Cardiff Lexington Corporation reported significant financial performance improvements in its latest 10-Q filing for the third quarter of 2025, with total revenue reaching $3.06 million, a 125.6% increase from $1.36 million in the same period last year. For the nine months ending September 30, 2025, revenue totaled $8.76 million, up 70.2% from $5.15 million in 2024. The company attributed this growth primarily to increased patient visits and surgical procedures, despite a one-time accounting adjustment of $1.65 million in the previous year that affected revenue recognition.
The company's gross profit for the third quarter surged to $1.91 million, compared to $355,040 in the prior year, reflecting a gross margin increase from 26.2% to 62.4%. This improvement was driven by a reduction in the cost of sales as a percentage of revenue, which fell from 73.8% to 37.6%. However, Cardiff reported a net loss of $1.14 million for the quarter, a decrease from a loss of $1.98 million in Q3 2024, indicating progress in managing operational expenses.
Operationally, Cardiff's total operating expenses increased to $1.27 million from $940,200 year-over-year, primarily due to higher selling, general, and administrative costs. The company also recorded a loss on the disposal of fixed assets amounting to $12,593. The total liabilities rose significantly to $22.6 million as of September 30, 2025, compared to $16.3 million at the end of 2024, largely due to increased borrowings under a revolving line of credit, which reached $14.73 million.
In terms of strategic developments, Cardiff continues to focus on its healthcare subsidiary, Nova Ortho and Spine, which provides orthopedic services. The company has also been actively managing its capital structure, including the conversion of preferred stock into common stock, which has reduced the number of outstanding preferred shares. As of September 30, 2025, the company had a cash balance of $232,033, down from $1.19 million at the end of 2024, highlighting the need for additional financing to support ongoing operations and potential acquisitions.
Looking ahead, Cardiff Lexington Corporation is focused on raising capital to fund its growth strategy, which includes acquiring additional businesses in the healthcare sector. The company has indicated that it may require between $5 million to $10 million to execute its business plan effectively. Management remains optimistic about securing the necessary funding but acknowledges the challenges associated with raising capital in the current market environment.
About Cardiff Lexington Corp
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