Cardiff Lexington Corporation: Cardiff Lexington Announces Second Quarter 2025 Financial Results

• 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 [phone] and international participants should dial [phone] 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 [phone] and international participants should dial [phone]. 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
[e-mail]
[phone] ext. 705

or

IMS Investor Relations
[e-mail]
[phone]

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025, AND 2024
(Unaudited)

		For the Three Months Ended								For the Six Months Ended
		June 30,				June 30,				June 30,				June 30,
		2025				2024 (Restated)				2025				2024 (Restated)
Total revenue		$	2,789,007			$	1,471,643			$	5,704,574			$	3,793,775
Total cost of sales			1,093,748				793,010				2,168,782				1,741,164
Gross profit			1,695,259				678,633				3,535,792				2,052,611
Operating expenses
Depreciation expense			763				3,366				4,128				6,731
Loss on disposal of fixed assets			0				0				12,593				0
Stock compensation expense			97,500				0				97,500				300,225
Selling, general and administrative			987,319				834,750				2,267,960				1,686,146
Total operating expenses			1,085,582				838,116				2,382,181				1,993,102
Income (loss) from continuing operations			609,677				(159,483	)			1,153,611				59,509
Other (expense) income :
Other income (expense)			0				2,047				(1,597	)			2,047
Gain on debt refinance, forgiveness and settlement			0				78,834				0				78,834
Penalties and fees			0				(330	)			0				(1,330	)
Interest expense			(1,836,072	)			(41,347	)			(2,829,186	)			(417,616	)
Amortization of debt discounts			0				(11,306	)			0				(24,821	)
Total other (expense) income			(1,836,072	)			27,898				(2,830,783	)			(362,886	)
Net loss before discontinued operations			(1,226,395	)			(131,585	)			(1,677,172	)			(303,377	)
Loss from discontinued operations			0				0				0				(111,312	)
Net loss		$	(1,226,395	)		$	(131,585	)		$	(1,677,172	)		$	(414,689	)

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

		June 30,				December 31,
		2025				2024
ASSETS
Current assets
Cash		$	559,715			$	1,188,185
Accounts receivable-net			19,193,419				15,934,490
Prepaid and other current assets			114,398				89,901
Total current assets			19,867,532				17,212,576
Property and equipment, net			4,477				21,198
Land			540,000				540,000
Goodwill			5,666,608				5,666,608
Right of use - assets			356,848				406,950
Due from related party			4,979				4,979
Other assets			71,235				73,368
Total assets		$	26,511,679			$	23,925,679
LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expense		$	1,493,025			$	1,379,760
Accrued expenses - related parties			4,665,525				4,553,057
Accrued interest			566,411				429,200
Right of use - liability			256,550				223,330
Notes - current portion			275,830				312,180
Line of credit			12,690,193				8,645,991
Convertible notes payable, net of debt discounts of $0 and $24,821, respectively			105,000				105,000
Net liabilities of discontinued operations			238,285				238,285
Total current liabilities			20,290,819				15,886,803
Other liabilities
Notes payable			140,374				251,725
Operating lease liability - long term			108,979				185,877
Total liabilities			20,540,172				16,324,405
Mezzanine equity
Redeemable Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 977,297 and 921,636 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			3,561,955				3,339,317
Redeemable Series X Senior Convertible Preferred Stock - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00 par value; 417,255 and 397,464 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			1,655,948				1,576,788
Total Mezzanine Equity			5,217,903				4,916,105
Stockholders' equity
Series B Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value of $4.00, 0 and 1,279,867 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			0				5,119,468
Series C Preferred Stock - 500 shares authorized, $0.001 par value, stated value of $4.00, 0 and 74 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			0				296
Series E Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 0 and 175,375 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			0				701,500
Series F-1 Preferred Stock - 50,000 shares authorized, $0.001 par value, stated value $4.00, 3,875 shares issued and outstanding at June 30, 2025 and December 31, 2024			15,500				15,500
Series I Preferred Stock - 15,000,000 shares authorized, $0.001 par value, stated value $4.00, 10,075,092 and 10,469,092 issued and outstanding at June 30, 2025 and December 31, 2024, respectively			40,300,368				41,876,368
Series L Preferred Stock - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at June 30, 2025 and December 31, 2024			1,277,972				1,277,972
Series Y Senior Convertible Preferred Stock - 1,500,000 shares authorized, $0.001 par value, stated value of $4.00, 1,016,015 and 979,125 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			4,064,060				3,916,500
Common Stock; 300,000,000 shares authorized, $0.001 par value; 19,679,713 and 15,300,475 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively			19,680				15,300
Additional paid-in capital			30,201,734				22,711,350
Accumulated deficit			(75,125,710	)			(72,949,085	)
Total stockholders' equity			753,604				2,685,169
Total liabilities, mezzanine equity and stockholders' equity		$	26,511,679			$	23,925,679

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)

		For the Three Months Ended								For the Six Months Ended
		June 30,								June 30,
		2025				2024 (Restated)				2025				2024 (Restated)
EBITDA (1)
Net income (loss) before discontinued operations		$	(1,226,395	)		$	(131,585	)		$	(1,677,172	)		$	(303,377	)
Add:
Interest			1,836,072				41,347				2,829,186				417,616
Taxes			0				0				0				0
Depreciation			763				3,366				4,128				6,731
Amortization			0				11,306				0				24,821
EBITDA (1)		$	610,440			$	(75,566	)		$	1,156,142			$	145,791
Adjusted EBITDA (2)
EBITDA		$	610,440			$	(75,566	)		$	1,156,142			$	145,791
Add:
Stock compensation expense for shares issued			97,500				0				97,500				300,225
Adjusted EBITDA (2)		$	707,940			$	(75,566	)		$	1,253,642			$	446,016
(1) EBITDA is a non-GAAP financial measure defined as Earnings Before Interest, Income Tax, Depreciation and Amortization.
(2) Adjusted EBITDA is a non-GAAP financial measure that is the sum of EBITDA plus non-recurring and non-cash charges.
Adjusted EBITDA excluding other non-recurring costs (3)
Adjusted EBITDA		$	707,940			$	(75,566	)		$	1,253,642			$	446,016
Add:
Scaling and restructuring costs for business growth			11,676				16,833				11,676				104,192
Acquisition related costs			1,445				0				58,079				0
Adjusted EBITDA excluding other non-recurring costs (3)		$	721,061			$	(58,733	)		$	1,323,397			$	550,208

(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)

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2025				2024				2025				2024
GAAP Revenue		$	2,789,007			$	1,471,643			$	5,704,574			$	3,793,775
Adjustments to Claim Settlement Realization Rate			-				859,321				-				1,199,155
Non-GAAP Adjusted Revenue		$	2,789,007			$	2,330,964			$	5,704,574			$	4,992,930

SOURCE: Cardiff Lexington Corporation

View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/cardiff-lexington-announces-second-quarter-2025-financial-result-1065238