ModivCare Reports Significant Financial Decline Amid Chapter 11 Restructuring

ModivCare Inc. reported a significant decline in financial performance for the third quarter and the first nine months of 2025, primarily due to ongoing operational challenges and the impact of its Chapter 11 bankruptcy filing. For the three months ended September 30, 2025, the company generated $679.7 million in service revenue, a decrease of 3.2% from $702.0 million in the same period of 2024. The net loss for the quarter was $73.1 million, compared to a loss of $26.6 million in the prior year. For the nine months ended September 30, 2025, total service revenue was $1.99 billion, down from $2.08 billion in 2024, with a net loss of $427.2 million compared to a loss of $177.8 million in the previous year.

The company's operational metrics reflected a decline in customer engagement, with average monthly members in its non-emergency medical transportation (NEMT) segment decreasing by 21.3% year-over-year. This decline was partially offset by an increase in revenue per member per month, which rose by 26.9%. The personal care services (PCS) segment also experienced a decrease in service revenue, attributed to a 13.3% reduction in hours worked by caregivers. The Monitoring segment reported a 12.4% decrease in service revenue, driven by a decline in average monthly members and revenue per member.

Strategically, ModivCare has been navigating a complex restructuring process following its Chapter 11 filing on August 20, 2025. The company entered into a Restructuring Support Agreement with creditors, which includes provisions for $100 million in debtor-in-possession financing and a comprehensive restructuring of its debt obligations. The plan aims to convert approximately $871 million in principal claims into $200 million of exit debt and 98% of the reorganized company's equity. The restructuring is expected to significantly reduce the company's total funded debt by approximately $1.1 billion.

As of September 30, 2025, ModivCare's total assets were reported at $1.42 billion, down from $1.65 billion at the end of 2024. The company had cash and cash equivalents of $78.2 million, a decrease from $112.6 million at the end of the previous year. The total liabilities increased to $1.88 billion, with $1.45 billion classified as liabilities subject to compromise due to the bankruptcy proceedings. The company’s management has expressed substantial doubt about its ability to continue as a going concern, contingent on successfully implementing the restructuring plan and generating sufficient liquidity post-emergence.

Looking ahead, ModivCare's management remains cautious about the future, citing ongoing challenges such as increased operational costs, contract losses, and extended collection periods. The company is focused on stabilizing its operations and improving cash flow, while also addressing the impacts of recent legislative changes in the healthcare sector that could affect reimbursement rates and service demand. The outlook remains uncertain as the company navigates its restructuring process and seeks to regain financial stability.