Pennant Reports Third Quarter 2026 Results

Long-term debt, net, increased to $193.330 million at September 30, 2026, from $168.837 million at year-end 2025.

Rhea-AI Summary

Pennant Group (NASDAQ: PNTG) reported third-quarter 2026 revenue of $302.3 million, up 32.0% from the prior-year quarter. GAAP diluted earnings per share rose to $0.26 from $0.17, while net income attributable to Pennant increased to $9.637 million from $6.081 million. Adjusted diluted earnings per share were $0.35.

Home health and hospice revenue grew 38.2% to $239.8 million, with same-agency revenue up 10.5%. Senior living revenue increased 12.6% to $62.4 million, but average occupancy fell 250 basis points to 78.4%. Average Medicare revenue per completed 60-day home health episode declined 2.2% to $3,632. Quarterly interest expense increased to $3.619 million from $1.016 million. Pennant said results were consistent with its full-year guidance. Nine-month operating cash flow rose to $43.547 million from $27.336 million.

39 points · 0 major

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0 major · 7 points

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Positive

• Moderate pointThird-quarter revenue increased 32.0% to $302.3 million year over year.
• Moderate pointThird-quarter GAAP diluted earnings per share rose to $0.26 from $0.17 year over year.
• Moderate pointThird-quarter net income attributable to Pennant rose to $9.637 million from $6.081 million year over year.
• Moderate pointNine-month operating cash flow rose to $43.547 million from $27.336 million year over year.
• Minor pointThird-quarter adjusted net income increased 21.6% to $12.7 million year over year.

34 minor points

• Minor pointThird-quarter adjusted diluted earnings per share were $0.35.
• Minor pointThird-quarter operating income rose to $16.512 million from $10.238 million year over year.
• Minor pointThird-quarter adjusted EBITDA, an adjusted earnings measure, increased 42.4% to $24.7 million year over year.
• Minor pointThird-quarter adjusted EBITDAR, which also excludes rent, increased 31.1% to $38.4 million year over year.
• Minor pointThird-quarter adjusted EBITDA before noncontrolling interests increased 44.0% to $26.1 million year over year.
• Minor pointHome health and hospice third-quarter revenue increased 38.2% to $239.8 million year over year.
• Minor pointHome health and hospice third-quarter adjusted EBITDA from operations increased 42.0% to $38.1 million year over year.
• Minor pointHome health and hospice third-quarter adjusted EBITDAR from operations increased 42.3% to $41.4 million year over year.
• Minor pointHome health and hospice third-quarter adjusted EBITDA before noncontrolling interests increased 43.0% to $39.5 million year over year.
• Minor pointThird-quarter home health admissions increased 39.4% to 28,479 year over year.
• Minor pointThird-quarter Medicare home health admissions increased 38.0% to 11,347 year over year.
• Minor pointThird-quarter hospice admissions increased 31.8% to 4,590 year over year.
• Minor pointThird-quarter hospice average daily census increased 34.6% to 5,443 year over year.
• Minor pointThird-quarter hospice Medicare revenue per day increased 2.1% to $193 year over year.
• Minor pointSame-agency third-quarter home health and hospice revenue increased 10.5% to $169.242 million year over year.
• Minor pointSame-agency third-quarter home health admissions increased 8.0% to 17,825 year over year.
• Minor pointSame-agency third-quarter Medicare home health admissions increased 12.0% to 7,383 year over year.
• Minor pointSame-agency third-quarter Medicare revenue per completed 60-day episode increased 1.6% to $3,807 year over year.
• Minor pointSame-agency third-quarter hospice admissions increased 3.1% to 3,376 year over year.
• Minor pointSame-agency third-quarter hospice average daily census increased 13.0% to 4,164 year over year.
• Minor pointSame-agency third-quarter hospice Medicare revenue per day increased 3.7% to $196 year over year.
• Minor pointSenior living third-quarter revenue increased 12.6% to $62.4 million year over year.
• Minor pointSenior living third-quarter adjusted EBITDA from operations increased 3.0% to $5.7 million year over year.
• Minor pointSenior living third-quarter adjusted EBITDAR from operations increased 5.7% to $16.2 million year over year.
• Minor pointSenior living third-quarter monthly revenue per occupied room increased 3.7% to $5,385 year over year.
• Minor pointSame-store senior living third-quarter monthly revenue per occupied room increased 4.6% to $5,370 year over year.
• Minor pointNine-month revenue rose to $885.599 million from $658.382 million year over year.
• Minor pointNine-month net income attributable to Pennant rose to $27.238 million from $20.941 million year over year.
• Minor pointNine-month GAAP diluted earnings per share rose to $0.76 from $0.59 year over year.
• Minor pointNine-month home health admissions increased 54.3% to 88,147 year over year.
• Minor pointNine-month Medicare home health admissions increased 60.4% to 36,566 year over year.
• Minor pointNine-month hospice admissions increased 32.3% to 14,239 year over year.
• Minor pointCash increased to $18.389 million at September 30, 2026, from $17.024 million at December 31, 2025.
• Minor pointPennant said third-quarter results were consistent with full-year guidance.

Negative

• Moderate pointSenior living third-quarter occupancy fell 250 basis points to 78.4% year over year.
• Moderate pointThird-quarter Medicare revenue per completed 60-day home health episode declined 2.2% to $3,632 year over year.
• Moderate pointThird-quarter interest expense, net, rose to $3.619 million from $1.016 million year over year.
• Minor pointSame-store senior living third-quarter occupancy fell 60 basis points to 81.2% year over year.
• Minor pointNine-month Medicare revenue per completed 60-day home health episode declined 2.4% to $3,641 year over year.

2 minor points

• Minor pointNine-month interest expense, net, rose to $10.035 million from $3.425 million year over year.
• Minor pointLong-term debt, net, rose to $193.330 million at September 30, 2026, from $168.837 million at year-end 2025.

News Explained

At September 30, a higher net long-term debt balance and a larger outstanding share count mean more borrowing and potential ownership dilution for unchanged holders.

Pennant reported third-quarter results; at September 30, 2026, its balance sheet lists net long-term debt of $193,330 thousand, versus $168,837 thousand at December 31, 2025, a higher reported borrowing balance. The same balance sheet lists 35,272 thousand common shares issued and outstanding at September 30, 2026, versus 34,878 thousand at December 31, 2025; for holders whose share counts are unchanged, the larger share base means a smaller ownership fraction.

Key Figures

GAAP diluted EPS: $0.26 per share Adjusted diluted EPS: $0.35 per share Revenue: $302.3 million; up 32.0% +4 more

GAAP diluted EPS

$0.26 per share

Third quarter 2026; compared with $0.17 in the prior-year quarter

Adjusted diluted EPS

$0.35 per share

Third quarter 2026

Revenue

$302.3 million; up 32.0%

Third quarter 2026 versus the prior-year quarter

Net income attributable to Pennant

$9.6 million; up 58.5%

Third quarter 2026 versus the prior-year quarter

Adjusted EBITDA

$24.7 million; up 42.4%

Consolidated, third quarter 2026 versus the prior-year quarter

Home health and hospice revenue

$239.8 million; up 38.2%

Third quarter 2026 versus the prior-year quarter

Senior living occupancy

78.4%; down 250 basis points

Third quarter 2026 versus the prior-year quarter

Previous Earnings Reports

3 past events · Latest: Aug 05

Same Type 3 events

1. Aug 05

   Second-quarter earnings

   24h Move

   +0.6%

   Q2 revenue rose 35.8% year over year and adjusted EPS was $0.36.

2. May 06

   First-quarter earnings

   24h Move

   +9.8%

   Q1 revenue increased 36.0% year over year, with GAAP diluted EPS of $0.24.

3. Feb 25

   Fiscal-year earnings

   24h Move

   -7.9%

   FY 2025 revenue grew 36.3% and net income rose 31.1% year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, ebitda, ebitdar, regulation g

4 terms

gaap financial

"reporting GAAP diluted earnings per share of $0.26"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

ebitda financial

"Consolidated Adjusted EBITDA for the third quarter was $24.7 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

ebitdar financial

"Consolidated Adjusted EBITDAR for the third quarter was $38.4 million"

EBITDAR stands for Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent; it measures a company's operating profit before the cost of financing, taxes, accounting write-downs, and lease or rent payments. For investors, it reveals how much cash a business generates from its core activities without the effects of capital structure or rent commitments — similar to checking how much money a store makes from selling goods before paying for the building, loan interest, or taxes.

regulation g regulatory

"to view any financial or statistical information required by SEC Regulation G"

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Conference Call and Webcast scheduled for tomorrow, November 5, 2026 at 10:00 am MT

EAGLE, Idaho, Nov. 04, 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 $0.26 for the third quarter of 2026. Pennant also reported adjusted diluted earnings per share of $0.35 for the quarter⁽¹⁾.

Third Quarter Highlights

• Total revenue for the third quarter was $302.3 million, an increase of $73.2 million or 32.0% over the prior year quarter;
   
• Net income for the third quarter was $9.6 million, an increase of $3.6 million or 58.5% over the prior year quarter;
   
• Adjusted net income for the third quarter was $12.7 million, an increase of $2.2 million or 21.6% over the prior year quarter;
   
• Consolidated Adjusted EBITDAR for the third quarter was $38.4 million, an increase of $9.1 million or 31.1% over the prior year quarter;
   
• Consolidated Adjusted EBITDA for the third quarter was $24.7 million, an increase of $7.4 million or 42.4% over the prior year quarter;
   
• Consolidated Adjusted EBITDA prior to NCI for the third quarter was $26.1 million, an increase of $8.0 million or 44.0% over the prior year quarter;
   
• Home Health and Hospice Services segment revenue for the third quarter was $239.8 million, an increase of $66.2 million or 38.2% over the prior year quarter;
   
• Home Health and Hospice Services segment adjusted EBITDAR from operations for the third quarter was $41.4 million, an increase of $12.3 million or 42.3% over the prior year quarter; segment adjusted EBITDA from operations for the third quarter was $38.1 million, an increase of $11.3 million or 42.0% over the prior year quarter; and segment adjusted EBITDA from operations prior to NCI for the third quarter was $39.5 million, an increase of $11.9 million or 43.0% over the prior year quarter;
   
• Total home health admissions for the third quarter were 28,479, an increase of 8,053 or 39.4% over the prior year quarter; same store home health admissions for the third quarter were 17,825, an increase of 1,319 or 8.0% over the prior year quarter; total Medicare home health admissions for the third quarter were 11,347, an increase of 3,126 or 38.0% over the prior year quarter; same store Medicare home health admissions for the third quarter were 7,383, an increase of 791 or 12.0% over the prior year quarter;
   
• Hospice average daily census for the third quarter was 5,443, an increase of 1,399 or 34.6% compared to the prior year quarter; same store hospice average daily census for the third quarter was 4,164, an increase of 478 or 13.0% compared to the prior year quarter;
   
• Senior Living Services segment revenue for the third quarter was $62.4 million, an increase of $7.0 million or 12.6% over the prior year quarter; average occupancy for the third quarter was 78.4%, a decrease of 250 basis points over the prior year quarter, same store average occupancy for the third quarter was 81.2%, a decrease of 60 basis points over the prior year quarter, average monthly revenue per occupied room for the third quarter was $5,385, an increase of $190 or 3.7% over the prior year quarter, and same store average monthly revenue per occupied room for the third quarter was $5,370, an increase of $234 or 4.6% over the prior year quarter;
   
• Senior Living segment adjusted EBITDAR from operations for the third quarter was $16.2 million, an increase of $0.9 million or 5.7% over the prior year quarter; and segment adjusted EBITDA from operations for the third quarter was $5.7 million, an increase of $0.2 million or 3.0% over the prior year quarter. 
  
  ^{(1)   See "Reconciliation of GAAP to Non-GAAP Financial Information.”}
  
  

Operating Results

“Pennant delivered a solid quarter and strong year-over-year improvement across the organization,” said Brent Guerisoli, the Company’s Chief Executive Officer. “Our third quarter results are consistent with our full-year guidance and put us on track for a successful conclusion to the year. We continue to drive forward on our five key initiatives: leadership development, clinical excellence, margin, growth and employee experience. Our multi-year emphasis on developing great leaders has positioned us well to unlock significant upside across our portfolio.”

“Over the last two years, we have added 75 home health and hospice locations and 16 senior living communities to our organization,” said John Gochnour, the Company’s Chief Operating Officer. “Each of these additions was carefully selected based on its considerable long-term potential and we expect them to positively impact the organization and local communities for years to come. As we have grown, we have made significant investments in operational leaders, service center support and enhanced infrastructure. These investments have improved us as an organization and have allowed us to effectively transition a large number of acquisitions while simultaneously improving results at our same store operations.”

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-Q for the three and nine months ended September 30, 2026, which will be filed with the SEC and will be available to be viewed on the Company’s website at www.pennantgroup.com.

Conference Call 

A live webcast will be held tomorrow, November 5, 2026 at 10:00 a.m. Mountain time (12:00 p.m. Eastern time) to discuss Pennant’s third quarter 2026 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 175 home health and hospice agencies and 70 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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenue	$	302,251			$	229,039			$	885,599			$	658,382
Expense:
Cost of services		248,131				185,430				723,428				531,450
Rent—cost of services		13,796				12,063				40,322				35,703
General and administrative expense		20,631				19,296				61,932				51,733
Depreciation and amortization		3,685				2,063				9,413				6,179
Gain on disposition of property and equipment, net		(504	)			(51	)			(495	)			(1,099	)
Total expenses		285,739				218,801				834,600				623,966
Income from operations		16,512				10,238				50,999				34,416
Other expense, net:
Other (expense) income		(78	)			182				402				368
Income from equity method investment		1,379				—				1,749				—
Interest expense, net		(3,619	)			(1,016	)			(10,035	)			(3,425	)
Other expense, net		(2,318	)			(834	)			(7,884	)			(3,057	)
Income before provision for income taxes		14,194				9,404				43,115				31,359
Provision for income taxes		3,119				2,518				10,849				7,970
Net income		11,075				6,886				32,266				23,389
Less: Net income attributable to noncontrolling interest		1,438				805				5,028				2,448
Net income attributable to The Pennant Group, Inc.	$	9,637			$	6,081			$	27,238			$	20,941
Earnings per share:
Basic	$	0.28			$	0.18			$	0.78			$	0.61
Diluted	$	0.26			$	0.17			$	0.76			$	0.59
Weighted average common shares outstanding:
Basic		35,003				34,600				34,856				34,534
Diluted		36,384				35,270				36,050				35,274

THE PENNANT GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value)
	September 30, 2026				December 31, 2025
Assets
Current assets:
Cash	$	18,389			$	17,024
Accounts receivable—less allowance for credit losses of $877 and $681, at September 30, 2026 and December 31, 2025, respectively		130,836				123,109
Prepaid expenses and other current assets		29,845				27,273
Total current assets		179,070				167,406
Property and equipment, net		93,389				60,984
Operating lease right-of-use assets		278,859				275,947
Deferred tax assets, net		595				478
Restricted and other assets		23,666				26,676
Equity method investment		30,177				—
Goodwill		237,621				237,246
Other indefinite-lived intangibles		199,442				199,442
Total assets	$	1,042,819			$	968,179
Liabilities and equity
Current liabilities:
Accounts payable	$	27,535			$	25,171
Accrued wages and related liabilities		55,670				65,229
Operating lease liabilities—current		26,863				25,013
Current maturities of long-term debt		5,000				5,000
Other accrued liabilities		36,662				26,851
Total current liabilities		151,730				147,264
Long-term operating lease liabilities—less current portion		255,961				254,311
Deferred tax liabilities, net		2,842				150
Other long-term liabilities		19,191				23,365
Long-term debt, net		193,330				168,837
Total liabilities		623,054				593,927
Commitments and contingencies
Equity:
Common stock, $0.001 par value; 100,000 shares authorized; 35,272 and 35,074 shares issued and outstanding, respectively, at September 30, 2026; and 34,878 and 34,626 shares issued and outstanding, respectively, at December 31, 2025		35				35
Additional paid-in capital		261,809				245,833
Retained earnings		114,038				86,800
Treasury stock, at cost, 3 shares at September 30, 2026 and December 31, 2025		(65	)			(65	)
Total The Pennant Group, Inc. stockholders’ equity		375,817				332,603
Noncontrolling interest		43,948				41,649
Total equity		419,765				374,252
Total liabilities and equity	$	1,042,819			$	968,179

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:

	Nine Months Ended September 30,
		2026				2025
Net cash provided by operating activities	$	43,547			$	27,336
Net cash used in investing activities		(68,450	)			(74,950	)
Net cash provided by financing activities		26,268				25,704
Net increase (decrease) in cash		1,365				(21,910	)
Cash beginning of period		17,024				24,246
Cash end of period	$	18,389			$	2,336

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 September 30,
	2026						2025
	Revenue Dollars			Revenue Percentage			Revenue Dollars			Revenue Percentage
Home health and hospice services
Home health	$	118,161		39.1	%		$	81,496		35.6	%
Hospice		104,831		34.7				76,384		33.3
Home care and other(a)		16,821		5.5				15,685		6.9
Total home health and hospice services		239,813		79.3				173,565		75.8
Senior living services		62,438		20.7				55,474		24.2
Total revenue	$	302,251		100.0	%		$	229,039		100.0	%

^{(a)   Home care and other revenue is included with home health revenue in other disclosures in this press release.}

	Nine Months Ended September 30,
		2026						2025
	Revenue Dollars			Revenue Percentage			Revenue Dollars			Revenue Percentage
Home health and hospice services
Home health	$	353,024		39.9	%		$	234,808		35.7	%
Hospice		307,570		34.7				220,740		33.5
Home care and other(a)		46,078		5.2				43,907		6.7
Total home health and hospice services		706,672		79.8				499,455		75.9
Senior living services		178,927		20.2				158,927		24.1
Total revenue	$	885,599		100.0	%		$	658,382		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 September 30,
		2026			2025		Change				% Change
Total agency results:
Home health and hospice revenue	$	239,813		$	173,565		$	66,248			38.2	%
Home health services:
Total home health admissions		28,479			20,426			8,053			39.4	%
Total Medicare home health admissions		11,347			8,221			3,126			38.0	%
Average Medicare revenue per 60-day completed episode(a)	$	3,632		$	3,712		$	(80	)		(2.2	)%
Hospice services:
Total hospice admissions		4,590			3,483			1,107			31.8	%
Average daily census		5,443			4,044			1,399			34.6	%
Hospice Medicare revenue per day	$	193		$	189		$	4			2.1	%

	Three Months Ended September 30,
		2026			2025		Change			% Change
Same agency(b)results:
Home health and hospice revenue	$	169,242		$	153,143		$	16,099		10.5	%
Home health services:
Total home health admissions		17,825			16,506			1,319		8.0	%
Total Medicare home health admissions		7,383			6,592			791		12.0	%
Average Medicare revenue per 60-day completed episode(a)	$	3,807		$	3,746		$	61		1.6	%
Hospice services:
Total hospice admissions		3,376			3,276			100		3.1	%
Average daily census		4,164			3,686			478		13.0	%
Hospice Medicare revenue per day	$	196		$	189		$	7		3.7	%

	Nine Months Ended September 30,
		2026			2025		Change				% Change
Total agency results:
Home health and hospice revenue	$	706,672		$	499,455		$	207,217			41.5	%
Home health services:
Total home health admissions		88,147			57,135			31,012			54.3	%
Total Medicare home health admissions		36,566			22,800			13,766			60.4	%
Average Medicare revenue per 60-day completed episode(a)	$	3,641		$	3,731		$	(90	)		(2.4	)%
Hospice services:
Total hospice admissions		14,239			10,766			3,473			32.3	%
Average daily census		5,330			3,916			1,414			36.1	%
Hospice Medicare revenue per day	$	194		$	190		$	4			2.1	%

	Nine Months Ended September 30,
		2026			2025		Change			% Change
Same agency(b)results:
Home health and hospice revenue	$	494,526		$	446,478		$	48,048		10.8	%
Home health services:
Total home health admissions		53,943			50,055			3,888		7.8	%
Total Medicare home health admissions		22,448			20,129			2,319		11.5	%
Average Medicare revenue per 60-day completed episode(a)	$	3,773		$	3,751		$	22		0.6	%
Hospice services:
Total hospice admissions		10,519			10,085			434		4.3	%
Average daily census		4,028			3,564			464		13.0	%
Hospice Medicare revenue per day	$	195		$	190		$	5		2.6	%

^{(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, 2025.}

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

	Three Months Ended September 30,
		2026				2025			Change				% Change
Total senior living results:
Senior living revenue	$	62,438			$	55,474			$	6,964			12.6	%
Occupancy		78.4	%			80.9	%			(2.5	)%
Average monthly revenue per occupied unit	$	5,385			$	5,195			$	190			3.7	%

	Three Months Ended September 30,
		2026				2025			Change				% Change
Same store senior living(a)results:
Senior living revenue	$	52,754			$	51,341			$	1,413			2.8	%
Occupancy		81.2	%			81.8	%			(0.6	)%
Average monthly revenue per occupied unit	$	5,370			$	5,136			$	234			4.6	%

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

	Nine Months Ended September 30,
		2026				2025			Change				% Change
Total senior living results:
Senior living revenue	$	178,927			$	158,927			$	20,000			12.6	%
Occupancy		78.6	%			79.4	%			(0.8	)%
Average monthly revenue per occupied unit	$	5,388			$	5,180			$	208			4.0	%

	Nine Months Ended September 30,
		2026				2025			Change				% Change
Same store senior living(a)results:
Senior living revenue	$	157,172			$	148,676			$	8,496			5.7	%
Occupancy		81.3	%			80.4	%			0.9	%
Average monthly revenue per occupied unit	$	5,387			$	5,121			$	266			5.2	%

^{(a)   Same store senior living results represent all senior living communities purchased or licensed prior to January 1, 2025, excluding affiliate memory care units in start-up operations.}

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 September 30,
			2026						2025
		Revenue Dollars			Revenue Percentage			Revenue Dollars			Revenue Percentage
Revenue:
Medicare		$	153,010		50.6	%		$	108,831		47.5	%
Medicaid			39,952		13.2				31,466		13.7
Subtotal			192,962		63.8				140,297		61.2
Managed care			47,989		15.9				32,935		14.4
Private and other(a)			61,300		20.3				55,807		24.4
Total revenue		$	302,251		100.0	%		$	229,039		100.0	%

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

		Nine Months Ended September 30,
			2026						2025
		Revenue Dollars			Revenue Percentage			Revenue Dollars			Revenue Percentage
Revenue:
Medicare		$	449,519		50.8	%		$	313,777		47.7	%
Medicaid			117,088		13.2				89,602		13.6
Subtotal			566,607		64.0				403,379		61.3
Managed care			141,641		16.0				94,268		14.3
Private and other(a)			177,351		20.0				160,735		24.4
Total revenue		$	885,599		100.0	%		$	658,382		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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net income attributable to The Pennant Group, Inc.	$	9,637			$	6,081			$	27,238			$	20,941
Non-GAAP adjustments
Costs at start-up operations(a)		304				109				1,155				141
Share-based compensation expense(b)		3,378				2,480				9,024				6,859
Acquisition related costs(c)		128				3,047				832				5,485
Activities associated with transitioning operations(d)		(491	)			96				(491	)			(811	)
Transition services costs(e)		1,550				—				3,214				—
Unusual, non-recurring or redundant charges(f)		—				34				—				101
Provision for income taxes on Non-GAAP adjustments(g)		(1,838	)			(1,426	)			(3,932	)			(3,259	)
Non-GAAP net income	$	12,668			$	10,421			$	37,040			$	29,457
Dilutive Earnings Per Share As Reported
Net Income	$	0.26			$	0.17			$	0.76			$	0.59
Average number of shares outstanding		36,384				35,270				36,050				35,274
Adjusted Diluted Earnings Per Share
Net Income	$	0.35			$	0.30			$	1.03			$	0.84
Average number of shares outstanding		36,384				35,270				36,050				35,274

(a)		Represents results related to start-up operations.
			Three Months Ended September 30,								Nine Months Ended September 30,
				2026				2025				2026				2025
		Revenue	$	(1,843	)		$	(1,615	)		$	(5,855	)		$	(4,871	)
		Cost of services		1,870				1,608				6,235				4,784
		Rent		55				22				190				41
		Depreciation & amortization		222				94				585				187
		Total Non-GAAP adjustment	$	304			$	109			$	1,155			$	141
(b)		Represents share-based compensation expense incurred for the periods presented.
			Three Months Ended September 30,								Nine Months Ended September 30,
				2026				2025				2026				2025
		Cost of services	$	1,825			$	1,430			$	4,915			$	3,858
		General and administrative		1,553				1,050				4,109				3,001
		Total Non-GAAP adjustment	$	3,378			$	2,480			$	9,024			$	6,859
(c)		Represents costs incurred to acquire an operation that are not capitalizable.

(d)		During 2025, an affiliate of the Company held its memory care units in transition and converted the facility into an assisted living community. In 2025 and 2026, the Company received insurance proceeds related to the property which were recorded in Gain on disposition of property and equipment, net on the Consolidated Statements of Income.  This affiliate’s operations in 2026 excluding insurance gains are included in start-up operations.
			Three Months Ended September 30,							Nine Months Ended September 30,
				2026				2025			2026				2025
		Cost of services		—				40		$	—			$	85
		Rent		—				53			—				157
		Depreciation		—				3			—				8
		Gain on disposition of property and equipment, net		(491	)			—			(491	)			(1,061	)
		Total Non-GAAP adjustment	$	(491	)		$	96		$	(491	)		$	(811	)
(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 Group Incorporated (“UnitedHealth”) entered into as part of the acquisition agreement consummated on October 1, 2025. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $1,550 and $6,856 for the three and nine months ended September 30, 2026.
(f)		Represents other 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 26.0% and 26.0% for the three and nine months ended September 30, 2026 and 2025, 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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Consolidated net income	$	11,075			$	6,886			$	32,266			$	23,389
Less: Net income attributable to noncontrolling interest		1,438				805				5,028				2,448
Add: Provision for income taxes		3,119				2,518				10,849				7,970
Net interest expense		3,619				1,016				10,035				3,425
Depreciation and amortization		3,685				2,063				9,413				6,179
Consolidated EBITDA		20,060				11,678				57,535				38,515
Adjustments to Consolidated EBITDA
Add: Start-up operations(a)		27				(7	)			380				(87	)
Share-based compensation expense(b)		3,378				2,480				9,024				6,859
Acquisition related costs(c)		128				3,047				832				5,485
Activities associated with transitioning operations(d)		(491	)			40				(491	)			(976	)
Transition services costs(e)		1,550				—				3,214				—
Other unusual, non-recurring, or redundant charges(f)		—				34				—				101
Rent related to items (a) and (d) above		55				75				190				198
Consolidated Adjusted EBITDA		24,707				17,347				70,684				50,095
Rent—cost of services		13,796				12,063				40,322				35,703
Rent related to items (a) and (d) above		(55	)			(75	)			(190	)			(198	)
Adjusted rent—cost of services		13,741				11,988				40,132				35,505
Consolidated Adjusted EBITDAR(g)	$	38,448							$	110,816

(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.
(d)		During 2025, an affiliate of the Company held its memory care units in transition and converted the facility into an assisted living community. In 2025 and 2026, the Company received insurance proceeds related to the property which were recorded in Gain on disposition of property and equipment, net on the Consolidated Statements of Income.  This affiliate’s operations in 2026 excluding insurance gains are included in start-up operations.
(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 Group Incorporated (“UnitedHealth”) entered into as part of the acquisition agreement consummated on October 1, 2025. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $1,550 and $6,856 for the three and nine months ended September 30, 2026.
(f)		Represents other 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 September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net income attributable to The Pennant Group, Inc.	$	9,637			$	6,081			$	27,238			$	20,941
Add: Provision for income taxes		3,119				2,518				10,849				7,970
Net interest expense		3,619				1,016				10,035				3,425
Depreciation and amortization		3,685				2,063				9,413				6,179
Consolidated EBITDA		20,060				11,678				57,535				38,515
Adjustments to Consolidated EBITDA
Add: Start-up operations(a)		27				(7	)			380				(87	)
Share-based compensation expense(b)		3,378				2,480				9,024				6,859
Acquisition related costs(c)		128				3,047				832				5,485
Activities associated with transitioning operations(d)		(491	)			40				(491	)			(976	)
Transition services costs(e)		1,550				—				3,214				—
Other unusual, non-recurring, or redundant charges(f)		—				34				—				101
Rent related to items (a) and (d) above		55				75				190				198
Consolidated Adjusted EBITDA		24,707				17,347				70,684				50,095
Add: Net Income attributable to noncontrolling interest (“NCI”)		1,438				805				5,028				2,448
Consolidated Adjusted EBITDA prior to NCI	$	26,145			$	18,152			$	75,712			$	52,543

(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.
(d)		During 2025, an affiliate of the Company held its memory care units in transition and converted the facility into an assisted living community. In 2025 and 2026, the Company received insurance proceeds related to the property which were recorded in Gain on disposition of property and equipment, net on the Consolidated Statements of Income.  This affiliate’s operations in 2026 excluding insurance gains are included in start-up operations.
(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 Group Incorporated (“UnitedHealth”) entered into as part of the acquisition agreement consummated on October 1, 2025. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $1,550 and $6,856 for the three and nine months ended September 30, 2026.
(f)		Represents other 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 September 30, 2026
Revenue	$	239,813		$	60,595		$	1,843		$	302,251
Segment Cost of Services		198,448			44,411
Segment Adjusted EBITDAR from Operations	$	41,365		$	16,184					$	57,549
Three Months Ended September 30, 2025
Revenue	$	173,545		$	53,880		$	1,614		$	229,039
Segment Cost of Services		144,475			38,572
Segment Adjusted EBITDAR from Operations	$	29,070		$	15,308					$	44,378

	Home Health and Hospice Services			Senior Living Services			All Other			Total
Nine Months Ended September 30, 2026
Revenue	$	705,998		$	173,746		$	5,855		$	885,599
Segment Cost of Services		586,881			125,336
Segment Adjusted EBITDAR from Operations	$	119,117		$	48,410					$	167,527
Nine Months Ended September 30, 2025
Revenue	$	498,236		$	155,276		$	4,870		$	658,382
Segment Cost of Services		414,209			110,731
Segment Adjusted EBITDAR from Operations	$	84,027		$	44,545					$	128,572

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

	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Segment Adjusted EBITDAR from Operations(a)	$	57,549			$	44,378			$	167,527			$	128,572
Less: Unallocated corporate expenses		19,101				15,043				56,711				42,972
Depreciation and amortization		3,685				2,063				9,413				6,179
Rent—cost of services		13,796				12,063				40,322				35,703
Income from equity method investment		1,379				—				1,749				—
Other income		(78	)			182				402				368
Adjustments to Segment EBITDAR from Operations:
Less: Start-up operations(b)		27				(7	)			380				(87	)
Share-based compensation expense(c)		3,378				2,480				9,024				6,859
Acquisition related costs(d)		128				3,047				832				5,485
Activities associated with transitioning operations(e)		(491	)			40				(491	)			(976	)
Transition services costs(f)		1,550				—				3,214				—
Other unusual, non-recurring, or redundant charges(g)		—				34				—				101
Add: Net income attributable to noncontrolling interest		1,438				805				5,028				2,448
Income from operations	$	16,512			$	10,238			$	50,999			$	34,416

(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) other 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 as defined above. 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.
(e)		During 2025, an affiliate of the Company held its memory care units in transition and converted the facility into an assisted living community. In 2025 and 2026, the Company received insurance proceeds related to the property which were recorded in Gain on disposition of property and equipment, net on the Consolidated Statements of Income.  This affiliate’s operations in 2026 excluding insurance gains are included in start-up operations.
(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 Group Incorporated (“UnitedHealth”) entered into as part of the acquisition agreement consummated on October 1, 2025. All amounts are included in Cost of services. Fees incurred under the transition services agreement were $1,550 and $6,856 for the three and nine months ended September 30, 2026.
(g)		Represents other 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 September 30,
	Home Health and Hospice							Senior Living
		2026			2025				2026				2025
Segment Adjusted EBITDAR from Operations	$	41,365		$	29,070			$	16,184			$	15,308
Less: Rent—cost of services		3,296			2,277				10,499				9,786
Rent related to start-up and transitioning operations		—			(22	)			(55	)			(53	)
Segment Adjusted EBITDA from Operations	$	38,069		$	26,815			$	5,740			$	5,575

	Nine Months Ended September 30,
	Home Health and Hospice								Senior Living
		2026				2025				2026				2025
Segment Adjusted EBITDAR from Operations	$	119,117			$	84,027			$	48,410			$	44,545
Less: Rent—cost of services		9,740				6,645				30,582				29,058
Rent related to start-up and transitioning operations		(26	)			(41	)			(164	)			(157	)
Segment Adjusted EBITDA from Operations	$	109,403			$	77,423			$	17,992			$	15,644

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) other 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) other 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 "Financials" link of the Investor Relations section on Pennant’s website at http://www.pennantgroup.com.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Pennant Group's third-quarter 2026 revenue and earnings?

Pennant reported $302.3 million in revenue and $0.26 in GAAP diluted earnings per share for the third quarter of 2026. Revenue increased 32.0% year over year, while GAAP diluted earnings per share increased from $0.17. Adjusted diluted earnings per share were $0.35.

How did Pennant's senior living occupancy change in the third quarter of 2026?

Senior living average occupancy declined 250 basis points to 78.4% from the prior-year quarter. Same-store average occupancy declined 60 basis points to 81.2%. Average monthly revenue per occupied room increased 3.7% to $5,385, while the same-store measure increased 4.6% to $5,370.

How much has Pennant expanded its operations over the last two years?

Pennant added 75 home health and hospice locations and 16 senior living communities over the last two years. The company said it also invested in operational leaders, service center support and infrastructure as it grew.