Core Viewpoint - Ardent Health, Inc. is under investigation for potential violations of federal securities laws following a significant revenue drop and a 33% decline in stock price [1][3][4]. Financial Performance - In Q3 2025, Ardent reported a $43 million decrease in revenue due to "hindsight evaluations of historical collection trends" [4]. - The company also increased its professional liability reserves by $54 million due to adverse prior period claim developments from 2019 to 2022 and broader industry trends [4]. Stock Market Reaction - Following the financial results announcement on November 12, 2025, Ardent's stock price fell over 33% during trading on November 13, 2025 [4]. Legal Implications - Bleichmar Fonti & Auld LLP has initiated an investigation into Ardent Health, Inc. for potential securities fraud, urging affected investors to contact them for more information [1][2][5].

Core Viewpoint - Johnson Fistel, PLLP is investigating potential violations of federal securities laws by Ardent Health, Inc. and its officers regarding misleading statements and undisclosed material information to investors [1]. Financial Results and Impact - On November 12, 2025, Ardent Health announced a $43 million reduction in revenue due to changes in accounting estimates related to accounts receivable collectability [2]. - The company also reported a $54 million increase in professional liability reserves for claims in New Mexico [2]. - Following these disclosures, Ardent's stock price experienced a significant decline during pre-market trading on November 13, 2025 [2].

Financial Data and Key Metrics Changes - Year-to-date adjusted EBITDA increased by 30%, with a revised full-year guidance of $530 million to $555 million due to industry-wide cost pressures [4][17] - Revenue for the third quarter grew by 8.8% to $1.58 billion, or 11.7% excluding a one-time revenue adjustment [15][17] - Adjusted EBITDA for the third quarter rose by 46% to $143 million, with margins expanding by 240 basis points to 9.1% [7][15] Business Line Data and Key Metrics Changes - Admissions growth was 5.8% in the third quarter, with year-to-date admissions up 6.7% [6][14] - Adjusted admissions increased by 2.9%, consistent with the 2025 guidance range of 2-3% [7][14] - Inpatient surgery growth was 9.7% in the third quarter, while outpatient surgeries declined by 1.8% [14] Market Data and Key Metrics Changes - The company's markets are growing two to three times faster than the national average, supported by rising care complexity [6][23] - Strong demand across markets is expected to continue, providing a foundation for strategic growth [6][23] Company Strategy and Development Direction - The company is focused on optimizing costs and strengthening margins through its impact program, which includes contract renegotiations and staffing adjustments [10][11] - Strategic investments will continue to support long-term growth, with plans to open several urgent care and imaging centers in 2026 [21][22] - The company aims to enhance operational efficiencies in labor, supply chain, and revenue cycle management [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent industry-wide cost pressures, particularly in professional fees and payer denials, impacting earnings more than anticipated [4][9] - Despite these challenges, management remains confident in the company's ability to deliver sustainable growth and long-term shareholder value [5][23] - The company is taking decisive actions to mitigate the impact of industry headwinds and strengthen performance [9][10] Other Important Information - The company recorded a $43 million revenue reduction due to a change in accounting estimate related to the transition to the Kodiak RCA net revenue platform [18] - An increase of $54 million in professional and general liability reserves was attributed to adverse claims development in the New Mexico market [19] Q&A Session Summary Question: What are the headwinds and tailwinds for 2026? - Management indicated that it is too early to provide definitive guidance for 2026 but noted strong durable demand and ongoing outpatient development [26][28] Question: Are there discussions about implementing a share repurchase program? - Management stated it would be premature to discuss a share repurchase program but emphasized a commitment to optimizing shareholder value [30] Question: What drove the increase in professional fees? - The increase in professional fees was attributed to pressures in anesthesia and radiology, with expectations for moderation in the future [58][60] Question: How widespread is the payer denial issue? - Payer denials have increased across managed care, Medicare, Medicaid, and health exchanges, prompting the company to ramp up appeals and litigation efforts [44][46] Question: How is the company addressing the elevated denial activity? - The company is focusing on improving contract terms and increasing the number of appeals filed, with a significant rise in demand letters sent to payers [46][48] Question: What is the status of contract negotiations for 2026? - Management reported that approximately three-quarters of contracts for 2026 have been negotiated, with a focus on improving yield under contracts [81]

Financial Data and Key Metrics Changes - Year-to-date adjusted EBITDA increased by 30%, with a third-quarter adjusted EBITDA growth of 46% to $143 million, and margins expanded by 240 basis points to 9.1% [5][11][20] - Revenue for the third quarter grew by 8.8% to $1.58 billion, or 11.7% excluding a one-time revenue adjustment [10][19] - Lease adjusted net leverage improved from 2.7 times to 2.5 times [11][21] - Full-year adjusted EBITDA guidance revised to $530 million to $555 million due to persistent industry-wide cost pressures [6][22] Business Line Data and Key Metrics Changes - Admissions growth of 5.8% in the third quarter, with year-to-date admissions up 6.7% [9][10] - Adjusted admissions increased by 2.9%, consistent with the 2025 guidance range of 2% to 3% [10][19] - Inpatient surgery growth was 9.7% in the third quarter, while outpatient surgeries declined by 1.8% [18] Market Data and Key Metrics Changes - Markets are growing two to three times faster than the national average, supported by rising care complexity [8][28] - Strong demand environment with robust surgical trends contributing to growth [5][8] Company Strategy and Development Direction - Company is focused on optimizing costs and strengthening margins through the impact program, which includes contract renegotiations and staffing adjustments [14][16] - Continued investment in outpatient services, with plans to open several urgent care and imaging centers in 2025 and 2026 [26][27] - Emphasis on maintaining a disciplined approach to strategic investments while addressing near-term earnings challenges [14][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges industry headwinds, particularly around professional fees and payer denials, which are expected to persist [12][13] - Confidence in the ability to deliver sustainable growth and long-term shareholder value despite current challenges [7][29] - Management is optimistic about the strong demand environment and the potential for margin expansion in the future [28][29] Other Important Information - Two nonrecurring items impacted financials: a $43 million revenue reduction due to a change in accounting estimate and a $54 million increase in professional and general liability reserves [22][24] - The company is taking proactive steps to address payer denials and improve revenue cycle management [16][56] Q&A Session Summary Question: What are the headwinds and tailwinds for 2026? - Management indicated it is too early to provide guidance for 2026 but noted strong demand and ongoing outpatient development as positive factors [34][36] Question: Is there consideration for a share repurchase program? - Management stated it would be premature to discuss a share repurchase program but emphasized a commitment to optimizing shareholder value [39] Question: Why won't the malpractice charge lift recurring accruals? - The charge is specific to the New Mexico market and relates to historical claims, with management confident it won't impact future accruals [42][43] Question: What drove the increase in professional fees? - The increase is attributed to pressures in radiology and anesthesia, with management expecting moderation in the future [78] Question: How is the company addressing payer denials? - Management is ramping up appeals and litigation efforts to address increased payer denials, which are widespread across managed care products [54][56] Question: What is the status of commercial negotiations for 2026? - Management reported being close to three-quarters contracted for 2026, with a focus on improving yield under contracts [107][108]

3Q25 Performance - Total revenue increased by 8.8% to $1.577 billion in 3Q25[14] - Adjusted EBITDA grew by 46.3% to $143 million in 3Q25[14] - Adjusted EBITDA margin expanded by 240 bps to 9.1% in 3Q25[14] - Operating cash flow increased by 72.1% to $154 million in 3Q25[14] Year-to-Date (YTD) Performance - Total revenue increased by 8.2% to $4.719 billion YTD[14] - Adjusted EBITDA increased by 30.1% to $411 million YTD[14] - Adjusted EBITDA margin expanded by 150 bps to 8.7% YTD[14] - Operating cash flow increased by 26.4% to $247 million YTD[14] Volume and Revenue Drivers - Admissions increased by 5.8% in 3Q25 and 6.7% YTD[12] - Adjusted admissions increased by 2.9% in 3Q25 and 2.4% YTD[12] - Net patient service revenue per adjusted admission grew by 5.8% to $17,252 in 3Q25[14] Full-Year 2025 Guidance - Total revenue guidance reaffirmed at $6.2 billion to $6.45 billion[25] - Adjusted EBITDA guidance revised to $530 million to $555 million[25] - Adjusted admissions growth expected to be between 2.0% and 3.0%[25]

U.S. stock futures were mixed this morning, with the Dow futures gaining around 0.1% on Thursday.Shares of Ardent Health, Inc. (NYSE:ARDT) fell sharply in pre-market trading after the company reported third-quarter earnings below estimates and lowered its FY2025 GAAP EPS guidance.Ardent Health Partners reported quarterly losses of 17 cents per share which missed the analyst consensus estimate of earnings of 41 cents per share. The company reported quarterly sales of $1.577 billion which beat the analyst con ...

分组1 - Ardent Health, Inc. reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and showing a significant increase from $0.19 per share a year ago, representing an earnings surprise of +23.81% [1] - The company achieved revenues of $1.58 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.55%, and an increase from $1.45 billion in the same quarter last year [2] - Over the last four quarters, Ardent Health has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 17.7% since the beginning of the year, while the S&P 500 has gained 16.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $1.65 billion, and for the current fiscal year, it is $1.82 on revenues of $6.35 billion [7] - The Zacks Industry Rank indicates that the Medical Services sector is currently in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Performance - Total revenue for Q3 2025 was $1.58 billion, representing an 8.8% year-over-year growth[3] - Net loss attributable to Ardent Health was $23 million, or $0.17 per diluted share, compared to a net income of $26 million, or $0.19 per diluted share in Q3 2024[10] - Adjusted EBITDA increased by 46.3% year-over-year to $143 million[10] - Total revenue for Q3 2025 was $1,576,746, an increase of 8.8% compared to $1,449,817 in Q3 2024[29] - Net income attributable to Ardent Health, Inc. for Q3 2025 was a loss of $23,478, compared to a profit of $26,322 in Q3 2024[29] - Total revenue for the nine months ended September 30, 2025, was $4,719,260,000, reflecting an 8.2% increase from $4,359,783,000 in 2024[38] Operational Metrics - Admissions grew by 5.8% year-over-year, with adjusted admissions increasing by 2.9%[11] - Total surgeries increased by 1.4% year-over-year, driven by a 9.7% growth in inpatient surgeries[11] - Admissions increased by 6.7% to 124,786 for the nine months ended September 30, 2025, compared to 116,995 in 2024[38] - Inpatient surgeries rose by 7.4% to 28,822 in 2025, up from 26,829 in 2024[38] - Average length of stay increased to 4.68 days in 2025 from 4.62 days in 2024, a 1.3% increase[38] Financial Guidance - The company is revising its 2025 adjusted EBITDA guidance to $530 million to $555 million, reflecting a 9% increase from 2024[12] - The company reaffirmed its full-year 2025 revenue guidance of $6,200 million to $6,450 million, indicating a 6% growth from 2024[14] - The company provided guidance for adjusted EBITDA for the full year ending December 31, 2025, in the range of $530 million to $555 million[58] Cash Flow and Liquidity - Operating cash flow for Q3 2025 was $154 million, up from $90 million in Q3 2024[9] - Net cash provided by operating activities increased to $247,075,000 in 2025 from $195,457,000 in 2024, representing a 26.4% increase[34] - Cash and cash equivalents at the end of the period rose to $609,441,000, up from $563,142,000 at the end of 2024[34] - The company had total cash and cash equivalents of $609 million and total debt of $1.1 billion as of September 30, 2025[8] Expenses and Liabilities - Total operating expenses for Q3 2025 were $1,578,949, up from $1,392,750 in Q3 2024, reflecting a 13.4% increase[29] - Salaries and benefits accounted for 42.9% of total revenue in Q3 2025, compared to 43.8% in Q3 2024[29] - Total liabilities increased to $3,522,526,000 as of September 30, 2025, from $3,433,743,000 as of December 31, 2024[36] Risks and Challenges - The company faces risks including changes in healthcare policy, reimbursement rates, and economic conditions that could impact future performance[24] - A significant increase in professional liability reserves of $54.468 million was recorded, primarily due to adverse prior-period claim developments in New Mexico[48] Other Financial Metrics - Interest expense for Q3 2025 was $13,914, slightly down from $14,629 in Q3 2024[29] - Adjusted EBITDAR is used as a valuation measure, excluding certain expenses to allow comparison with other healthcare companies[21] - The change in accounting estimate resulted in a reduction of total revenue by $42.6 million, impacting noncontrolling interest earnings by $0.7 million[47] - Restructuring, exit, and acquisition-related costs amounted to $3.040 million for the three months ended September 30, compared to $3.796 million in the prior year[46] - Cybersecurity incident recoveries, net, were reported at $(2.950) million for the three months ended September 30, down from $(4.976) million in the previous year[52]

Summary of Ardent Health Conference Call Company Overview - **Company**: Ardent Health (NYSE: ARDT) - **Industry**: Healthcare Services, specifically hospital operations - **Key Executives**: Marty Bonick (CEO), Alfred Lumsdaine (CFO) Core Points and Arguments - **Growth Strategy**: Ardent Health is focused on growth, operating 30 hospitals and over 280 assets across eight urban markets. The company aims to expand beyond traditional hospital services into urgent care, ambulatory surgery centers (ASCs), and imaging centers [3][4] - **Market Dynamics**: The markets in which Ardent operates are growing at an average rate three times faster than the U.S. average, with a targeted long-term top-line growth of 5% to 6% [8][25] - **EBITDA Margin Goals**: The company aims to expand EBITDA margins by 100 to 200 basis points over the next three to four years, targeting mid-teens EBITDA margins [7][16] - **Impact of OBBA**: The OBBA is projected to have a $150 to $175 million EBITDA impact, but Ardent expects to mitigate this through various initiatives, including the Rural Health Transformation Fund [9][10][11] - **Technological Investments**: Significant investments in technology, including partnerships with Ensemble Health Partners and the implementation of Epic EHR, are expected to enhance operational efficiency and revenue cycle management [35][38][40] Additional Important Insights - **Partnership Model**: Ardent's partnership model with academic and nonprofit organizations is seen as a key differentiator, allowing for shared growth and resource optimization [43][45] - **Volume Trends**: The company does not subscribe to the notion of elevated utilization post-COVID, instead indicating a return to normal trends with an aging population contributing to increased demand for services [24][25] - **Health Insurance Exchange**: Approximately 7.1% of Ardent's revenue comes from health exchanges, which has seen growth but is less lucrative compared to commercial business [21][22] - **Operational Efficiencies**: The company is focusing on service line rationalization and shifting lower acuity volumes to outpatient settings to enhance margins [32][33] - **Future Outlook**: Ardent is optimistic about its ability to navigate regulatory uncertainties and believes its differentiated joint venture model positions it well for future growth [47] This summary encapsulates the key points discussed during the Ardent Health conference call, highlighting the company's growth strategies, market dynamics, and operational efficiencies while addressing potential challenges and future outlook.

Core Viewpoint - Ardent Health has successfully amended and extended its $777.5 million Term Loan Facility, resulting in a reduced interest rate and extended maturity [1] Financial Summary - The applicable interest rate has been reduced by 50 basis points from Term Secured Overnight Financing Rate (SOFR) plus 2.75% to Term SOFR plus 2.25% [1] - The maturity of the facility has been extended to September 2032 [1]