Fourth Quarter Highlights
Total revenue for the full year was $947.7 million, an increase of $252.5 million or 36.3% over the prior year, and for the quarter was $289.3 million, an increase of $100.4 million or 53.2% over the prior year quarter;
Net income for the full year was $29.6 million, an increase of $7.0 million or 31.1% over the prior year and for the fourth quarter was $8.6 million, an increase of $2.9 million or 50.0% over the prior year quarter;
Adjusted net income for the full year was $41.6 million, an increase of $11.6 million or 38.9% over the prior year and for the fourth quarter was $12.2 million, an increase of $3.7 million or 43.1% over the prior year quarter;
Consolidated Adjusted EBITDAR for the full year was $120.9 million, an increase of $25.1 million or 26.2% over the prior year and for the fourth quarter was $35.3 million, an increase of $10.4 million or 41.7% over the prior year quarter;
Consolidated Adjusted EBITDA for the full year was $72.5 million, an increase of $19.2 million or 36.0% over the prior year and for the fourth quarter was $22.4 million, an increase of $8.6 million or 62.5% over the prior year quarter;
Home Health and Hospice Services segment revenue for the full year was $732.7 million, an increase of $213.2 million or 41.0% over the prior year and for the fourth quarter was $233.3 million, an increase of $91.3 million or 64.3% over the prior year quarter;
Home Health and Hospice Services segment adjusted EBITDAR from operations for the full year was $120.8 million, an increase of $33.1 million or 37.8% over prior year and for the fourth quarter was $36.8 million, an increase of $13.6 million or 58.5% over the prior year quarter; and segment adjusted EBITDA from operations the full year was $111.1 million, an increase of $30.5 million or 37.8% over the prior year and for the fourth quarter was $33.7 million, an increase of $12.4 million or 58.2% over the prior year quarter;
Total home health admissions for the the full year were 86,076, an increase of 26,335 or 44.1% over the prior year and for the fourth quarter were 28,941, an increase of 12,982 or 81.3% over the prior year quarter; total Medicare home health admissions for the full year were 34,882, an increase of 10,284 or 41.8% over the prior year and for the fourth quarter were 12,082, an increase of 5,639 or 87.5% over the prior year quarter;
Hospice average daily census for the full year was 4,204, an increase of 936 or 28.6% over prior year and for the fourth quarter was 5,060, an increase of 1,615 or 46.9% compared to the prior year quarter;
Senior Living Services segment revenue for the full year was $215.0 million, an increase of $39.2 million or 22.3% over prior year and for the fourth quarter was $56.1 million, an increase of $9.2 million or 19.6% over the prior year quarter; average occupancy for the fourth quarter was 80.6%, an increase of 200 basis points over the prior year quarter, and average monthly revenue per occupied room for the fourth quarter was $5,238 an increase of $277 or 5.6% over the prior year quarter;
Senior Living segment adjusted EBITDAR from operations for the full year was $60.5 million, an increase of $8.9 million or 17.2% over the prior year and for the fourth quarter was $16.0 million, an increase of $2.5 million or 19.0% over the prior year quarter; and segment adjusted EBITDA from Operations for the full year was $21.8 million, an increase of $5.6 million or 34.4% over the prior year and for the fourth quarter was $6.1 million, an increase of $1.9 million or 46.0% over the prior year quarter.
(1)
See "Reconciliation of GAAP to Non-GAAP Financial Information."
(2)
"Same store Senior Living Services" is defined as all senior living communities excluding those transferred to Ensign and new senior living operations acquired in2024or2025.
Operating Results
"2025 was a year of record-breaking performance and growth for Pennant," said Brent Guerisoli, the Company's Chief Executive Officer. "Our operational flywheel continues to gain momentum, even in the midst of accelerative expansion. Our growth wasn't only significant in its magnitude--it was strategic, high-quality investment. We added attractive operations to our footprint and created a foundation for additional expansion in the Southeast. At the same time, we drove strong same-store results and continued to execute in our senior living business."
"We will be focused on integrating our new operations and continuing to instill operational excellence across our businesses in 2026," said John Gochnour, the Company's Chief Operating Officer. "We have completed many acquisitions in our history, and we understand the importance of successful transitions, in terms of employee experience, culture, clinical excellence, and financial results. We saw tremendous momentum across virtually all key growth metrics in 2025, including growth in home health admissions of 44.1% and hospice average daily census of 28.6%, leading to revenue growth of 41.0% and segment Adjusted EBITDA growth of 37.8% year over year. Senior living year-over-year occupancy grew 90 basis points coupled with rate increases of 8.0%, generating revenue growth of 22.3% and Adjusted EBITDA improvement of 34.4%, year over year. Even as we worked diligently to transition many new operations, we delivered record operational and clinical performance in both segments. With seasoned leaders and well-performing operations anchoring our efforts, we are poised to continue this success throughout 2026."
A discussion of the Company's use of Non-GAAP financial measures is set forth below. Reconciliations of net income to EBITDA, adjusted EBITDAR, adjusted EBITDA, and adjusted EBITDA prior to NCI, as well as a reconciliation of GAAP earnings per share, net income to adjusted net earnings per share and adjusted net income, appear in the financial data portion of this release. More complete information is contained in the Company's Form 10-K for the year ended December 31, 2025, which will be filed with the SEC and will be available to be viewed on the Company's website at www.pennantgroup.com.
2026 Guidance
Management is providing 2026 annual guidance as follows: total revenue is anticipated to be between $1,133.6 million and $1,171.8 million; full year 2026 adjusted earnings per diluted share is anticipated to be between $1.26 and $1.36; full year 2026 adjusted EBITDA is anticipated to be between $88.5 million and $94.1 million; and full year adjusted EBITDA prior to NCI is anticipated to be $94.2 million to $100.0 million.
The Company's updated 2026 annual guidance is based on diluted weighted average shares outstanding of approximately 37.0 million and a 26.0% effective tax rate. The guidance includes among other things, certain costs relating to our transition services agreement with UnitedHealth, reimbursement rate adjustments and no unannounced acquisitions. It excludes net income attributable to noncontrolling interest, the tax-effected costs at start-up operations, share-based compensation, acquisition-related costs, and gain (loss) on disposition of assets and impairments.
Lynette Walbom, the Company's Chief Financial Officer, also stated, "We believe providing updated annual adjusted consolidated EBITDA guidance in addition to updated annual revenue and adjusted earnings per share guidance is helpful to understanding our expectations for our business and operational cash flow. This updated guidance reflects management's expectations based on 2025 performance and current operating conditions as well as the impacts of the transaction with UnitedHealth and Amedisys. Our guidance includes revenue in the range of $191.2 to $200.3 million, adjusted EBITDA in the range of $16.7 to $17.9 million, and adjusted EBITDA prior to NCI of $19.8 to $21.1 million relating to these former UnitedHealth and Amedisys assets."
Conference Call
A live webcast will be held tomorrow, February 26, 2026 at 10:00 a.m. Mountain time (12:00 p.m. Eastern time) to discuss Pennant's fourth quarter 2025 financial results. To listen to the webcast, or to view any financial or statistical information required by SEC Regulation G, please visit the Investors Relations section of Pennant's website at https://investor.pennantgroup.com. The webcast will be recorded and will be available for replay via the website.
About Pennant
The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 172 home health and hospice agencies and 63 senior living communities located throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated "company" and "its" assets and activities, as well as the use of the terms "we," "us," "its" and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity. More information about Pennant is available at www.pennantgroup.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains, and the related conference call and webcast will include, forward-looking statements that are based on management's current expectations, assumptions and beliefs about its business, financial performance, operating results, the industry in which it operates and other future events. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding growth prospects, future operating and financial performance, and acquisition activities. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to materially and adversely differ from those expressed in any forward-looking statement.
These risks and uncertainties relate to the company's business, its industry and its common stock and include: reduced prices and reimbursement rates for its services; its ability to acquire, develop, manage or improve operations, its ability to manage its increasing borrowing costs as it incurs additional indebtedness to fund the acquisition and development of operations; its ability to access capital on a cost-effective basis to continue to successfully implement its growth strategy; its operating margins and profitability could suffer if it is unable to grow and manage effectively its increasing number of operations; competition from other companies in the acquisition, development and operation of facilities; its ability to defend claims and lawsuits, including professional liability claims alleging that our services resulted in personal injury, and other regulatory-related claims; and the application of existing or proposed government regulations, or the adoption of new laws and regulations, that could limit its business operations, require it to incur significant expenditures or limit its ability to relocate its operations if necessary. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the company's periodic filings with the Securities and Exchange Commission, including its Form 10-Q and/or 10-K, for a more complete discussion of the risks and other factors that could affect Pennant's business, prospects and any forward-looking statements. Except as required by the federal securities laws, Pennant does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
Contact Information
Investor RelationsThe Pennant Group, Inc.(208) 401-1400[email protected]
SOURCE: The Pennant Group, Inc.
THE PENNANT GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(unaudited, in thousands, except for per-share amounts)
Three Months EndedDecember 31,
Year EndedDecember 31,
2025
2024
2025
2024
Revenue
$
289,323
$
188,892
$
947,705
$
695,240
Expense
Cost of services
237,053
152,673
768,503
558,449
Rent—cost of services
12,997
11,215
48,700
43,029
General and administrative expense
19,344
13,872
71,077
50,209
Depreciation and amortization
2,359
1,827
8,538
6,119
(Gain) loss on disposition of property and equipment, net
100
69
(999
)
(682
)
Total expenses
271,853
179,656
895,819
657,124
Income from operations
17,470
9,236
51,886
38,116
Other (expense) income, net:
Other income
54
15
422
207
Interest expense, net
(3,253
)
(650
)
(6,678
)
(6,956
)
Other expense, net
(3,199
)
(635
)
(6,256
)
(6,749
)
Income before provision for income taxes
14,271
8,601
45,630
31,367
Provision for income taxes
3,896
2,071
11,866
7,028
Net income
10,375
6,530
33,764
24,339
Less: Net income attributable to noncontrolling interest
1,738
772
4,186
1,780
Net income attributable to The Pennant Group, Inc.
$
8,637
$
5,758
$
29,578
$
22,559
Earnings per share:
Basic
$
0.25
$
0.17
$
0.86
$
0.72
Diluted
$
0.24
$
0.16
$
0.84
$
0.70
Weighted average common shares outstanding:
Basic
34,652
34,269
34,563
31,191
Diluted
35,442
35,333
35,316
32,000
THE PENNANT GROUP, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except par value)
December 31, 2025
December 31, 2024
Assets
Current assets:
Cash
$
17,024
$
24,246
Accounts receivable—less allowance for doubtful accounts of $681 and $232, at December 31, 2025 and December 31, 2024 respectively
123,109
81,302
Prepaid expenses and other current assets
27,273
17,308
Total current assets
167,406
122,856
Property and equipment, net
60,984
43,296
Operating lease right-of-use assets
275,947
270,586
Deferred tax assets, net
478
—
Restricted and other assets
26,676
17,477
Goodwill
237,246
129,124
Other indefinite-lived intangibles
199,442
96,182
Total assets
$
968,179
$
679,521
Liabilities and equity
Current liabilities:
Accounts payable
$
25,171
$
18,737
Accrued wages and related liabilities
65,229
43,106
Operating lease liabilities—current
25,013
19,671
Current maturities of long-term debt
5,000
—
Other accrued liabilities
26,851
20,186
Total current liabilities
147,264
101,700
Long-term operating lease liabilities—less current portion
254,311
253,420
Deferred tax liabilities, net
150
1,861
Other long-term liabilities
23,365
10,575
Long-term debt
168,837
—
Total liabilities
593,927
367,556
Commitments and contingencies
Equity:
Common stock, $0.001 par value; 100,000 shares authorized; 34,878 and 34,626 shares issued and outstanding at December 31, 2025, respectively; and 34,670 and 34,373 shares issued and outstanding at December 31, 2024, respectively
35
35
Additional paid-in capital
245,833
236,091
Retained earnings
86,800
57,222
Treasury stock, at cost, 3 shares at December 31, 2025 and December 31, 2024
(65
)
(65
)
Total The Pennant Group, Inc. stockholders' equity
332,603
293,283
Noncontrolling interest
41,649
18,682
Total equity
374,252
311,965
Total liabilities and equity
$
968,179
$
679,521
THE PENNANT GROUP, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)
The following table presents selected data from our condensed consolidated statements of cash flows for the periods presented:
Year Ended December 31,
2025
2024
Net cash provided by operating activities
$
48,294
$
39,298
Net cash used in investing activities
(227,971
)
(70,684
)
Net cash provided by financing activities
172,455
49,573
Net increase (decrease) in cash
(7,222
)
18,187
Cash beginning of period
24,246
6,059
Cash end of period
$
17,024
$
24,246
THE PENNANT GROUP, INC.REVENUE BY SEGMENT(unaudited, dollars in thousands)
The following table sets forth our total revenue by segment and as a percentage of total revenue for the periods indicated:
Three Months Ended December 31,
2025
2024
Revenue Dollars
Revenue Percentage
Revenue Dollars
Revenue Percentage
Home health and hospice services
Home health
$
116,432
40.2
%
$
66,766
35.3
%
Hospice
97,061
33.5
63,391
33.6
Home care and other(a)
19,779
6.9
11,864
6.3
Total home health and hospice services
233,272
80.6
142,021
75.2
Senior living services
56,051
19.4
46,871
24.8
Total revenue
$
289,323
100.0
%
$
188,892
100.0
%
(a)
Home care and other revenue is included with home health revenue in other disclosures in this press release.
Year Ended December 31,
2025
2024
Revenue Dollars
Revenue Percentage
Revenue Dollars
Revenue Percentage
Home health and hospice services
Home health
$
351,240
37.1
%
$
239,539
34.5
%
Hospice
317,801
33.5
240,102
34.5
Home care and other(a)
63,686
6.7
39,843
5.7
Total home health and hospice services
732,727
77.3
519,484
74.7
Senior living services
214,978
22.7
175,756
25.3
Total revenue
$
947,705
100.0
%
$
695,240
100.0
%
(a)
Home care and other revenue is included with home health revenue in other disclosures in this press release.
THE PENNANT GROUP, INC.SELECT PERFORMANCE INDICATORS(unaudited, total revenue dollars in thousands)
The following table summarizes our overall home health and hospice performance indicators for the each of the dates or periods indicated:
Three Months EndedDecember 31,
2025
2024
Change
% Change
Total agency results:
Home health and hospice revenue
$
233,272
$
142,021
$
91,251
64.3
%
Home health services:
Total home health admissions
28,941
15,959
12,982
81.3
%
Total Medicare home health admissions
12,082
6,443
5,639
87.5
%
Average Medicare revenue per 60-day completed episode(a)
$
3,755
$
3,727
$
28
0.8
%
Hospice services:
Total hospice admissions
4,423
3,090
