl. The next question comes from the line of Bradford Seagraves with Northbank Capital Management. Please proceed. Hi. Thank you. Can you please provide an update on the buyback, how much you've bought, and at what price? Brad, I'm sorry. Were you talking about buyback?

That's why historically we've had to build these from the ground up. I think we mentioned this because if a hospital doesn't exist, then Nutex Health does not have a hospital to operate in. However, there are certain hospitals that are existing out there that we strategically look to acquire. Yes, we are essentially on the lookout to acquire any of those existing hospitals, assuming that they fit all of our criteria. Yes, there are opportunities out there, few and far in between, but you just have to look.

Speaker #8: However , there are certain hospitals existing out that are there that that we strategically look to acquire . And so , yes , we are essentially in the lookout to acquire any of those existing assuming that they fit all of our criteria .

Speaker #8: And so , yes , there are opportunities out there , few and far between . But have to look .

Speaker #10: Understood . Cool . Great . Congrats again . Thanks .

Speaker #8: Thank you Carl .

Carl Byrnes: Understood. Cool. Great. Congrats again. Thanks.

Speaker #5: The next question comes from the line of Bradford Seagraves with North Bank Capital Management . Please proceed .

Jon Bates: Thank you, Carl.

Operator: The next question comes from the line of Bradford Seagraves with Northbank Capital Management. Please proceed.

Speaker #11: Hi . Thank you . Can you please provide an update on the buyback ? How much you've bought and at what price ?

Bradford Seagraves: Hi. Thank you. Can you please provide an update on the buyback, how much you've bought, and at what price?

Jon Bates: Brad, I'm sorry. Were you talking about buyback? Oh, of the share? Stop buyback. Buyback is what you're asking?

Speaker #1: I'm sorry , Brad . are you are you talking about buyback ? Oh , the . share buyback . Is that what you're asking ?

Speaker #11: Yes .

Operator: Oh, of the share? Stop buyback. Buyback is what you're asking? Yes. Okay. No, at this point, we're in the process of putting that in place. At this point, no shares have been bought back. Okay. Understood. More broadly, can you talk about capital allocation priorities, the cash that's growing on the balance sheet? Curious to see what your thoughts are on what the uses of that cash might be. Yeah. I can start on that, and then Tom can add to it as well. Certainly, the buyback concept that you referenced is something that we've already announced. It's something that we're very serious about. We'll look at that very, very closely in the very short term. Certainly, there are opportunities that we try to grow and add good situations when it comes to opening up hospitals.

Speaker #1: Okay . No . At this point we're in the process of putting that in place . So at this point , no shares have back been bought .

Bradford Seagraves: Yes.

Jon Bates: Okay. No, at this point, we're in the process of putting that in place. At this point, no shares have been bought back.

Speaker #11: Okay . Understood . And then more broadly , can you talk about capital allocation priorities . You know the cash is growing on the balance sheet .

Bradford Seagraves: Okay. Understood. More broadly, can you talk about capital allocation priorities, the cash that's growing on the balance sheet? Curious to see what your thoughts are on what the uses of that cash might be.

Speaker #11: And I'm curious to to see what your thoughts are on what the uses of cash might that be .

Speaker #1: Yeah I can start on that . And then Tom can add to it as well . Certainly the buyback concept that you at referenced is something that's a we've we've already announced it .

Jon Bates: Yeah. I can start on that, and then Tom can add to it as well. Certainly, the buyback concept that you referenced is something that we've already announced. It's something that we're very serious about. We'll look at that very, very closely in the very short term. Certainly, there are opportunities that we try to grow and add good situations when it comes to opening up hospitals.

Speaker #1: So it's something that we're very serious about . And we'll look at that very , very closely in the very short term . Certainly there's opportunities to grow we try and and add good , good situations when it comes to opening up talked hospitals .

Speaker #1: about , yes , from time to time we can We find existing ones that we could potentially money on . that's that's So I think a big one .

Operator: We talked about, yes, from time to time, we can find existing ones that we could potentially spend that money on. I think that's a big one. We'll look at some other opportunities outside of investments for now. We have other opportunities to look at service line improvements. There's the IPA business, which Warren talked about as well. There are opportunities in those areas. That's kind of the direction that we're looking right now. We'll watch as we finish out the year to see if cash continues to be strong and look for some of those situations to pop up and make good decisions on where we spend that money. Yeah. To answer your question, Brad, excellent question, by the way. This is definitely a good problem to have. In essence, we are—well, the cash buyback program, as mentioned.

We talked about, yes, from time to time, we can find existing ones that we could potentially spend that money on. I think that's a big one. We'll look at some other opportunities outside of investments for now. We have other opportunities to look at service line improvements. There's the IPA business, which Warren talked about as well. There are opportunities in those areas. That's kind of the direction that we're looking right now. We'll watch as we finish out the year to see if cash continues to be strong and look for some of those situations to pop up and make good decisions on where we spend that money.

Speaker #1: And then we'll look at some other , other opportunities outside of investments for now . So we have other , other opportunities to look at service line improvements .

Speaker #1: There's the IPA which business which Warren talked about as well . So there's opportunities in those areas . So that's kind of the direction that we're looking right now .

Speaker #1: And we'll watch as we finish out the year to see if cash continues to to be and look strong for some of those situations to pop up and , and make good decisions on where we money spend that .

Speaker #8: Yeah . So , so to answer your question , excellent question . By the way . And this definitely a good problem is to have .

Tom Vo: Yeah. To answer your question, Brad, excellent question, by the way. This is definitely a good problem to have. In essence, we are—well, the cash buyback program, as mentioned.

Speaker #8: But in essence we are well the cash buyback program as mentioned . And we may or may not increase that in the future that is to be , that determined .

Speaker #8: But on top of that , we are looking hard for existing facilities like Carl brought up to acquire so that we don't have to go through the build up , ground up process .

Operator: We may or may not increase that in the future. That is to be determined. On top of that, we are looking hard for existing facilities, like Carl brought up, to acquire so that we do not have to go through the build-up, ground-up process. Thirdly, as Warren mentioned, we are looking to expand our IPA business so that we can have an IPA surrounding each of the hospitals. The reason for that really is just a very good symbiotic relationship between the hospital and the IPA business, which, once again, is very unique in the healthcare industry. Fourthly, we would like to invest into our current hospital to expand additional services capabilities. As an example, I think I mentioned behavioral health.

We may or may not increase that in the future. That is to be determined. On top of that, we are looking hard for existing facilities, like Carl brought up, to acquire so that we do not have to go through the build-up, ground-up process. Thirdly, as Warren mentioned, we are looking to expand our IPA business so that we can have an IPA surrounding each of the hospitals. The reason for that really is just a very good symbiotic relationship between the hospital and the IPA business, which, once again, is very unique in the healthcare industry. Fourthly, we would like to invest into our current hospital to expand additional services capabilities. As an example, I think I mentioned behavioral health.

Speaker #8: And then thirdly , as Warren mentioned , we are looking to expand our IPA business so that we can have an IPA of the surrounding each hospital .

Speaker #8: reason for And the that really is just a very good symbiotic relationship between the hospital and the IPA business , which once again is very unique in the healthcare industry .

Speaker #8: And then fourthly would , we like to invest into our current hospital to expand additional services capabilities . So as an example , we I think I mentioned behavioral health .

Speaker #8: We are investing quite a bit . In upgrading our hospitals so that we are we can see more behavioral health patients on the medical side .

Operator: We are investing quite a bit in upgrading our hospitals so that we can see more behavioral health patients on the medical side, as an example. With those types of investments, we have to find specialists, we have to find the correct equipment, we have to find people that are skilled at handling behavioral health, as an example. Those are all essentially capital allocations that we have currently. I'm sure there will be more need for capital allocation in the future, but those are basically the existing ones that we have at this point. Does that answer your question, Brad? Yes. Last one for me, can you talk about the inpatient utilization, where it was a year ago, where it is today, and where you think it can go over the next 12 to 24 months? Yeah. Absolutely.

We are investing quite a bit in upgrading our hospitals so that we can see more behavioral health patients on the medical side, as an example. With those types of investments, we have to find specialists, we have to find the correct equipment, we have to find people that are skilled at handling behavioral health, as an example. Those are all essentially capital allocations that we have currently. I'm sure there will be more need for capital allocation in the future, but those are basically the existing ones that we have at this point. Does that answer your question, Brad?

Speaker #8: As an example . And so with those types of investments , we have to find specialists . We have to find the correct We have to equipment .

Speaker #8: Find people who are skilled at handling health, as behavioral examples. So those are all essentially capital allocations that we have currently.

Speaker #8: I'm sure there will be more need for capital allocation in the future, but those are the existing ones that we basically have at this point.

Speaker #8: Does that answer your question, Brad?

Speaker #11: Yes . And our last , last one for me . Can you talk about the inpatient utilization ? You know , where it was a year ago , where it is today .

Bradford Seagraves: Yes. Last one for me, can you talk about the inpatient utilization, where it was a year ago, where it is today, and where you think it can go over the next 12 to 24 months? Yeah.

Speaker #11: And and where you think it can go over the next 12 to 24 months ?

Speaker #8: Yeah, absolutely. Over the past actually two years, we have begun a push to admit more patients into our own hospital.

Tom Vo: Absolutely. Over the past, actually, two years, we have begun a push to admit more patients into our own hospital. This is not an easy process or a straightforward process because in order to get more patients admitted, we need specialists, we need hospitalists, we need people that could take care of patients in the hospital. Over the past two years, we've been relatively successful at ramping more patients into our hospital and not have to transfer them out to other hospitals. We're doing very well from that standpoint. As you can see from the revenue, that partly explains why the revenue has increased substantially more than the patient visit. That's one variable and one factor. For now, as of today, I would say that we're only at roughly 25% to 30% inpatient capacity.

Operator: Over the past, actually, two years, we have begun a push to admit more patients into our own hospital. This is not an easy process or a straightforward process because in order to get more patients admitted, we need specialists, we need hospitalists, we need people that could take care of patients in the hospital. Over the past two years, we've been relatively successful at ramping more patients into our hospital and not have to transfer them out to other hospitals. We're doing very well from that standpoint. As you can see from the revenue, that partly explains why the revenue has increased substantially more than the patient visit. That's one variable and one factor. For now, as of today, I would say that we're only at roughly 25% to 30% inpatient capacity.

Speaker #8: And and this is not an easy process or a straightforward process because in order to get more patients admitted , we need specialists .

Speaker #8: need We hospitalists , we need people that could take care of patients in the hospital . And so past two years , over the we've been relatively successful at ramping more patients into our hospital and not have to transfer them out to other hospitals .

Speaker #8: And so we're doing very well from that standpoint . And as you can see from the from the revenue that that partly explains why the revenue has increased substantially more than the the patient visit .

Speaker #8: And so that's one variable and one factor . But for now , as of today , I would say that we're only at roughly 25 to 30% inpatient capacity .

Speaker #8: And as we increase more , that number will only get better . And we have a system wide initiative to admit as many patients as we can to our hospital .

Operator: As we increase more, that number will only get better. We have a system-wide initiative to admit as many patients as we can to our hospital so that these patients do not need to go off to other hospitals. In fact, patients really love to stay at our hospital. None of them want to be transferred to all the big system hospitals because the care that they receive at our hospital is probably superior and second to none. Unfortunately, sometimes we just do not have the expertise and the specialists to take care of these patients. That is why we have to transfer them out. If we can keep them in our hospital, we will definitely do that. Great. Thank you. Yep. Thank you, Brad. The next question comes from the line of Gene Mannheimer with Freedom Capital Markets. Please proceed. Hey, thanks. Good morning.

As we increase more, that number will only get better. We have a system-wide initiative to admit as many patients as we can to our hospital so that these patients do not need to go off to other hospitals. In fact, patients really love to stay at our hospital. None of them want to be transferred to all the big system hospitals because the care that they receive at our hospital is probably superior and second to none. Unfortunately, sometimes we just do not have the expertise and the specialists to take care of these patients. That is why we have to transfer them out. If we can keep them in our hospital, we will definitely do that.

Speaker #8: So that we don't these patients don't need to go out to other hospitals . And in fact , patients really love to stay at our hospital .

Speaker #8: None of them want to be transferred to other big system hospitals , because the care that they receive at our hospital is probably superior .

Speaker #8: And second to none. But unfortunately, sometimes you just don't have the expertise and specialists to take care of these patients, and that's why we have to transfer them out.

Speaker #8: But if we can keep them in hospital , we will our definitely do that .

Speaker #11: Great . Thank you .

Speaker #8: Yep . Thank you Brad .

Bradford Seagraves: Great. Thank you.

Speaker #5: The next question comes from the line of Jean Mannheimer with Freedom Capital Markets . Please proceed .

Tom Vo: Yep. Thank you, Brad.

Operator: The next question comes from the line of Gene Mannheimer with Freedom Capital Markets. Please proceed.

Speaker #12: Hey , thanks . Good morning and a lot to lot to digest here . Congrats on getting the numbers current . I wanted to just I think that last question segues well into the revenue per visit being up so much , it sounds like you're not breaking out the arbitration This revenue .

Gene Mannheimer: Hey, thanks. Good morning. A lot to digest here. Congrats on getting the numbers current. I wanted to just—I think that last question segues well into the revenue per visit being up so much. It sounds like you're not breaking out the arbitration revenue this quarter specifically. What is the reason for that? Maybe you can share at a minimum, was it similar to last quarter or greater or less than Q2?

Operator: A lot to digest here. Congrats on getting the numbers current. I wanted to just—I think that last question segues well into the revenue per visit being up so much. It sounds like you're not breaking out the arbitration revenue this quarter specifically. What is the reason for that? Maybe you can share at a minimum, was it similar to last quarter or greater or less than Q2? Yeah. I can speak to that. I mean, we're not breaking that specifically out because it's really part of our business now as the main reason. Comparatively, I think you've seen period to period to period an improvement there. It's of a similar nature.

Speaker #12: quarter . Specifically , what what is the reason for that ? And maybe you can share at a minimum , you know , was it similar to last quarter or big or greater or less than than Q2 ?

Speaker #1: Yeah , I can speak to that . I mean , we don't we're not breaking that specifically out because it's really part of our business now is the reason .

Jon Bates: Yeah. I can speak to that. I mean, we're not breaking that specifically out because it's really part of our business now as the main reason. Comparatively, I think you've seen period to period to period an improvement there. It's of a similar nature.

Speaker #1: So comparatively , I think you've seen , you know , period to period to period , you know , an improvement So it's it's there .

Speaker #1: it's of a similar nature . I know that we talked about how a you remember in the back first quarter when the collection percentages play into this too , so that we only were seeing it was early in the process at the end of the year and into the first quarter , where the collection percentages were were new .

Operator: I know that we talked about how, if you remember, back in the first quarter when the collection percentages play into this too, we only were seeing it was early in the process, at the end of the year and into the first quarter where the collection percentages were new. We were only in the 70% range. Now we've worked our way up into the 80% range. Some of that revenue is just the natural progression of going back and realizing, okay, instead of 70% or 75%, which we were seeing kind of in the middle part of the year, now we're at 80%. The collection percentage is a decent amount of that uptick, which is a little bit of a cumulative impact going back and addressing that as realization continues to improve.

I know that we talked about how, if you remember, back in the first quarter when the collection percentages play into this too, we only were seeing it was early in the process, at the end of the year and into the first quarter where the collection percentages were new. We were only in the 70% range. Now we've worked our way up into the 80% range. Some of that revenue is just the natural progression of going back and realizing, okay, instead of 70% or 75%, which we were seeing kind of in the middle part of the year, now we're at 80%. The collection percentage is a decent amount of that uptick, which is a little bit of a cumulative impact going back and addressing that as realization continues to improve.

Speaker #1: And so we were only in the 70% range . And now we've worked our way up into the 80% range . So some of that revenue is just the the natural progression of going back and realizing , okay , instead of 70% or 75% , which we were seeing kind of in the middle , early , part , middle part of the year .

Speaker #1: Now we're at 80% . So that collection percentage is , you know , a decent amount of that uptick , which is a little bit of a cumulative impact going back .

Speaker #1: And addressing that as a realization continues to improve. But, you know, when the revenue discussion comes up, we talk about how much of our revenue within the quarter and the year is related to the order process.

Operator: In the revenue discussion, we talk about how much of our revenue within the quarter and the year related to the IDR process. That's kind of the direction we plan to go with that. Outside of that, I think we'll watch it closely and see if we can get more detail. We're more than happy to provide it. I think we've been pretty transparent on that piece, at least the last couple of quarters now. I think today earlier, and you saw in the releases, a discussion about the piece of our revenue that relates to that. We'll watch that closely and continue to work it from there. Okay. Thanks. That's helpful, Jon. Appreciate it. Just going back to that inpatient utilization, I think, Tom, you're saying your occupancy is now about 25% to 30% across all your hospitals.

In the revenue discussion, we talk about how much of our revenue within the quarter and the year related to the IDR process. That's kind of the direction we plan to go with that. Outside of that, I think we'll watch it closely and see if we can get more detail. We're more than happy to provide it. I think we've been pretty transparent on that piece, at least the last couple of quarters now. I think today earlier, and you saw in the releases, a discussion about the piece of our revenue that relates to that. We'll watch that closely and continue to work it from there.

Speaker #1: So that's that's kind of the direction we plan to go with that . So outside of that , I don't I think it's we'll watch it closely and see if we can get more detail .

Speaker #1: We're more than happy to provide it . But I think we've been pretty , pretty transparent on that piece at least the last couple quarters now .

Speaker #1: I think today , earlier and you saw in the And releases a discussion about the piece of our revenue that relates to that .

Speaker #1: So we'll watch that closely . And , and continue to work it from there .

Speaker #13: Okay .

Speaker #12: Thanks . That's helpful John . Appreciate it . And just going back to that inpatient utilization . So you're you're I think , Tom , you're saying you're occupancy is now about your 25 to 30% across all hospitals .

Gene Mannheimer: Okay. Thanks. That's helpful, Jon. Appreciate it. Just going back to that inpatient utilization, I think, Tom, you're saying your occupancy is now about 25% to 30% across all your hospitals.

Speaker #12: How does that compare to say , two years ago ?

Speaker #8: Two years ago it was a lot less than that . Jean . Unfortunately . And I think partly because of the reduction in revenue back in 2022 , we started this initiative so .

Operator: How does that compare to, say, two years ago? Two years ago, it was a lot less than that, Gene, unfortunately. I think partly because of the reduction in revenue back in 2022, we started this initiative. Now this initiative is a part of our normal operating procedure. We hope to grow that inpatient volume to be much higher than that over the next few years. That's excellent. Okay. One more statistic I want to just mention. It sounds like the mature hospital visits decreased by about 0.5%. Normally, I mean, I think we'd want to see that marginally higher. Was there anything to call out that led to a decrease year over year? Yeah. We're scratching our head on that also, Gene. Nothing materially has changed in terms of operations.

How does that compare to, say, two years ago?

Jon Bates: Two years ago, it was a lot less than that, Gene, unfortunately. I think partly because of the reduction in revenue back in 2022, we started this initiative. Now this initiative is a part of our normal operating procedure. We hope to grow that inpatient volume to be much higher than that over the next few years.

Speaker #8: now this And initiative is a part of our normal operating procedure . Now , and we hope to grow that inpatient volume to be much higher than that over the next few years .

Speaker #12: That that's excellent . Okay . And one more statistic . I want to just mention the it sounds like the mature hospitals visits decreased by about half a percent .

Gene Mannheimer: That's excellent. Okay. One more statistic I want to just mention. It sounds like the mature hospital visits decreased by about 0.5%. Normally, I mean, I think we'd want to see that marginally higher. Was there anything to call out that led to a decrease year over year?

Speaker #12: Normally , I mean , I think we'd want to see that marginally higher . Can you can you was there anything to call out that led to a decrease year over year ?

Speaker #8: Yeah . We we're scratching our head on that . Also , Jean , nothing materially has changed in terms of operations . Our business development , marketing , physician , outreach , physician care , everything is pretty much the same .

Jon Bates: Yeah. We're scratching our head on that also, Gene. Nothing materially has changed in terms of operations.

Operator: Our business development, marketing, physician outreach, physician care, everything is pretty much the same. The only thing that potentially could have occurred this year versus last year was that there was a COVID spike last year around late summer, whereas we're not seeing quite a high COVID spike this year. That may have been it. I'm not sure. Yeah, it's a head scratcher for sure. We're definitely going to continue to watch it and definitely going to focus on that so that we can continue the growth quarter over quarter. Okay. That makes a lot of sense. Last question, with respect to stock-based comp, obviously a lot of discussion around that. In terms of modeling that going forward, I realize there are a number of factors to consider. That Q3 number was relatively low.

Our business development, marketing, physician outreach, physician care, everything is pretty much the same. The only thing that potentially could have occurred this year versus last year was that there was a COVID spike last year around late summer, whereas we're not seeing quite a high COVID spike this year. That may have been it. I'm not sure. Yeah, it's a head scratcher for sure. We're definitely going to continue to watch it and definitely going to focus on that so that we can continue the growth quarter over quarter.

Speaker #8: The only thing that potentially could have occurred this year versus last year was that there was there was a Covid spike last year around late summer , whereas we're not seeing quite a high Covid spike this year .

Speaker #8: That may have been it . I'm not sure , but but yeah , it's a head scratcher for sure . But we're definitely going to continue to watch it and definitely going to focus on that so that we can continue to growth quarter over quarter .

Speaker #12: That makes Okay . a lot of sense . And okay . And with last question , with respect to stock based comp , obviously a lot of discussion around that in terms of modeling that going forward .

Gene Mannheimer: Okay. That makes a lot of sense. Last question, with respect to stock-based comp, obviously a lot of discussion around that. In terms of modeling that going forward, I realize there are a number of factors to consider. That Q3 number was relatively low.

Speaker #12: I realize there are a number of factors to consider , but that Q3 number was relatively low is that is that the right way to think Going about it ?

Speaker #12: forward , or could it could we continue to see some big swings there ?

Operator: Is that the right way to think about it going forward, or could we continue to see some big swings there? Yeah. I mean, I would say, Gene, great question. First of all, I think we're definitely through the big portion of all the earnouts. We only have a few left, as we described in the Q. I think you're referencing in the table that we've provided in note 11, where it talks about the three that are currently open and in the period where they can be calculated that run through kind of the deadline. I think that the way that calculation is done, which is all we can do is use the data that we have so far with some level of a projection on that.

Is that the right way to think about it going forward, or could we continue to see some big swings there?

Speaker #1: Yeah , I mean , I would say , Jean , great question . First of all , I think we're definitely through the big portion of , you know , all earnouts the we only have a few left , as we described in the , in the Q and I think you're referencing in the table that we've provided in note 11 , where it talks about the three that are currently open and in in period where the they can be calculated and run through kind of the deadline .

Jon Bates: Yeah. I mean, I would say, Gene, great question. First of all, I think we're definitely through the big portion of all the earnouts. We only have a few left, as we described in the Q. I think you're referencing in the table that we've provided in note 11, where it talks about the three that are currently open and in the period where they can be calculated that run through kind of the deadline. I think that the way that calculation is done, which is all we can do is use the data that we have so far with some level of a projection on that.

Speaker #1: And I think that , you know , the way , the way that calculation is done , which is all we can do is use the data that we have so far with some level of of a on projection that .

Speaker #1: And if they continue to move in the direction or similar to what the others have done, it should be, it should be better than that.

Operator: If they continue to move in the direction or similar to what the others have done, it should be better than that. We did not want to be in a position to assume that at this point. I think the numbers you have there are certainly ones that you can use from a projection standpoint. We are optimistic that maybe we can do better in that case. They have a decent amount of period in all three cases left before they get to the final stage. I believe the earliest one is the end of the first quarter of next year. That is still another six months of going into prime time kind of maturity stage. The other two that are out there go all the way till the end of next year. They are very, very early stage.

If they continue to move in the direction or similar to what the others have done, it should be better than that. We did not want to be in a position to assume that at this point. I think the numbers you have there are certainly ones that you can use from a projection standpoint. We are optimistic that maybe we can do better in that case. They have a decent amount of period in all three cases left before they get to the final stage. I believe the earliest one is the end of the first quarter of next year. That is still another six months of going into prime time kind of maturity stage. The other two that are out there go all the way till the end of next year. They are very, very early stage.

Speaker #1: But we didn't want to be in a position to assume that at this point . So I think the numbers you have there are certainly ones that you can use from projection standpoint .

Speaker #1: And we we are optimistic that that maybe we can do better in that case . And they have , you know , a long a decent amount of period in all three cases left before they get to the final stage .

Speaker #1: I believe one is the earliest; one is the end of the first quarter of next year. And so that's still another six months of going into prime time, kind of maturity stage.

Speaker #1: And then the other , the other two that are out there all the way till the end of next year . So they're very , very early stage .

Speaker #1: So it should improve from where you see it right now .

Speaker #12: Okay . That's terrific . Thank you . And congrats again .

Operator: I think it should improve from where you see it right now. Okay. That's terrific. Thank you and congrats again. Yeah. Thanks, Gene. Thank you, Gene. Thank you. This concludes the question and answer session. I'll hand the call back over to Jennifer Rodriguez for closing remarks. Thank you all for those valuable questions and answers. For all those joining us today, if you have more questions, please email us at investors@nutexhealth.com, and we'll get back to you promptly. On behalf of the Nutex Health management team, thank you all for joining us for our second and third quarter 2025 earnings call. We apologize for the technical difficulties. We've covered a lot, and we appreciate your time and interest. A recording of this call will be available on our website for a limited time, so feel free to revisit it.

I think it should improve from where you see it right now.

Speaker #1: Jean Yeah thanks .

Gene Mannheimer: Okay. That's terrific. Thank you and congrats again.

Speaker #8: Thank you Jean .

Jon Bates: Yeah. Thanks, Gene.

Speaker #5: Thank you . This concludes the question and answer session . And I'll hand the call back over to for Jennifer Rodriguez closing remarks .

Tom Vo: Thank you, Gene.

Operator: Thank you. This concludes the question and answer session. I'll hand the call back over to Jennifer Rodriguez for closing remarks.

Speaker #4: Thank you all for those valuable questions and answers. For all those joining us today, if you have more questions, please email us at.

Jennifer Rodriguez: Thank you all for those valuable questions and answers. For all those joining us today, if you have more questions, please email us at investors@nutexhealth.com, and we'll get back to you promptly. On behalf of the Nutex Health management team, thank you all for joining us for our second and third quarter 2025 earnings call. We apologize for the technical difficulties. We've covered a lot, and we appreciate your time and interest. A recording of this call will be available on our website for a limited time, so feel free to revisit it.

Speaker #4: Investors at Nutex Health, Inc. We will get back to you promptly. On behalf of the new management team, thank you all for joining us for our second and third quarter 2020 earnings call.

Speaker #4: And we apologize for the technical difficulties . We've covered a lot , and we appreciate your time and A recording interest . of this call will be available on our website for limited time , so feel free to revisit it Take care .

Speaker #4: everyone , and we look forward to keeping you updated on our journey .

Operator: Take care, everyone, and we look forward to keeping you updated on our journey. Thank you. This concludes today's conference. You may disconnect your lines at this time. We thank you for your participation.

Take care, everyone, and we look forward to keeping you updated on our journey.

Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time. We thank you for your participation.