Nutex Health (NUTX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 29% year-over-year to $76.1 million, driven by higher patient visits and improved rates through the IDR process; hospital division revenue up 31% and population health management up 16%.

• Hospital visits increased 28% year-over-year, with mature hospitals growing visits by 10%.

• Net loss attributable to Nutex Health Inc. narrowed to $0.4 million in Q2 2024 from $3.5 million in Q2 2023, reflecting improved operating performance and a return to profitability.

• Adjusted EBITDA rose to $12.0 million in Q2 2024, up 200% year-over-year, supported by higher revenue and operating leverage.

• Two reverse stock splits (1:15 in April and 1:10 in July 2024) were completed to regain Nasdaq compliance, reducing shares outstanding to 4,987,268.

Financial highlights

• Q2 2024 gross profit was $22.6 million (29.7% margin), up 134% from Q2 2023.

• Six-month revenue grew 25% year-over-year to $143.5 million; gross profit up 126% to $32.7 million.

• Net cash from operating activities was $16.3 million for the first half of 2024.

• Cash and equivalents at June 30, 2024 were $40.8 million, up from $22.0 million at year-end 2023.

• Debt at June 30, 2024 was $40.9 million, with long-term debt at $22.4 million.

Outlook and guidance

• Four new hospitals under construction, expected to open in the next 6–12 months.

• Management expects continued growth in patient visits and revenue per visit, supported by new hospital openings and improved IDR collections.

• Anticipates 60-70% of claims to be submitted through the IDR process by year-end, with further improvement in collections expected.

• Expect continued organic growth, improved profitability, and enhanced net income and EBITDA from divestitures starting September.

• Ongoing focus on expanding the population health management division and adding new independent physician associations.