Segment Reporting
As of June 30, 2025, the Company has three operating segments, two of which are related to the Company’s PACE offering. The PACE-related operating segments are based on two geographic divisions, which are East and West. Due to the similar economic characteristics, nature of services, and customers, we have aggregated our East and West operating segments into one reportable segment for PACE. The Company’s remaining operating segment primarily related to Senior Housing, which is an immaterial operating segment, and shown below as “Other” along with certain corporate unallocated expenses.
The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM uses Center-Level Contribution Margin as the measure for assessing performance of its operating segments and allocating resources, predominantly in the annual budget and forecasting process. The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the quality of care provided and profitability. The CODM considers forecast-to-actual Center-Level Contribution Margin variances on a monthly basis
when making decisions about allocating capital and personnel to the segments. Center-Level Contribution Margin is defined as total segment revenues less external provider costs and cost of care (excluding depreciation and amortization).
The Company does not review assets by segment and therefore assets by segment are not disclosed below. For the periods presented, all of the Company’s long-lived assets were located in the United States and all revenue was earned in the United States.
The following table summarizes the operating results regularly provided to the CODM by segment for the years ended June 30, 2025 and 2024:
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| June 30, 2025 | | June 30, 2024 |
| in thousands | PACE | | All other(1) | | Totals | | PACE | | All other(1) | | Totals |
| Capitation revenue | $ | 852,353 | | | $ | — | | | $ | 852,353 | | | $ | 762,570 | | | $ | — | | | $ | 762,570 | |
| Other service revenue | 356 | | | 990 | | | 1,346 | | | 310 | | | 975 | | | 1,285 | |
| Total revenues | 852,709 | | | 990 | | | 853,699 | | | 762,880 | | | 975 | | | 763,855 | |
| External provider costs | 431,152 | | | — | | | 431,152 | | | 403,010 | | | — | | | 403,010 | |
| Cost of care, excluding depreciation and amortization | 268,338 | | | 570 | | | 268,908 | | | 228,203 | | | 578 | | | 228,781 | |
| Center-Level Contribution Margin | 153,219 | | | 420 | | | 153,639 | | | 131,667 | | | 397 | | | 132,064 | |
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| Sales and marketing | | | | | 28,217 | | | | | | | 24,957 | |
| Corporate, general and administrative | | | | | 122,058 | | | | | | | 111,337 | |
| Depreciation and amortization | | | | | 19,510 | | | | | | | 18,950 | |
| Impairments and loss on assets held for sale | | | | | 13,615 | | | | | | | — | |
| Operating loss | | | | | (29,761) | | | | | | | (23,180) | |
| Other income | | | | | (4,266) | | | | | | | 1,361 | |
| Loss Before Income Taxes | | | | | $ | (34,027) | | | | | | | $ | (21,819) | |
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| Depreciation and amortization | $ | 19,058 | | | $ | 452 | | | $ | 19,510 | | | $ | 18,477 | | | $ | 473 | | | $ | 18,950 | |
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(1)Center-level Contribution Margin from a segment below the quantitative thresholds was attributable to the Senior Housing operating segment of the Company as of June 30, 2025. This segment has never met any of the quantitative thresholds for determining reportable segments.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.