Q1 delivered strong profitability acceleration with operating income up 76.7% to $21.6M, driven by revenue growth and reduced asset sale losses, alongside robust $60.8M free cash flow supporting liquidity.
Key takeaways
Revenue increased 6.2% to $174.7M from $164.6M, reflecting Health+ and Military+ segment growth partially offset by lower GSUSA revenue post-sale.
Gross profit rose 11.7% to $100.1M with gross margin expansion to 57.3%, due to favorable segment performance.
Net income nearly doubled, up 99.4% to $17.7M, with diluted EPS rising 129.3% to $0.94.
Operating cash flow strengthened to $63.3M from Military+ TA collections, improved performance, and working capital timing.
Free cash flow reached $60.8M after $2.5M capex, down from $3.9M prior year, historically financing operations and investments.