Pennant Reports Third Quarter 2025 Results

Core Insights - The Pennant Group, Inc. reported a GAAP diluted earnings per share of $0.17 and an adjusted diluted earnings per share of $0.30 for Q3 2025, reflecting strong operational performance across its segments [1][4][6]. Financial Performance - Total revenue for Q3 2025 was $229.0 million, a 26.8% increase from the prior year [4]. - Net income for Q3 2025 was $6.1 million, a slight decrease of 2.0% compared to the previous year [4]. - Adjusted net income for Q3 2025 was $10.4 million, up 27.6% year-over-year [4]. - Consolidated Adjusted EBITDAR for Q3 2025 was $29.3 million, a 12.8% increase from the prior year [4]. - Consolidated Adjusted EBITDA for Q3 2025 was $17.3 million, reflecting a 14.5% increase year-over-year [4]. Segment Performance - Home Health and Hospice Services segment revenue was $173.6 million, a 27.9% increase from the prior year [4]. - Senior Living Services segment revenue was $55.5 million, up 23.2% year-over-year [4]. - Total home health admissions increased by 36.2% to 20,426 in Q3 2025 [4]. - Hospice average daily census rose by 17.4% to 4,044 [4]. - Senior Living average occupancy increased by 180 basis points to 80.9% [4]. Acquisition and Expansion - The company completed the acquisition of 54 home health, hospice, and home care operations from UnitedHealth Group and Amedisys on October 1, 2025, marking the largest transaction in its history [5]. - This acquisition is expected to enhance the company's operational capabilities and expand its market presence in the Southeast [5]. Guidance and Expectations - The company updated its 2025 annual guidance, projecting total revenue between $911.4 million and $948.6 million [6]. - Full-year adjusted earnings per diluted share is anticipated to be between $1.14 and $1.18, representing a growth of 23.4% from 2024 [7]. - The guidance reflects strong operational performance and the impact of the recent acquisition [8].