Q1 Revenue at $33.7M, Below Consensus
Reports Q1 revenue $33.7M, consensus $34.35M. CEO Carrie Lachance commented, "Overall, we delivered a solid quarter that reflects both disciplined execution and meaningful strategic progress. While GAAP revenue declined modestly year over year to $33.7M, that decline was expected and resulted from the strategic decision to restructure our GE Healthcare biomedical services contract. On a pro-forma basis, net revenue grew 1.7%, and just as importantly, profitability held strong. We delivered $6.4M of Adjusted EBITDA, essentially flat year over year, due to margins improving to 18.9%. The restructuring reduced Q1 revenue by $1.6M, but it enabled a significantly larger reduction in direct contract expenses. While GAAP revenue is lower, the economics of the business are better, and that's clearly showing up in our Adjusted EBITDA performance. On March 1, 2026, after nearly two years of intense preparation, we successfully went live on our new ERP system. I would call this transformational...the ERP gives us a scalable platform to support future growth. We're already identifying enhancements that offer fast payback and high returns."
