Cardiff Lexington (CDIX) Q3 2025 earnings summary

Executive summary

• Revenue grew 125.6% year-over-year to $3.1M in Q3 2025, rebounding from a one-time $1.7M charge in Q3 2024, with sequential growth from $2.8M in Q2 2025.

• Gross profit surged 437.8% to $1.9M, with gross margin expanding to 62.4% from 26.2% in Q3 2024.

• Achieved profitability in Q3 2025 and year-to-date, with adjusted EBITDA of $663K for the quarter and $1.9M YTD.

• Strategic focus on organic growth and M&A, targeting expansion in the Southeast US, I-75 corridor, and complementary healthcare verticals.

• Nova Ortho and Spine, the sole operating subsidiary, serves nearly 200 patients monthly, focusing on underserved populations without health insurance.

Financial highlights

• Q3 2025 revenue: $3.1M, up 125.6% year-over-year; adjusted Q3 2024 revenue (excluding accounting change) was $3M.

• Gross margin improved to 62.4% from 26.2% in Q3 2024; nine-month gross margin at 62.1% vs. 46.8% prior year.

• Gross profit: $1.9M in Q3 2025; SG&A expenses: $1.2M (40% of revenue), down from 69.1% in Q3 2024.

• Income from continuing operations: $643K (21% of revenue) vs. a loss of $585K in Q3 2024.

• Net loss improved to $1.1M from $2M in Q3 2024, despite higher interest expense ($1.8M vs. $1.4M).

• Adjusted EBITDA for Q3 2025: $663K, down from $1.1M in Q3 2024; $1.9M for the nine months ended September 30, 2025.

Outlook and guidance

• Plans to strengthen working capital and expand Nova Ortho and Spine’s operating capacity, with all locations currently at 35% capacity.

• Aggressive expansion targeted along the I-75 corridor, into the Mid-Atlantic, Southeastern US, and broader Southeast.

• Strategic M&A to drive growth in contiguous healthcare businesses such as MRI clinics and ambulatory surgery centers.

• Positioned at a strategic inflection point to accelerate growth and shareholder value.

• Patient volume and demand for services are expected to continue increasing.