Pennant Reports Fourth Quarter and Fiscal Year 2025 Results

Rhea-AI Summary

Pennant (NASDAQ: PNTG) reported 2025 results with record revenue and operating gains. FY revenue $947.7M (+36.3% YoY) and FY net income $29.6M (+31.1% YoY). Adjusted EPS was $1.18 for 2025 and management provided 2026 guidance of $1.13B–$1.17B revenue and adjusted EPS $1.26–$1.36.

Home health admissions and hospice census drove segment growth; consolidated adjusted EBITDA improved materially. A conference webcast is scheduled for Feb 26, 2026.

Positive

• Total revenue +36.3% to $947.7M in 2025
• Net income +31.1% to $29.6M in 2025
• Adjusted EBITDA +36.0% to $72.5M for 2025
• Home health admissions +44.1% to 86,076 in 2025

Negative

• Cash balance declined to $17.0M from $24.2M year-over-year
• Weighted average basic shares rose >10% to 34,563, diluting EPS

Market Reaction – PNTG

-10.94% $29.47

15m delay 4 alerts

-10.94% Since News

$29.47 Last Price

$28.79 $31.89 Day Range

-$125M Valuation Impact

$1.02B Market Cap

1.2x Rel. Volume

Following this news, PNTG has declined 10.94%, reflecting a significant negative market reaction. Our momentum scanner has triggered 4 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $29.47. This price movement has removed approximately $125M from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

GAAP diluted EPS: $0.84 Adj. diluted EPS: $1.18 Total revenue: $947.7M +5 more

8 metrics

GAAP diluted EPS $0.84 Full year 2025

Adj. diluted EPS $1.18 Full year 2025

Total revenue $947.7M Full year 2025; up 36.3% YoY

Total revenue $289.3M Q4 2025; up 53.2% YoY

Net income $29.6M Full year 2025; up 31.1% YoY

Adj. EBITDA $72.5M Full year 2025; up 36.0% YoY

2026 revenue guide $1,133.6M–$1,171.8M Total revenue guidance 2026

2026 adj. EPS guide $1.26–$1.36 Adjusted diluted EPS guidance 2026

Market Reality Check

Price: $33.09 Vol: Volume 298,891 is roughly...

normal vol

$33.09 Last Close

Volume Volume 298,891 is roughly in line with the 20-day average of 308,229, suggesting no unusual trading ahead of the release. normal

Technical Shares at $33.09 are trading above the 200-day moving average of $26.91 and sit near the 52-week high of $33.04.

Peers on Argus

PNTG fell 1.78% while key peers like AMN (-2.86%), PACS (-1.26%) and USPH (-1.80...

PNTG fell 1.78% while key peers like AMN (-2.86%), PACS (-1.26%) and USPH (-1.80%) also declined, indicating broader healthcare-services softness, but momentum scanners did not flag a sector-wide move.

Previous Earnings Reports

5 past events · Latest: Nov 05 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 05	Q3 2025 earnings	Positive	-0.4%	Strong Q3 growth and higher 2025 guidance after major asset acquisition.
Oct 24	Q3 call timing	Neutral	+0.1%	Announcement of Q3 2025 earnings release date and webcast details.
Aug 06	Q2 2025 earnings	Positive	+8.4%	Strong Q2 revenue, EPS and EBITDA growth with raised 2025 guidance.
Jul 22	Q2 call timing	Neutral	+3.5%	Scheduling of Q2 2025 earnings release and webcast for investors.
May 06	Q1 2025 earnings	Positive	+3.4%	Q1 2025 results with broad-based segment growth and higher EPS.

Pattern Detected

Earnings-related news has generally been received positively, with 4 of the last 5 tagged earnings items seeing moves aligned with constructive fundamentals and an average move of 2.99%.

Recent Company History

Recent earnings releases show consistent growth through 2025. Q1, Q2 and Q3 2025 reports all highlighted double‑digit revenue expansion and rising EPS across home health, hospice and senior living. Guidance was repeatedly updated alongside these results. Today’s fourth quarter and full‑year 2025 report extends that trajectory with higher revenue, EPS and adjusted EBITDA, while adding 2026 guidance that builds on the Amedisys and UnitedHealth asset acquisitions completed in late 2025.

Historical Comparison

+3.0% avg move · Across the last five earnings-related releases, PNTG showed an average move of 2.99%, suggesting the...

earnings

+3.0%

Average Historical Move earnings

Across the last five earnings-related releases, PNTG showed an average move of 2.99%, suggesting the stock has been moderately responsive to financial updates.

Earnings releases through 2025 showed sequential growth in revenue and EPS, alongside repeated guidance updates and integration of acquired UnitedHealth and Amedisys operations, culminating in today’s full-year 2025 results and 2026 outlook.

Market Pulse Summary

The stock is dropping -10.9% following this news. A negative reaction despite solid growth would fit...

Analysis

The stock is dropping -10.9% following this news. A negative reaction despite solid growth would fit prior instances where strong results did not always translate into immediate gains. The update shows higher 2025 revenue, EPS and adjusted EBITDA with specific 2026 targets, but market focus could shift to integration complexity, higher debt levels or execution around acquired operations. Such factors might have amplified downside beyond what recent average earnings moves of 2.99% suggest.

Key Terms

non-gaap financial measures, adjusted ebitdar, adjusted ebidta, basis points, +3 more

7 terms

non-gaap financial measures financial

"A discussion of the Company’s use of Non-GAAP financial measures is set forth below."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

adjusted ebitdar financial

"Consolidated Adjusted EBITDAR for the full year was $120.9 million..."

Adjusted EBITDAR is a company’s reported profit measure that starts with operating earnings and then adds back interest, taxes, depreciation, amortization and rent, plus any one‑time items companies exclude. It aims to show how much cash a business generates from its core operations before the costs of financing, non‑cash accounting charges and property leases, like comparing two stores’ underlying sales by ignoring rent and loan payments. Investors use it to compare operating performance across firms and assess ability to cover fixed obligations, but companies may calculate it differently, so comparisons require caution.

adjusted ebidta financial

"Consolidated Adjusted EBITDA for the full year was $72.5 million..."

Adjusted EBITDA is a company’s reported profit from its core operations before subtracting interest, taxes, and accounting for long-term costs like depreciation, further cleaned up by removing one-time, unusual, or non-cash items. Think of it as the operating cash-flow picture after erasing temporary blips so different periods and companies can be compared more easily; investors use it to judge underlying business performance, but it is not a standardized accounting measure and can be shaped by management choices.

basis points financial

"average occupancy for the fourth quarter was 80.6%, an increase of 200 basis points..."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

regulation g regulatory

"financial or statistical information required by SEC Regulation G, please visit..."

Regulation G is a U.S. securities rule that requires companies to show and explain how any highlighted financial numbers that differ from standard accounting figures were calculated, and to provide a clear bridge to the official results. For investors this acts like a recipe card: when a company presents a simplified or adjusted profit number, Regulation G forces them to show the original ingredients and steps so readers can judge whether the adjusted figure gives a clearer or misleading picture of financial health.

transition services agreement financial

"The guidance includes among other things, certain costs relating to our transition services agreement with UnitedHealth..."

A transition services agreement is a formal arrangement where one company continues to provide essential services—such as IT, human resources, or accounting—to another company after a business deal or change in ownership. It acts like a temporary bridge, ensuring smooth operations during a transition period. For investors, it provides clarity on how long support will last and helps assess potential costs and stability during the change.

noncontrolling interest financial

"full year adjusted EBITDA prior to NCI is anticipated to be $94.2 million to $100.0 million."

The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.

AI-generated analysis. Not financial advice.

Conference Call and Webcast scheduled for tomorrow, February 26, 2026 at 10:00 am MT

EAGLE, Idaho, Feb. 25, 2026 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, today announced its operating results, reporting GAAP diluted earnings per share of $0.84 for the full year and $0.24 for the fourth quarter of 2025. Pennant also reported adjusted diluted earnings per share of $1.18 for the full year and $0.34 for the quarter⁽¹⁾.

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 Relations
The Pennant Group, Inc.
(208) 401-1400
ir@pennantgroup.com

SOURCE: The Pennant Group, Inc.

THE PENNANT GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except for per-share amounts)
	Three Months Ended December 31,								Year Ended December 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 Ended December 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			1,333		43.1	%
Average daily census		5,060			3,445			1,615		46.9	%
Hospice Medicare revenue per day	$	192		$	186		$	6		3.2	%

	Three Months Ended December 31,
		2025			2024		Change			% Change
Same agency(b)results:
Home health and hospice revenue	$	138,177		$	121,557		$	16,620		13.7	%
Home health services:
Total home health admissions		13,655			13,098			557		4.3	%
Total Medicare home health admissions		5,710			5,277			433		8.2	%
Average Medicare revenue per 60-day completed episode(a)	$	3,654		$	3,525		$	129		3.7	%
Hospice services:
Total hospice admissions		3,165			2,970			195		6.6	%
Average daily census		3,574			3,296			278		8.4	%
Hospice Medicare revenue per day	$	198		$	187		$	11		5.9	%

	Year Ended December 31,
		2025			2024		Change			% Change
Total agency results:
Home health and hospice revenue	$	732,727		$	519,484		$	213,243		41.0	%
Home health services:
Total home health admissions		86,076			59,741			26,335		44.1	%
Total Medicare home health admissions		34,882			24,598			10,284		41.8	%
Average Medicare revenue per 60-day completed episode(a)	$	3,755		$	3,628		$	127		3.5	%
Hospice services:
Total hospice admissions		15,189			12,208			2,981		24.4	%
Average daily census		4,204			3,268			936		28.6	%
Hospice Medicare revenue per day	$	192		$	183		$	9		4.9	%

	Year Ended December 31,
		2025			2024		Change			% Change
Same agency(b)results:
Home health and hospice revenue	$	517,976		$	465,108		$	52,868		11.4	%
Home health services:
Total home health admissions		54,460			50,746			3,714		7.3	%
Total Medicare home health admissions		22,272			21,146			1,126		5.3	%
Average Medicare revenue per 60-day completed episode(a)	$	3,617		$	3,495		$	122		3.5	%
Hospice services:
Total hospice admissions		12,430			11,677			753		6.4	%
Average daily census		3,438			3,189			249		7.8	%
Hospice Medicare revenue per day	$	192		$	186		$	6		3.2	%

(a)		The year to date average for Medicare revenue per 60-day completed episode includes post period claim adjustments for prior periods.
(b)		Same agency results represent all agencies purchased or licensed prior to January 1, 2024.

The following table summarizes our senior living performance indicators for the periods indicated:

	Three Months Ended December 31,
		2025				2024			Change				% Change
Total senior living results:
Senior living revenue	$	56,051			$	46,871			$	9,180			19.6	%
Occupancy		80.6	%			78.6	%			2.0	%
Average monthly revenue per occupied unit	$	5,238			$	4,961			$	277			5.6	%

	Three Months Ended December 31,
		2025				2024			Change				% Change
Same store senior living(a)results:
Senior living revenue	$	46,646			$	43,041			$	3,605			8.4	%
Occupancy		82.1	%			79.6	%			2.5	%
Average monthly revenue per occupied unit	$	5,181			$	4,905			$	276			5.6	%

The following table summarizes our senior living performance indicators for the periods indicated:

	Year Ended December 31,
		2025				2024			Change				% Change
Total senior living results:
Senior living revenue	$	214,978			$	175,756			$	39,222			22.3	%
Occupancy		79.7	%			78.8	%			0.9	%
Average monthly revenue per occupied unit	$	5,195			$	4,811			$	384			8.0	%

	Year Ended December 31,
		2025				2024			Change				% Change
Same store senior living(a)results:
Senior living revenue	$	180,576			$	165,926			$	14,650			8.8	%
Occupancy		80.8	%			79.7	%			1.1	%
Average monthly revenue per occupied unit	$	5,136			$	4,769			$	367			7.7	%

(a)		Same store senior living results represent all senior living communities purchased or licensed prior to January 1, 2024, excluding affiliate memory care units in transition.

THE PENNANT GROUP, INC.
REVENUE BY PAYOR SOURCE
(unaudited, dollars in thousands)

The following table presents our total revenue by payor source 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
Revenue:
Medicare		$	144,522		50.0	%		$	90,116		47.7	%
Medicaid			34,426		11.9				25,318		13.4
Subtotal			178,948		61.9				115,434		61.1
Managed care			48,114		16.6				26,613		14.1
Private and other(a)			62,261		21.5				46,845		24.8
Total revenue		$	289,323		100.0	%		$	188,892		100.0	%

(a)

Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement.

		Year Ended December 31,
			2025						2024
		Revenue Dollars			Revenue Percentage			Revenue Dollars			Revenue Percentage
Revenue:
Medicare		$	458,299		48.4	%		$	335,862		48.3	%
Medicaid			124,028		13.1				91,704		13.2
Subtotal			582,327		61.5				427,566		61.5
Managed care			142,382		15.0				92,697		13.3
Private and other(a)			222,996		23.5				174,977		25.2
Total revenue		$	947,705		100.0	%		$	695,240		100.0	%

(a)		Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement.

THE PENNANT GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(unaudited, in thousands, except per share data)

The following table reconciles net income to Non-GAAP net income for the periods presented:

	Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
Net income attributable to The Pennant Group, Inc.	$	8,637			$	5,758			$	29,578			$	22,559
Non-GAAP adjustments
Costs at start-up operations(a)		374				229				515				473
Share-based compensation expense(b)		2,177				2,425				9,036				8,242
Acquisition related costs(c)		1,102				282				6,587				1,278
Interest expense - write off deferred financing fees(e)		—				—				—				428
Activities associated with transitioning operations(d)		151				68				(660	)			(350	)
Transition services costs(e)		503				—				503				—
Unusual, non-recurring or redundant charges(f)		12				458				113				1,004
Provision for income taxes on Non-GAAP adjustments(g)		(800	)			(726	)			(4,059	)			(3,668	)
Non-GAAP net income	$	12,156			$	8,494			$	41,613			$	29,966
Dilutive Earnings Per Share As Reported
Net Income	$	0.24			$	0.16			$	0.84			$	0.70
Average number of shares outstanding		35,442				35,333				35,316				32,000
Adjusted Diluted Earnings Per Share
Net Income	$	0.34			$	0.24			$	1.18			$	0.94
Average number of shares outstanding		35,442				35,333				35,316				32,000

(a)		Represents results related to start-up operations.
				Three Months Ended December 31,								Year Ended December 31,
					2025				2024				2025				2024
		Revenue		$	(1,364	)		$	(172	)		$	(6,235	)		$	(5,128	)
		Cost of services			1,633				381				6,417				5,265
		Rent			15				18				56				324
		Depreciation & amortization			90				2				277				12
		Total Non-GAAP adjustment		$	374			$	229			$	515			$	473
(b)		Represents share-based compensation expense incurred for the periods presented.
				Three Months Ended December 31,								Year Ended December 31,
					2025				2024				2025				2024
		Cost of services		$	1,402			$	1,039			$	5,260			$	3,853
		General and administrative			775				1,386				3,776				4,389
		Total Non-GAAP adjustment		$	2,177			$	2,425			$	9,036			$	8,242
(c)		Represents costs incurred to acquire an operation that are not capitalizable.

  

(d)		During 2024 and 2025, an affiliate of the Company held its memory care units in transition and is converting the facility into an assisted living community. We received insurance proceeds related to the property in 2024 and 2025 which were recorded in gain on disposition of property and equipment, net on the consolidated statements of income.
			Three Months Ended December 31,						Year Ended December 31,
				2025			2024			2025				2024
		Revenue	$	—		$	—		$	—			$	(1	)
		Cost of services		96			13			181				(569	)
		Rent		52			52			209				209
		Depreciation		3			3			11				11
		Gain on disposition of property and equipment, net		—			—			(1,061	)			—
		Total Non-GAAP adjustment	$	151		$	68		$	(660	)		$	(350	)
(e)		Costs identified as redundant or non-recurring incurred by the Company as a result of the Transition Services Agreement between the Company and UnitedHealth entered into as part of the acquisition agreement. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $3,001 for the year ended December 31, 2025.
(f)		Represents unusual, non-recurring, or redundant charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.
(g)		Represents an adjustment to the provision for income tax to the year-to-date effective tax rate of 25.8% and 25.2% for the year ended December 31, 2025 and 2024, respectively. This rate excludes the tax benefit of share-based payment awards.

The table below reconciles Consolidated net income to the Consolidated Non-GAAP financial measure, Consolidated Adjusted EBITDA, and to the Non-GAAP valuation measure, Consolidated Adjusted EBITDAR, for the periods presented:

	Three Months Ended December 31,								Year Ended December 31,
		2025				2024				2025				2024
Consolidated net income	$	10,375			$	6,530			$	33,764			$	24,339
Less: Net income attributable to noncontrolling interest		1,738				772				4,186				1,780
Add: Provision for income taxes		3,896				2,071				11,866				7,028
Net interest expense		3,253				650				6,678				6,956
Depreciation and amortization		2,359				1,827				8,538				6,119
Consolidated EBITDA		18,145				10,306				56,660				42,662
Adjustments to Consolidated EBITDA
Add: Start-up operations(a)		269				209				182				137
Share-based compensation expense(b)		2,177				2,425				9,036				8,242
Acquisition related costs(c)		1,102				282				6,587				1,278
Activities associated with transitioning operations(d)		96				13				(880	)			(570	)
Transition services costs(e)		503				—				503				—
Unusual, non-recurring, or redundant charges(f)		12				458				113				1,004
Rent related to items (a) and (d) above		67				70				265				533
Consolidated Adjusted EBITDA		22,371				13,763				72,466				53,286
Rent—cost of services		12,997				11,215				48,700				43,029
Rent related to items (a) and (d) above		(67	)			(70	)			(265	)			(533	)
Adjusted rent—cost of services		12,930				11,145				48,435				42,496
Consolidated Adjusted EBITDAR(g)	$	35,301							$	120,901

(a)		Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations.
(b)		Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense.
(c)		Non-capitalizable costs associated with acquisitions and write-offs for amounts in dispute with the prior owners of certain acquired operations.
(d)		During 2024 and 2025, an affiliate of the Company held its memory care units in transition and is converting the facility into an assisted living community. We received insurance proceeds related to the property in 2024 and 2025 which were recorded in gain on disposition of property and equipment, net on the consolidated statements of income.
(e)		Costs identified as redundant or non-recurring incurred by the Company as a result of the Transition Services Agreement between the Company and UnitedHealth entered into as part of the acquisition agreement. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $3,001 for the year ended December 31, 2025.
(f)		Represents unusual, non-recurring, or redundant charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.
(g)		This measure is a valuation measure and is displayed thusly, it is not a performance measure as it excludes rent expense, which is a normal and recurring operating expense and, as such, does not reflect our cash requirements for leasing commitments. Our presentation of Consolidated Adjusted EBITDAR should not be construed as a financial performance measure.

The table below reconciles Consolidated net income attributable to The Pennant Group, Inc. to the Consolidated Non-GAAP financial measures, Consolidated Adjusted EBITDA and Consolidated Adjusted EBITDA prior to NCI, for the periods presented:

	Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025				2024
Net income attributable to The Pennant Group, Inc.	$	8,637		$	5,758		$	29,578			$	22,559
Add: Provision for income taxes		3,896			2,071			11,866				7,028
Net interest expense		3,253			650			6,678				6,956
Depreciation and amortization		2,359			1,827			8,538				6,119
Consolidated EBITDA		18,145			10,306			56,660				42,662
Adjustments to Consolidated EBITDA
Add: Start-up operations(a)		269			209			182				137
Share-based compensation expense(b)		2,177			2,425			9,036				8,242
Acquisition related costs(c)		1,102			282			6,587				1,278
Activities associated with transitioning operations(d)		96			13			(880	)			(570	)
Transition services costs(e)		503			—			503				—
Unusual, non-recurring, or redundant charges(f)		12			458			113				1,004
Rent related to items (a) and (d) above		67			70			265				533
Consolidated Adjusted EBITDA		22,371			13,763			72,466				53,286
Add: Net Income attributable to noncontrolling interest (“NCI”)		1,738			772			4,186				1,780
Consolidated Adjusted EBITDA prior to NCI	$	24,109		$	14,535		$	76,652			$	55,066

(a)		Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations.
(b)		Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense.
(c)		Non-capitalizable costs associated with acquisitions and write-offs for amounts in dispute with the prior owners of certain acquired operations.
(d)		During 2024 and 2025, an affiliate of the Company held its memory care units in transition and is converting the facility into an assisted living community. We received insurance proceeds related to the property in 2024 and 2025 which were recorded in gain on disposition of property and equipment, net on the consolidated statements of income.
(e)		Costs identified as redundant or non-recurring incurred by the Company as a result of the Transition Services Agreement between the Company and UnitedHealth entered into as part of the acquisition agreement. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $3,001 for the year ended December 31, 2025.
(f)		Represents unusual, non-recurring, or redundant charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.

The following tables present certain financial information regarding our reportable segments. General and administrative expenses are not allocated to the reportable segments:

	Home Health and Hospice Services			Senior Living Services			All Other			Total
Three Months Ended December 31, 2025
Revenue	$	233,156		$	54,802		$	1,365		$	289,323
Segment Cost of Services		196,352			38,822
Segment Adjusted EBITDAR from Operations	$	36,804		$	15,980					$	52,784
Three Months Ended December 31, 2024
Revenue	$	141,849		$	46,871		$	172		$	188,892
Segment Cost of Services		118,628			33,437
Segment Adjusted EBITDAR from Operations	$	23,221		$	13,434					$	36,655

	Home Health and Hospice Services			Senior Living Services			All Other			Total
Year Ended December 31, 2025
Segment Revenue	$	731,392		$	210,078		$	6,235		$	947,705
Segment Cost of Services		610,561			149,553
Segment Adjusted EBITDAR from Operations	$	120,831		$	60,525					$	181,356
Year Ended December 31, 2024
Segment Revenue	$	515,344		$	174,767		$	5,129		$	695,240
Segment Cost of Services		427,635			123,107
Segment Adjusted EBITDAR from Operations	$	87,709		$	51,660					$	139,369

The table below provides a reconciliation of Segment Adjusted EBITDAR from Operations above to income from operations:

	Three Months Ended December 31,						Year Ended December 31,
		2025			2024			2025				2024
Segment Adjusted EBITDAR from Operations(a)	$	52,784		$	36,655		$	181,356			$	139,369
Less: Unallocated corporate expenses		17,483			11,747			60,455				43,587
Less: Depreciation and amortization		2,359			1,827			8,538				6,119
Rent—cost of services		12,997			11,215			48,700				43,029
Other income		54			15			422				207
Adjustments to Segment EBITDAR from Operations:
Less: Start-up operations(b)		269			209			182				137
Share-based compensation expense(c)		2,177			2,425			9,036				8,242
Acquisition related costs(d)		1,102			282			6,587				1,278
Activities associated with transitioning operations(e)		96			13			(880	)			(570	)
Transition services costs(f)		503			—			503				—
Unusual, non-recurring, or redundant charges(g)		12			458			113				1,004
Add: Net income attributable to noncontrolling interest		1,738			772			4,186				1,780
Income from operations	$	17,470		$	9,236		$	51,886			$	38,116

(a)		Segment Adjusted EBITDAR from Operations is net income attributable to the Company's reportable segments excluding interest expense, provision for income taxes, depreciation and amortization expense, rent, unallocated corporate and administrative expenses, and, in order to view the operations’ performance on a comparable basis from period to period, certain adjustments including: (1) activities associated with start-up operations, (2) share-based compensation expense, (3) acquisition related costs, (4) activities associated with transitioning operations, (5) transition services costs, (6) unusual, non-recurring, or redundant charges, and (7) net income attributable to noncontrolling interest. “All Other” consists of revenues generated at operating locations not included in the segment financial information reviewed by the CODM. Revenue included in the “All Other” category is insignificant individually, and therefore does not constitute a reportable segment. General and administrative expenses are not allocated to the reportable segments, and are included as “Unallocated corporate expenses”, accordingly the segment earnings measure reported is before allocation of corporate general and administrative expenses. The Company's segment measures may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
(b)		Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations.
(c)		Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense.
(d)		Non-capitalizable costs associated with acquisitions and write-offs for amounts in dispute with the prior owners of certain acquired operations.
(e)		During 2024 and 2025, an affiliate of the Company held its memory care units in transition and is converting the facility into an assisted living community. We received insurance proceeds related to the property in 2024 and 2025 which were recorded in gain on disposition of property and equipment, net on the consolidated statements of income.
(f)		Costs identified as redundant or non-recurring incurred by the Company as a result of the Transition Services Agreement between the Company and UnitedHealth entered into as part of the acquisition agreement. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $3,001 for the year ended December 31, 2025.
(g)		Represents unusual, non-recurring, or redundant charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.

The tables below reconcile Segment Adjusted EBITDAR from Operations to Segment Adjusted EBITDA from Operations for each reportable segment for the periods presented:

	Three Months Ended December 31,
	Home Health and Hospice								Senior Living
		2025				2024				2025				2024
Segment Adjusted EBITDAR from Operations	$	36,804			$	23,221			$	15,980			$	13,434
Less: Rent—cost of services		3,107				1,935				9,891				9,280
Rent related to start-up and transitioning operations		(15	)			(18	)			(52	)			(52	)
Segment Adjusted EBITDA from Operations	$	33,712			$	21,304			$	6,141			$	4,206

	Year Ended December 31,
	Home Health and Hospice								Senior Living
		2025				2024				2025				2024
Segment Adjusted EBITDAR from Operations	$	120,831			$	87,709			$	60,525			$	51,660
Less: Rent—cost of services		9,752				7,189				38,949				35,840
Rent related to start-up and transitioning operations		(56	)			(140	)			(209	)			(393	)
Segment Adjusted EBITDA from Operations	$	111,135			$	80,660			$	21,785			$	16,213

Discussion of Non-GAAP Financial Measures

EBITDA consists of net income, adjusted for net income attributable to noncontrolling interest (“NCI”), before (a) interest expense, net, (b) provisions for income taxes, and (c) depreciation and amortization. Adjusted EBITDA consists of net income attributable to the Company before (a) interest expense, net (b) provisions for income taxes, (c) depreciation and amortization, (d) results related to start-up operations, including rent and excluding depreciation, interest and income taxes, (e) share-based compensation expense, (f) non-capitalizable acquisition related costs, (g) activities associated with transitioning operations, (h) transition services costs, and (i) unusual, non-recurring or redundant charges. Adjusted EBITDA prior to NCI consists of net income attributable to the Company before (a) interest expense, net (b) provisions for income taxes, (c) depreciation and amortization, (d) results related to start-up operations, (f) non-capitalizable acquisition related costs, (g) activities associated with transitioning operations, (h) transition services costs, (i) unusual, non-recurring or redundant charges, and (j) NCI. Consolidated Adjusted EBITDAR is a valuation measure applicable to current periods only and consists of net income attributable to the Company before (a) interest expense, net, (b) provisions for income taxes, (c) depreciation and amortization, (d) rent-cost of services, (e) results related to start-up operations, excluding rent, depreciation, interest and income taxes, (f) share-based compensation expense, (g) acquisition related costs, (h) activities associated with transitioning operations, (i) transition services costs, and (j) unusual, non-recurring or redundant charges. The company believes that the presentation of EBITDA, adjusted EBITDA, adjusted EBITDA prior to NCI, consolidated adjusted EBITDAR, adjusted net income, and adjusted earnings per share provides important supplemental information to management and investors to evaluate the company’s operating performance. The company believes disclosure of adjusted net income, adjusted net income per share, EBITDA, adjusted EBITDA, adjusted EBITDA prior to NCI, and consolidated adjusted EBITDAR has economic substance because the excluded revenues and expenses are infrequent in nature and are variable in nature, or do not represent current revenues or cash expenditures. A material limitation associated with the use of these measures as compared to the GAAP measures of net income and diluted earnings per share is that they may not be comparable with the calculation of net income and diluted earnings per share for other companies in the company's industry. These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures. For further information regarding why the company believes that this non-GAAP measure provides useful information to investors, the specific manner in which management uses this measure, and some of the limitations associated with the use of this measure, please refer to the company's periodic filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The company’s periodic filings are available on the SEC's website at www.sec.gov or under the "Financial Information" link of the Investor Relations section on Pennant’s website at http://www.pennantgroup.com.

FAQ

What were Pennant (PNTG) full-year 2025 revenue and earnings per share?

Pennant reported $947.7 million in total revenue for 2025 and GAAP diluted EPS of $0.84. According to the company, adjusted diluted EPS was $1.18, reflecting non-GAAP adjustments reconciled in its financial tables.

How did Pennant (PNTG) senior living performance change in Q4 2025?

Senior living revenue rose to $56.1 million in Q4 2025 with occupancy at 80.6%. According to the company, same-store occupancy improved 200 basis points and monthly revenue per occupied room increased to $5,238.

What guidance did Pennant (PNTG) provide for full-year 2026 revenue and adjusted EPS?

Pennant provided 2026 revenue guidance of $1,133.6M–$1,171.8M and adjusted EPS of $1.26–$1.36. According to the company, guidance assumes ~37.0 million diluted shares and a 26% effective tax rate.

How much did home health admissions increase for Pennant (PNTG) in 2025?

Total home health admissions increased 44.1% to 86,076 for 2025. According to the company, Medicare home health admissions rose 41.8% to 34,882, driving significant segment revenue growth.

What was Pennant's (PNTG) adjusted EBITDA and its outlook for 2026?

Pennant reported adjusted EBITDA of $72.5 million for 2025 and guided 2026 adjusted EBITDA of $88.5M–$94.1M. According to the company, the outlook reflects transition costs, reimbursement adjustments, and no unannounced acquisitions.

Will Pennant (PNTG) host a webcast to discuss Q4 2025 results and when is it?

Yes. Pennant will host a live webcast on Feb 26, 2026 at 10:00 a.m. Mountain time to discuss Q4 2025 results. According to the company, the webcast will be available for replay on its investor website.