Pediatrix Medical Group Reports Fourth Quarter Results

Core Insights - Pediatrix Medical Group reported earnings of $0.40 per share for Q4 2025, with an Adjusted EPS of $0.50, reflecting solid same-unit revenue growth despite industry headwinds [1][2] - The company generated net revenue of $494 million for Q4 2025, a decrease from $502 million in the prior year, primarily due to practice dispositions [1][2] - For the full year 2025, Pediatrix reported revenue of $1.91 billion, down from $2.01 billion in 2024, but net income improved to $165.4 million from a net loss of $99.1 million in the previous year [2][3] Financial Performance - Q4 2025 - Adjusted EBITDA for Q4 2025 was $66 million, down from $68.7 million in Q4 2024, mainly due to higher same-unit expenses [1][3] - Net income for Q4 2025 was $34 million, compared to $30.5 million in Q4 2024, with a diluted share count of 84.4 million [1][3] - Same-unit revenue from net reimbursement-related factors increased by 6.7%, while patient service volumes decreased by 2.7% [1][2] Financial Performance - Full Year 2025 - Adjusted EBITDA for the year ended December 31, 2025, was $275.6 million, an increase from $224 million in 2024 [2][3] - Adjusted EPS for 2025 was $2.04, compared to $1.51 in 2024 [2][3] - Cash and cash equivalents at year-end 2025 were $375.2 million, up from $229.9 million in 2024 [2][3] Operational Highlights - Practice salaries and benefits expense for Q4 2025 was $348 million, slightly down from $349 million in the prior year [1][3] - General and administrative expenses increased to $65.7 million in Q4 2025 from $63.6 million in Q4 2024 [1][3] - Transformational and restructuring-related expenses decreased significantly to $5.9 million in Q4 2025 from $23.6 million in the prior year [1][3] Preliminary Outlook for 2026 - The company anticipates 2026 Adjusted EBITDA to be in the range of $280 million to $300 million [2][4]