Friday, May 30, 2025
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Investment thesis on track. We believe the company is on track to deliver on our full-year revenue and adj. EBITDA forecast, despite investor concerns around federal budget cuts, to which we believe the company has limited actual exposure. Moreover, although there may be some concerns over disruption from potential new asset sales, we anticipate that additional sales would likely focus on lower-margin business units and could help to bolster the company’s long-term cashflow margin profile.
Re-affirming full year 2025 estimates. While we are largely maintaining our full year estimates, we are fine-tuning the quarterly cadence of adj. EBITDA to better reflect seasonality. Our Q2 and Q3 adj. EBITDA estimates are raised to $33 million and $52 million, respectively, while Q4 is lowered to $54 million, reflecting factors tied to SNAP and Medicare enrollment. We expect 2026 revenue growth of 3% to $3.22 billion with adj. EBITDA margin expansion to 8.0%.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
