• 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.

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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
investorsrelations@cardifflexington.com
(800) 628-2100 ext. 705

or

IMS Investor Relations
cardifflexington@imsinvestorrelations.com
(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)

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2025, AND DECEMBER 31, 2024
(Unaudited)

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)

(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)

SOURCE: Cardiff Lexington Corporation