Lumexa Imaging (LMRI) This fall 2025 Profits Transcript

Date

Thursday, March 26, 2026 at 5 p.m. ET

Name members

• Leader Government Officer — Caitlin Zulla
• Leader Monetary Officer — J. Martin

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Takeaways

• Consolidated earnings — $267.7 million, representing a 7.9% building up.
• Adjusted EBITDA — $63.8 million, up 18.6%; margin reached 23.8%, a 150 basis-point development.
• Gadget-wide earnings expansion — 10.6% within the quarter, together with wholly owned and JV facilities.
• Imaging examination quantity — 1.4 million complex imaging checks carried out, up 7.7%.
• Complicated imaging expansion — Grew 8% on a same-center foundation and seven.1% system-wide.
• Skilled price earnings — $66.8 million within the quarter, expanding through 10.6%.
• Control price and different revenues — $57.2 million, together with control and pass-through charges from JV facilities; JVs produced $69 million in year-end debt now not integrated in reported leverage.
• Complete-year consolidated earnings — $1.023 billion, an building up of seven.8%.
• Complete-year adjusted EBITDA — $230.2 million, emerging 14.6%, with a margin of twenty-two.5%.
• Leverage ratio — Lowered to a few.5x after the use of $406 million from IPO proceeds for debt reimbursement and refinancing; led to expected annual coins financial savings of over $50 million.
• Heart growth — 9 new de novo facilities opened in 2025, with 8 to ten new facilities deliberate once a year; first 2026 de novo opened in February.
• Document three way partnership — New partnership with College of Pittsburgh Scientific Heart expanded operations to fourteen states.
• Generation integration — FastScan carried out throughout 50% of facilities, making improvements to time table throughput through just about 40%; two-thirds adoption anticipated through finish of 2026.
• Strategic carrier traces — Breast arterial calcification screenings introduced as a cardiac well being add-on; PET volumes grew through mid-teens proportion, increasing complex modality combine.
• 2026 steering — Income projected at $1.045 billion to $1.097 billion; adjusted EBITDA anticipated at $234 million to $242 million; adjusted EPS guided to $0.71–$0.77 in step with percentage.
• Further public corporate bills — Steerage contains $7 million in incremental prices for standing as a public entity.
• Seasonality and quantity dynamics — First quarter is usually the bottom quarter because of deductible resets and used to be impacted through weather-related disruptions in numerous southern states.
• Affected person web promoter rating — Persistently above 90, indicating prime delight and loyalty.
• Gross sales drive succeed in — Over 120 gross sales representatives enticing with greater than 100,000 referring physicians.

Abstract

Lumexa Imaging (LMRI 5.40%) reported tough earnings and altered EBITDA expansion, strengthening its stability sheet via IPO-driven debt relief and refinancing. Control emphasised a method combining natural growth, joint ventures, carrier line innovation, and generation adoption, highlighted through FastScan potency and a hit new partnerships. Steerage for 2026 maintained a trajectory of volume-driven expansion and margin growth, accounting for public corporate bills and expecting seasonally softer first-quarter outcomes.

• CFO Martin mentioned, “Our trade continues to generate sturdy coins waft,” supporting de novo openings and ongoing deleveraging with out dependence on further M&A for 2026 objectives.
• Affected person retention in mammography remained prime, with 85% of annual screening quantity sourced from returning sufferers, whilst compliance projects larger general annual screenings.
• CEO Zulla said, “AI-enabled quicker scanning generation, we larger time table throughput through just about 40% whilst additionally making improvements to symbol readability.”
• The corporate’s JV middle fashion used to be described as “capital-efficient,” with control noting that JV debt does now not have an effect on the reported leverage ratio and together with the professional rata percentage would upload most effective 0.15x.
• Operational disruption within the first quarter because of serious climate used to be famous, however groups deployed “playbooks” to recuperate misplaced quantity, and full-year steering used to be reaffirmed with self assurance in offsetting shortfalls throughout the rest of the yr.
• X-ray made up 15% of system-wide quantity however most effective 5% of earnings, reflecting the strategic focal point on higher-rate complex modalities.
• Gadget-wide CapEx for 2025 used to be one thing north of $100 million, with a bigger percentage allotted to expansion and kit upgrades; 2026 is anticipated to persist with a equivalent funding profile.

Business thesaurus

• De novo opening: The release of a brand-new imaging middle constructed from the bottom up, now not got or transformed from an current location.
• Adjusted EBITDA: Profits ahead of pastime, taxes, depreciation, and amortization, adjusted for pieces like professional rata JV contributions, stock-based reimbursement, and different non-recurring bills.
• Move-through earnings: Income gained from JV facilities to reimburse Lumexa for direct prices paid at the JV’s behalf, and not using a related benefit margin.
• Complicated imaging modality: Top-value diagnostic procedures equivalent to MRI, CT, and PET scans, versus elementary products and services like X-ray and ultrasound.
• FastScan: Lumexa’s AI-enabled generation to boost up MRI scan occasions, making improvements to skill and symbol high quality.
• Three way partnership (JV) middle: Outpatient imaging places operated via partnership constructions with well being techniques, the place Lumexa holds a minority possession and information a proportional percentage of source of revenue and EBITDA.
• Breast arterial calcification (BAC) screening: Imaging carrier added to mammography to evaluate attainable cardiac possibility through detecting calcium buildup in breast arteries.

Complete Convention Name Transcript

Caitlin Zulla: Thank you, Sue. Excellent morning, and thanks serious about becoming a member of us these days on our first profits name as a public corporate. The fourth quarter of 2025 marked a powerful with reference to a very powerful yr for Lumexa Imaging, and we delivered stable and constant expansion in earnings and EBITDA that exceeds our initial profits announcement. We generated consolidated earnings of $267.7 million, up 7.9% over This fall of remaining yr. Adjusted EBITDA of $63.8 million represented an 18.6% building up over This fall of remaining yr and delivered a 23.8% adjusted EBITDA margin. We finished 1.4 million complex imaging checks system-wide within the quarter, which is a 7.7% building up year-over-year. 2025 used to be a yr marked through a number of significant achievements for Lumexa Imaging.

Listed below are some of the highlights. We complex our expansion plans, reaching a report collection of de novo openings and riding sturdy same-center expansion. We introduced a a hit rebrand of the corporate, rolling out our new identify, Lumexa Imaging to raised constitute our shared function, our leading edge spirit and our dedication to bringing better get right of entry to and remarkable care to extra sufferers and extra communities. We finished our IPO, bringing better consciousness of our corporate to the funding group, broadening get right of entry to to our worth introduction alternative and through the use of proceeds to scale back our leverage profile, liberating up extra money to reinforce our plans for winning expansion.

I would love to take a second to replicate at the basics of our trade and the rationale I imagine now we have a powerful runway for persisted expansion. Our easy cost proposition continues to resonate with sufferers, suppliers and payers as demonstrated through our prime affected person Web Promoter Rankings, which might be constantly over 90. We offer enhanced get right of entry to to fine quality imaging that is helping transfer sufferers via remedy in additional handy settings and at meaningfully cheaper price than health facility outpatient division or HOPD websites of care.

We have the benefit of a number of long-term call for tailwinds, together with ageing populations with advanced and protracted stipulations, new remedy paradigms that require complex imaging, expanding charges of preventative screening and an ongoing migration from health facility and inpatient settings to outpatient imaging amidst a fragmented and capacity-constrained trade panorama. Our industrial efforts are directed at larger expansion and better reimbursing complex imaging modalities, together with MRI, CT and PET scans. We additionally be offering regimen modalities like X-ray and ultrasound, which might be strategic and place us as a handy and complete answer for sufferers, even if the ones modalities are a much less significant driving force of our monetary outcomes.

We’re deploying a targeted and disciplined winning expansion set of rules grounded in same-center expansion, geographic growth, strategic carrier line growth and turning in efficiencies throughout our corporate, together with make a selection AI-enabled answers. And through leveraging generation, together with our current tech stack in addition to inventions being advanced in coming months and years, we’re smartly located to power higher results and efficiencies. We flip the web page to 2026 with self assurance fueled through sturdy execution and a way that at Lumexa Imaging, we’re within the early innings of capitalizing at the alternatives forward people. We’re impressed through our project to increase get right of entry to to fine quality imaging via increased compassionate care, making improvements to lives and advancing well being care around the nation.

Subsequent, I want to take a second to check the important thing strategic projects now we have in our points of interest for 2026. First, riding same-center expansion is our number one strategic focal point. As a reminder, larger process quantity in most cases accounts for about 2/3 of our earnings expansion and the rest 1/3 is attributed to charges, pushed through each will increase in each charge in step with unit and acuity combine or proportion of complex modalities. Our industrial crew is laser-focused on riding same-center expansion. To carry this to existence, I’m going to percentage a few examples from the fourth quarter.

In Orthopedic, we introduced a focused advertising and gross sales outreach marketing campaign, which drove incremental expansion from one among our best possible referring distinctiveness supplier classes throughout their top surgical season. Every other space the place our groups are riding momentum is mammography. Roughly 85% of our screening quantity comes from current sufferers who returned for his or her annual examination, reflecting prime ranges of affected person accept as true with and retention. Leveraging our CRM features and proactive scheduling throughout affected person visits, we have been ready to meaningfully building up our annual screening compliance charge. We additionally initiated advertising efforts to power a wholesome building up in new mammography sufferers in 2025.

When annual compliance charges building up, extra circumstances of breast most cancers are detected and handled early, saving lives and decreasing the price of well being care. As we power extra call for inside our current facilities, we also are taking steps to turn out to be extra effective to satisfy this rising outpatient imaging quantity. Listed below are a couple of examples. With the advantage of an AI-enabled quicker scanning generation, we larger time table throughput through just about 40% whilst additionally making improvements to symbol readability since creation. Our FastScan integration and rollout used to be roughly 50% whole throughout all of our facilities through the top of 2025, and we think to achieve about 2/3 adoption through the top of 2026.

Every other innovation we’re integrating is digital cockpit for faraway MRI scanning. This generation permits us to reduce the have an effect on of gadget downtime, flex our staffing schedules and prolong hours to serve our sufferers. Our subsequent strategic precedence for 2026 comes to geographic growth. We purpose to reach this via new de novo openings, JV partnerships and sparsely decided on M&A. We view de novo openings as foundational to forcing long run expansion. In 2025, we opened 9 new facilities, a report for our corporate. As a reminder, our standard de novo ramps and reaches breakeven in about 12 months, and our 2024 and 2025 cohorts of facilities are monitoring proper in keeping with the ones expectancies.

Taking a look forward, we plan to open 8 to ten de novos once a year and are agnostic as as to if the ones are in wholly owned or three way partnership constructions. We opened our first de novo of the yr in February and recently have excellent line of sight to attaining our 2026 function for brand spanking new websites. We stay up for giving you extra main points because the yr unfolds. Joint ventures constitute the following space of our strategic focal point for 2026. Joint ventures are a key differentiator, aligning well being components priorities with our growth technique. Well being techniques are increasingly more in quest of techniques to take part within the speedy web site of care shift to outpatient imaging and alternatives to develop their outpatient ambulatory footprint.

Our JV fashion supplies a extremely efficient access level. During the medical, industrial and operational excellence we display, specifically in de novo construction, Lumexa Imaging is definitely located to assist techniques execute towards those ambitions whilst last concentrated on their broader endeavor priorities. In go back, those partnerships boost up our presence in any given marketplace. We’re cultivating a strong pipeline of attainable companions with a couple of ongoing conversations at quite a lot of levels. I would like to spotlight a contemporary instance that illustrates the facility of our option to joint ventures. Within the again part of remaining yr, we entered into a brand new partnership with the College of Pittsburgh Scientific Heart.

Thru this, we are running with UPMC to assist them succeed in their targets of offering get right of entry to to cheaper price, fine quality and extra handy imaging. On the identical time, we’re broadening our personal footprint to incorporate Pennsylvania, increasing our succeed in to fourteen states. It is early on in our partnership, however we’re actively advancing web site location making plans. We’re energized to were selected as a spouse through this results-oriented and forward-thinking well being components. In terms of M&A tuck-ins, we’re ceaselessly comparing accretive alternatives and can stay very disciplined in our way.

On the finish of the fourth quarter, we finished one small tuck-in acquisition of a brand new facility in North Carolina, an extension of our sturdy partnership with Atrium. Every other strategic precedence for 2026 comes to providing new strategic carrier traces to power acuity combine and succeed in efficiencies via innovation. Two spaces I would like to spotlight as examples are mammography with cardiac screening referred to as breast arterial calcification and PET. We just lately introduced breast arterial calcification or BAC screenings as a coins add-on evaluate for cardiac well being at our mammography places in South Jersey. Heart problems is without doubt one of the main reasons of dying for ladies with over 60 million ladies within the U.S. dwelling with some type of middle illness.

As famous in a find out about printed within the Magazine of the American School of Cardiology, BAC can be utilized as a biomarker to judge calcium buildup within the breast arteries, which would possibly point out larger cardiovascular possibility. Acceptance of this add-on has been sturdy since inception. PET is every other strategic space of focal point for us and used to be a contributor to our expansion and building up in acuity combine in 2025. Our Lumexa Alzheimer’s Heart of Excellence is helping establish sufferers who would possibly have the benefit of rising onset dementia treatments with amyloid PET checks. Sufferers who obtain this treatment want as much as 5 MRIs for uncomfortable side effects tracking. Progressed puppy get right of entry to is a treasured approach we will be able to permit their care.

Our complete yr PET volumes larger mid-teens on each a consolidated and system-wide foundation. BAC and PET power each quantity and charge for us, and we are within the means of increasing those strategic carrier traces to different geographies. I would love to take a second to talk about our option to innovation. At Lumexa, we take a partnering option to leveraging generation and incorporating synthetic intelligence throughout our trade. We imagine this way permits us to boost up adoption, have the benefit of decreased capital depth and benefit from the flexibility to leverage the most productive confirmed answers as they abruptly come to marketplace. Within the fourth quarter, we reached an settlement to spouse with Ferrum Well being, a number one AI convener.

Merely put, Ferrum acts as an AI medical imaging app shop, offering us get right of entry to to FDA-cleared apps via a unmarried built-in pathway. Thru this partnership, we will be able to temporarily activate, evaluation and measure the effectiveness of loads of AI programs that we will be able to put in force throughout modalities and workflows whilst protective our knowledge and our insights. We are riding best-of-breed generation throughout our whole corporate. Our centralized back-office groups also are taking part on this push for innovation as smartly, the use of rising agentic and generative AI purposes to extend efficiencies. Wrapping up, I am happy with our This fall outcomes, and our crew is energized through the good fortune to ship on our strategic priorities for the yr to return.

We imagine we are within the early levels of capitalizing at the important alternative forward people and that Lumexa is definitely located to ship winning expansion this yr and past. I wish to say an enormous thanks to our devoted crew individuals and our radiologists. Our accomplishments are an instantaneous end result in their laborious paintings and dedication to offering the best quality imaging enjoy for our sufferers who depend on us. I’m going to now flip the decision over to Tony to check our fourth quarter in additional element. Tony?

J. Martin: Thanks, Caitlin, and thanks serious about becoming a member of us these days to talk about our outcomes. On these days’s name, I’m going to evaluate the monetary outcomes and discuss to a couple key drivers of our efficiency within the quarter. I will be able to then supply our outlook for complete yr 2026. To complement my evaluate of our GAAP financials on these days’s name, I will be able to cite some system-wide metrics that will help you higher perceive our general efficiency and the breadth of our trade. Gadget-wide metrics come with all facilities that we perform, together with the 102 that we wholly personal in addition to the 86 facilities that we perform in our 8 joint ventures with well being techniques.

Our well being components JV facilities’ revenues and bills don’t seem to be integrated in our GAAP revenues and bills because of our minority possession place, however they’re necessary drivers of our efficiency as a result of we do report our professional rata possession percentage in their web source of revenue and their coins flows in ours, and we select up our professional rata percentage in their EBITDA and our adjusted EBITDA. Main points of our JV monetary efficiency are integrated in our quarterly monetary remark disclosures. We ended 2025 with a powerful This fall efficiency, one who exemplified our long-term expansion set of rules and our focal point on complex modalities, together with MRI, CT and PET. Consolidated revenues for the overall yr of $1.023 billion larger 7.8% in comparison to 2024.

Gadget-wide revenues larger 8.2% in comparison to 2024. We additionally delivered adjusted EBITDA of $230.2 million, which larger 14.6% in comparison to 2024, representing an adjusted EBITDA margin of twenty-two.5%. Our coins flows have been sturdy and delivered a greater than part flip relief in leverage ratio throughout a yr by which we opened a report 9 new facilities, with leverage coming down an extra 2 turns to a few.5x levered in December on account of our IPO and linked debt refinancing. Turning to our fourth quarter financials, beginning with revenues. Within the fourth quarter, consolidated revenues got here in at $267.7 million, an building up of seven.9% in comparison to the similar length remaining yr.

This expansion used to be maximum closely pushed through our go back in community with a big payer in New Jersey. We additionally noticed an building up within the quantity of procedures in different places and a persisted combine shift towards complex imaging, which has larger charges. We skilled sturdy system-wide efficiency throughout all of our outpatient websites, each wholly owned and in JVs. As proven in our monetary tables, system-wide earnings expansion used to be 10.6% within the quarter. Income in step with unit, which contains each scan and skim earnings, additionally benefited from modest will increase in shrunk charges with payers who recognize our cheaper price level in comparison to hospital-based products and services.

Our outpatient revenues additionally grew as we ramped 4 websites added in 2024 and the 9 new websites we opened throughout 2025. Moreover, our skilled price revenues, which contain our 2d running section, have been $66.8 million, reflecting expansion of 10.6%. In any case, control price and different revenues have been $57.2 million. Those revenues consist of 2 number one parts. First, we are paid a control price through every of our well being components JVs to perform the outpatient facilities in the ones JV constructions. 2d, we make use of middle workers and immediately pay for positive IT and different products and services on behalf of the JV websites and necessarily hire them again to the JV with out an related margin. We name those pass-through revenues.

We disclosed the quantity of pass-through revenues in a desk accompanying our quarterly profits unencumber. Bills associated with the refinancing of our debt and different transaction prices in our IPO yr led to a GAAP web lack of $28.7 million for the quarter in comparison to a web lack of $25.1 million within the fourth quarter of remaining yr. Adjusted EBITDA for the fourth quarter used to be $63.8 million in comparison to $53.7 million in the similar length remaining yr, representing an building up of 18.6%. Adjusted EBITDA margin used to be a wholesome 23.8%, up 150 foundation issues from the prior yr fourth quarter, underscoring the scalability of our running fashion and robust execution of margin growth projects.

I’m going to remind everybody that adjusted EBITDA displays our professional rata possession percentage of EBITDA of all our facilities, each those we wholly personal and the ones in well being components JVs. A snappy notice on stock-based reimbursement. Our stock-based comp may also be seen in two parts. First is the expensing of stocks that have been issued as a part of the acquisition worth for some companies we got throughout 2020 and 2021. Those prices shall be absolutely amortized throughout 2026. 2d is the expensing of fairness tools granted to control and workers, which is anticipated to proceed to be a part of inventory comp past 2026. Turning to the stability sheet.

We ended the quarter with $58.8 million of money and coins equivalents in comparison to $26.1 million on the finish of 2024. We have materially reinforced our stability sheet. As I described previous, we delevered over part a flip merely during the operation of the trade throughout 2025 regardless of opening a report 9 de novos. Then in December, we used $406 million of web IPO proceeds to pay down debt, which decreased our leverage ratio through 2 extra turns. In December, we additionally gained stepped forward credit score scores from each S&P and Moody’s to B+ and B2, respectively, and we refinanced our time period mortgage at a extra favorable rate of interest.

The results of this stability sheet strengthening task is an expected annual coins financial savings of greater than $50 million. Infrequently other folks ask concerning the debt of our unconsolidated well being components JVs. We’re going to all the time expose that determine in our quarterly reporting. However I’m going to notice right here that the whole at year-end used to be $69 million, attributed principally to financing of apparatus purchases on the facilities. That quantity isn’t integrated in our stability sheet or our computation of leverage ratios for lenders. But when we have been to incorporate our professional rata possession percentage of this debt, our leverage ratio would most effective building up through about 0.15x.

We believe our JVs to be capital-efficient trade fashions that reinforce our expansion targets and generate important coins flows for us and our well being components companions. Our trade continues to generate sturdy coins waft. Earlier than transferring to steering, I wish to reiterate our 3 capital allocation priorities. First, we plan to fund de novo facility expansion, apparatus upgrades and investments in strategic carrier traces. 2d, we would possibly make sparsely selected strategic tuck-in acquisitions. Whilst those are a part of our expansion matrix, our 2026 steering isn’t depending on long run M&A. And 3rd, over the long term, we purpose to scale back our leverage profile to underneath 3x.

Given the sturdy coins technology of our trade, we imagine we are smartly located to execute on those 3 priorities. Put in a different way, we imagine our trade supplies the versatility to naturally delever even whilst absolutely investment our ongoing capital wishes and expansion technique. Now turning to our outlook for complete yr 2026. Unchanged from our pre-announcement previous this month, we proceed to be expecting earnings to be within the vary of $1.045 billion to $1.097 billion and altered EBITDA to be within the vary of $234 million to $242 million, which contains roughly $7 million of public corporate prices that weren’t incurred in 2025.

On the midpoint, the adjusted EBITDA expansion charge, apart from the addition of those prices in our first complete yr of operations as a public corporate could be 7%. And these days, we are including steering for adjusted EPS, which we think to be between $0.71 and $0.77 in step with percentage. We think persisted expansion in volumes with complex modalities rising quicker and representing an expanding percentage of the combo. That is necessary as complex imaging drives larger earnings in step with process and better margins. Different modalities have an effect on our income, however some power benefit greater than others, and our advertising efforts replicate that. As an example, X-ray volumes have been 15% of our system-wide volumes in 2025, however most effective 5% of our revenues.

We don’t supply quarterly steering, however as we consider Q1, I wish to percentage some further colour that can be useful in framing expectancies. From a seasonality standpoint, the primary quarter is usually our lowest for earnings and altered EBITDA. After which our outcomes ramp all through the yr with the fourth quarter constantly being our most powerful, pushed through sufferers in quest of care forward of annual deductible resets. With Q1 2026 in large part at the back of us, we wish to notice some strange timing dynamics. First, we imagine our sturdy This fall efficiency used to be partly because of some pull ahead of volumes from January into December.

2d, New Jersey, Texas and 3 different Southern states have been impacted in Q1 through storms, inflicting some have an effect on to volumes. Whilst we have been ready to recuperate a portion of those volumes inside the quarter, we look ahead to those dynamics to lead to Q1 adjusted EBITDA being roughly flat in comparison to Q1 of 2025. We imagine we will be able to make up the rest misplaced quantity all through the process 2026, and we stay assured in our complete yr steering. As we set our points of interest on the long term, in alignment with the discussions we had on the time of our IPO, we imagine we are construction a sturdy expansion engine fueled through de novo expansion, same-center gross sales growth and increasing strategic carrier traces.

We are within the early days of imposing our expansion projects. And as new facilities ramp and acuity combine shifts with trade tailwinds supporting our expansion, we imagine we will be able to constantly ship earnings expansion a minimum of in keeping with that of the marketplace. Additional, our sexy unit economics give us self assurance we will be able to constantly develop our adjusted EBITDA at a charge larger than our earnings expansion. Wrapping up my evaluate of our financials. 2025 used to be an exhilarating yr of milestones and winning expansion, and we put the construction blocks in position for long-term shareholder cost introduction. Echoing Caitlin, I am happy with our efficiency within the quarter, finishing the yr on sturdy footing.

I additionally wish to acknowledge that none of it might were imaginable with out the laborious paintings of our devoted crew. Operator, would you please open the decision to questions.

Operator: [Operator Instructions] Our first query comes from the road of John Ransom with Raymond James.

John Ransom: In order we consider 2026, how can we consider the expansion in complex imaging as opposed to regimen? Does it seem like 2025? I do know there used to be a distortion from the Blue Go tuck-in. After which as you consider the rhythm of opening your new facilities, how can we consider the quarterly rhythm of that as we transfer during the yr?

Caitlin Zulla: Thanks such a lot, John. Sure. So we stay concentrated on proceeding the expansion of our complex imaging. We’re extremely happy with the energy that we have been ready to turn in fourth quarter and all through the yr. As we mentioned in our ready remarks, all through the yr, complex imaging grew 8% on a same-center foundation, 7.1% on — excuse me, on a consolidated foundation and seven.1% system-wide. We can proceed to look that expansion at a charge larger than our regimen. Once we consider regimen, it in reality is blended of 3 other modalities. You might have your ultrasound, your mammography and your X-ray. X-ray, simply by the character of the rate and the accessibility, it’s the biggest finish.

It is the largest quantity. It is the largest piece. And clearly, we offer that for strategic causes. However as Tony shared in his ready remarks, it isn’t correlated to the entire efficiency of the trade, and also you noticed that during This fall. So we’re going to proceed to concentrate on the energy of complex and excited to look that keep growing. After which solution your questions on de novos, extremely joyful to mention that we’ve got already spread out this yr, heading in the right direction to ship that 8 to ten.

We have were given in reality excellent visibility with regards to pacing, be expecting it to be extra 2d part of the yr weighted with extra of the openings, however we can have some further openings within the first part as smartly.

Operator: Our subsequent query comes from the road of Whit Mayo with Leerink Companions.

Benjamin Mayo: Tony, any assist on coins waft and CapEx for the yr? After which how a lot of the CapEx is anticipated to be the apparatus upgrades? Simply any ideas could be useful.

J. Martin: Certain, Whit. Sure, as I have mentioned within the ready remarks and prior to now, it is a sturdy cash-generating trade, fortunately. We are ready to hold out all of our expansion projects whilst delevering every yr. And that in reality units us up, particularly after the IPO, bringing down our debt and producing much more coins for use at some point to roughly proceed that delevering. As to how that is performed out in 2025, we can be submitting our 10-Ok now not later than March 31, which may have extra main points on how — what the spend is composed of. However we do stay closely targeted at the de novos as an enormous chew of that spend, making an investment within the current facilities for expansion.

After which there’s a repairs part that is more or less the minority of the spend, however is vital to be sure that we proceed to have what we’d like on the current websites.

Benjamin Mayo: Ok. Smartly, simply again at the coins waft this yr, simply seeking to consider the bridge from ’25 to ’26. Wouldn’t it be simply simplistically simple to take a look at simply the EBITDA expansion after which including again the $50 million of pastime financial savings to get to an inexpensive quantity? Or are there another variables or concerns that we will have to consider?

J. Martin: At this level, we are not in reality guiding on coins waft. And so I’m going to caveat no matter I say about that, a minimum of for the instant in our younger, early adventure as a public corporate. However sure, prime stage, the corporate is experiencing the EBITDA expansion you described, numerous pastime financial savings. 2026 will proceed to be roughly a prime capital spend yr simply on account of the continuation of what we did in 2025 with regards to the expansion CapEx and making sure that the fleet is absolutely as much as present wishes for us. So we’ve got spent somewhat extra on repairs than standard, and we’re going to most certainly proceed to try this in 2026.

However directionally, you might be occupied with it the proper approach.

Operator: Our subsequent query comes from the road of Benjamin Rossi with JPMorgan.

Benjamin Rossi: Simply at the charge facet inside your 2026 steering, what are you factoring for pricing in 2026? And the way are you occupied with expectancies for charge expansion throughout your primary books for industrial, Medicare and Medicaid payers this yr?

Caitlin Zulla: Thanks such a lot, Ben. Sure, Tony, perhaps I’m going to can help you communicate somewhat bit about how we think our expansion set of rules.

J. Martin: Certain. Certain. Over the years, our expansion is pushed about 2/3 through quantity and 1/3 through charge. And that roughly drives the 7%-ish same-site expansion that we have got within the outpatient section. In case you take a look at our consolidated financials, we display most sensible line earnings expansion somewhat bit not up to that as a result of we do have a 2d section, which is so much smaller than the outpatient section, and it grows somewhat bit much less, extra like 5%. And we’ve got mentioned how that matches into our general technique to power that trade. In order that creates one of those a mixed expansion charge of extra like 6% — 5% to six% most sensible line.

However that outpatient trade is extra like 7%, 2/3 of it through quantity, closely through expansion in complex modalities. So the expansion within the complex roughly — it represents about part of what we skilled with regards to charge building up as a result of the ones simply reimburse larger, 3x to 4x larger. In order now we have extra trade in that, it generates some charge expansion. After which the type of the rest part of what we name charge expansion is pushed simply by escalators in shrunk charges within the industrial guide. And that’s the reason — we imagine we are in reality roughly considering of that very conservatively at this level.

Operator: Our subsequent query comes from the road of Andrew Mok with Barclays.

Andrew Mok: Simply sought after to persist with up at the coins waft and CapEx. Are you able to give us a way for general system-wide CapEx anticipated for 2026? And assist us know how that is anticipated to waft during the P&L and coins waft remark, particularly at the nonconsolidated portion.

J. Martin: Certain. We aren’t, at this level, placing a host in the market with regards to how a lot that is going to be numerically. I feel it does waft via a mixture of the way on our coins waft remark. For our consolidated websites, it is in our making an investment actions to the stage we use our personal coins. There may be additionally a supplemental disclosure that talks about CapEx that we fund simply by capital leasing the ones belongings, which comes to no coins outlay. So you can see that during our 10-Ok after we record with regards to what the 2025 numbers are. The quantities we spend at the well being components JVs are burden the money distribution that we get from them.

In order that’s one thing we’re going to discuss extra as we get somewhat bit extra mature as an organization. We are protecting our steering metrics beautiful restricted this present day, however we are going to feel free to turn extra about that at some point.

Andrew Mok: If you are now not giving 2026, are you able to percentage the place general system-wide CapEx landed for 2025?

J. Martin: I imagine — I have no idea that is going to be in our 10-Ok explicitly. However I feel in our talks throughout the — throughout our going public procedure, system-wide, we have been spending one thing north of $100 million with our professional rata percentage of that being considerably much less as a result of for the phase we spend within the well being components JVs, we cut up it professional rata with our well being components spouse.

Operator: Our subsequent query comes from the road of Ryan Daniels with William Blair.

Matthew Mardula: That is Matthew Mardula on for Ryan. So, on your ready remarks, you touched up in this referring to This fall outcomes. However since a majority of sufferers come from referring physicians, how is the crew located for this yr to extend affected person referrals on your imaging facilities? And are you planning on doing any further projects or adjustments to construct in addition to building up doctor relationships for this yr?

Caitlin Zulla: Sure, Matt, thanks such a lot. So now we have a powerful engagement technique with our referring physicians. We’ve over 120 gross sales reps which can be embedded in our markets that interact with over 100,000 referring physicians. So extremely engaged. Once we consider — we first focal point on our best possible referring specialties, your ortho, your neuro, your ENT, your ache, your urology and your gastro. We highlighted a selected marketing campaign we did on orthopedics in This fall in our ready remarks, very a lot as a result of this is their busy season as smartly. And so orthopedics want imaging, and we have been ready to offer that for them.

We even have advertising efforts, in particular as we predict via ladies who canceled their mammograms throughout the snow days in Q1. And so an excessively focused outreach to make certain that we’re rescheduling and getting our sufferers again at the time table to get their mammograms. So we’re going to proceed to have a prime stage of engagement with our referring physicians and ensuring we’ve got were given focused messaging and techniques to satisfy their wishes.

Operator: Our subsequent query comes from the road of Stephen Baxter with Wells Fargo.

Stephen Baxter: Thank you for the colour on Q1. That is useful. It might be nice to doubtlessly know how you might be occupied with it on attainable quantity have an effect on or perhaps same-store earnings have an effect on from the elements and roughly pull-forward dynamics. After which as you might be occupied with the stability of the yr out of doors of Q1, any sense of ways a lot you might be assuming of the volumes that you have not recovered but that you may in reality get as opposed to what sort of simply leaks out and does not in the long run happen?

Caitlin Zulla: Sure. Thank you such a lot, Stephen. I recognize the query. As we mentioned a bit of within the ready remarks and clearly noticed at SCA and USPI, This fall used to be all the time our best possible quarter associated with deductible reset. And so in reality happy with the efforts that the crew installed to power energy in This fall. And clearly, we’re going to be replicating that as we consider 2026. We consider roughly the have an effect on in Q1, about 50-50 roughly 50% acceleration in This fall after which about 50% of it being about climate have an effect on. Crew is actively enticing.

For sure, we all know any sufferers that had scans at the time table and we are — our name middle — centralized name middle is attaining out to reschedule them. After which now we have our gross sales crew enticing with referring physicians who additionally had a backlog. So we really feel in reality assured that we’re going to be capable of proceed to power the quantity expansion. We are seeing energy put up typhoon, particularly within the complex no expansion. And the combo of our sturdy gross sales efforts in addition to simply the operational energy of our crew, really feel assured within the complete yr steering.

Stephen Baxter: Nice. Sure, that is very useful. After which perhaps additionally if you might want to doubtlessly supply a touch upon perhaps one of the present macro stipulations. Clearly, individuals are staring at carefully in terms of such things as oil costs and fuel costs and issues of that nature. I suppose how are you occupied with that? Like is there any publicity inside your individual P&L that we wish to remember of? After which as you consider the cash you might be spending on capital, I suppose, how are you occupied with attainable downstream affects to the capital initiatives that you’ll have?

Caitlin Zulla: Sure. Thanks such a lot, Stephen. We’re very a lot keeping track of all issues macro and all issues inside our provide chain. And at the moment, we see no possibility in any respect to Lumexa Imaging. We have in particular gained some questions referring to helium. Simply for example, helium has in reality been in scarcity for a number of years, and now we have sturdy carrier contracts with our authentic apparatus producers that give us truthful pricing. We even have quite a few secondary resources and all of the ones have mounted charges, identical with gadolinium. And simply with regards to context, one of the more recent MRs require in reality much less helium than older fashions.

And so the apparatus refreshes that we’ve got been doing deliberately over the previous couple of years supply us additional safety. So no issues presently that you want to be considering of.

Operator: [Operator Instructions] Our subsequent query comes from the road of Brian Tanquilut with Jefferies.

Jack Slevin: You were given Jack Slevin on for Brian. Caitlin, I sought after to invite some in reality fascinating statement round your rollout of FastScan and different throughput projects. Are you able to perhaps communicate somewhat bit about — I heard the development of we are going to get to two/3 through the top of this yr. However are you able to — are there any early reads on form of what that implies from an potency point of view or form of the quantity inflection you have been ready to look as you have rolled that out around the first part of the portfolio?

Caitlin Zulla: Sure. Thank you such a lot, Jack. Recognize the query. So we’re very interested by FastScan. It is an initiative that we have got been running on over years, proud to be at 50% of our MRI fleet with FastScan on the finish of remaining yr. Very merely, FastScan truncates the period of time it takes to do an examination. So, for an ankle MRI on a Siemens, it takes it from 22 mins down to eight. It’s higher for the radiologist for the reason that symbol is larger high quality. After which it’s higher for the affected person as a result of they have got to spend much less time within the claustrophobic MRI tube.

After which, in fact, it is higher for us as it opens up further scheduling skill, usually about 40%. We’re very measured in all capital deployment and together with FastScan, we will be able to get FastScan features both through obtaining a brand new gadget or through offering bolt-on instrument. It is about $150,000. So clearly, a meaningfully cheaper price level. And we all the time wish to make certain that we will power a powerful IRR that may meet our funding thresholds. So we make sure that now we have that trade case authorized ahead of we roll it out.

So excited for the ongoing expansion, and that’s the reason a large a part of giving us the arrogance that we’re going to be capable of power the perception expansion in 2026 and past that we’ve got shared in our expansion set of rules.

Operator: Our subsequent query comes from the road of Pito Chickering with Deutsche Financial institution.

Pito Chickering: I suppose going again to form of 1Q, you guided form of flat EBITDA year-over-year, however your steering used to be maintained for the yr. So, at the start, we are modeling quarterly steering — quarterly EBITDA expansion of about 6.7% on the midpoint of the variety, apart from the $7 million of public prices for each quarter this yr. Now first quarter is flat. So simply mathematically, we will have to be modeling form of 9% quarterly EBITDA expansion from 2Q to 4Q. I am simply form of curious what you — it sort of feels like a large step up for the remainder of the yr with a flat first quarter. I suppose what offers you guys conviction EBITDA rising at 9% for the remainder of the yr?

Caitlin Zulla: Certain. I feel, Pito, thanks for the query. I feel widely, now we have nice momentum within the trade. So now we have energy of our complex mods. We’ve the report yr of de novo openings in 2025 which can be ramping smartly. The pacing of remaining yr used to be extra first weighted than 2d part, and we have already got the only open in 2026. We even have a couple of ongoing JV conversations at quite a lot of levels. It offers us self assurance within the broader want for our carrier and our fashion. After which now we have the tuck-in acquisition that we shared in December, and we are construction a pipeline of acquisition alternatives.

After which on most sensible of that, we’ve got were given conviction and evidence issues in advancing our strategic carrier traces like our breast arterial calcification, nice uptake in New Jersey and nice medical outcomes for our sufferers, before everything. And so we’re going to be occupied with how we increase that as smartly. Tony, the rest you would upload about how we consider pacing all through the quarters?

J. Martin: Sure. As we mentioned, this can be a seasonal trade and ramps, and it occurs in roughly other charges year-to-year relying on such things as climate and relying on how important deductible reset pushed conduct is. In order that will trade, however we do ramp up once a year quarter-by-quarter. And climate occasions and different disruptions in particular person websites occur with referring physicians being closed down for a few days or us being closed down for a few days. So now we have a playbook that we use to get that quantity again. It is a part of doing trade on this area. All well being care products and services suppliers have the ones playbooks, and we definitely do and feature put them to paintings.

So we do be expecting to roughly pull that remainder of that quantity in someday, and that provides to our conviction in our annual steering.

Operator: Our remaining query is a follow-up from the road of John Ransom with Raymond James.

John Ransom: Only a couple extra for me. What used to be the pro price earnings within the fourth quarter and for the overall yr?

J. Martin: For the fourth quarter, it used to be $66.8 million.

John Ransom: Ok.

J. Martin: And the overall yr determine, I feel I installed my ready remarks, however I definitely have it.

John Ransom: I will get that. I imply I will get that offline.

J. Martin: Sure, and that may definitely be in our 10-Ok. We are going to be submitting that now not later than the thirty first. However sure, we will be able to definitely get that.

John Ransom: After which my different — after which what used to be the pro price — remaining yr, fourth quarter skilled price?

J. Martin: Sure. It — the expansion charge used to be 10.6% year-over-year. So I’m going to solution your query that approach.

John Ransom: Does skilled grew that a lot?

J. Martin: Sure.

John Ransom: Ok. All proper. After which secondly, we’ve got roughly been from side to side on how one can arrange — or excuse me, how one can fashion control price plus pass-through. So, on your disclosure, we had considered control charges as being 10% of the earnings of your unconsolidated. So it looks as if control charges are larger than that, and that most certainly contains some stuff on your different earnings segments. However how can we consider managing — modeling control charges? And what sort of margin does that trade generate? As a result of I do know you do not escape the prices, however simply assist us fashion that as opposed to the pass-through in 2026.

J. Martin: Sure. Excellent query. And I am happy we are ready to spotlight the pass-throughs as a result of that is a large chew of revenues that does not in reality power anything else in an EBITDA point of view. So your query about what to concentrate on with regards to modeling it makes numerous sense to me. I feel what you have observed within the contemporary pattern is the most productive indicator of the longer term on that. It’s from a natural control price point of view, pushed through a proportion of the revenues of the underlying JVs, which you’ll see the expansion charges which can be taking place at that stage. It’s — there’s a little bit of alternative earnings in that as smartly for another products and services we offer.

So I feel that aggregate isn’t more likely to trade a complete lot with regards to how it is rising and the way you are looking at it.

John Ransom: So develop it form of in keeping with consolidated earnings expansion — or I am sorry, with system-wide earnings expansion?

J. Martin: I feel, in most cases talking, that is how we take a look at it, sure.

Operator: I’d now like handy the decision again over to Caitlin Zulla for final remarks.

Caitlin Zulla: Thanks for the questions these days, and thanks to your persisted pastime in Lumexa Imaging. As you have heard all through the decision, we’re getting into 2026 with sturdy momentum, a transparent technique and deep self assurance in our talent to execute. Our crew stays concentrated on turning in remarkable affected person care, increasing get right of entry to to fine quality imaging and riding disciplined, winning expansion. I wish to shut as soon as once more through thanking our devoted crew individuals and our radiologists. Their dedication to our project and to the sufferers and the communities we serve is still the root of our good fortune. We recognize your time these days and stay up for updating you on our development within the quarters forward. Thanks.

Operator: This concludes these days’s convention. Thanks to your participation. You might now disconnect.