Cardiff Lexington Announces Second Quarter 2025 Financial Results

About this update from Cardiff Lexington Corporation

Cardiff Lexington Announces Second Quarter 2025 Financial Results Cardiff Lexington Announces Second Quarter 2025 Financial Results 89.5% increase in total revenue to $2.8 million compared to 2Q24 149.8% increase in gross profit to $1.7 million compared to 2Q24 482.3% increase in income from continuing operations to $610,000 compared to 2Q24 LEXINGTON, KY / ACCESS Newswire / August 26, 2025 / Cardiff Lexington Corporation (OTCQB:CDIX) today announced financial results for the second quarter ended June 30, 2025. Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, "We delivered strong revenue growth in the second quarter of 2025, as well as significantly enhanced gross margins, income from continuing operations, and non-GAAP adjusted EBITDA when compared to the second quarter of 2024. Demand is strong and growing, as evidenced by the increased patient volume we're seeing across our 12 Nova Ortho & Spine locations, which are strategically positioned throughout population centers in Florida and Georgia. With our visibility today, we believe that we are well positioned to expand our footprint of locations through a strategic combination of organic growth and accretive M&A, as well as increase operating capacity at our existing locations to drive long-term growth and value for our shareholders." Second Quarter 2025 Financial Results Total revenue increased 89.5% to $2.8 million in the second quarter of 2025 compared with $1.5 million in the second quarter of 2024. Revenue in the second quarter of 2024 included a one-time non-cash adjustment of $859,000 to better align second quarter revenue with 2024 annualized claim settlement realization rates. Non-GAAP adjusted revenue, excluding the one-time non-cash adjustment, was $2.3 million for this period. Gross profit increased 149.8% to $1.7 million, or 60.8% of total revenue, compared with $679,000, or 46.1% of total revenue in the second quarter of 2024. Total operating expenses increased to $1.1 million compared with $838,000 in the second quarter of 2024. The increase in operating expenses is primarily related to SG&A expense of $987,000 as the Company continues to scale and grow its operations, and stock-based compensation expense of $98,000. Income from continuing operations increased 482.3% to $610,000, or 21.9% of total revenue, in the second quarter of 2025, compared with an operating loss of ($159,000), or (10.8%) of total revenue, in the second quarter of 2024. Net loss in the second quarter of 2025 was ($1.2 million) compared with net loss of ($132,000) in the second quarter of 2024. Included in net loss for the three months ended June 30, 2025 was interest expense of ($1.8 million) compared with interest expense of ($41,000) in the second quarter of 2025. This increase is primarily related to increases 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, increased to $708,000 compared with a non-GAAP adjusted EBITDA loss of ($76,000) in the second quarter of 2024. During the second quarter of 2025, as part of the Company's ongoing enhancements to internal controls over financial reporting, a detailed review of its interest expense-related cash flow classification was performed. As a result, the Company restated certain amounts within the condensed consolidated statement of cash flows for the six months ended June 30, 2024. This was reclassified to correct the presentation of $845,000 of non-cash interest accrual adjustments related to the Company's line of credit as of June 30, 2024. These amounts, previously presented within net proceeds from the line of credit in financing activities, are now presented within operating activities. This change in presentation has no impact on the Company's condensed consolidated balance sheets, condensed consolidated statements of operations, or total cash flows for any related period. Year-to-Date Financial Highlights Total revenue increased 50.4% to $5.7 million compared with $3.8 million in the first six months of 2024. Revenue in the first six months of 2024 included a one-time non-cash adjustment of $1.2 million to better align total revenue in the first six months of 2024 with annualized claim settlement realization rates. Non-GAAP adjusted revenue, excluding the one-time non-cash adjustment, was $5.0 million for this period. Gross profit increased 72.3% to $3.5 million, or 62.0% of total revenue, compared with $2.1 million, or 54.1% of total revenue in the first six months of 2024. Total operating expenses increased to $2.4 million compared with $2.0 million in the first six months of 2024, primarily related to increased SG&A expense of $2.3 million. Operating income increased to $1.2 million, or 20.2% of total revenue, compared with operating income of $60,000, or 1.6% of total revenue, in the first six months of 2024. Net loss in the first six months of 2025 was ($1.7 million) compared with net loss of ($415,000) in the first six months of 2024. Included in net loss for the six months ended June 30, 2025, was interest expense of ($2.8 million) compared with interest expense of ($418,000) in the first six months of 2024. This increase is primarily related to increases 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, increased 181.1% to $1.3 million compared with non-GAAP adjusted EBITDA of $446,000 in the first six months of 2024. Balance Sheet Cash totaled $560,000 as of June 30, 2025. Total assets increased 10.8% increase into $26.5 million as of June 30, 2025. Total stockholders' equity was $754,000 as of June 30, 2025. Conference Call Cardiff Lexington will hold a conference call and webcast for investors today, August 26, 2025, at 9:00 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: 861636. The call and the accompanying slide deck will also be webcast at: https://www.webcaster4.com/Webcast/Page/3131/52897 The conference call and slide deck may also be accessed via the Investor Relations page of the Company's website at https://investor.cardifflexington.com/overview/default.aspx . Please allow extra time prior to the call to visit the site. An online archive of the webcast will be available on the Investor Relations page of the Company's website following the call at https://investor.cardifflexington.com/overview/default.aspx . A replay of the conference call will be available one hour after completion of the call until Tuesday, September 9, 2025, by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use access code 52897 to access the replay. ----- About Cardiff Lexington Corporation: Cardiff Lexington Corporation is a unique targeted healthcare holding company focused on locating, acquiring, and building middle market, niche companies, primarily in Orthopedics, Spine Care, and Pain Management. Fundamental to the Cardiff Lexington strategy is the service-based partnership culture which emphasizes core values, teamwork, accountability, and performance. A substantial majority of the Company's revenue is derived from Nova Ortho and Spine, LLC, which operates a group of regional primary specialty and ancillary care facilities throughout Florida and Georgia that provide traumatic injury victims with a full range of diagnostic and surgical services, primary care evaluations, interventional pain management, and specialty consultation services. For more information on Cardiff Lexington Corporation, you may access the company's website at https://cardifflexington.com/ 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 AND SIX MONTHS ENDED JUNE 30, 2025, AND 2024 (Unaudited) For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, 2025 2024 (Restated) 2025 2024 (Restated) Total revenue $ 2,789,007 $ 1,471,643 $ 5,704,574 $ 3,793,775 Total cost of sales 1,093,748 793,010 2,168,782 1,741,164 Gross profit 1,695,259 678,633 3,535,792 2,052,611 Operating expenses Depreciation expense 763 3,366 4,128 6,731 Loss on disposal of fixed assets 0 0 12,593 0 Stock compensation expense 97,500 0 97,500 300,225 Selling, general and administrative 987,319 834,750 2,267,960 1,686,146 Total operating expenses 1,085,582 838,116 2,382,181 1,993,102 Income (loss) from continuing operations 609,677 (159,483 ) 1,153,611 59,509 Other (expense) income : Other income (expense) 0 2,047 (1,597 ) 2,047 Gain on debt refinance, forgiveness and settlement 0 78,834 0 78,834 Penalties and fees 0 (330 ) 0 (1,330 ) Interest expense (1,836,072 ) (41,347 ) (2,829,186 ) (417,616 ) Amortization of debt discounts 0 (11,306 ) 0 (24,821 ) Total other (expense) income (1,836,072 ) 27,898 (2,830,783 ) (362,886 ) Net loss before discontinued operations (1,226,395 ) (131,585 ) (1,677,172 ) (303,377 ) Loss from discontinued operations 0 0 0 (111,312 ) Net loss $ (1,226,395 ) $ (131,585 ) $ (1,677,172 ) $ (414,689 ) CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2025, AND DECEMBER 31, 2024 (Unaudited) June 30, December 31, 2025 2024 ASSETS Current assets Cash $ 559,715 $ 1,188,185 Accounts receivable-net 19,193,419 15,934,490 Prepaid and other current assets 114,398 89,901 Total current assets 19,867,532 17,212,576 Property and equipment, net 4,477 21,198 Land 540,000 540,000 Goodwill 5,666,608 5,666,608 Right of use - assets 356,848 406,950 Due from related party 4,979 4,979 Other assets 71,235 73,368 Total assets $ 26,511,679 $ 23,925,679 LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expense $ 1,493,025 $ 1,379,760 Accrued expenses - related parties 4,665,525 4,553,057 Accrued interest 566,411 429,200 Right of use - liability 256,550 223,330 Notes - current portion 275,830 312,180 Line of credit 12,690,193 8,645,991 Convertible notes payable, net of debt discounts of $0 and $24,821, respectively 105,000 105,000 Net liabilities of discontinued operations 238,285 238,285 Total current liabilities 20,290,819 15,886,803 Other liabilities Notes payable 140,374 251,725 Operating lease liability - long term 108,979 185,877 Total liabilities 20,540,172 16,324,405 Mezzanine equity Redeemable Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 977,297 and 921,636 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 3,561,955 3,339,317 Redeemable Series X Senior Convertible Preferred Stock - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00 par value; 417,255 and 397,464 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 1,655,948 1,576,788 Total Mezzanine Equity 5,217,903 4,916,105 Stockholders' equity Series B Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value of $4.00, 0 and 1,279,867 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 0 5,119,468 Series C Preferred Stock - 500 shares authorized, $0.001 par value, stated value of $4.00, 0 and 74 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 0 296 Series E Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 0 and 175,375 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 0 701,500 Series F-1 Preferred Stock - 50,000 shares authorized, $0.001 par value, stated value $4.00, 3,875 shares issued and outstanding at June 30, 2025 and December 31, 2024 15,500 15,500 Series I Preferred Stock - 15,000,000 shares authorized, $0.001 par value, stated value $4.00, 10,075,092 and 10,469,092 issued and outstanding at June 30, 2025 and December 31, 2024, respectively 40,300,368 41,876,368 Series L Preferred Stock - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at June 30, 2025 and December 31, 2024 1,277,972 1,277,972 Series Y Senior Convertible Preferred Stock - 1,500,000 shares authorized, $0.001 par value, stated value of $4.00, 1,016,015 and 979,125 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 4,064,060 3,916,500 Common Stock; 300,000,000 shares authorized, $0.001 par value; 19,679,713 and 15,300,475 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 19,680 15,300 Additional paid-in capital 30,201,734 22,711,350 Accumulated deficit (75,125,710 ) (72,949,085 ) Total stockholders' equity 753,604 2,685,169 Total liabilities, mezzanine equity and stockholders' equity $ 26,511,679 $ 23,925,679 CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025, AND 2024 (Unaudited) The following table reconciles Net (loss) income before discontinued operations (a GAAP measure) to EBITDA (a non-GAAP measure) For the Three Months Ended For the Six Months Ended June 30, June 30, 2025 2024 (Restated) 2025 2024 (Restated) EBITDA (1) Net income (loss) before discontinued operations $ (1,226,395 ) $ (131,585 ) $ (1,677,172 ) $ (303,377 ) Add: Interest 1,836,072 41,347 2,829,186 417,616 Taxes 0 0 0 0 Depreciation 763 3,366 4,128 6,731 Amortization 0 11,306 0 24,821 EBITDA (1) $ 610,440 $ (75,566 ) $ 1,156,142 $ 145,791 Adjusted EBITDA (2) EBITDA $ 610,440 $ (75,566 ) $ 1,156,142 $ 145,791 Add: Stock compensation expense for shares issued 97,500 0 97,500 300,225 Adjusted EBITDA (2) $ 707,940 $ (75,566 ) $ 1,253,642 $ 446,016 (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. Adjusted EBITDA excluding other non-recurring costs (3) Adjusted EBITDA $ 707,940 $ (75,566 ) $ 1,253,642 $ 446,016 Add: Scaling and restructuring costs for business growth 11,676 16,833 11,676 104,192 Acquisition related costs 1,445 0 58,079 0 Adjusted EBITDA excluding other non-recurring costs (3) $ 721,061 $ (58,733 ) $ 1,323,397 $ 550,208 (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. CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES RECONCILIATION OF REVENUE FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025, AND 2024 (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 GAAP Revenue $ 2,789,007 $ 1,471,643 $ 5,704,574 $ 3,793,775 Adjustments to Claim Settlement Realization Rate - 859,321 - 1,199,155 Non-GAAP Adjusted Revenue $ 2,789,007 $ 2,330,964 $ 5,704,574 $ 4,992,930 SOURCE: Cardiff Lexington Corporation View the original press release on ACCESS Newswire https://app.accessnewswire.com/img.ashx?id=1065238 © Copyright 2025 ACCESS Newswire. All Rights Reserved.

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