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Profitability improved sharply despite lower revenue: Second-quarter revenue fell 13.6% to $210.8 million, but net income rose to $65.8 million from a $17.7 million loss and adjusted EBITDA increased 25.7% to $90 million.
Lower arbitration-related costs drove margin gains: A reduced CMS independent dispute resolution fee and revised HaloMD terms contributed substantially to lower expenses. Nutex expects normalized contract-services costs to decline 25% to 30% if current IDR trends continue.
Patient volumes, cash flow and expansion remained positive: Hospital visits increased 9.6% year over year, first-half operating cash flow rose 40% to $109.7 million, and the company plans to open hospitals in Arkansas, Texas and Florida during the second half of 2026.
Nutex Health (NASDAQ:NUTX) reported higher second-quarter profitability and adjusted EBITDA despite lower revenue, as the company benefited from reduced arbitration-related costs, lower stock-based compensation and continued patient-volume growth.
For the three months ended June 30, Nutex reported revenue of $210.8 million, down 13.6% from $244 million a year earlier. Hospital division revenue declined 14.6% to $201.9 million, while population health revenue rose about 16% to $8.9 million.
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Net income attributable to Nutex was $65.8 million, compared with a net loss of $17.7 million in the prior-year quarter. Adjusted EBITDA rose 25.7% to $90 million. Operating income increased to $121.7 million from $33.7 million.
Chief Financial Officer Jon Bates said the year-over-year revenue decline primarily reflected the comparison with the second quarter of 2025, when the company recognized a larger increase in collection assumptions as its experience with the independent dispute resolution, or IDR, process developed.
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Revenue per visit in the second quarter of 2025 was approximately $5,185, compared with a cumulative range closer to $4,000 to $4,200 per visit since Nutex began using IDR in July 2024, Bates said. The company had increased its collection percentage assumption from 65% at the end of 2024 to 75% by June 30, 2025, creating a favorable prior-year adjustment. The collection percentage has since leveled out at just over 80%, he said.
Bates said management expects revenue per visit to remain generally consistent with the cumulative range, although increased inpatient activity could cause some variability.
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Hospital visits increased 9.6% to 49,962 in the second quarter, while same-hospital visits rose 6.3%. For the first six months of 2026, hospital visits rose 6.2% to 99,704, with same-hospital growth of 3.4%.
Facility-level operating costs and expenses declined to $69.5 million, or 33% of second-quarter revenue, from $119.1 million, or 48.8% of revenue, in the prior-year period. Bates said the reduction was primarily driven by changes to arbitration-related costs.