InfuSystem Q3 2025 Earnings Call - Strategic Shift Drives Profitable Growth Amid Contract Realignments

Conference Operator: Good day, and welcome to the InfuSystem Third Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Joe Dorme of Wittham Partners.

Please go ahead.

Joe Dorme, Investor Relations Representative, Wittham Partners: Good morning and thank you for joining us today to review InfuSystem’s third quarter twenty twenty five financial results ended 09/30/2025. With us today on the call are Carrie LaChance, Chief Executive Officer and Barry Steele, Chief Financial Officer. After the conclusion of today’s prepared remarks, we’ll open the call to questions. Before we begin with prepared remarks, I would like to remind everyone certain statements made by the management team of InfuSystem during this conference call constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Except for the statements of historical fact, this conference call may contain forward looking statements that involve risks and uncertainties, some of which are detailed under Risk Factors and documents filed by the company with the Securities and Exchange Commission, including the annual report on Form 10 ks for the year ended 12/31/2024.

Forward looking statements speak only as of the date the statements were made. The company can give no assurance that such forward looking statements will prove to be correct. InfuSystem does not undertake and specifically disclaims any obligation to update any forward looking statements except as required by law. Now I’d like to turn the call over to Carrie LaChance, Chief Executive Officer of InfuSystem. Carrie?

Carrie LaChance, Chief Executive Officer, InfuSystem: Thank you, Joe, and good morning, everyone. Welcome to Impute Systems’ third quarter fiscal year twenty twenty five earnings call. Thank you all for joining us today. I will provide a third quarter overview, highlighting key successes, addressing notable challenges and outlining our strategic priorities as we wrap up 2025 and look forward to 2026. Then Barry will provide a detailed summary of our financial results.

I will then come back to some closing comments before opening the line to questions. This morning, we published our third quarter earnings report, which illustrated another strong quarter of financial performance marked by continued revenue growth, margin expansion, robust cash flow, debt reduction and returning capital to our shareholders. In the report, we shared examples of the activities and initiatives we have underway that have contributed to these improved financial metrics. I’ll take a few minutes now to walk through some of them. I’ll start by discussing some very important projects driving our wound care initiative.

We see an opportunity to leverage strategic competencies present in our patient solutions segment beyond our existing therapies of oncology and pain management. A key driver for long term success in this initiative has been taking steps that will lower the processing cost for each patient referral. This is why we acquired Apollo in May. Integrating this company and its systems not only brought us wound care customers, but more importantly presented a quick and low cost means to upgrade to a more streamlined billing software that will allow us to process upfront paperwork and insurance claims more quickly and efficiently. During the third quarter, we completed key integration tasks including connecting the new RCM application to our insurance billing clearinghouse, which effectively plugs in our large portfolio of insurance payers.

We are now focused on additional system and process improvements, particularly building out the AI and automation enhancements that that new tool allows and completing the transition of our existing wound care volume into the new system. While it’s still too early to measure the exact cost reduction benefit, we believe the new system will allow us to process the highly complex wound care claims on a cost efficient basis. The ongoing progress also brings us a few steps closer to onboarding our Oncology and Pain Management billing volume onto the application, further leveraging the investment and improving our overall RCM efficiency. Also in the third quarter, we began accepting patient referrals and booking revenue for pneumatic compression devices or PCDs through a new relationship with the device manufacturer. Although the amount of revenue was relatively small, the quickness to launch illustrates not only the strength of our payer portfolio when we bring it to bear on new products, but the significant improvements that the team has made to accelerate the speed at which we bring new products online.

For now, we are classifying these revenues in wound care category with hopes they will grow large enough in the future to report them separately. Next, I’d like to note three developments positively impacting our business beyond wound care. First, in addition to the new billing system acquired and integrated via the Apollo acquisition during the third quarter, we went live with a machine learning tool focused on our front end intake process, which is another complicated and time consuming manual task. This was done even while continuing the implementation of our ERP level software system upgrade that we began in 2024. Second, we secured a significant new contract with a large hospital system for our oncology business.

Our sales team has had tremendous activity and this win, along with others, increases our market share and will help us to continue to report oncology revenue growth at levels exceeding expectations, a challenge given our high market share. The contract win resulting in higher volume will, of course, require us to spend capital on pumps, a fair trade given oncology as our most accretive revenue source. In addition, I’ll note that oncology revenue for the third quarter reached an all time record, which is a common accolade for the business. Finally, we secured a multiyear contract extension with one of our largest national insurance payers. This type of event is not normally newsworthy since we routinely extend existing contracts and add new payers to our very extensive portfolio.

However, this one stands out as particularly exciting because it provides enhanced service coverage and product areas we are focused on such as negative pressure wound therapy devices and PCBs. The extension also contains a much appreciated price increase. The accomplishment demonstrates the depth of our contract relationships as a whole and the value our payers see in our capabilities. Before I turn the call over to Barry, I need to provide an update on developments in our Biomedical Services business. As we mentioned in our last quarterly call, we’ve been working with our largest Biomedical Services customer to modify the contract to reflect changes in market economics and developments in the relationship.

During the third quarter, we signed a contract amendment that will improve pricing and shift the relationship to reduce device volume and lower service levels on most of the devices remaining on the contract. These changes will result in a reduction in revenue under the contract by an estimate 6,000,000 to $7,000,000 annually starting in December. However, it is important to note these changes will also result in an expansion of our operating income by reducing costs and expenses in an amount greater than the revenue decline. We are now focused on resizing and relocating our field based Biomedical Technicians team to conform to the changes. While we are always disappointed by changes that reduce our revenue, we believe that profitability is a key driver of shareholder value and that these strategic adjustments are essential to our continued progress and will leave us with a very solid core field based Biomedical Service business from which to build upon.

Now I’ll turn it over to Barry for a detailed review of the third quarter financial results. Barry?

Barry Steele, Chief Financial Officer, InfuSystem: Thank you, Carrie, and thank you everyone on the call for joining us today. I’m going to focus on the main drivers for the current quarter’s results and I’ll update you on our current financial position and how it changed during the quarter. Now let me start with our financial results for the period. During the 2025, our net revenue totaled $36,200,000 This was another record and it represented a $1,200,000 or 3.3% increase from the prior year third quarter. The improvement was applicable to increased net revenue for the Patient Services segment, partially offset by lower revenue from Device Solutions.

Patient services net revenue increased by $1,600,000 or 7.6% and included increased patient treatment volumes in oncology and wound care. Oncology net revenue increased by nearly $700,000 or 3.6% and wound care revenue was up by 116% totaling $2,000,000 which was mainly driven by volume increases in negative pressure wound therapy treatments related to the Smith and Nephew partnership, increased volume from the Apollo acquisition and first time revenue for pneumatic compression devices. Device solutions net revenue decreased by $400,000 or 2.9%. This decrease was primarily attributable to about $400,000 in lower revenue volume in biomedical services and a standout large equipment sale during the prior year to a large rental customer that bought out $1,000,000 in lost pumps from their contract. Partially offsetting these declines was a $600,000 nonrecurring benefit to adjust the contract asset related to our largest biomedical services customer.

The lower revenue from the biomedical services mainly relates to a remediation contract that benefited the prior year, but was nearly completed prior to the current year period. Gross profit for the 2025 was $20,800,000 which was also a quarterly record and a $1,800,000 or 9.3% increase over the prior year third quarter. Our gross margin percentage at just over 57% increased by 3.1% from the prior year’s amount, which was a significant improvement even without the one time 1.7% boost it received from the contract asset adjustment. The remaining increase was mainly driven by improved labor efficiency and pricing in biomedical services, improved revenue mix favoring higher margin revenue such as oncology, lower procurement costs and lower pump disposal expenses. Selling, general and administrative expenses for the 2025 totaled $17,000,000 and was $1,200,000 or 7.8% higher than the prior year third quarter amount.

More than half of this increase was attributable to $773,000 in expenses associated with our project to upgrade our main enterprise resource planning software. Other increases were related to additional headcount and revenue cycle and other personnel needed to support the higher revenue volume and a higher accrual for short term incentive compensation. Partially offsetting these increases was a lower sales commissions rate related to shifts in revenue mix. Adjusted EBITDA during the twenty twenty five third quarter was $8,300,000 which represented an increase of just over 400,000 or 5.6% from the prior year third quarter adjusted EBITDA. This represented 22.8 of net revenue for 2025, which was slightly above the prior year rate of 22.3% despite a $500,000 increase in spending on the ERP project.

On a trailing twelve month basis, adjusted EBITDA totaled $30,200,000 representing a margin of 21.4%. This demonstrates that our focus on profitable revenue growth and operational efficiency is yielding meaningful results. Now a few points on our financial position and capital reserves. On a year to date basis, for the first nine months, we generated operating cash flow totaling over $17,000,000 This amount was $4,800,000 higher than the amount realized during the prior year to date period. This increase was due to the higher adjusted EBITDA, which on a year to date basis was also up by 4,800,000 Our net capital expenditures were $3,100,000 so far in 2025, which represented a significant decrease from $10,000,000 spent during the first nine months of last year.

The amount during the prior period was focused on infusion pumps needed to support increased volume in the Device Solutions rental business, which grew more significantly during that period. Although we anticipate an increased amount of medical equipment purchases during the next quarter to support some new customers in oncology, we continue to anticipate that our overall capital spending requirements will remain at moderate levels as compared to amounts in prior years as the sources of our future revenue growth will continue to be more weighted towards less capital intensive revenue sources. We continue to be positioned well to fund continued net revenue growth with the growing cash flow from operations backed by significant liquidity reserves available from our revolving line of credit and manageable leverage and debt service requirements. Our net debt decreased by $5,700,000 during the third quarter. We are able to do this despite purchasing $2,200,000 of our common stock during the quarter under our $20,000,000 stock repurchase authorization.

This brings total shareholder capital returned under the plan so far this year to $8,600,000 Our available liquidity continues to be strong and totaled nearly $55,000,000 as of 09/30/2025. At that time, our ratio of net debt to adjusted EBITDA was modest at 0.66 times. Our debt consists of borrowings on our revolving line of credit with no term payment requirements. Early in the third quarter, we amended our credit agreement, extending the facility for two additional years. The facility now expires in July 2030.

We continue to benefit from an outstanding interest rate swap, which fixes our interest rate on $20,000,000 of the outstanding borrowings at a below market rate of 3.8% until April 2028. I’ll now turn the call back over to Carrie.

Carrie LaChance, Chief Executive Officer, InfuSystem: Thanks, Barry. As we close out the year with strong momentum, we are reaffirming our full year outlook, targeting adjusted EBITDA margin to be 20% or greater and revenue growth between 6% to 8%. We are entering 2026 as a stronger and more focused company, well positioned to build on this progress. As I reflect back on the efforts we made during the third quarter, the updates that we’ve shared with you today and what we are currently focusing on as we close out 2025, I hope you will agree that we’ve been diligent in pursuing the strategic priorities we laid out for you in early August when we reported the second quarter. Those priorities are to execute with discipline, deliver profitable growth and drive long term value creation for our shareholders.

Operator, we are ready for the Q and A portion of the call.

Conference Operator: Session. Our first question comes from Kyle Bosser with ROTH Capital Partners. Partners.

Kyle Bosser, Analyst, ROTH Capital Partners: You. Hi, Carrie and Barry. Glad to see the very nice progress around prioritizing profitable growth and sort of improving the processes to lower costs here. It sounds like you’ve you’ve made some nice strides across the business in relation to this, particularly in wound care and oncology. Seems like oncology is probably much more streamlined than kind of the growing wound care business.

Can you maybe talk a little bit more, Carrie, about the additional enhancements you’ll want to make in the wound care business

Barry Steele, Chief Financial Officer, InfuSystem: kind of around AI and automation enhancements? Thank you.

Carrie LaChance, Chief Executive Officer, InfuSystem: Yeah, sure. Good morning, Kyle. From an AI perspective or an automation perspective, we have our new system that we implemented for the revenue cycle aspect over the past few months. That’s working tremendously well. We have a good portion of our business that we’re starting to put into that.

Our older system didn’t have any AI or automation technology that it allowed for. So we’re looking forward to plugging even more of the business in, but we can see some efficiency starting already in those lines of business.

Kyle Bosser, Analyst, ROTH Capital Partners: Okay. Got it. And regarding the largest biomedical service contract changes, of course, it sounds like it will be much more profitable moving forward, which is great. Can you speak a little bit more about the level of reduction in this contract from a sales perspective? And then I think you mentioned kind of being able to recoup that in profit.

So just any more color there would be appreciated.

Barry Steele, Chief Financial Officer, InfuSystem: Good morning, Kyle. I’ll jump in on that. So it is a pretty significant adjustment for the amount of revenue we’ll see from that contract. It’s we’re estimating between 6,000,000 and $7,000,000 for two reasons. One, although we increased our price, there are certain locations and certain areas that were just not working well for us or for the customer.

And so our volume will go down about 40%, and the remaining volume will have a decrease in the service level. So we’ll only be doing preventive maintenance services and not doing the stand ready repairs. Although we do have an opportunity to get some of those repairs back into our building from a depot perspective. They’ll ship them into us. We’re not sure exactly how much revenue we’ll see in that, but we expect that some of the devices we’ve been repairing in the field we’ll see in our depots.

The good thing though is that helps us to adjust our cost structure significantly. And the economics on the program will now be, should be pretty good. So it’s unfortunate that we have to get back a little revenue, but we’ll definitely start from a very good base to build out from. In fact, we’ve already won some other business with other customers that allow them to start building it back at a much more favorable margin to us.

Kyle Bosser, Analyst, ROTH Capital Partners: Got it. Appreciate that. Thanks, Barry. Maybe just lastly, kind of related to that, so the six to 8% sales growth rate reiterated, which is great. How should we think about kind of the growth profiles of, you know, patient services versus device solutions either in for for this year or going forward?

I I guess I’m trying to get at the the device solutions. What sort of growth profile can we envision there moving forward with the change in this big contract?

Barry Steele, Chief Financial Officer, InfuSystem: Yep. So obviously, that’s a pretty big headwind for us for next year just from that one contract adjustment. As you’re aware, we do see our growth continuing. Where we’re focused on is in the wound care and the patient services side with a bunch of different potential therapies and things that we’ll look at bringing online. So I think that will be a little bit slower on the growth side for the device solutions side where you’ll see more growth being driven by the patient service side as we proceed through the year.

The good thing is that the change that we’re talking about don’t take effect until December, and so there’ll be a small impact on the current year for the adjustment to the large biomedical services contract.

Kyle Bosser, Analyst, ROTH Capital Partners: Okay, got it. That makes sense. Appreciate that. Cool, thanks for taking my questions. Great updates.

Think it’s great to be prioritizing the profitable growth. So I’ll jump back in queue.

Carrie LaChance, Chief Executive Officer, InfuSystem: Thanks, Thanks, Kyle.

Conference Operator: Our next question comes from Matt Hewitt with Craig Hallum Capital Group. Please go ahead.

Talif, Analyst, Craig Hallum Capital Group: Hello, this is Talif on for Matt. Given your focus on profitable growth, how do you balance margin improvement with maintaining revenue momentum across your key segments? Thank you.

Barry Steele, Chief Financial Officer, InfuSystem: Yes, I’ll jump in on that one. So clearly our businesses has a fairly sizable difference from one revenue source to the other in terms of how much margin we get and more specifically how much capital we have to spend to grow. So we have been focusing on correcting some of the areas where we’re a little bit less cash flow or lower margins and making some improvements and that’s what we saw with the significant shift in the large biomedical services contract. And focusing where we can grow with our core competencies in areas that we can be more profitable. And specifically where we don’t have to spend as much capital to grow.

So that’s in order to be able to balance out those decisions about where we focus, we’re thinking about return on invested capital. So we have a smaller requirement to get into a market or to grow an area and we can see a good return and good cash flow from that, that’s where we’ve been prioritizing ourselves. So it’s not just about the margins we can see, it’s about our ability to actually successfully operate in a particular product segment and the quickness to how fast we can get cash flow from it.

Talif, Analyst, Craig Hallum Capital Group: Okay. Thank you. And then are there any additional opportunities in oncology or other therapeutic areas to replicate the success of the hospital system partnership? Thank you.

Carrie LaChance, Chief Executive Officer, InfuSystem: Yes. Good morning, Tom. I do we mentioned the PCDs, which we were into PCDs a few years ago and it was we struggled in that area a little bit. I think, again, the back end systems that we’re improving, automating some of those areas being a little bit more streamlined there has allowed us to continue that growth and get back into the PCD area. So that, along with wound care, are two areas that we’re focused on, and we see a lot of opportunity there.

Talif, Analyst, Craig Hallum Capital Group: Thank you.

Barry Steele, Chief Financial Officer, InfuSystem: Thank you.

Conference Operator: Your next question comes from Jim Sidoti with Sidoti and Co. Please go ahead.

Jim Sidoti, Analyst, Sidoti and Co.: Hi. Good morning. Thanks for taking the questions. So, Barry, I think I heard you say that the ERP expenses in the quarter was about 733,000. Is that right?

Barry Steele, Chief Financial Officer, InfuSystem: 770.

Jim Sidoti, Analyst, Sidoti and Co.: 770.

Barry Steele, Chief Financial Officer, InfuSystem: I said that’s Yeah. That’s the increase we’ve last year. Last year, it was a couple 100,000, so we’re 500,000 higher year over year.

Jim Sidoti, Analyst, Sidoti and Co.: Okay. And and you think that’ll be gone by 2026. Right?

Barry Steele, Chief Financial Officer, InfuSystem: No. We’re we’ll have spend in the first quarter. We’ll be going live during the first quarter, so it’ll it’ll taper off, after that. Keep in mind, though, our our overall maintenance cost on the old the new system versus the old system is a little bit higher. So it doesn’t all completely go away, but a very large portion of it goes away starting in the second quarter of next year.

Jim Sidoti, Analyst, Sidoti and Co.: Okay. And that’s more than the gain you got from renegotiating the the pricing, you know, on the contract then?

Barry Steele, Chief Financial Officer, InfuSystem: Well, I think you’re you’re I thought we were talking about the ERP, and now that we’re talking about the the Right. But I’m I’m just

Jim Sidoti, Analyst, Sidoti and Co.: trying to figure out if this 11¢ is, you know, if it’s a clean EPS number. But it sounds like the one time benefit was offset by the one time expense because of the ERP.

Barry Steele, Chief Financial Officer, InfuSystem: That’s a good way to look at it. We also had some adjustments to our short term compensation incentives. So one thing that I think I said in my remarks, and it’s probably true, is if you back out the impact of the contract adjustment. So part of the price increase, we got to account for prior periods because it related to prior services we already completed. That was about $600,000 If you take that out, we still had growth in our gross margin.

We still had growth in our EBITDA margin. But you’re correct, there is offset expenses in there that you could they’re unrelated somewhat. But, yeah, there’ll be if you took those both things out, would be better.

Jim Sidoti, Analyst, Sidoti and Co.: Okay. Alright. And then, in terms of the the new service agreement, so it sounds like that business went from around 11,000,000 to to about 6 to 7,000,000 in terms of revenue. Is that right?

Barry Steele, Chief Financial Officer, InfuSystem: Well, yeah. We think we’re giving back somewhere between 6,000,000 and $7,000,000 We don’t know exactly because of volume on the repairs that we do in the building. So that the sort of in the field biomedical services business was around a 10,000,000 to $12,000,000 business. It’ll be quite a bit lower. But keep in mind that we have won some other business that will make up for some of that.

Jim Sidoti, Analyst, Sidoti and Co.: Okay. And on that when that with the $12,000,000 business, can you give us a sense of what the operating profit or the, yeah, the operating profit was for that and what it’ll be on the small one?

Ben Haynor, Analyst, Lake Street Capital Markets: Sure. I

Barry Steele, Chief Financial Officer, InfuSystem: think I think think a way to illustrate that is clearly, were not making, margins that we thought were we needed to make under the contract. And and with the new structure, with the higher price and the different, we’re we’re we’re servicing in a way that we’re more able to, there’s gonna be a distinctive improvement in our margins even at and and that I’m not talking about margin percentages, actual margin dollars under the new structure. So maybe going back to your per share, the impact of the change in

Jim Sidoti, Analyst, Sidoti and Co.: the contract So so the operating dollars under this new agreement, you know, what what it’s down to of maybe a $5,000,000 level, you’re saying that you’ll have more operating profit than you had That’s when you had a $12,000,000 correct. That’s right. Okay. Yes, was just trying

Barry Steele, Chief Financial Officer, InfuSystem: to understand. And our top will be negatively impacted, and yet the bottom line will be positively impacted.

Jim Sidoti, Analyst, Sidoti and Co.: And I assume now that some of that excess capacity, you’ll try and use that for new customers?

Barry Steele, Chief Financial Officer, InfuSystem: I don’t think that we’ll look at it as excess capacity. We won’t have regional team members. We’ll be sending people out from we’ll be a little bit more concentrated as far as our footprint where we have team members closer to those devices. So our some of operating costs to get people on-site will decrease. The nice thing, though, is that I think that what you as we build it, we’ll probably not have a big concentration in one customer, right?

That’s kind of got the loss leader kind of contract. We do, since we’re winning other contracts, we think that we’re going to continue to build out in a smart way with smaller contracts that are much more favorable to us.

Jim Sidoti, Analyst, Sidoti and Co.: All right. And then in terms of cash, you bought back a couple of million in stock. You paid off, I think, about 3,000,000 in debt this year. Do you think that’s gonna be the trend for uses of cash going forward?

Barry Steele, Chief Financial Officer, InfuSystem: Yeah. I think so. I mean, there’s other opportunities that that from time to time, we’ll we’ll consider that are M and A possibilities, but you’ll hear about those when if we get something going. So we’re kind of left with since we have positive cash flow and the business is becoming less capital intensive, left with excess cash too. And so we’ll have to return that to investors in the way that we have or pay down our debt, which is getting pretty low.

So yes, they’ll probably be very similar. In the fourth quarter, we definitely we have some new customers in oncology that we’ll need to have pumps for. So we’ll we’ll be increasing the capital spend in

Jim Sidoti, Analyst, Sidoti and Co.: the fourth quarter. Yeah. But but it sounds like, you know, with this new new strategy that the operating cash flow is gonna go up, not gonna go down over the next couple of years.

Barry Steele, Chief Financial Officer, InfuSystem: That’s a good problem. Yes.

Jim Sidoti, Analyst, Sidoti and Co.: Yeah. Okay. All right. Just making sure that was clear. All right.

Thank you.

Kyle Bosser, Analyst, ROTH Capital Partners: Yes. Keep talking.

Conference Operator: Our next question comes from Ben Haynor with Lake Street Capital Markets. Just

Ben Haynor, Analyst, Lake Street Capital Markets: a couple for me. First off, on the biomedical services contract, are there going to be any sort of onetime expenses to kind of the transition here, moving team members around? Any anything related to that or that just kinda they get reallocated relatively easily and not not any real expenses associated with the the change to the contract?

Barry Steele, Chief Financial Officer, InfuSystem: Yeah. There there’s definitely some costs. They’re fairly low, both in in, some some severance conditions and, some relocations. But it’s it’s, it’ll be in the fourth quarter. Very, very small, very manageable amount.

Ben Haynor, Analyst, Lake Street Capital Markets: Okay. And even with that, you you would expect the the operating profit dollars to to go up?

Barry Steele, Chief Financial Officer, InfuSystem: Yeah. The keep in mind, the the real impact to the revenue and the adjustment of the cost structure will be in in early part of next year because we’re still servicing the contract at the current level through the November. And so there’s just a small and and in December, we don’t usually have as much revenue anyway because of what we can prevent and make the services occur in the holiday time frame. Really not a big impact in the current year. A small ex additional expense for some more restructuring pull through.

But, again, it’s more of the impact in next year where we see less revenue, but even more a lot a bigger number reducing some of our costs.

Ben Haynor, Analyst, Lake Street Capital Markets: Okay. Makes sense. Thanks for the the help there. And then secondly, and I guess lastly for me, on on the multiyear extension within the national insurer, you got the pricing improvement, obviously good there. You know, can you maybe characterize how much of a boost you got there?

And then on the enhanced service coverage, you you know, kinda what what goes into that? What’s the opportunity on that front?

Carrie LaChance, Chief Executive Officer, InfuSystem: Yeah. Good morning. Yeah.

Barry Steele, Chief Financial Officer, InfuSystem: Yeah. The the we you know, the the the price increases is important. We we do see price increases in other countries as well. This one, will be will be good for us. And, yeah, you must, most of our contracts are are there’s no no real concentration.

So we’d have to get price increase on all of our contracts for it to be very, extremely, visible. But it is important for us to be able to, indicate that we don’t see price decreases on these contracts.

Conference Operator: Our next question comes from Matt Hewitt with Craig Hallum Capital Group. Is

Talif, Analyst, Craig Hallum Capital Group: there any updates on the pricing negotiations with chemo mouthpiece? Thank you.

Carrie LaChance, Chief Executive Officer, InfuSystem: Hey, good morning, Matt. So from chemo mouthpiece, we do actually have some good news from a we don’t have anything back from CMP as far as their approval for a code, a rate for a code. So that should come by the end of this year. However, we have seen some increased placement in the market. So from a sales perspective, we have started to see the uptake into facilities for placement of the device, which has been a really great start.

So again, that approval accreditation kind of code will come up by the end of the year. We’re waiting for CMP to announce that. And then that rate for that code should be out midyear next year.

Talif, Analyst, Craig Hallum Capital Group: Thank you very much.

Carrie LaChance, Chief Executive Officer, InfuSystem: Yeah, thanks, Matt.

Conference Operator: This concludes our question and answer session. I would like to turn the conference back over to Carrie Lachance for any closing remarks.

Carrie LaChance, Chief Executive Officer, InfuSystem: Thank you. I want to thank everyone for participating on today’s call, and we look forward to our fourth quarter call when we will update on our results and progress.

Conference Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.