| Line Item | Q4 2025 | Q1 2026 | $ Variance | % Variance |
|---|---|---|---|---|
| NET REVENUE | ||||
| Commercial Insurance - Net | $7.58M | $6.17M | ($1.40M) | -18.5% |
| Personal Injury - Net | $4.62M | $12.82M | $8.20M | +177.4% |
| TOTAL OPERATIONAL NET REVENUE | $12.20M | $18.99M | $6.79M | +55.7% |
| VARIABLE / CONTROLLABLE COSTS | ||||
| Salaries & Wages | $4.79M | $3.91M | $876K | +18.3% |
| Employee Benefits | $400K | $382K | $19K | +4.7% |
| Physician Fees | $1.52M | $1.40M | $121K | +7.9% |
| Professional Fees | $265K | $216K | $48K | +18.3% |
| Repairs & Maintenance | $436K | $547K | ($111K) | -25.5% |
| Supplies & Other | $1.75M | $1.63M | $116K | +6.6% |
| Telephone & Utilities | $307K | $217K | $90K | +29.2% |
| Insurance | $132K | $145K | ($13K) | -9.6% |
| Advertising | $4K | $6K | ($1K) | -33.3% |
| Travel, Meals & Entertainment | $214 | $20 | $193 | +90.4% |
| Other Expense | $583K | $393K | $190K | +32.6% |
| TOTAL VARIABLE COSTS | $10.19M | $8.85M | $1.33M | +13.1% |
| OPERATIONAL MARGIN | ||||
| OPERATING MARGIN | $2.01M | $10.14M | $8.13M | +404.0% |
| Operating Margin % | 16.5% | 53.4% | +36.9 pts | - |
Revenue: Net operational revenue surged $5.0M (+41.1%) to $17.2M. The swing is heavily driven by a $15.5M improvement in PI contract adjustments — Q4 reflected a ($4.0M) December write-down that did not repeat in Q1. Normalizing for the Dec true-up, the underlying revenue trend is stable at ~$5.9M/month.
Costs: Variable costs dropped $1.36M (-13.3%) — favorable. Salaries & Wages fell $876K (-18.3%) — the largest lever — reflecting labor optimization. Other Expense -$190K and Physician Fees -$121K add to the favorable cost story.
Margin: Operating margin improved $6.4M (+321%) to $8.4M. Margin % jumped from 16.3% to 48.6%. A substantial portion reflects the non-recurrence of Q4 contractual noise; however the labor savings are a real, sustainable improvement.