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DENVER - Healthcare services company Modivcare Inc. (NASDAQ:MODV), with annual revenues of $2.75 billion, has regained compliance with Nasdaq’s market value of publicly held shares (MVPHS) requirement, the company announced Thursday.
Modivcare received confirmation from Nasdaq on July 7 that it had satisfied the minimum $15 million MVPHS threshold for at least 20 consecutive business days, meeting a key requirement for continued listing on The Nasdaq Global Select Market.
"We are pleased to regain full compliance with Nasdaq listing standards, and to have achieved this by means of stock performance and appreciation," said L. Heath Sampson, President and CEO of Modivcare in a press release statement.
The company will continue trading on The Nasdaq Global Select Market, provided it maintains compliance with all applicable listing requirements.
Modivcare describes itself as a technology-enabled healthcare services company that provides integrated supportive care solutions for public and private payors. The company offers non-emergency medical transportation, personal care services, and in-home monitoring solutions aimed at addressing social determinants of health.
The announcement indicates that Modivcare has resolved a previously identified compliance issue with Nasdaq’s listing requirements related to the market value of its publicly traded shares.
In other recent news, ModivCare Inc. reported a net loss of $50.4 million for the first quarter of 2025, a significant increase from the $22.3 million loss in the same period last year. The company’s revenue also saw a decline, falling to $650.7 million, which marks a 5% decrease year-over-year. Analysts had expected a smaller loss, with a forecasted EPS of -$0.44, but the actual adjusted EPS was -$1.71, falling short of expectations. This financial performance is attributed to increased interest expenses and contract losses, particularly in the Non-Emergency Medical Transportation (NEMT) segment.
While ModivCare did not provide formal guidance for the year, the company is focusing on strategic initiatives to improve cash flow and operational efficiency. These include digitalizing its Care Access platform and optimizing its operating model. The company secured two new Medicaid managed care contracts worth approximately $52 million annually, despite losing a regional contract valued at $15 million due to vendor consolidation by a national plan.
Additionally, ModivCare is undertaking a company-wide initiative to reduce general and administrative costs by $25 million annually. This is part of a broader effort to streamline operations and improve financial stability. The company is also exploring strategic alternatives to enhance shareholder value, with a committee overseeing this process. Despite these challenges, ModivCare remains committed to modernizing its platform and strengthening its customer relationships.
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