Nutex Health Shares Sink as Arbitration Claims Cut 4Q Profit

Dow Jones03-06
 

By Amira McKee

 

Shares of Nutex Health plunged after the company logged lower fourth-quarter profit on a $55 million charge related to arbitration claims.

The stock tumbled 32% to $71.51 in after-hours trading on Thursday. The shares have more than doubled in the past year.

The hospital operator recorded a fourth-quarter net income of $11.8 million, down from $61.6 million a year earlier.

Revenue declined 41% to $151.7 million, missing Wall Street's forecast for $258.8 million.

The company attributed the $105.9 million decrease in revenue to a one‑time $55 million cumulative true-up of 18,950 arbitration claims. The charge resulted from a mid-2025 Centers for Medicare & Medicaid Service directive instructing dispute resolution agencies to address and clear their backlog of disputes.

The fourth quarter of 2024 also benefitted from arbitration revenues of $69.0 million relating to submissions during the third quarter of that year, the company said.

Nutex Health said its board of directors authorized a second stock repurchase program of up to $25 million over the next six months.

 

Write to Amira McKee at amira.mckee@wsj.com

 

(END) Dow Jones Newswires

March 05, 2026 17:47 ET (22:47 GMT)

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