Cardiff Lexingtn Corp

Good morning everyone and thank you for participating in today's conference call to discuss Cardiff Lexington's financial results for the third quarter ended September 30th, 2025. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to Walter Frank of IMS Investor Relations. Please go ahead.

Thank you, Operator. I would like to welcome everybody to the call. Hosting the call today are Cardiff Lexington's CEO, Alex Cunningham, and CFO, Matt Schaefer. I would like to take a moment to read the Safe Harbor Statement. This conference call contains forward-looking statements as defined within Section 27A of the Securities Act of 1933. as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements and terms such as anticipate, expect, intend, may, will, should, or other comparable terms involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief, or current expectations of Carter-Flexington and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in Carter-Flexington's periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, Carter-Flexington undertakes no obligation to update or revise forward-looking statements to reflect changed conditions. I would now like to turn the call over to the CEO of Carter-Flexington, Alex Cunningham.

Thanks, Walter. Good morning, everyone, and thank you for joining our conference call today to discuss our third quarter 2025 results. I will start by providing an overview of those third quarter results, our progress, and our strategy, before turning the call over to Matt Schaefer, our Chief Financial Officer, for a deeper dive into our financial results. We will then open the call for a brief Q&A. We delivered strong triple-digit revenue growth in the quarter with total revenue increasing to 3.1 million compared with 1.4 million in the third quarter of 2024. Revenue also increased on a sequential basis from 2.8 million in the second quarter of 2025. Our third quarter 2024 revenue included a change in accounting estimate of the billing settlement realization rate, which impacted our results for the quarter all the way down to our bottom line. Excluding this adjustment, revenue for the third quarter of 2024 would have been $3 million. Our margin profile improved in the quarter as well, demonstrated by gross margin in the quarter of 62.4%, compared with a gross margin of 26.2 percent in Q3 2024, representing an increase of over 3,600 basis points on a GAAP basis. Excluding the adjustment to revenue in the third quarter of 2024, gross margin would have been 66.7 percent. We recognized another consecutive period of adjusted EBITDA profitability in the quarter. and achieved $1.9 million in adjusted EBITDA for the nine months ended September 30, 2025. M&A remains a priority and represents a key strategic component of our growth plan. While we can't go into too much detail at this time, on a daily basis, we are actively engaged with several targets that we believe can transform our existing business by furthering our leverage and enhancing our position in this highly fragmented market. Just to recap for everyone, since this is only our second earnings call, 100% of our revenues are generated through our operating subsidiary, Nova Ortho and Spine, a provider of best-in-class orthopedic care, including primary care evaluations, care management, and interventional pain management to almost 200 patients per month. These patients come to us via a robust referral system that we built over the years of delivering quality care and building trust in our services. In this regard, the barriers to entry are very high, and Cardiff-Lexington has a clear advantage. Importantly, Nova Ortho and Spine also provides care to a severely underserved patient population, ones without access to health insurance and critical medical care. Because of this, payment is almost exclusively remitted through a combination of automotive insurance settlements, general liability carriers, and private payments with an industry-leading collection rate over 95%. This is a powerful and proven model with demonstrated results and a considerable runway for growth as all locations are currently operating on an average around 35% capacity. As you can see on slide five, our network of NOVA Ortho and Spine locations is strategically dispersed throughout rural population centers in Florida and Georgia, and we've been receiving strong demand for additional locations in the broader I-75 north-south corridor. We also recently expanded into Panama City Beach, Florida, and we'll be expanding into Panama City, Florida. We're energized by the demand that we're seeing in these locations as well. Our existing business is strong, and we're well positioned for considerable long-term growth as we continue to scale and expand. At the core of our business is a profitable and scalable healthcare platform with a demonstrated ability to drive revenue growth and consistent profitability in one of the fastest growing sectors of U.S. healthcare, orthopedics. Healthcare is also recession-resistant in that people need medical care and services regardless of economic environment, allowing our business to operate relatively efficiently in all economic cycles. As I mentioned briefly before, our patients also represent a severely underserved population that do not have access to health insurance or critical medical care. With payment collected through a combination of automotive insurance settlements, general liability carriers, and private payments, we're able to drive an industry-leading collection rate of over 95%. Pair these advantages with a high barrier to entry, a fragmented market that is primed for consolidation, And we believe we possess a profitable, credible, and scalable growth platform supported by seasoned management and a proven capital-efficient model that is positioned for considerable long-term growth and value creation. Cardiff Lexington has demonstrated proven ability to deploy capital at a very high rate of return. Our organic growth is supported and enhanced by our mergers and acquisitions efforts, which we view as a key strategic component to our regional growth plan. Underscoring our mergers and acquisitions strategy is a synergistic three-pillar approach that we believe ideally positions us to make accretive acquisitions and efficiently integrate them into our existing business. Our first pillar targets companies such as physician practices with strong core cash flows that we can acquire, integrate, and manage to drive improved recurring revenue and maximize operational efficiencies. Our second pillar is focused on acquiring assets that are accretive to our current model. By acquiring assets like real estate in the form of ambulatory surgery centers, orthopedic clinics, and MRI facilities, which are just a couple of examples we're able to meaningfully and cost-efficiently expand our geographical footprint while adding assets to our balance sheet. Our third and final pillar is driving long-term and sustainable profitability for Cardiff-Lexington. By deploying working capital to acquire and manage personal injury accounts receivable, instead of selling them off, we can capture valuable additional revenue and drive long-term income and sustain higher margins of profitability for our business. We're very encouraged by our progress in both the third quarter and year-to-date and believe that we are at a strategic inflection point well-positioned to accelerate growth through consistently enhanced organic results and strategic mergers and acquisitions activity. With that, I will now hand the call over to Chief Financial Officer Matt Schaefer to take a deeper dive into our financial results for the third quarter.