LEXINGTON, KY / ACCESS Newswire / May 19, 2026 / Cardiff Lexington Corporation (OTCQX:CDIX) today announced financial results for the first quarter ended March 31, 2026.
Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, “We continue to strengthen and expand our network of Nova Ortho and Spine locations to support growing patient demand with a focus on more high value procedures, and we remain confident in our ability to build a scalable platform through organic growth and acquisitions that deliver exceptional outcomes for patients. Furthermore, our recent upgrade to the OTCQX market represents an important step in increasing our visibility and credibility among institutional investors as we execute our strategic initiatives to enhance our access to working capital and drive sustainable, long-term growth and shareholder value.”
First Quarter 2026 Financial Results
Total revenue was $2.2 million compared with $2.9 million in the first quarter of 2025. The decrease in revenue is mainly attributable to a decrease in surgical procedures in the first quarter of 2026 compared to the first quarter of 2025.
Gross profit was $1.3 million, or 59.3% of total revenue, compared with $1.8 million, or 63.1% of total revenue in the first quarter of 2025.
Total operating expenses increased to $1.8 million compared with $1.3 million in the first quarter of 2025, primarily related to share based compensation of $664,000 in the first quarter of 2026, compared with no share based compensation in the first quarter of 2025. SG&A expense was $1.2 million, or 52.4% of revenue in the first quarter of 2026, compared with $1.3 million, or 43.9% of revenue in the first quarter of 2025.
Loss from continuing operations was $511,000, or (23.0%) of total revenue, in the first quarter of 2026, compared with income from continuing operations of $544,000, or 18.7% of total revenue, in the first quarter of 2025.
Net loss in the first quarter of 2026 was $3.1 million compared with net loss of $451,000 in the first quarter of 2025. Included in net loss for the three months ended March 31, 2026, was interest expense of $1.9 million compared with interest expense of $1.0 million in the first quarter of 2025. The increase in interest expense is primarily attributable to the increase 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, was $164,000 compared with non-GAAP adjusted EBITDA of $546,000 in the first quarter of 2025.
Balance Sheet
Cash totaled $684,000 as of March 31, 2026.
Total assets increased 4.1% to $30.3 million as of March 31, 2026.
Conference Call
Cardiff Lexington will hold a conference call and webcast for investors today, May 19, 2026, at 11:00 a.m. Eastern Time.
Shareholders and interested parties may participate in the conference call by dialing (888) 506-0062 and international participants should dial (973) 528-0011 and use access code: 204811. The call and the accompanying slide deck will also be webcast at:
https://www.webcaster5.com/Webcast/Page/3131/53976
An online archive of the webcast will be available at the above webcast link. A replay of the conference call will be available one hour after completion of the call until Tuesday, June 2, 2026, by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use access code 53976 to access the replay.
—–
About Cardiff Lexington Corporation:
Cardiff Lexington Corporation is a publicly traded healthcare services holding company focused on building a regional and national platform in orthopedic, spine, and pain management markets. Through its operating subsidiaries, including Nova Ortho and Spine, the Company delivers a comprehensive suite of services including diagnostics, interventional pain management, surgical coordination, and specialty care.
The Company’s strategy is centered on disciplined capital deployment, operational efficiency, and scalable growth through acquisitions and strategic partnerships within highly fragmented healthcare markets.
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
investorsrelations@cardifflexington.com
(800) 628-2100 ext. 705
or
IMS Investor Relations
cardifflexington@imsinvestorrelations.com
(203) 972-9200
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2026, AND 2025
|
|
For the Three Months Ended |
|||||||
|
|
March 31, |
March 31, |
||||||
|
|
2026 |
2025 |
||||||
|
Total revenue
|
$ |
2,222,280 |
$ |
2,915,567 |
||||
|
Total cost of sales
|
904,225 |
1,075,034 |
||||||
|
Gross profit
|
1,318,055 |
1,840,533 |
||||||
|
Operating expenses
|
||||||||
|
Depreciation expense
|
593 |
3,365 |
||||||
|
Loss on disposal of fixed assets
|
0 |
12,593 |
||||||
|
Stock compensation expense
|
664,196 |
0 |
||||||
|
Selling, general and administrative
|
1,164,425 |
1,280,641 |
||||||
|
Total operating expenses
|
1,829,214 |
1,296,599 |
||||||
|
(Loss) income from continuing operations
|
(511,159 |
) |
543,934 |
|||||
|
|
||||||||
|
Other (expense) income:
|
||||||||
|
Other income (expense)
|
10,081 |
(1,597 |
) |
|||||
|
Loss from issuance/change in value of derivative liability
|
(668,821 |
) |
0 |
|||||
|
Interest expense
|
(1,910,737 |
) |
(993,114 |
) |
||||
|
Amortization of debt discounts
|
(11,438 |
) |
0 |
|||||
|
Total other expense
|
(2,580,915 |
) |
(994,711 |
) |
||||
|
|
||||||||
|
Net loss
|
$ |
(3,092,074 |
) |
$ |
(450,777 |
) |
||
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2026, AND DECEMBER 31, 2025
|
|
March 31, |
December 31, |
||||||
|
2026 |
2025 |
|||||||
|
ASSETS
|
||||||||
|
Current assets
|
||||||||
|
Cash
|
$ |
683,507 |
$ |
318,535 |
||||
|
Accounts receivable, net
|
22,890,899 |
22,070,954 |
||||||
|
Prepaid and other current assets
|
282,747 |
203,876 |
||||||
|
Total current assets
|
23,857,153 |
22,593,365 |
||||||
|
|
||||||||
|
Property and equipment, net
|
2,360 |
2,953 |
||||||
|
Land
|
540,000 |
540,000 |
||||||
|
Goodwill
|
5,666,608 |
5,666,608 |
||||||
|
Right of use – assets
|
155,237 |
214,858 |
||||||
|
Due from related party
|
4,979 |
4,979 |
||||||
|
Other assets
|
64,371 |
64,182 |
||||||
|
Total assets
|
$ |
30,290,708 |
$ |
29,086,945 |
||||
|
|
||||||||
|
LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS’ (DEFICIT)/EQUITY
|
||||||||
|
Current liabilities
|
||||||||
|
Accounts payable and accrued expense
|
$ |
1,779,073 |
$ |
1,760,765 |
||||
|
Accrued expenses – related parties
|
237,277 |
4,645,826 |
||||||
|
Accrued interest
|
730,866 |
707,574 |
||||||
|
Right of use – operating lease liability
|
143,937 |
178,524 |
||||||
|
Notes payable – current portion
|
50,745 |
125,774 |
||||||
|
Notes payable related parties – current portion
|
1,085,703 |
1,085,703 |
||||||
|
Line of credit
|
18,922,173 |
17,209,908 |
||||||
|
Convertible notes payable, net of debt discounts of $815,228 and $131,705,
respectively
|
279,772 |
118,295 |
||||||
|
Derivative liability
|
1,129,345 |
0 |
||||||
|
Total current liabilities
|
24,358,891 |
25,832,369 |
||||||
|
|
||||||||
|
Other liabilities
|
||||||||
|
Operating lease liability – long term
|
17,366 |
42,976 |
||||||
|
Notes payable
|
137,934 |
138,773 |
||||||
|
Notes payable related parties
|
116,667 |
0 |
||||||
|
Total liabilities
|
24,630,858 |
26,014,118 |
||||||
|
|
||||||||
|
Mezzanine equity
|
||||||||
|
Redeemable Series N Senior Convertible Preferred Stock – 3,000,000 shares
authorized, $0.001 par value, stated value $4.00, 1,068,004 and 1,037,311
shares issued and outstanding at March 31, 2026 and December 31, 2025,
respectively
|
0 |
3,802,010 |
||||||
|
Redeemable Series X Senior Convertible Preferred Stock – 5,000,000 shares
authorized, $0.001 par value, stated value of $4.00; 449,117 and 438,388
shares issued and outstanding at March 31, 2026 and December 31, 2025,
respectively
|
1,783,394 |
1,740,478 |
||||||
|
Total Mezzanine Equity
|
1,783,394 |
5,542,488 |
||||||
|
|
||||||||
|
Stockholders’ (deficit)/equity
|
||||||||
|
Series F-1 Preferred Stock – 50,000 shares authorized, $0.001 par value,
stated value $4.00, 3,875 shares issued and outstanding at March 31, 2026
and December 31, 2025
|
15,500 |
15,500 |
||||||
|
Series L Preferred Stock – 400,000 shares authorized, $0.001 par value,
stated value $4.00, 319,493 shares issued and outstanding at March 31, 2026
and December 31, 2025
|
1,277,972 |
1,277,972 |
||||||
|
Series N Senior Convertible Preferred Stock – 3,000,000 shares
authorized, $0.001 par value, stated value $4.00, 1,068,004 and 1,037,311
shares issued and outstanding at March 31, 2026 and December 31, 2025,
respectively
|
3,924,782 |
0 |
||||||
|
Series Y Senior Convertible Preferred Stock – 1,500,000 shares authorized,
$0.001 par value, stated value of $4.00, 1,094,354 and 1,067,878 shares
issued and outstanding at March 31, 2026 and December 31 2025,
respectively
|
4,377,413 |
4,271,512 |
||||||
|
Common Stock; 300,000,000 shares authorized, $0.001 par value;
15,167,350 and 13,701,698 shares issued and outstanding at March 31, 2026
and December 31, 2025, respectively
|
15,167 |
13,702 |
||||||
|
Additional paid-in capital
|
77,453,073 |
72,021,848 |
||||||
|
Unearned stock compensation
|
(331,938 |
) |
(579,215 |
) |
||||
|
Accumulated deficit
|
(82,855,513 |
) |
(79,490,980 |
) |
||||
|
Total stockholders’ equity/(deficit)
|
3,876,456 |
(2,469,661 |
) |
|||||
|
Total liabilities, mezzanine equity and stockholders’ equity
|
$ |
30,290,708 |
$ |
29,086,945 |
||||
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE MONTHS ENDED MARCH 31, 2026, AND 2025
(Unaudited)
The following table reconciles Net income (loss) before discontinued operations (a GAAP financial measure) to EBITDA and Adjusted EBITDA (non-GAAP financial measures)
|
|
For the Three Months Ended |
|||||||
|
|
March 31, |
|||||||
|
|
2026 |
2025 |
||||||
|
EBITDA (1)
|
||||||||
|
Net loss before discontinued operations
|
$ |
(3,092,074 |
) |
$ |
(450,777 |
) |
||
|
Add:
|
||||||||
|
Interest
|
1,910,737 |
993,114 |
||||||
|
Taxes
|
0 |
0 |
||||||
|
Depreciation
|
593 |
3,365 |
||||||
|
Amortization
|
11,438 |
0 |
||||||
|
|
||||||||
|
EBITDA (1)
|
$ |
(1,169,306 |
) |
$ |
545,702 |
|||
|
|
||||||||
|
Adjusted EBITDA (2)
|
||||||||
|
EBITDA
|
$ |
(1,169,306 |
) |
$ |
545,702 |
|||
|
Add:
|
||||||||
|
Derivative loss upon issuance and changes in the liability
|
668,821 |
0 |
||||||
|
Stock compensation expense for shares issued
|
664,196 |
0 |
||||||
|
|
||||||||
|
|
||||||||
|
Adjusted EBITDA (2)
|
$ |
163,711 |
$ |
545,702 |
||||
|
|
||||||||
|
|
||||||||
|
Adjusted EBITDA excluding other non-recurring costs (3)
|
||||||||
|
|
||||||||
|
Adjusted EBITDA
|
$ |
163,711 |
$ |
545,702 |
||||
|
Add:
|
||||||||
|
Scaling and restructuring costs for business growth
|
14,762 |
0 |
||||||
|
Acquisition related costs
|
79,153 |
56,635 |
||||||
|
|
||||||||
|
Adjusted EBITDA excluding other non-recurring costs (3)
|
$ |
257,626 |
$ |
602,337 |
||||
|
|
||||||||
(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.
(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.
SOURCE: Cardiff Lexington Corporation
View the original press release on ACCESS Newswire
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