ModivCare (MODV) Q3 2025 earnings summary

Executive summary

• Entered Chapter 11 bankruptcy on August 20, 2025, with a pre-arranged restructuring plan confirmed December 15, 2025, aiming to reduce 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.

• Ongoing operations as debtor-in-possession, with significant management focus on restructuring and related legal proceedings.

Financial highlights

• Q3 2025 service revenue was $679.7M, down 3.2% year-over-year; net loss was $73.1M, compared to a $26.6M loss in Q3 2024.

• Nine months ended September 30, 2025: service revenue $1.99B (down 4.6% YoY), net loss $427.2M (vs. $177.8M loss in 2024).

• Goodwill impairment charges of $263.4M in 2025, primarily in PCS and Monitoring segments.

• Cash used in operations was $154.8M for the nine months; cash and equivalents at quarter-end were $78.2M.

Outlook and guidance

• Substantial doubt exists about the ability to continue as a going concern; future depends on successful emergence from Chapter 11 and post-restructuring liquidity.

• Management expects continued negative cash flows and ongoing financial challenges due to cost pressures, contract losses, and delayed collections.