ModivCare Stock Tumbles After-Hours As Q1 Loss Widens: Retail Traders Warn Of 'Bloodbath'
Synopsis
The healthcare company reported a steeper-than-expected adjusted Q1 loss of $1.71 per share, compared to the consensus estimate of a $0.45 loss.
ModivCare Inc. drew bearish reactions from retail traders Thursday after the healthcare services provider reported a steeper-than-expected adjusted first-quarter loss of $1.71 per share, compared with consensus estimates for a $0.45 loss.
The stock slipped 10.4% to $1.21 in after-hours trade despite revenue coming in ahead of expectations, after closing flat at $1.35 during regular hours.
Revenue for the quarter ended March 31 was $650.7 million, above the Street’s $644.87 million forecast, but still down 4.9% from a year ago.
The decline was attributed to contract attrition in the company’s core Non-Emergency Medical Transportation (NEMT) segment and lower volumes in its Personal Care Services (PCS) and Monitoring divisions.
ModivCare posted a net loss of $50.4 million, with adjusted EBITDA of $32.6 million, flat versus the year-ago period.
Free cash flow was negative $86.2 million, reflecting pressure from working capital build-up and higher interest expenses.
The company remained fully drawn on its revolving credit facility, ending the quarter with $116 million in cash.
CEO L. Heath Sampson said the company remains focused on key operational initiatives, including automation, cost discipline, and progress toward asset divestitures.
Net contract receivables rose to $108.5 million from $95.2 million last quarter, driven by higher utilization on shared risk contracts.
Management said it expects targeted cost reduction actions to generate more than $20 million in annualized savings.
On Stocktwits, sentiment turned ‘bearish’ amid an 800% surge in 24-hour message volume.
One user warned that ModivCare may not survive, noting analysts on the earnings call pressed management on how it would meet two large interest payments this year — without receiving a clear answer.
The user speculated that bondholders could take control, calling the stock “a lotto ticket.”
Another user braced for sharp losses, saying a “bloodbath” was likely in the next session.
The stock has declined 89% so far in 2025.
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