InfuSystems Holdings, Inc.

for these many months. This marks a very significant milestone for InfuSystem. After putting this application in place and retiring several legacy systems, much of our data is now integrated, workflows are connected, and the many processes supporting our various business lines run through a common platform, not multiple disparate systems. While we continue to make final adjustments, resolve open items on the punch list, and get over the learning curve, we are starting to focus on capturing the benefits that we anticipate will start to pay back our investments. These benefits are expected to come in many forms and include improved ability to complete tasks with greater productivity, better cost and margin analysis to focus on high return cost optimization initiatives, improved visibility to support pricing decisions, improved utilization of our medical device fleet and optimization of working capital levels. Additionally, we are already working to identify system enhancements and will implement those that provide the fastest payback and highest investment returns. As we look forward to the rest of the year and after adjusting for the expected 7.1 million lower annual revenue related to the GE healthcare contract restructuring, on a pro forma basis, we continue to anticipate annual revenue growth in the range of 6 to 8%. Additionally, we continue to anticipate that our adjusted EBITDA margin will remain in the low to mid 20% range. This is inclusive of the impact of costs related to our ongoing information technology systems upgrade. We are excited about the opportunities ahead and will look to update you again in future quarters. Now I'll turn it over to Barry for a detailed review of the first quarter financial results. Barry?

Thank you, Carrie, and thank you everyone on the call for joining us today. I'm going to give details of the current quarter's results, provide a few updates on the ERP spend, and update you on our current financial position and how it changed during the quarter. Now let me start with our financial results for the period. During the first quarter of 2026, Our net revenue totaled $33.7 million, representing a $1 million, or 3%, decrease from the prior year first quarter. Adjusting for the GE Healthcare contract, restructuring, our pro forma net revenue grew by 1.7%. Patient services net revenue increased by $1.3 million, or 6.4%, and included increased patient treatment volumes in oncology and wound care. Oncology net revenue increased by approximately 450,000, or 2.4%, and wound care treatment volume revenue grew by 1.1 million, which represented an increase of nearly 112% driven by compression devices, as Kerry mentioned. Device solutions net revenue decreased by 2.3 million, or 17%. Nearly 70% of the decrease was attributable to the GE Healthcare contract restructuring. The remaining amount of the decrease, which was about 760,000, was due to lower rental revenues and lower equipment sales of $432,000 and $1 million, respectively. Both of these decreases are related to a large customer rental buyout that began in the prior year. The buyout, which started during the prior year first quarter, elevated the amount of equipment sales in the prior year and reduced quarterly rental revenues during the subsequent quarters, including the current three-month periods. These reductions were partially offset by an increase in the non-GE related biomedical services revenue of $340,000 and higher disposal medical supplies revenue, which also increased by $340,000. Breaking down the biomedical services revenue a little further, we see that our field-based services grew by nearly $600,000 after adjusting out the GE healthcare revenue decline. This underlying increase demonstrates partial success in replacing lost GE revenue. Furthermore, as you will see when I get to discussing gross margin, the benefit to earnings for this trade-off was rewarding. Despite the decrease in net revenue, gross profit for the first quarter of 2026 was $19.7 million, representing an increase of $515,000 or 3% over the prior year first quarter. The gross margin percentage at just over 58% increased by 3.2% from the prior year amount. At the segment level, patient services gross profit increased by $1.3 million, and gross margin increased by 1.3% to 64.8%, driven by the higher sales and reduced pump disposal and maintenance expenses. Device Solutions gross profit declined by $623,000, mainly due to the lower amounts of rental and equipment sales revenue, but the gross margin increased by 3.4% to 46.3%. The greatest contributor to this improvement was the aforementioned tradeoff between GE Healthcare and smaller field service projects, which, despite resulting in an overall decline in revenue netting to just over $1 million, contributed nearly $400,000 of additional gross margin, resulting in a more than 7% increase in device services gross margin. This benefit was partially offset by unfavorable revenue mix and higher wage and employee health care expenses, which reduced the gross margin by nearly 2% and 2.5%, respectively. Selling general and administrative expenses for the first quarter of 2026 totaled $17.9 million and was $418,000 or 2.2% lower than the prior year first quarter amount. The prior year amount included a non-recurring expense related to the departure of our former CEO of $1 million. Additional reductions included a $300,000 reduction in accrual for management bonuses, lower accounting fees totaling $200,000, and $100,000 in reduced travel expenses. These decreases were partially offset by increases in other expenses, including $400,000 in increased expenses related to information, technology, and business applications upgrades, including the replacement of the company's ERP that Carrie discussed. Additional personnel directly related to increased patient services net revenue, including revenue cycle personnel, totaling $300,000, a $100,000 increase in stock-based compensation expenses, and cost inflation impacts from increased employee wage rates and higher healthcare expenses, totaling $400,000. The year P system upgrade project expenses were higher during the current period due to the higher intensity of activities related to the go-live phase of the project, which as Kerry mentioned, occurred on March 1st, 2026. While additional costs are expected to be incurred during the post-go-live phase to support system stabilization and enhancement activities, project expenses are expected to begin to taper down during the future quarterly periods. Similar to impacts to gross margin and selling and marketing expenses, Higher wages were the result of typical annual merit and cost of living increases. However, the increase in cost of healthcare benefits, which in total increased by $374,000 during the quarter, were significantly higher than increases experienced in the prior years. Adjusted EBITDA during the 2026 first quarter was $6.3 million, which, despite the lower net revenue, was about the same amount as the prior year first quarter. This represented 18.9% of net revenue for 2026, which was slightly above the prior year rate of 18.2%. These amounts included the spending on our ERP project, which again is expected to start to decrease by the end of the second quarter here in 2026. Now a few comments on our financial position and capital reserves. During the first quarter, we generated operating cash flow of $970,000, which was $817,000 less than the prior year first quarter. mainly due to higher increases in working capital in 2026. Our net capital expenditures were $1.3 million during the 2026 first quarter, which represented a decrease from $2.6 million spent during 2025. This decrease was attributable to our overall capital spending requirements being lower as compared to amounts in prior years, as the sources of our revenue growth have been more weighted towards less capital-intensive revenue sources, including additional wound care revenues. We expect moderate amounts of capital expenditures to continue in 2026, similar to 2025. We remain well positioned to fund continued net revenue growth with a strong cash flow from operations backed by significant liquidity reserves available from our revolving line of credit and manageable leverage and debt service requirements. Our net debt increased slightly by 1.1 million during the quarter, and we repurchased just over 800,000 of our common stock during the quarter through our stock repurchase authorization. Our available liquidity continues to be strong and totaled just over $57 million as of March 31, 2026. At that time, our ratio of net debt to adjusted EBITDA was a modest 0.56 times. Our debt consists of $20 million in borrowings on our $75 million revolving line of credit with no term payment requirements and a maturity date of July 2030. We continue to benefit from an outstanding interest rate swap, which fixes our interest rate on the $20 million of our outstanding borrowings at a below market rate of 3.8% until April of 2028. I will now turn the call back over to Carrie.

Thanks, Barry. As I reflect on the progress we have made during the first quarter, the update shared with you today, and what we are focused on as we move through the rest of 2026, I hope you will agree that we continue to be diligent in pursuing the strategic priorities previously laid out for our shareholders. Those priorities are to execute with discipline, deliver profitable growth, and drive long-term value creation for shareholders. Operator, we are ready for the Q&A portion of the call.