Cardiff Lexington Announces Second Quarter 2026 Financial Results
LEXINGTON, KY / ACCESS Newswire / August 12, 2026 / Cardiff Lexington Corporation (OTCQX:CDIX), a publicly traded
Press Release Disclaimer: This is a press release distributed through the XPR Media network. It has not been independently verified by our newsroom.
LEXINGTON, KY / ACCESS Newswire / August 12, 2026 / Cardiff Lexington Corporation (OTCQX:CDIX), a publicly traded healthcare services holding company focused on orthopedic, spine, and pain management platforms, today announced that it has filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 with the U.S. Securities and Exchange Commission.
Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, “During the first half of 2026, we continued to execute on our long-term strategy to establish Nova Ortho and Spine as a leading healthcare network and provide best-in-class care to a severely underserved patient population. During the second quarter, we opened our 12th Nova Ortho and Spine location in Tallahassee, Florida, representing a strategic metropolitan location with high patient volume and visibility, and we continue to strengthen our team with the addition of leading doctors, nurses, and operators. We remain confident that we’re fulfilling a critical healthcare need in a highly attractive geographic market, and we see this as a strong opportunity for continued growth.
“While execution has been strong, the first half of the year has not been without its challenges. Year-to-date revenue was down compared to last year, and though we saw an increase in both new patients and billed surgical procedures in the year to date period, we recognized a lower implicit realization rate on patient case claim settlements during the first half of the year. Despite this, gross profit in the first half was strong at 57%, and we realized a slight adjusted non-GAAP EBITDA loss of $14,000 compared with non-GAAP adjusted EBITDA of $1.3 million in the first half of 2025.
“We’re seeing significant demand for our services, however, working capital constraints have limited our ability to capitalize on opportunities and has required us to access capital at high costs. We continue to evaluate opportunities for debt restructuring and equity infusions to offset this current cost of capital. That said, we have strong brand recognition in the markets we serve, and we remain committed to driving execution and continuing to provide the best available care to our patients across our network of Nova Ortho and Spine locations throughout Florida and Georgia, where there is strong demand.
“Looking ahead, our focus is on returning our business to historical levels of performance while driving long-term, sustained value for our shareholders. Over the course of several years, we have proven that this model can deliver consistent revenue growth and high returns on invested capital, and we remain confident in our ability to build on that as we enhance our access to working capital and pursue the many opportunities available to us in this exciting market. We’re encouraged by what’s ahead, and we thank you for your continued support and belief in Cardiff Lexington,” Mr. Cunningham concluded.
Financial tables are below, and the Company’s Quarterly Report on Form 10-Q is available on the SEC’s website at www.sec.gov and on the Investor Relations section of the Company’s website.
Conference Call
Cardiff Lexington will hold a conference call and webcast for investors today, August 12, 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: 876877. The call and the accompanying slide deck will also be webcast at:
https://www.webcaster5.com/Webcast/Page/3131/54266
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 Wednesday, August 26, 2026, by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use access code 54266 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.
Contact:
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 AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(UNAUDITED)
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
|
2026 |
2025 |
2026 |
2025 |
||||||||||||
|
REVENUE
|
$ |
2,159,557 |
$ |
2,789,007 |
$ |
4,381,837 |
$ |
5,704,574 |
||||||||
|
COST OF SALES
|
977,242 |
1,093,748 |
1,881,467 |
2,168,782 |
||||||||||||
|
GROSS PROFIT
|
1,182,315 |
1,695,259 |
2,500,370 |
3,535,792 |
||||||||||||
|
|
||||||||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Depreciation expense
|
253 |
763 |
846 |
4,128 |
||||||||||||
|
Loss on disposal of fixed assets
|
– |
– |
– |
12,593 |
||||||||||||
|
Share-based compensation
|
366,939 |
97,500 |
1,031,135 |
97,500 |
||||||||||||
|
Selling, general and administrative
|
1,359,766 |
987,319 |
2,524,191 |
2,267,960 |
||||||||||||
|
Total operating expenses
|
1,726,958 |
1,085,582 |
3,556,172 |
2,382,181 |
||||||||||||
|
|
||||||||||||||||
|
(LOSS) / INCOME FROM OPERATIONS
|
(544,643 |
) |
609,677 |
(1,055,802 |
) |
1,153,611 |
||||||||||
|
|
||||||||||||||||
|
OTHER (EXPENSE) INCOME
|
||||||||||||||||
|
Other income (expense)
|
– |
– |
10,081 |
(1,597 |
) |
|||||||||||
|
Derivative liability gain (loss) on issuance and changes in fair value
|
226,049 |
– |
(442,772 |
) |
– |
|||||||||||
|
Interest expense
|
(2,137,419 |
) |
(1,836,072 |
) |
(4,048,156 |
) |
(2,829,186 |
) |
||||||||
|
Amortization of debt discounts
|
(22,893 |
) |
– |
(34,331 |
) |
– |
||||||||||
|
Total other expense
|
(1,934,263 |
) |
(1,836,072 |
) |
(4,515,178 |
) |
(2,830,783 |
) |
||||||||
|
|
||||||||||||||||
|
NET LOSS
|
$ |
(2,478,906 |
) |
$ |
(1,226,395 |
) |
$ |
(5,570,980 |
) |
$ |
(1,677,172 |
) |
||||
|
|
||||||||||||||||
|
PREFERRED STOCK DIVIDENDS
|
$ |
(282,900 |
) |
$ |
(254,008 |
) |
$ |
(555,359 |
) |
$ |
(499,453 |
) |
||||
|
NET LOSS ATTRIBUTABLE TO COMMON
SHAREHOLDERS
|
$ |
(2,761,806 |
) |
$ |
(1,480,403 |
) |
$ |
(6,126,339 |
) |
$ |
(2,176,625 |
) |
||||
|
|
||||||||||||||||
|
BASIC AND DILUTED LOSS PER SHARE
|
$ |
(0.18 |
) |
$ |
(0.24 |
) |
$ |
(0.41 |
) |
$ |
(0.39 |
) |
||||
|
|
||||||||||||||||
|
WEIGHTED AVERAGE SHARES
OUTSTANDING – BASIC AND DILUTED
*
|
15,265,398 |
6,191,240 |
14,863,185 |
5,651,634 |
||||||||||||
*Shares outstanding for the three and six months ended June 30, 2025 have been restated for the 1-for-3 reverse stock split effective January 12, 2026. See Note 1. Summary of Significant Accounting Policies.
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2026 (UNAUDITED) AND DECEMBER 31, 2025
|
June 30, 2026 |
December 31, 2025 |
|||||||
|
ASSETS
|
||||||||
|
Current assets
|
||||||||
|
Cash
|
$ |
217,654 |
$ |
318,535 |
||||
|
Accounts receivable, net
|
23,725,621 |
22,070,954 |
||||||
|
Prepaid and other current assets
|
352,603 |
203,876 |
||||||
|
Total current assets
|
24,295,878 |
22,593,365 |
||||||
|
|
||||||||
|
Property and equipment, net
|
2,107 |
2,953 |
||||||
|
Land
|
540,000 |
540,000 |
||||||
|
Goodwill
|
5,666,608 |
5,666,608 |
||||||
|
Right of use – assets, net
|
105,726 |
214,858 |
||||||
|
Due from related party
|
4,979 |
4,979 |
||||||
|
Other assets
|
65,539 |
64,182 |
||||||
|
Total assets
|
$ |
30,680,837 |
$ |
29,086,945 |
||||
|
|
||||||||
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’
EQUITY/(DEFICIT) |
||||||||
|
Current liabilities
|
||||||||
|
Accounts payable and accrued expense
|
$ |
1,869,755 |
$ |
1,760,765 |
||||
|
Accrued expenses – related parties
|
232,393 |
4,645,826 |
||||||
|
Accrued interest
|
769,180 |
707,574 |
||||||
|
Right of use – operating lease liabilities
|
108,980 |
178,524 |
||||||
|
Notes payable – current portion
|
15,717 |
125,774 |
||||||
|
Notes payable related parties – current portion
|
1,085,703 |
1,085,703 |
||||||
|
Line of credit
|
21,138,949 |
17,209,908 |
||||||
|
Convertible notes payable, net of debt discounts of $1,061,124 and $131,705,
respectively – current portion
|
302,765 |
118,295 |
||||||
|
Derivative liabilities
|
1,087,129 |
– |
||||||
|
Total current liabilities
|
26,610,571 |
25,832,369 |
||||||
|
|
||||||||
|
Other liabilities
|
||||||||
|
Operating lease liability – long term
|
– |
42,976 |
||||||
|
Notes payable
|
137,115 |
138,773 |
||||||
|
Notes payable – related parties
|
350,000 |
– |
||||||
|
Total liabilities
|
27,097,686 |
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, 0 and 1,037,311 shares issued
and outstanding at June 30, 2026 and December 31, 2025, respectively
|
– |
3,802,010 |
||||||
|
Redeemable Series X Senior Convertible Preferred Stock – 5,000,000 shares
authorized, $0.001 par value, stated value of $4.00; 460,233 and 438,388
shares issued and outstanding at June 30, 2026 and December 31, 2025,
respectively
|
1,827,857 |
1,740,478 |
||||||
|
Total Mezzanine Equity
|
1,827,857 |
5,542,488 |
||||||
|
|
||||||||
|
Stockholders’ equity/(deficit)
|
||||||||
|
Series F-1 Preferred Stock – 50,000 shares authorized, $0.001 par value, stated
value $4.00, 3,875 shares issued and outstanding at June 30, 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 June 30, 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, 1,099,957 and 0 shares issued and
outstanding at June 30, 2026 and December 31, 2025, respectively
|
4,052,591 |
– |
||||||
|
Series Y Senior Convertible Preferred Stock – 1,500,000 shares authorized,
$0.001 par value, stated value of $4.00, 1,122,091 and 1,067,878 shares issued
and outstanding at June 30, 2026 and December 31, 2025, respectively
|
4,488,358 |
4,271,512 |
||||||
|
Common Stock: 300,000,000 shares authorized, $0.001 par value; 15,283,191
and 13,701,698 shares issued and outstanding at June 30, 2026 and December 31,
2025, respectively
|
15,283 |
13,702 |
||||||
|
Additional paid-in capital
|
77,763,975 |
72,021,848 |
||||||
|
Unearned stock-based compensation
|
(241,066 |
) |
(579,215 |
) |
||||
|
Accumulated deficit
|
(85,617,319 |
) |
(79,490,980 |
) |
||||
|
Total stockholders’ equity/(deficit)
|
1,755,294 |
(2,469,661 |
) |
|||||
|
Total liabilities, mezzanine equity and stockholders’ equity/(deficit)
|
$ |
30,680,837 |
$ |
29,086,945 |
||||
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 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 |
For the Six Months Ended |
||||||||||||||
|
|
June 30, |
June 30, |
||||||||||||||
|
|
2026 |
2025 |
2026 |
2025 |
||||||||||||
|
EBITDA(1)
|
||||||||||||||||
|
Net loss before discontinued operations
|
$ |
(2,478,906 |
) |
$ |
(1,226,395 |
) |
$ |
(5,570,980 |
) |
$ |
(1,677,172 |
) |
||||
|
Add:
|
||||||||||||||||
|
Interest
|
2,137,419 |
1,836,072 |
4,048,156 |
2,829,186 |
||||||||||||
|
Taxes
|
0 |
0 |
0 |
0 |
||||||||||||
|
Depreciation
|
253 |
763 |
846 |
4,128 |
||||||||||||
|
Amortization
|
22,893 |
0 |
34,331 |
0 |
||||||||||||
|
|
||||||||||||||||
|
EBITDA(1)
|
$ |
(318,341 |
) |
$ |
610,440 |
$ |
(1,487,647 |
) |
$ |
1,156,142 |
||||||
|
|
||||||||||||||||
|
Adjusted EBITDA (2)
|
||||||||||||||||
|
EBITDA
|
$ |
(318,341 |
) |
$ |
610,440 |
$ |
(1,487,647 |
) |
$ |
1,156,142 |
||||||
|
Add:
|
||||||||||||||||
|
Derivative liability gain (loss) on
issuance and change in fair value
|
(226,049 |
) |
0 |
442,772 |
0 |
|||||||||||
|
Stock compensation expense for
shares issued
|
366,939 |
97,500 |
1,031,135 |
97,500 |
||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Adjusted EBITDA(2)
|
$ |
(177,451 |
) |
$ |
707,940 |
$ |
(13,740 |
) |
$ |
1,253,642 |
||||||
|
(1) EBITDA is a non-GAAP financial measure defined as Earnings Before Interest, |
||||||||||||||||
|
(2) Adjusted EBITDA is a non-GAAP financial measure that is the sum of EBITDA |
||||||||||||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Adjusted EBITDA excluding other
non-recurring costs(3) |
||||||||||||||||
|
|
||||||||||||||||
|
Adjusted EBITDA
|
$ |
(177,451 |
) |
$ |
707,940 |
$ |
(13,740 |
) |
$ |
1,253,642 |
||||||
|
Add:
|
||||||||||||||||
|
Scaling and restructuring costs for
business growth
|
51,545 |
11,676 |
66,308 |
11,676 |
||||||||||||
|
Acquisition related costs
|
138,652 |
1,445 |
217,805 |
58,079 |
||||||||||||
|
|
||||||||||||||||
|
Adjusted EBITDA excluding other
non-recurring costs(3)
|
$ |
12,746 |
$ |
721,061 |
$ |
270,372 |
$ |
1,323,397 |
||||||||
|
|
||||||||||||||||
|
(3) Adjusted EBITDA excluding other non-recurring costs is a non-GAAP financial measure that is the sum of Adjusted |
||||||||||||||||
SOURCE: Cardiff Lexington Corporation
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