Steve Deckert

Steve Deckert asked about the sequential trend of visits per clinician from Q4 2025 into Q1 2026 and sought clarification on the free cash flow performance in 2025, particularly if any de novo center openings were deferred to 2026, and the expectation for free cash flow in 2026 versus 2025.

Answer

CFO Ryan McGroarty explained that the sequential revenue step-up from Q4 to Q1 (approximately $8 million, 17% year-over-year) is primarily driven by net clinician adds, supported by rate increases, with high confidence in the durability of productivity improvements. Regarding free cash flow, he noted minor timing movements for new centers. He confirmed that free cash flow exceeded expectations in 2025 ($110 million vs. $86 million in 2024) and, as a capital-efficient business, is expected to be positive again in 2026, consistent with Adjusted EBITDA growth.

Steve Deckert asked about the sequential trend of visits per clinician into Q1 2026 from Q4 2025 levels, and the factors contributing to the higher-than-expected free cash flow in 2025, including any de novo center timing shifts.

Answer

CFO Ryan McGroarty explained that the sequential revenue step-up from Q4 to Q1 is primarily driven by net clinician adds and supported by rate increases, with high confidence in the durability of productivity from practice management. He noted that de novo timing shifts were minor and that free cash flow exceeded expectations in 2025 ($110 million), with expectations for continued positive free cash flow in 2026 due to the capital-efficient business model.