InfuSystems Holdings, Inc.

Good day and welcome to the IMFU System third quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Joe Dorme of Witham Partners. Please go ahead.

Good morning, and thank you for joining us today to review INFUSYSTEM's third quarter 2025 financial results, ended September 30th, 2025. With us today on the call are Carrie LaChance, Chief Executive Officer, and Barry Steele, Chief Financial Officer. After the conclusion of today's prepared remarks, we'll open the call to questions. Before we begin with prepared remarks, I would like to remind everyone, certain statements made by the management team of InfuSystem during this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for the statements of historical fact, this conference call may contain forward-looking statements that involve risks and uncertainties, some of which are detailed under risk factors and documents filed by the company with the Securities and Exchange Commission including the annual report on Form 10-K for the year ended December 31st, 2024. Forward-looking statements speak only as of the dates the statements were made. The company can give no assurance that such forward-looking statements will prove to be correct. IMFU System does not undertake and specifically disclaims any obligation to update any forward-looking statements except as required by law. Now I'd like to turn the call over to Carrie Lachance, Chief Executive Officer of IMFU System. Carrie?

Thank you, Joe, and good morning, everyone. Welcome to NP Systems' third quarter fiscal year 2025 earnings call. Thank you all for joining us today. I will provide a third quarter overview, highlighting key successes, addressing notable challenges, and outlining our strategic priorities as we wrap up 2025 and look forward to 2026. Then, Barry will provide a detailed summary of our financial results. I will then come back to some closing comments before opening the line to questions. This morning, we published our third quarter earnings report, which illustrated another strong quarter of financial performance, marked by continued revenue growth, margin expansion, robust cash flow, debt reduction, and returning capital to our shareholders. In the report, we shared examples of the activities and initiatives we have underway that have contributed to these improved financial metrics. I'll take a few minutes now to walk through some of them. I'll start by discussing some very important projects driving our wound care initiatives. We see an opportunity to leverage strategic competencies present in our patient solution segment beyond our existing therapies of oncology and pain management. A key driver for long-term success in this initiative has been taking steps that will lower the processing costs for each patient referral. This is why we acquired Apollo in May of this year. Integrating this company and its systems not only brought us wound care customers, but more importantly, presented a quick and low-cost means to upgrade to a more streamlined billing software that will allow us to process upfront paperwork and insurance claims more quickly and efficiently. During the third quarter, we completed key integration tasks, including connecting the new RCM application to our insurance billing clearinghouse, which effectively plugs in our large portfolio of insurance payers. We are now focused on additional system and process improvements, particularly building out the AI and automation enhancements that that new tool allows, and completing the transition of our existing wound care volume into the new system. While it's still too early to measure the exact cost reduction benefit, we believe the new system will allow us to process the highly complex wound care claims on a cost-efficient basis. The ongoing progress also brings us a few steps closer to onboarding our oncology and pain management billing volume onto the application, further leveraging the investment and improving our overall RCM efficiency. Also in the third quarter, we began accepting patient referrals and booking revenue for pneumatic compression devices, or PCDs, through a new relationship with the device manufacturer. Although the amount of revenue was relatively small, The quickness to launch illustrates not only the strength of our payer portfolio when we bring it to bear on new products, but the significant improvements that the team has made to accelerate the speed at which we bring new products online. For now, we are classifying these revenues in wound care category with hopes they will grow large enough in the future to report them separately. Next, I'd like to note three developments positively impacting our business beyond wound care. First, in addition to the new billing system acquired and integrated via the Apollo acquisition during the third quarter, we went live with a machine learning tool focused on our front-end intake process, which is another complicated and time-consuming manual task. This was done even while continuing the implementation of our ERP-level software system upgrade that we began in 2024. Second, we secured a significant new contract with a large hospital system for our oncology business, Our sales team has had tremendous activity, and this win, along with others, increases our market share and will help us to continue to report oncology revenue growth at levels exceeding expectations, a challenge given our high market share. The contract win, resulting in higher volumes, will of course require us to spend capital on pumps, a fair trade given oncology is our most accretive revenue source. In addition, I'll note that oncology revenue for the third quarter reached an all-time record, which is a common accolade for the business. Finally, we secured a multi-year contract extension with one of our largest national insurance payers. This type of event is not normally newsworthy since we routinely extend existing contracts and add new payers to our very extensive portfolio. However, this one stands out as particularly exciting because it provides enhanced service coverage in product areas we are focused on, such as negative pressure wound therapy devices and PCVs. The extension also contains a much appreciated price increase. The accomplishment demonstrates the depth of our contract relationships as a whole and the value our payers see in our capabilities. Before I turn the call over to Barry, I need to provide an update on developments in our biomedical services business. As we mentioned in our last quarterly call, we've been working with our largest biomedical services customer, to modify the contract to reflect changes in market economics and developments in the relationship. During the third quarter, we signed a contract amendment that will improve pricing and shift the relationship to reduce device volume and lower service levels on most of the devices remaining on the contract. These changes will result in a reduction in revenue under the contract by an estimate $6 to $7 million annually starting in December of this year. It is important to note these changes will also result in an expansion of our operating income by reducing costs and expenses in an amount greater than the revenue decline. We are now focused on resizing and relocating our field-based biomedical technicians team to conform to the changes. While we are always disappointed by changes that reduce our revenue, we believe that profitability is a key driver of shareholder value. and that these strategic adjustments are essential to our continued progress and will leave us with a very solid core field-based biomedical service business from which to build upon. Now we'll turn it over to Barry for a detailed review of the third quarter financial results. Barry?