| Line Item | Q4 2025 | Q1 2026 | $ Variance | % Variance |
|---|---|---|---|---|
| NET REVENUE | ||||
| Commercial Insurance - Net | $15.02M | $10.55M | ($4.46M) | -29.7% |
| Personal Injury - Net | $6.74M | $18.11M | $11.37M | +168.7% |
| TOTAL OPERATIONAL NET REVENUE | $21.76M | $28.67M | $6.91M | +31.8% |
| VARIABLE / CONTROLLABLE COSTS | ||||
| Salaries & Wages | $10.44M | $8.92M | $1.51M | +14.5% |
| Employee Benefits | $877K | $861K | $16K | +1.8% |
| Physician Fees | $4.86M | $3.77M | $1.09M | +22.5% |
| Professional Fees | $483K | $375K | $107K | +22.2% |
| Repairs & Maintenance | $961K | $985K | ($24K) | -2.5% |
| Supplies & Other | $2.87M | $2.48M | $382K | +13.3% |
| Telephone & Utilities | $728K | $608K | $120K | +16.5% |
| Insurance | $365K | $409K | ($45K) | -12.2% |
| Advertising | $43K | $17K | $26K | +60.9% |
| Travel, Meals & Entertainment | $7K | $6K | $1K | +19.2% |
| Other Expense | $876K | $897K | ($21K) | -2.4% |
| TOTAL VARIABLE COSTS | $22.51M | $19.34M | $3.17M | +14.1% |
| OPERATIONAL MARGIN | ||||
| OPERATING MARGIN | ($749K) | $9.33M | $10.08M | +1,344.9% |
| Operating Margin % | -3.4% | 32.5% | +36.0 pts | - |
Revenue: Total operational net revenue increased $6.91M (+31.8%) to $28.67M. Growth is concentrated in the Personal Injury contractual line — PI net revenue rose from $6.74M to $18.11M, largely driven by non-recurrence of December 2025 PI write-downs at River Oaks and ASPN. CI net revenue softened (-$4.46M) on higher contractual adjustments.
Costs: Total variable costs declined $3.17M (+14.1%) — favorable. The largest driver is labor: Salaries & Wages fell $1.51M and Physician Fees fell $1.09M. Supplies and Other Expense also contributed.
Margin: Consolidated operating margin improved by $10.08M (+1,344.9%) to $9.33M — margin % expanded from -3.4% to 32.5%, a +36.0-pt swing. A meaningful portion of the improvement reflects the non-recurrence of Q4 billing anomalies at River Oaks and ASPN; underlying labor discipline is the sustainable lever.