Cardiff Lexington Announces First Quarter 2026 Financial Results

About this update from Cardiff Lexington Corporation

Cardiff Lexington Announces First Quarter 2026 Financial Results Cardiff Lexington Announces First Quarter 2026 Financial Results LEXINGTON, KY / ACCESS Newswire / May 19, 2026 / Cardiff Lexington Corporation (OTCQX:CDIX) today announced financial results for the first quarter ended March 31, 2026. Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, "We continue to strengthen and expand our network of Nova Ortho and Spine locations to support growing patient demand with a focus on more high value procedures, and we remain confident in our ability to build a scalable platform through organic growth and acquisitions that deliver exceptional outcomes for patients. Furthermore, our recent upgrade to the OTCQX market represents an important step in increasing our visibility and credibility among institutional investors as we execute our strategic initiatives to enhance our access to working capital and drive sustainable, long-term growth and shareholder value." First Quarter 2026 Financial Results Total revenue was $2.2 million compared with $2.9 million in the first quarter of 2025. The decrease in revenue is mainly attributable to a decrease in surgical procedures in the first quarter of 2026 compared to the first quarter of 2025. Gross profit was $1.3 million, or 59.3% of total revenue, compared with $1.8 million, or 63.1% of total revenue in the first quarter of 2025. Total operating expenses increased to $1.8 million compared with $1.3 million in the first quarter of 2025, primarily related to share based compensation of $664,000 in the first quarter of 2026, compared with no share based compensation in the first quarter of 2025. SG&A expense was $1.2 million, or 52.4% of revenue in the first quarter of 2026, compared with $1.3 million, or 43.9% of revenue in the first quarter of 2025. Loss from continuing operations was $511,000, or (23.0%) of total revenue, in the first quarter of 2026, compared with income from continuing operations of $544,000, or 18.7% of total revenue, in the first quarter of 2025. Net loss in the first quarter of 2026 was $3.1 million compared with net loss of $451,000 in the first quarter of 2025. Included in net loss for the three months ended March 31, 2026, was interest expense of $1.9 million compared with interest expense of $1.0 million in the first quarter of 2025. The increase in interest expense is primarily attributable to the increase in initial and incremental fees charged on the number of existing purchases and claims under the Company's line of credit. Non-GAAP adjusted EBITDA, which excludes interest expense, was $164,000 compared with non-GAAP adjusted EBITDA of $546,000 in the first quarter of 2025. Balance Sheet Cash totaled $684,000 as of March 31, 2026. Total assets increased 4.1% to $30.3 million as of March 31, 2026. Conference Call Cardiff Lexington will hold a conference call and webcast for investors today, May 19, 2026, at 11:00 a.m. Eastern Time. Shareholders and interested parties may participate in the conference call by dialing (888) 506-0062 and international participants should dial (973) 528-0011 and use access code: 204811. The call and the accompanying slide deck will also be webcast at: https://www.webcaster5.com/Webcast/Page/3131/53976 An online archive of the webcast will be available at the above webcast link. A replay of the conference call will be available one hour after completion of the call until Tuesday, June 2, 2026, by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use access code 53976 to access the replay. ----- About Cardiff Lexington Corporation: Cardiff Lexington Corporation is a publicly traded healthcare services holding company focused on building a regional and national platform in orthopedic, spine, and pain management markets. Through its operating subsidiaries, including Nova Ortho and Spine, the Company delivers a comprehensive suite of services including diagnostics, interventional pain management, surgical coordination, and specialty care. The Company's strategy is centered on disciplined capital deployment, operational efficiency, and scalable growth through acquisitions and strategic partnerships within highly fragmented healthcare markets. FORWARD LOOKING STATEMENT: This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. These risks include the failure to meet schedule or performance requirements of the Company's business, the Company's liquidity position, the Company's ability to obtain new business, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur. Use of Non-GAAP Financial Measures Cardiff Lexington Corporation prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to GAAP disclosures, this document contains financial information and measures considered to be "non-GAAP". These non-GAAP measures can be used in order to gain a more complete and accurate understanding of the Company's financial condition and results. Non-GAAP financial measures should be considered in conjunction with, and not as a substitute to GAAP financial measures. Cardiff Lexington Investor Relations [email protected] (800) 628-2100 ext. 705 or IMS Investor Relations [email protected] (203) 972-9200 CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2026, AND 2025 For the Three Months Ended March 31, March 31, 2026 2025 Total revenue $ 2,222,280 $ 2,915,567 Total cost of sales 904,225 1,075,034 Gross profit 1,318,055 1,840,533 Operating expenses Depreciation expense 593 3,365 Loss on disposal of fixed assets 0 12,593 Stock compensation expense 664,196 0 Selling, general and administrative 1,164,425 1,280,641 Total operating expenses 1,829,214 1,296,599 (Loss) income f rom continuing operations (511,159 ) 543,934 Other (expense) income: Other income (expense) 10,081 (1,597 ) Loss from issuance/change in value of derivative liability (668,821 ) 0 Interest expense (1,910,737 ) (993,114 ) Amortization of debt discounts (11,438 ) 0 Total other expense (2,580,915 ) (994,711 ) Net loss $ (3,092,074 ) $ (450,777 ) CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2026, AND DECEMBER 31, 2025 March 31, December 31, 2026 2025 ASSETS Current assets Cash $ 683,507 $ 318,535 Accounts receivable, net 22,890,899 22,070,954 Prepaid and other current assets 282,747 203,876 Total current assets 23,857,153 22,593,365 Property and equipment, net 2,360 2,953 Land 540,000 540,000 Goodwill 5,666,608 5,666,608 Right of use - assets 155,237 214,858 Due from related party 4,979 4,979 Other assets 64,371 64,182 Total assets $ 30,290,708 $ 29,086,945 LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS' (DEFICIT)/EQUITY Current liabilities Accounts payable and accrued expense $ 1,779,073 $ 1,760,765 Accrued expenses - related parties 237,277 4,645,826 Accrued interest 730,866 707,574 Right of use - operating lease liability 143,937 178,524 Notes payable - current portion 50,745 125,774 Notes payable related parties - current portion 1,085,703 1,085,703 Line of credit 18,922,173 17,209,908 Convertible notes payable, net of debt discounts of $815,228 and $131,705, respectively 279,772 118,295 Derivative liability 1,129,345 0 Total current liabilities 24,358,891 25,832,369 Other liabilities Operating lease liability - long term 17,366 42,976 Notes payable 137,934 138,773 Notes payable related parties 116,667 0 Total liabilities 24,630,858 26,014,118 Mezzanine equity Redeemable Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 1,068,004 and 1,037,311 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 0 3,802,010 Redeemable Series X Senior Convertible Preferred Stock - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00; 449,117 and 438,388 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 1,783,394 1,740,478 Total Mezzanine Equity 1,783,394 5,542,488 Stockholders' (deficit)/equity Series F-1 Preferred Stock - 50,000 shares authorized, $0.001 par value, stated value $4.00, 3,875 shares issued and outstanding at March 31, 2026 and December 31, 2025 15,500 15,500 Series L Preferred Stock - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at March 31, 2026 and December 31, 2025 1,277,972 1,277,972 Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 1,068,004 and 1,037,311 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 3,924,782 0 Series Y Senior Convertible Preferred Stock - 1,500,000 shares authorized, $0.001 par value, stated value of $4.00, 1,094,354 and 1,067,878 shares issued and outstanding at March 31, 2026 and December 31 2025, respectively 4,377,413 4,271,512 Common Stock; 300,000,000 shares authorized, $0.001 par value; 15,167,350 and 13,701,698 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 15,167 13,702 Additional paid-in capital 77,453,073 72,021,848 Unearned stock compensation (331,938 ) (579,215 ) Accumulated deficit (82,855,513 ) (79,490,980 ) Total stockholders' equity/(deficit) 3,876,456 (2,469,661 ) Total liabilities, mezzanine equity and stockholders' equity $ 30,290,708 $ 29,086,945 CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE MONTHS ENDED MARCH 31, 2026, AND 2025 (Unaudited) The following table reconciles Net income (loss) before discontinued operations (a GAAP financial measure) to EBITDA and Adjusted EBITDA (non-GAAP financial measures) For the Three Months Ended March 31, 2026 2025 EBITDA (1) Net loss before discontinued operations $ (3,092,074 ) $ (450,777 ) Add: Interest 1,910,737 993,114 Taxes 0 0 Depreciation 593 3,365 Amortization 11,438 0 EBITDA (1) $ (1,169,306 ) $ 545,702 Adjusted EBITDA (2) EBITDA $ (1,169,306 ) $ 545,702 Add: Derivative loss upon issuance and changes in the liability 668,821 0 Stock compensation expense for shares issued 664,196 0 Adjusted EBITDA (2) $ 163,711 $ 545,702 Adjusted EBITDA excluding other non-recurring costs (3) Adjusted EBITDA $ 163,711 $ 545,702 Add: Scaling and restructuring costs for business growth 14,762 0 Acquisition related costs 79,153 56,635 Adjusted EBITDA excluding other non-recurring costs (3) $ 257,626 $ 602,337 (1) EBITDA is a non-GAAP financial measure defined as Earnings Before Interest, Income Tax, Depreciation and Amortization. (2) Adjusted EBITDA is a non-GAAP financial measure that is the sum of EBITDA plus non-recurring and non-cash charges. (3) Adjusted EBITDA excluding other non-recurring costs is a non-GAAP financial measure that is the sum of Adjusted EBITDA plus other non-recurring costs. SOURCE: Cardiff Lexington Corporation View the original press release on ACCESS Newswire https://app.accessnewswire.com/img.ashx?id=1167971 © Copyright 2026 ACCESS Newswire. All Rights Reserved.

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