Cash balance ended at $225 million with net debt just over $380 million, resulting in net leverage of just above 1.5x based on midpoint adjusted EBITDA guidance.
Consolidated revenue decreased by just over 7% due to portfolio restructuring, offset by strong same-unit growth of over 6%.
D&A expense declined to $5.3 million from $8.8 million prior year, reflecting practice dispositions.
G&A expenses decreased slightly year-over-year due to staffing reductions and lower professional services and legal fees, partially offset by increased incentive compensation.
Operating cash flow was $138 million, up from $109 million prior year, driven by higher earnings and improved working capital.
Other nonoperating expenses decreased to $4.9 million from $10 million, reflecting higher interest income and lower interest expense.
Pediatrix Medical Group reported adjusted EBITDA of just over $73 million for Q2 2025, exceeding expectations.
Practice-level SW&B expenses declined year-over-year due to portfolio restructuring, but same-unit expenses increased due to higher incentive compensation and salary increases averaging 3% to 3.5%.
Same-unit pricing increased 3.5%, driven by patient acuity, RCM cash collections, and contract administrative fees.
Same unit revenue growth was over 6%, driven by strong hospital-based volume with NICU days up 6%, higher acuity levels, strong RCM collections, and increased hospital administrative fees.
Diagnostics revenue grew 3% year-over-year to $19.2 million, while Sample Management Solutions revenue declined 22% due to a large consumer genetics customer.
Ended Q2 with zero debt and $235 million in cash and equivalents.
Excluding the consumer genetics customer, Sample Management revenue grew year-over-year, resulting in an overall 5% core revenue growth.
GAAP gross margin was 42.1% and non-GAAP gross margin was 43.2%, both better than expectations.
GAAP operating loss was $18 million and non-GAAP operating loss was $13.2 million.
Operating cash flow was negative $10 million, consistent with investments in innovation and clinical trials.
Total revenue for Q2 2025 was $31.2 million, with core revenue at $30.8 million, above the midpoint of guidance.
Adjusted operating profit margin increased 230 basis points to 20.3%.
Cash balance increased by $25.1 million to $509.7 million as of June 30, 2025, despite $134 million in share repurchases.
Contract Manufacturing segment saw 0.5% organic revenue growth, driven by ramp-up of Dublin facility for auto-injectors and pens.
Gross profit was $273.9 million, up $43.9 million or 19.1% year-over-year, with a gross margin of 35.7%, a 290 basis point increase from Q2 2024.
Operating cash flow for the first six months was $306.5 million, an 8.2% increase from prior year, with capital spending down $44.3 million year-over-year to $146.5 million.
Proprietary Products segment grew 8.4% organically, driven by 11.3% growth in HVP components, including strong demand for GLP-1 elastomer products which accounted for 8% of total revenues.
West Pharmaceutical Services reported Q2 2025 net sales of $766.5 million, representing a 9.2% increase overall and 6.8% organic growth.
Dafinchi