Financial Data and Key Metrics Changes - The company reported Q2 2025 revenue of $219.5 million, an increase of $50.8 million or 30.1% year-over-year, and adjusted EBITDA of $16.4 million, up $3.2 million or 24.5% from the prior year quarter [7][32][10] - GAAP diluted earnings per share for the quarter was $0.20, while adjusted diluted earnings per share was $0.27 [32] Business Line Data and Key Metrics Changes - In the Home Health and Hospice segment, revenue reached $166 million, an increase of $40.7 million or 32.5%, with adjusted EBITDA of $25.5 million, up $5.9 million or 29.9% year-over-year [15] - Hospice revenue was $73.8 million, an increase of $14.4 million or 24.3%, with hospice admissions up 14.7% and average daily census up 21.4% [16] - Home health revenue grew to $79.2 million, an increase of $17.6 million or 28.5%, with total home health admissions increasing 26.1% [19] - Senior Living segment revenue improved to $53.5 million, an increase of $10 million or 23.1%, with same store occupancy exceeding 80% [24][26] Market Data and Key Metrics Changes - The company anticipates full-year revenue in the range of $852.8 million to $887.6 million, with adjusted earnings per share expected between $1.09 and $1.15 [13][32] - The proposed 2026 Home Health Rule suggests a net reduction of 6.4% in aggregate payments to home health agencies, which could impact the company's revenue [21][22] Company Strategy and Development Direction - The company is focused on leadership development, clinical excellence, employee engagement, margin improvement, and growth as key focus areas for continuous improvement [7] - The acquisition of divested assets from Amedisys and UnitedHealth Group is seen as a significant opportunity to expand operations in attractive markets, particularly in Tennessee, Alabama, and Georgia [12][29] - The company is committed to adapting its operations to the changing regulatory environment and believes in the essential role of home health services in the healthcare continuum [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the proposed home health rule, stating it could negatively affect access to care for vulnerable patients and increase overall healthcare spending [22][23] - Despite challenges, management remains optimistic about the company's growth trajectory, citing strong performance across various segments and a healthy balance sheet [10][13] Other Important Information - The company has a strong focus on operational efficiency and has implemented various initiatives to improve clinical quality and financial performance [20][24] - The company is actively preparing for the integration of newly acquired assets and has invested in leadership and operational training to ensure a smooth transition [58][70] Q&A Session Summary Question: Insights on the Tennessee market and payer landscape - Management highlighted the unique opportunities in the Tennessee market, emphasizing the potential for building a care continuum and the presence of quality providers [41][43] Question: Impact of proposed clawback on capitated relationships - Management acknowledged that adjustments from Medicare rate changes could affect both traditional and capitated contracts, but emphasized the company's diversified business model [46][48] Question: Sustainability of revenue per occupied bed in senior living - Management indicated that while they anticipate mid-single-digit growth in revenue per occupied bed, they are encouraged by recent occupancy growth [54][56] Question: Preparations for the Amedisys acquisition - Management detailed investments in leadership and resources to ensure a successful transition and operational efficiency post-acquisition [57][58] Question: Balancing M&A versus market share growth amid regulatory changes - Management expressed confidence that disruptions in the market could create opportunities for growth, emphasizing a strategic approach to acquisitions [59][62]

Core Insights - Pennant Group reported strong Q2 2025 earnings with total revenue of $219.5 million, exceeding analyst expectations by $8.88 million and reflecting a 30.1% year-over-year increase [1][2] - Adjusted EPS for the quarter was $0.27, matching analyst estimates, while net income rose 24.6% to $7.1 million compared to Q2 2024 [2][8] - The company raised its full-year 2025 revenue guidance to a range of $852.8 million to $887.6 million, indicating management's confidence in continued growth [10] Financial Performance - Q2 2025 revenue of $219.5 million surpassed the estimate of $210.62 million, marking a 30.1% increase from $168.7 million in Q2 2024 [2] - Non-GAAP EPS increased by 12.5% year-over-year from $0.24 to $0.27 [2] - Home Health and Hospice revenue grew by 32.5% to $166.0 million, driven by a 26.1% increase in total home health admissions [5][6] Business Strategy - Pennant Group operates in home health, hospice, and senior living sectors, utilizing a decentralized model that empowers local leaders [3] - The company is focused on expansion through acquisitions and developing its leadership pipeline, aiming for organic growth alongside new operations [4] - Key success factors include quick integration of acquisitions, recruitment and retention of skilled leaders, and effective management of regulatory changes [4] Segment Analysis - Home Health and Hospice Services segment revenue increased by 32.5%, with a notable rise in average Medicare revenue per episode by 5.9% [5] - Senior Living Services revenue rose 23.1% to $53.5 million, although average occupancy remained flat at 78.8% [7] - Same-store senior living revenue grew by 9.0%, indicating potential for further expansion through improved occupancy [7] Profitability Metrics - Adjusted EBITDAR for Home Health and Hospice increased by 30.5%, reflecting improved segment profitability [6] - Overall net income rose by 24.5%, while adjusted EBITDA also showed growth [8] - General and administrative costs increased by 48.1% compared to Q2 2024, indicating rising operational expenses [8] Future Outlook - The company expects adjusted EPS for full-year 2025 to be in the range of $1.09 to $1.15, up from previous guidance [10] - Investors should monitor the balance between rate-driven and occupancy-driven growth in Senior Living, as well as the integration of acquisitions [11] - The upcoming UnitedHealth Group and Amedisys transaction is anticipated to contribute to future growth, although initial costs may temper short-term expectations [11]

Core Insights - The Pennant Group, Inc. (PNTG) reported a revenue of $219.5 million for the quarter ended June 2025, reflecting a year-over-year increase of 30.1% and surpassing the Zacks Consensus Estimate by 3.16% [1] - Earnings per share (EPS) for the quarter was $0.27, up from $0.24 in the same quarter last year, exceeding the consensus EPS estimate of $0.26 by 3.85% [1] Revenue Breakdown - Total revenue from home health and hospice services was $166.02 million, exceeding the average estimate of $162.09 million by analysts, with a year-over-year growth of 32.5% [4] - Revenue from senior living services reached $53.48 million, surpassing the two-analyst average estimate of $50.75 million, marking a year-over-year increase of 23.1% [4] - Home care and other services within home health and hospice generated $13.06 million, which was below the average estimate of $15.32 million, but still showed a significant year-over-year growth of 202.4% [4] - Hospice services revenue was $73.77 million, exceeding the average estimate of $71.57 million, with a year-over-year increase of 24.3% [4] - Home health services revenue amounted to $79.19 million, surpassing the average estimate of $75.16 million, reflecting a year-over-year growth of 28.5% [4] Stock Performance - The Pennant Group's shares have returned -14.1% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - The Pennant Group, Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.24 per share a year ago, resulting in an earnings surprise of +3.85% [1] - The company achieved revenues of $219.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.16%, and up from $168.74 million year-over-year [2] - The Pennant Group has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Group 2 - The stock has underperformed the market, losing about 16.3% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $215.51 million, and for the current fiscal year, it is $1.11 on revenues of $856.91 million [7] Group 3 - The Medical - Outpatient and Home Healthcare industry, to which The Pennant Group belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for The Pennant Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Q2 and six months ended June 30, 2025, including Balance Sheets, Income, Cash Flows, and explanatory notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Balance Sheet Highlights | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $127,374 | $122,856 | | **Total Assets** | $751,417 | $679,521 | | **Total Current Liabilities** | $104,941 | $101,700 | | **Long-term Debt** | $37,000 | $0 | | **Total Liabilities** | $417,790 | $367,556 | | **Total Equity** | $333,627 | $311,965 | - Total assets grew to **$751.4 million** from **$679.5 million**, primarily driven by increases in Goodwill and Other indefinite-lived intangibles resulting from acquisitions Long-term debt increased to **$37.0 million** from zero at year-end[11](index=11&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) | Income Statement Highlights (in thousands, except EPS) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $219,501 | $168,745 | $429,343 | $325,660 | | **Income from Operations** | $11,528 | $9,562 | $24,178 | $18,086 | | **Net Income** | $7,981 | $6,094 | $16,503 | $11,152 | | **Net Income attributable to Pennant** | $7,085 | $5,690 | $14,860 | $10,596 | | **Diluted EPS** | $0.20 | $0.18 | $0.42 | $0.35 | - Revenue for Q2 2025 increased by **30.1%** year-over-year to **$219.5 million** Net income attributable to the company grew by **24.5%** to **$7.1 million**, resulting in a diluted EPS of **$0.20**, up from **$0.18** in Q2 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Highlights (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $13,414 | $11,036 | | **Net cash used in investing activities** | ($60,355) | ($33,280) | | **Net cash provided by financing activities** | $37,080 | $19,228 | | **Net decrease in cash** | ($9,861) | ($3,016) | | **Cash end of period** | $14,385 | $3,043 | - Cash used in investing activities significantly increased to **$60.4 million** in the first six months of 2025, up from **$33.3 million** in the prior year period, primarily due to higher cash payments for business and asset acquisitions totaling **$55.9 million**[17](index=17&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - As of June 30, 2025, the company operated **137** home health, hospice, and home care agencies, and **61** senior living communities[20](index=20&type=chunk) - The company's revenue is primarily derived from Medicare, Medicaid, and managed care programs For the six months ended June 30, 2025, Medicare and Medicaid combined accounted for **61.3%** of total revenue[56](index=56&type=chunk)[60](index=60&type=chunk) - During the first six months of 2025, the company acquired **five** home health agencies, **four** hospice agencies, and **four** senior living communities The aggregate purchase price for the Signature Group acquisition was **$48.5 million**[74](index=74&type=chunk)[75](index=75&type=chunk) - On April 30, 2025, the company entered into a purchase agreement with UnitedHealth Group and Amedisys to acquire certain home health, hospice, and palliative care assets for a purchase price of **$102.5 million**, contingent on the closing of the UnitedHealth/Amedisys merger[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses Q2 and H1 2025 financial performance, revenue growth from acquisitions, operational improvements, regulatory impacts, and liquidity, including the $250 million credit facility [Overview and Recent Activities](index=30&type=section&id=Overview%20and%20Recent%20Activities) - As of June 30, 2025, the company's portfolio grew to **137** home health and hospice agencies and **61** senior living communities, totaling **198** operations[130](index=130&type=chunk)[131](index=131&type=chunk) - In the first six months of 2025, the company acquired **five** home health agencies, **four** hospice agencies, and **four** senior living communities, continuing its expansion strategy[132](index=132&type=chunk) [Government Regulation](index=31&type=section&id=Government%20Regulation) - CMS issued the CY 2026 Home Health Prospective Payment System (HH PPS) Proposed Rule, which includes a net payment update of **-6.4%**, potentially decreasing aggregate payments to home health providers by **$1.135 billion**[137](index=137&type=chunk) - The 2026 Hospice Payment Final Rule provides a **2.6%** payment update, an estimated increase of **$750 million** in aggregate payments to hospice providers[138](index=138&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, enacts significant Medicaid reforms that could reduce federal funding and potentially lead to lower or delayed reimbursement for services provided by the company[140](index=140&type=chunk) [Key Performance Indicators](index=32&type=section&id=Key%20Performance%20Indicators) | Key Performance Indicator | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Home Health** | | | | | | Total Admissions | 17,832 | 14,140 | 36,710 | 28,789 | | **Hospice** | | | | | | Average Daily Census | 3,909 | 3,220 | 3,852 | 3,091 | | **Senior Living** | | | | | | Occupancy | 78.8% | 78.8% | 78.7% | 78.7% | | Avg. Monthly Revenue/Unit | $5,188 | $4,790 | $5,165 | $4,730 | [Results of Operations](index=35&type=section&id=Results%20of%20Operations) - **Q2 2025 vs Q2 2024:** Total revenue increased **30.1%** to **$219.5 million** Home Health and Hospice revenue grew **32.5%**, while Senior Living revenue grew **23.1%** Total cost of services increased **31.0%**, leading to a slight increase in cost of services as a percentage of revenue to **80.8%**[185](index=185&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) - **Six Months 2025 vs Six Months 2024:** Total revenue increased **31.8%** to **$429.3 million** Home Health and Hospice revenue grew **34.8%**, and Senior Living revenue grew **23.4%** Total cost of services increased **32.4%**, with cost of services as a percentage of revenue rising slightly to **80.6%**[199](index=199&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources are cash from operations and a **$250.0 million** Amended Revolving Credit Facility, which matures in **2029**[211](index=211&type=chunk)[212](index=212&type=chunk) - As of June 30, 2025, the company had **$14.4 million** in cash and **$208.8 million** of available borrowing capacity on its credit facility[214](index=214&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its $250.0 million variable-rate revolving credit facility - A hypothetical **1.0%** change in interest rates would impact annual interest expense by approximately **$0.4 million**, based on the outstanding debt as of June 30, 2025[221](index=221&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control - The CEO and CFO concluded that disclosure controls and procedures were effective to provide reasonable assurance that required information is recorded, processed, summarized, and reported in a timely manner[222](index=222&type=chunk) - There were no material changes in internal control over financial reporting during the second quarter of 2025[223](index=223&type=chunk) [Part II. Other Information](index=50&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal claims and lawsuits, none expected to have a material adverse effect - The company is subject to claims and lawsuits as part of its normal business operations, but none are currently expected to be materially adverse[225](index=225&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) Highlights risks from the proposed 2026 Home Health PPS rule potentially decreasing Medicare reimbursement and the OBBBA impacting Medicaid reimbursement - Key risks include potential decreased Medicare reimbursement for home health services if the 2026 HH PPS Proposed Rule is adopted, and potential adverse effects on Medicaid reimbursement due to the OBBBA[226](index=226&type=chunk) [Other Information](index=50&type=section&id=Item%205.%20Other%20Information) Discloses CEO Brent J. Guerisoli's Rule 10b5-1 trading plan for potential sale of 4,463 shares and termination of a similar plan by a former director - CEO Brent J. Guerisoli established a Rule 10b5-1 trading plan for the potential sale of up to **4,463** shares of common stock between August 2025 and May 2026[227](index=227&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including corporate documents, a purchase agreement, and CEO/CFO certifications - A key exhibit filed is the Purchase Agreement dated April 30, 2025, among The Pennant Group, UnitedHealth Group, and Amedisys for the acquisition of certain assets[230](index=230&type=chunk)

[Pennant Q2 2025 Earnings Release](index=1&type=section&id=Pennant%20Reports%20Second%20Quarter%202025%20Results) This report details Pennant's strong second quarter 2025 financial performance, operational highlights, and updated full-year guidance [Financial Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) Pennant reported strong Q2 2025 results with significant year-over-year growth in revenue, net income, and adjusted EBITDA Q2 2025 Financial Performance | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $219.5M | 30.1% | | Net Income | $7.1M | 24.5% | | Adjusted Net Income | $9.4M | 28.2% | | Consolidated Adjusted EBITDA | $16.4M | 24.5% | | Home Health & Hospice Revenue | $166.0M | 32.5% | | Senior Living Services Revenue | $53.5M | 23.1% | - For the second quarter of 2025, Pennant reported GAAP diluted earnings per share of **$0.20** and adjusted diluted earnings per share of **$0.27**[1](index=1&type=chunk) [Management Commentary and Outlook](index=2&type=section&id=Operating%20Results%20and%20Guidance) Management highlighted robust operating momentum and raised full-year 2025 guidance for revenue and adjusted EPS [Operating Results](index=2&type=section&id=Operating%20Results) Management expressed satisfaction with strong operating momentum across home health, hospice, and senior living businesses - CEO Brent Guerisoli stated, "The second quarter represents a continuation of our robust operating momentum... We are pleased by the strength in our home health, hospice and senior living businesses, as each contributes meaningfully to our positive performance"[3](index=3&type=chunk) - COO John Gochnour noted strong results from local leaders and sees "significant untapped potential for organic improvement and exciting acquisition opportunities on the near horizon, including the announced transaction with UnitedHealth Group and Amedisys"[3](index=3&type=chunk) [2025 Full-Year Guidance](index=2&type=section&id=2025%20Guidance) The company provided updated full-year 2025 guidance, projecting significant growth in revenue, adjusted EPS, and adjusted EBITDA 2025 Full-Year Guidance Metrics | Metric | 2025 Full-Year Guidance | | :--- | :--- | | Total Revenue | $852.8M - $887.6M | | Adjusted EPS (Diluted) | $1.09 - $1.15 | | Adjusted EBITDA | $69.1M - $72.7M | - The adjusted EPS guidance midpoint of **$1.12** represents a **19.1% growth** over 2024 and a **53.4% growth** over 2023 results[5](index=5&type=chunk) - Guidance is based on approximately **35.7 million** diluted weighted average shares and a **26.0% effective tax rate**[5](index=5&type=chunk) It includes anticipated expenses related to the UnitedHealth Group and Amedisys transaction but no additional earnings from it due to uncertain timing[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents unaudited condensed consolidated statements of income, balance sheets, and cash flows for the period [Condensed Consolidated Statements of Income](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The statements detail revenue, income from operations, net income, and diluted EPS for the three and six months ended June 30 Condensed Consolidated Statements of Income (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $219,501 | $168,745 | $429,343 | $325,660 | | Income from operations | $11,528 | $9,562 | $24,178 | $18,086 | | Net income attributable to PNTG | $7,085 | $5,690 | $14,860 | $10,596 | | Diluted EPS | $0.20 | $0.18 | $0.42 | $0.35 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheets provide a snapshot of assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $127,374 | $122,856 | | Total assets | $751,417 | $679,521 | | Total current liabilities | $104,941 | $101,700 | | Total liabilities | $417,790 | $367,556 | | Total equity | $333,627 | $311,965 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The cash flow statements summarize operating, investing, and financing activities for the six months ended June 30 Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,414 | $11,036 | | Net cash used in investing activities | ($60,355) | ($33,280) | | Net cash provided by financing activities | $37,080 | $19,228 | | Net decrease in cash | ($9,861) | ($3,016) | [Segment and Operational Performance](index=8&type=section&id=Segment%20and%20Operational%20Performance) This section details strong performance across Home Health, Hospice, and Senior Living segments, highlighting key operational indicators and payor mix [Revenue by Segment](index=8&type=section&id=REVENUE%20BY%20SEGMENT) Revenue distribution by segment shows Home Health and Hospice as the largest contributor with significant year-over-year growth Q2 2025 Revenue by Segment (in thousands) | Segment (Q2 2025 Revenue) | Revenue (in thousands) | % of Total | YoY Growth | | :--- | :--- | :--- | :--- | | Home health and hospice services | $166,020 | 75.6% | 32.5% | | Senior living services | $53,481 | 24.4% | 23.1% | | **Total Revenue** | **$219,501** | **100.0%** | **30.1%** | [Home Health and Hospice Performance Indicators](index=9&type=section&id=SELECT%20PERFORMANCE%20INDICATORS%20-%20Home%20Health%20and%20Hospice) Key indicators show significant year-over-year growth in home health admissions and hospice average daily census - In Q2 2025, total home health admissions grew **26.1% YoY** to **17,832**, and hospice average daily census increased **21.4% YoY** to **3,909**[23](index=23&type=chunk) - Same-agency results, which exclude newer acquisitions, showed strong organic growth with a **9.7% YoY increase** in revenue for Q2 2025[23](index=23&type=chunk)[25](index=25&type=chunk) [Senior Living Performance Indicators](index=10&type=section&id=SELECT%20PERFORMANCE%20INDICATORS%20-%20Senior%20Living) Senior living revenue grew, driven by increased average monthly revenue per unit, while occupancy remained stable - Total senior living revenue grew **23.1% YoY** in Q2 2025, driven by an **8.3% increase** in average monthly revenue per occupied unit to **$5,188**, while overall occupancy remained flat at **78.8%**[26](index=26&type=chunk) - Same-store senior living results showed a **9.0% revenue increase**, with occupancy improving by **0.9%** to **80.1%** in Q2 2025[27](index=27&type=chunk) [Revenue by Payor Source](index=12&type=section&id=REVENUE%20BY%20PAYOR%20SOURCE) Medicare remains the largest payor source, contributing nearly half of the total revenue in Q2 2025 Q2 2025 Revenue by Payor Source (in thousands) | Payor Source (Q2 2025) | Revenue (in thousands) | % of Total | | :--- | :--- | :--- | | Medicare | $103,821 | 47.3% | | Medicaid | $30,798 | 14.0% | | Managed Care | $30,619 | 13.9% | | Private and Other | $54,263 | 24.8% | | **Total Revenue** | **$219,501** | **100.0%** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=13&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20INFORMATION) This section provides detailed reconciliations of GAAP net income to non-GAAP measures, including Adjusted Net Income and Adjusted EBITDA Reconciliation of GAAP to Non-GAAP Net Income (Q2 2025, in thousands) | Reconciliation (Q2 2025, in thousands) | Amount | | :--- | :--- | | Net income attributable to PNTG (GAAP) | $7,085 | | Add: Share-based compensation expense | $2,212 | | Add: Acquisition related costs | $2,166 | | Other adjustments (net) | ($1,051) | | **Non-GAAP net income** | **$9,412** | Reconciliation of GAAP to Non-GAAP EBITDA (Q2 2025, in thousands) | Reconciliation (Q2 2025, in thousands) | Amount | | :--- | :--- | | Consolidated net income (GAAP) | $7,981 | | Adjustments (Taxes, Interest, D&A, etc.) | $5,130 | | **Consolidated EBITDA** | **$13,111** | | Non-GAAP Adjustments (Share comp, Acq. costs, etc.) | $3,264 | | **Consolidated Adjusted EBITDA** | **$16,375** | [About the Company and Forward-Looking Statements](index=3&type=section&id=About%20Pennant%20and%20Safe%20Harbor) This section provides company background, conference call details, a safe harbor statement, and definitions for non-GAAP financial measures - Pennant is a holding company for subsidiaries providing healthcare services through **137 home health and hospice agencies** and **61 senior living communities** across **13 states**[7](index=7&type=chunk) - The company provides a safe harbor statement warning that forward-looking statements regarding growth prospects and future performance are subject to risks and uncertainties and are not guarantees of future results[8](index=8&type=chunk)[9](index=9&type=chunk) - The report defines non-GAAP measures like EBITDA, Adjusted EBITDA, and Adjusted EBITDAR, explaining their calculation and utility for investors to evaluate operating performance by excluding certain infrequent or variable expenses[50](index=50&type=chunk)

Core Insights - The Pennant Group, Inc. reported strong operating results for Q2 2025, with GAAP diluted earnings per share of $0.20 and adjusted diluted earnings per share of $0.27, reflecting robust growth across its home health, hospice, and senior living segments [1][4][6]. Financial Performance - Total revenue for Q2 2025 was $219.5 million, an increase of $50.8 million or 30.1% compared to the same quarter last year [4]. - Net income for Q2 2025 was $7.1 million, up $1.4 million or 24.5% year-over-year [4]. - Adjusted net income for Q2 2025 reached $9.4 million, an increase of $2.1 million or 28.2% from the prior year [4]. - Consolidated Adjusted EBITDAR for Q2 2025 was $28.2 million, a rise of $4.8 million or 20.3% year-over-year [4]. - Consolidated Adjusted EBITDA for Q2 2025 was $16.4 million, increasing by $3.2 million or 24.5% compared to the previous year [4]. Segment Performance - Home Health and Hospice Services segment revenue for Q2 2025 was $166.0 million, an increase of $40.7 million or 32.5% from the prior year [4]. - Senior Living Services segment revenue for Q2 2025 was $53.5 million, up $10.0 million or 23.1% year-over-year [4]. - Total home health admissions for Q2 2025 were 17,832, reflecting a 26.1% increase from the previous year [4]. - Hospice average daily census for Q2 2025 was 3,909, an increase of 21.4% compared to the prior year [4]. Guidance and Future Outlook - The company updated its 2025 annual guidance, anticipating total revenue between $852.8 million and $887.6 million, with adjusted earnings per diluted share expected to be between $1.09 and $1.15 [6][7]. - The midpoint of the earnings guidance represents a 19.1% growth over 2024 adjusted earnings per share and a 53.4% increase over 2023 results [7]. - Management sees significant untapped potential for organic improvement and acquisition opportunities, including a transaction with UnitedHealth Group and Amedisys [3][6].

Core Viewpoint - The Pennant Group, Inc. is set to release its second quarter 2025 financial results on August 6, 2025, followed by a live webcast on August 7, 2025, where management will discuss these results [1][2]. Company Overview - The Pennant Group, Inc. operates as a holding company for independent subsidiaries that provide healthcare services, including home health, hospice, and senior living services across multiple states in the U.S. [4]. - The company's subsidiaries are independently managed, each with its own management, employees, and assets [4]. Investor Engagement - Investors are invited to participate in a live webcast on August 7, 2025, at 10:00 a.m. Mountain Time, to discuss the second quarter results [2]. - The webcast will be available for replay on the company's website until August 6, 2026 [3]. Contact Information - For further inquiries, the company can be contacted at (208) 401-1400 or via email at ir@pennantservices.com [5].

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Group 1 - The natural gas market is showing potential for a bullish breakout if it surpasses the recent high of $3,346, which would also place it above the 20-Day and 50-Day moving averages [1] - A bullish reversal for natural gas will only be confirmed with a rise above the recent lower swing high at $3,366 [1] - Gold is consolidating near the highs of a long-term uptrend, with a significant resistance level at $3,451, which needs to be broken for a reliable bullish signal [2] Group 2 - The pullback low of the pennant for gold at $2,121 found support around the 38.2% Fibonacci retracement level, indicating sustained buying strength [3] - A drop below the swing low of $3,243 would indicate weakness in gold and could lead to a retest of support around the 38.2% retracement level, potentially falling to the 50% retracement level at $3,041 [4]