ModivCare (MODV) Q2 2025 earnings summary

Executive summary

• Filed for Chapter 11 bankruptcy on August 20, 2025, with a court-confirmed restructuring plan as of December 15, 2025, aiming to reduce funded debt by $1.1 billion and recapitalize the company.

• Common stock was delisted from Nasdaq and now trades on the OTC Expert Market; existing equity is expected to be canceled with no recovery for shareholders.

• Operations continue as debtor-in-possession, with $100 million in DIP financing and up to $300 million in takeback term loans upon emergence.

Financial highlights

• Q2 2025 service revenue was $659.6 million, down 5.5% year-over-year; net loss was $303.7 million, compared to $128.9 million loss in Q2 2024.

• Six months ended June 30, 2025: service revenue $1.31 billion (down 5.2% YoY), net loss $354.1 million (vs. $151.2 million loss in 2024).

• Q2 2025 included $263.4 million in goodwill impairment charges, primarily in PCS and Monitoring segments.

• Interest expense rose 86% YoY in Q2 2025 due to new, higher-rate debt facilities.

Outlook and guidance

• Management expects continued negative cash flows and operating losses in the near term.

• Ongoing restructuring is intended to restore viability, but substantial doubt remains about the ability to continue as a going concern until emergence from bankruptcy.