Arizona Tribune - Cardiff Lexington Corporation Announces Upgrade to OTCQX Best Market

The OTCQX Best Market is designed for established, investor-focused companies and requires high financial standards, strong corporate governance, and compliance with applicable securities laws.

Strategic Positioning and Market Advancement

Upgrading to OTCQX from the OTCQB® Venture Market reflects Cardiff Lexington's continued commitment to enhanced transparency and maintaining the highest governance and financial reporting standards available to companies trading on the OTC Markets.

"We view our upgrade to the OTCQX Best Market as a meaningful milestone in Cardiff Lexington's evolution as a disciplined, growth-oriented healthcare platform," said Alex H. Cunningham, Chief Executive Officer of Cardiff Lexington Corporation. "This transition strengthens our visibility within the institutional investor community and reinforces our commitment to building a scalable, high-margin healthcare enterprise with a clear path toward a national exchange listing. Listing on a national exchange would significantly enhance access to working capital to support increased patient volume and procedural throughput without relying on higher-cost financing structures and accelerate our accounts receivable conversion cycles. We look forward to leveraging this enhanced OTCQX visibility alongside our high-margin operating model to drive sustainable revenue growth, expand margins, and enhance long-term shareholder value."

Demonstrated Financial Performance and Operating Leverage

Cardiff Lexington has demonstrated consistent financial growth and operating performance driven by its focused healthcare platform strategy. For the fiscal year ended December 31, 2025, the Company reported:

• Revenue of approximately $11.5 million compared with $8.3 million in full year 2024, representing a 39.5% increase

• Gross profit increased to $7.2 million, or 62.5% of total revenue, compared with $4.4 million, or 53.6% of total revenue in full year 2024.

• Operating income increased to $1.1 million, or 9.5% of total revenue, compared with operating loss of $(193,000), or (2.3%) of total revenue, in full year 2024.

• Total assets increased 21.6% to $29.1 million as of December 31, 2025

This performance reflects a high-margin operating model within the orthopedic and spine care sector and underscores management's focus on scalable, capital-efficient growth.

Execution of Proven Three-Pillar Growth Strategy

Cardiff Lexington continues to execute on its differentiated three-pillar strategy, designed to drive sustainable revenue growth, expand margins, and enhance long-term shareholder value:

• Core Cash Flow Platform - Acquisition and optimization of physician orthopedic and related practices to generate consistent, recurring revenue streams

• Asset Acquisition - Strategic acquisition of ambulatory surgery centers (ASCs), MRI Clinics, and clinic real estate to enhance operating leverage and asset-backed value

• Finance Strategy - Retention and management of personal injury-related accounts receivable to maximize long-term cash yield versus discounted third-party sales

This integrated approach has enabled the Company to establish a high-margin operating model within a fragmented and supply-constrained healthcare segment, positioning it for disciplined expansion through both organic growth and targeted acquisitions in one of the most resilient segments of U.S. Healthcare that offers an exceptional balance of downside protection, sustainable profitability, and scalable growth.

Working Capital Expansion and Operational Scaling

The Company's operating platform, anchored by its subsidiary Nova Ortho and Spine, continues to experience strong demand across its markets and currently operates below full capacity primarily due to working capital constraints rather than clinical or operational limitations.

Cardiff Lexington is actively pursuing strategic initiatives to:

• Expand working capital to support increased patient volume and procedural throughput

• Reduce reliance on higher-cost financing structures

• Accelerate accounts receivable conversion cycles

• Enhance overall EBITDA generation and cash flow visibility

Cardiff Lexington has demonstrated and proven the ability to deploy capital at a very high rate of return. Management believes that improving access to cost-efficient growth capital will allow the Company to materially increase utilization rates and unlock embedded operating leverage across its platform.

Alignment with Uplisting Strategy

The OTCQX upgrade represents an important step in Cardiff Lexington's broader capital markets strategy, which includes pursuing a future uplisting to a national securities exchange, such as the NYSE American or Nasdaq Capital Market, subject to meeting applicable listing requirements.

"We believe our progression to OTCQX appropriately reflects the maturation of our business and strengthens our positioning as we evaluate strategic capital formation opportunities and a potential uplisting," Cunningham added.

Investor Information

Investors can find current financial disclosure and real-time Level 2 quotes for the Company on www.otcmarkets.com.

No action is required by current shareholders in connection with this upgrade.

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 Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the Company's growth strategy, capital markets plans, working capital initiatives, and potential uplisting. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. The Company undertakes no obligation to update these statements except as required by law.

Cardiff Lexington Investor Relations
[email protected]
(800) 628-2100 ext. 705

or

IMS Investor Relations
[email protected]
(203) 972-9200

SOURCE: Cardiff Lexington Corporation

View the original press release on ACCESS Newswire

M.White--AT