Profit pressure but strong cash at Ardent Health (NYSE: ARDT)
Filing Impact
Filing Sentiment
Form Type
8-K
Ardent Health reported mixed fourth quarter and full-year 2025 results and issued 2026 guidance. Full-year 2025 revenue rose to $6.32 billion, up 6.0%, while Adjusted EBITDA increased 9.3% to $545 million, lifting the Adjusted EBITDA margin to 8.6%.
Fourth quarter revenue was $1.61 billion, essentially flat year over year, and Adjusted EBITDA fell 26.6% to $134 million as net income attributable to Ardent Health declined to $45 million, or $0.32 per diluted share. Management noted that prior-year results benefited from two quarters of New Mexico state directed payments.
Operations showed modest volume growth, with admissions up 1.5% and adjusted admissions up 2.0%, while net patient service revenue per adjusted admission decreased 2.4%. For 2025, net cash from operating activities climbed 49% to $471 million, ending the year with $710 million in cash and a net leverage ratio of 0.8x.
In 2025 the company repurchased 0.35 million shares for $3 million. For 2026, Ardent forecasts revenue of $6.4–$6.7 billion, net income attributable to Ardent Health of $129–$183 million, Adjusted EBITDA of $485–$535 million and diluted EPS of $0.90–$1.27, with adjusted admissions growth of 1.5–2.5% and capital expenditures of $225–$265 million.
Positive
- None.
Negative
- None.
Insights
Solid 2025 growth and balance sheet, but margins and 2026 EBITDA outlook are softer.
Ardent Health delivered 2025 revenue of $6.32 billion (up 6.0%) and Adjusted EBITDA of $545 million (up 9.3%), with an 8.6% Adjusted EBITDA margin. Cash generation was strong, with net cash from operating activities up 49% to $471 million and year-end cash at $709.6 million.
Quarterly trends were weaker: Q4 net income attributable to Ardent fell to $44.96 million from $114.20 million, and Adjusted EBITDA declined 26.6% to $133.95 million. Management highlighted that the prior-year quarter included two quarters of New Mexico state directed payment benefits, so underlying revenue grew about 3% after that adjustment.
Leverage remains low, with total debt around $1.1 billion, a net leverage ratio of 0.8x under credit agreements, and lease-adjusted net leverage of 2.5x as of December 31 2025. However, 2026 guidance implies lower midpoint Adjusted EBITDA ($510 million) than 2025 actual, alongside capital expenditures of $225–$265 million, suggesting a year focused on investment and absorbing cost headwinds rather than margin expansion. Subsequent filings may provide more detail on how volumes and reimbursement trends track against the guidance ranges.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 | |||
FORM | |||
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||
Date of Report (Date of earliest event reported): March 4, 2026
(Exact Name of Registrant as Specified in its Charter) | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) |
(615 ) 296-3000
(Registrant’s Telephone Number, including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
___________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under
any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $.01 par value per share |
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act
of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On March 4, 2026, Ardent Health, Inc. issued a press release announcing its financial results for the fourth quarter ended
December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
The information in this Current Report on Form 8-K furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be
deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or otherwise subject to the liabilities of that Section. This information shall not be incorporated by reference into any filing
under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent specifically provided in any such
filing.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits:
Exhibit No. | Exhibit Description |
Exhibit 99.1 | Press Release, dated March 4, 2026 |
Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Dated: March 4, 2026 | ARDENT HEALTH, INC. | |
By: | /s/ Alfred Lumsdaine | |
Name: | Alfred Lumsdaine | |
Title: | Executive Vice President, Chief Financial Officer | |
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Exhibit 99.1
Ardent Health Reports Fourth Quarter 2025 Results
Brentwood, Tenn. (March 4, 2026) – Ardent Health, Inc. (NYSE: ARDT) ("Ardent Health" or the "Company"), a leading
provider of healthcare in growing mid-sized urban communities across the U.S., today announced results for the quarter
ended December 31, 2025.
Fourth Quarter 2025 Operating and Financial Summary
All comparisons are versus the same prior year period. See the footnotes to the Operating Statistics table of this press
release for definitions of the metrics below and a full list of key operating metrics.
Total Revenue 4Q25: $1.61 billion 2025: $6.32 billion; 6.0% growth Y/Y | Net Income Attributable to Ardent Health 4Q25: $45 million |
Adjusted EBITDA(1) 4Q25: $134 million 2025: $545 million; 9.3% growth Y/Y | Adjusted EBITDAR(1) 4Q25: $176 million |
Admissions 4Q25: 1.5% growth Y/Y | Adjusted Admissions 4Q25: 2.0% growth Y/Y |
Operating Cash Flow 4Q25: $223 million 87% growth Y/Y | Issuing Full-Year 2026 Guidance Total Revenue: $6,400 - $6,700 million Adjusted EBITDA(1): $485 - $535 million |
(1) Adjusted EBITDA and Adjusted EBITDAR are financial measures that have not been prepared in a manner that complies with U.S. generally accepted
accounting principles ("GAAP"). See "Supplemental Non-GAAP Financial Information" and reconciliations of non-GAAP measures to their most
comparable GAAP financial measures contained later in this press release.
Solid Finish to 2025: IMPACT Program Building Momentum; Robust Cash Flow Generation •"I'm pleased with tangible progress from the deliberate, measurable actions we took during the fourth quarter to mitigate the payor denial and professional fee industry pressures we outlined on the third quarter earnings call," stated Marty Bonick, President and Chief Executive Officer of Ardent Health. "Disciplined execution and expense optimization drove solid fourth quarter adjusted EBITDA results. Our IMPACT program is building traction and resulted in significant SWB expense improvements, particularly in contract labor. Additionally, I'm encouraged by payor denial and professional fee dynamics that were stable in the fourth quarter." •"The solid finish to the year resulted in 2025 revenue and adjusted EBITDA growth of 6% and 9%, respectively, with adjusted EBITDA margins expanding 20 basis points," added Bonick. "Furthermore, we generated robust operating cash flow of $471 million in 2025, up nearly 50%. We also strengthened our balance sheet by improving net leverage to 2.5x and growing cash to over $700 million at year-end." •"We enter 2026 with improving momentum from our IMPACT program, which we now expect to generate $55 million of savings this year, up from $40 million previously. We are highly focused on optimizing revenue, disciplined expense management, and productivity, all while delivering superior quality," continued Bonick. "At the same time, we are stepping over annualization of the aforementioned industry headwinds and the expiration of enhanced Exchange subsidies. As such, we are taking a prudent approach to establishing our 2026 adjusted EBITDA guidance of $485-$535 million." •"We remain confident in our ability to deliver long-term shareholder value,” stated Bonick. "We expect to return to adjusted EBITDA growth in 2027, and over the longer-term our business is strategically well-positioned to leverage key pillars including: durable demand, operational efficiencies captured by our IMPACT program, and capital deployment supported by our strong balance sheet." |
1 Lease-adjusted net leverage ratio is defined as the Company's net debt as of December 31, 2025, plus 8x trailing twelve-month real estate investment
trust ("REIT") rent expense as of the end of the fourth quarter of 2025, divided by trailing twelve-month Adjusted EBITDAR as of December 31, 2025.
2
Financial Performance Summary
Fourth quarter 2025 year-over-year growth rates were negatively impacted by the Company recording two quarters of
financial benefit from the New Mexico state directed payment program in the prior year quarter.
For the fourth quarter of 2025:
•Total revenue decreased 0.1% year-over-year to $1,605 million, driven primarily by a 2.0% increase in adjusted
admissions offset by a 2.4% decrease in net patient service revenue per adjusted admission. Total revenue
increased approximately 3% year-over-year when adjusting for the New Mexico state directed payment program
that included two quarters of financial benefit in the prior year quarter.
•Net income attributable to Ardent Health was $45 million, or $0.32 per diluted share, compared to net income
attributable to Ardent Health of $114 million, or $0.81 per diluted share, in the fourth quarter of 2024.
•Adjusted EBITDA decreased 26.6% year-over-year to $134 million.
For the full-year 2025, revenue increased 6.0% to $6.32 billion, Adjusted EBITDA grew 9.3% to $545 million, and Adjusted
EBITDA margin expanded 20bps to 8.6%.
Operating Performance Summary
The following table provides a summary of certain key operating metrics for the fourth quarter of 2025 compared to the
same prior year period. See the footnotes to the Operating Statistics table of this press release for definitions of the metrics
below and a full list of key operating metrics.
Three Months Ended December 31, | |||||
(Unaudited) | 2025 | 2024 | % Change | ||
Adjusted admissions | 88,583 | 86,872 | 2.0% | ||
Admissions | 40,896 | 40,300 | 1.5% | ||
Inpatient surgeries | 9,466 | 9,108 | 3.9% | ||
Outpatient surgeries | 23,976 | 24,296 | (1.3%) | ||
Total surgeries | 33,442 | 33,404 | 0.1% | ||
Emergency room visits | 158,256 | 161,010 | (1.7%) | ||
Net patient service revenue per adjusted admission | $17,757 | $18,200 | (2.4%) | ||
•Admissions for the fourth quarter of 2025 increased 1.5% year-over-year, driven by strong inpatient surgery growth.
•Surgeries for the fourth quarter of 2025 increased 0.1% year-over-year. The increase in total surgeries reflected
inpatient surgery growth of 3.9% largely offset by a decrease in outpatient surgeries of 1.3%.
Balance Sheet, Cash Flow & Liquidity Update
As of December 31, 2025, the Company had total cash and cash equivalents of $710 million and total debt of $1.1 billion.
The Company’s net leverage ratio as of December 31, 2025, was 0.8x, as calculated under the Company's credit
agreements, and its lease-adjusted net leverage ratio1 was 2.5x, an improvement from 2.9x as of December 31, 2024. At the
end of the fourth quarter, the Company’s available liquidity was $1 billion.
During the fourth quarter of 2025, net cash provided by operating activities was $223 million, compared to $120 million in
the same prior year period. For the full-year 2025, net cash provided by operating activities increased 49% to $471 million.
During the fourth quarter of 2025, the Company repurchased 0.35 million shares of its common stock for $3 million. The
Company had $47 million remaining under its repurchase authorization as of December 31, 2025.
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Introducing 2026 Financial Guidance
The Company is providing initial full-year 2026 financial guidance. The guidance incorporates a number of assumptions,
including headwinds from annualization of elevated professional fees and other rate pressures driven by payor denials,
Exchange disruption, and restoration of short-term compensation. The outlook also assumes tailwinds from mid-single digit
core earnings growth and IMPACT program savings. All guidance is current as of the time provided and is subject to change.
(Unaudited; dollars in millions, except per share amount) | Full Year 2026 Guidance | ||
Total revenue | $6,400 | — | $6,700 |
Net income attributable to Ardent Health, Inc. | $129 | — | $183 |
Adjusted EBITDA | $485 | — | $535 |
Rent expense payable to REITs | $168 | — | $168 |
Diluted earnings per share | $0.90 | — | $1.27 |
Adjusted admissions growth | 1.5% | — | 2.5% |
Capital expenditures | $225 | — | $265 |
The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown
uncertainties and risks, including those set forth below under the heading "Forward-Looking Statements." The Company
does not forecast the impact of items such as, but not limited to, losses (gains) on sales of facilities, losses on retirement of
debt, legal claim costs (benefits) and impairments of long-lived assets. The Company does not believe that it can forecast
these items with sufficient accuracy because of the inherent difficulty of forecasting the timing or amount of various items
that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted.
Fourth Quarter and Year End 2025 Results Conference Call
The Company will host a conference call to discuss its fourth quarter and year end financial results on March 5, 2026, at
10:00 a.m. Eastern Time. A webcast of the conference call will be available in the Investor Relations section of the
Company’s corporate website at https://ir.ardenthealth.com. To listen to a live broadcast, go to the site at least 15 minutes
prior to the scheduled start time in order to register, download, and install any necessary audio software.
To participate in the live teleconference:
United States Live: 1-888-596-4144
International Live: 1-646-968-2525
Access Code: 4437657
To listen to a replay of the teleconference, which will be available through March 19, 2026:
United States Replay: 1-800-770-2030
International Replay: 1-647-362-9199
Access Code: 4437657
About Ardent Health
Ardent Health (NYSE: ARDT) is a leading provider of healthcare in growing mid-sized urban communities across the U.S.
With a focus on people and investments in innovative services and technologies, Ardent is passionate about making
healthcare better and easier to access. Through its subsidiaries, the Company delivers care through a system of 30 acute
care hospitals, more than 280 sites of care, and over 2,000 employed and affiliated providers across six states. For more
information, please visit ardenthealth.com.
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Investor Contact: Dave Styblo, CFA Investor.Relations@ardenthealth.com (615) 296-3016 |
Media Contact: Rebecca Kirkham rebecca.kirkham@ardenthealth.com (615) 296-3000 |
Supplemental Non-GAAP Financial Information
We have included certain non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA
margin, and Adjusted EBITDAR. We define these terms as follows:
•Adjusted EBITDA and Adjusted EBITDA Margin. Adjusted EBITDA is defined as net income plus (i) provision for income
taxes, (ii) interest expense and (iii) depreciation and amortization expense (or EBITDA), as adjusted to deduct
noncontrolling interest earnings, and excludes the effects of loss on extinguishment and modification of debt; other
non-operating (gains) losses; recoveries from the cybersecurity incident in November 2023 (the "Cybersecurity
Incident"), net of incremental information technology and litigation costs; certain legal matters and related costs;
restructuring, exit and acquisition-related costs; change in accounting estimate; New Mexico professional liability
accrual; expenses incurred in connection with the implementation of our integrated health information technology
system provided by Epic Systems; equity-based compensation expense; and loss (income) from disposed operations.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue.
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP performance measures used by our management and
external users of our financial statements, such as investors, analysts, lenders, rating agencies and other interested
parties, to evaluate companies in our industry. Adjusted EBITDA and Adjusted EBITDA margin are performance
measures that are not prepared in accordance with GAAP and are presented in this press release because our
management considers them important analytical indicators commonly used within the healthcare industry to evaluate
financial performance and allocate resources. Further, our management believes that Adjusted EBITDA and Adjusted
EBITDA margin are useful financial metrics to assess our operating performance from period to period by excluding
certain material non-cash items and unusual or non-recurring items that we do not expect to continue in the future and
certain other adjustments we believe are not reflective of our ongoing operations and our performance.
Because not all companies use identical calculations, our presentation of Adjusted EBITDA and Adjusted EBITDA margin
may not be comparable to other similarly titled measures of other companies. While we believe these are useful
supplemental performance measures for investors and other users of our financial information, you should not
consider Adjusted EBITDA and Adjusted EBITDA margin in isolation or as a substitute for net income or any other items
calculated in accordance with GAAP. Adjusted EBITDA and Adjusted EBITDA margin have inherent material limitations
as performance measures, because they add back certain expenses to net income, resulting in those expenses not
being taken into account in the performance measures. We have borrowed money, so interest expense is a necessary
element of our costs. Because we have material capital and intangible assets, depreciation and amortization expense
are necessary elements of our costs. Likewise, the payment of taxes is a necessary element of our operations. Because
Adjusted EBITDA and Adjusted EBITDA margin exclude these and other items, they have material limitations as
measures of our performance.
•Adjusted EBITDAR. Adjusted EBITDAR is defined as Adjusted EBITDA further adjusted to add back rent expense payable
to real estate investment trusts ("REITs"), which consists of rent expense pursuant to the master lease agreement (the
"Ventas Master Lease") with Ventas, Inc. ("Ventas"), lease agreements with Ventas for 18 medical office buildings and a
lease arrangement with Medical Properties Trust, Inc. ("MPT") for the Hackensack Meridian Mountainside Medical
Center.
5
Adjusted EBITDAR is a commonly used non-GAAP valuation measure used by our management, research analysts,
investors and other interested parties to evaluate and compare the enterprise value of different companies in our
industry. Adjusted EBITDAR excludes: (1) certain material noncash items and unusual or non-recurring items that we do
not expect to continue in the future; (2) certain other adjustments that do not impact our enterprise value; and (3) rent
expense payable to our REITs. We operate 30 acute care hospitals, 12 of which we lease from two REITs, Ventas and
MPT, pursuant to long-term lease agreements. Additionally, we lease 18 medical office buildings from Ventas pursuant
to lease agreements with initial terms of 12 years and eight options to renew for additional five-year terms. Our
management views the long-term lease agreements with Ventas and MPT, as more like financing arrangements than
true operating leases, with the rent payable to such REITs being similar to interest expense. As a result, our capital
structure is different than many of our competitors, especially those whose real estate portfolio is predominately
owned and not leased. Excluding the rent payable to such REITs allows investors to compare our enterprise value to
those of other healthcare companies without regard to differences in capital structures, leasing arrangements and
geographic markets, which can vary significantly among companies. Our management also uses Adjusted EBITDAR as
one measure in determining the value of prospective acquisitions or divestitures. Finally, financial covenants in certain
of our lease agreements, including the Ventas Master Lease, use Adjusted EBITDAR as a measure of compliance.
Adjusted EBITDAR does not reflect our cash requirements for leasing commitments. As such, our presentation of
Adjusted EBITDAR should not be construed as a performance or liquidity measure.
Because not all companies use identical calculations, our presentation of Adjusted EBITDAR may not be comparable to
other similarly titled measures of other companies. While we believe this is a useful supplemental valuation measure
for investors and other users of our financial information, you should not consider Adjusted EBITDAR in isolation or as a
substitute for net income or any other items calculated in accordance with GAAP. Adjusted EBITDAR has inherent
material limitations as a valuation measure, because it adds back certain expenses to net income, resulting in those
expenses not being taken into account in the valuation measure. The payment of taxes and rent is a necessary element
of our valuation. Because Adjusted EBITDAR excludes these and other items, it has material limitations as a measure of
our valuation.
Forward-Looking Statements
This press release may contain "forward-looking statements," as that term is defined in the U.S. federal securities laws.
These forward-looking statements include, but are not limited to, statements other than statements of historical facts,
including, among others, statements relating to our future financial performance, our business prospects and strategy,
anticipated financial position, liquidity and capital needs, the industry in which we operate and other similar matters.
Words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would,"
"will," "may," "can," "continue," "potential," "should" and the negative of these terms or other comparable terminology
often identify forward-looking statements. When reviewing this press release, you should keep in mind the risks and
uncertainties that could impact our business. These forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated
by the forward-looking statements. These risks and uncertainties could cause actual results to differ materially from those
projected in forward-looking statements contained in this press release or implied by past results and trends. Our historical
results are not necessarily indicative of the results that may be expected for any period in the future. Factors, risks, and
uncertainties that could cause actual outcomes and results to be materially different from those contemplated include,
among others: (1) general economic and business conditions, both nationally and in the regions in which we operate,
including the impact of challenging macroeconomic conditions and inflationary pressures, current geopolitical instability,
and impacts from the imposition of, or changes in, tariffs, as well as the potential impact on us of the federal government
shutdown or other uncertain political, financial, credit and capital conditions; (2) possible reductions or other changes in
Medicare, Medicaid and other state programs, including Medicaid supplemental payment programs, Medicaid waiver
programs or state directed payments, that could have an adverse effect on our revenues and business; (3) reduction in the
reimbursement rates paid by commercial payors, increased reimbursement denials or payment delays by commercial
payors, our inability to retain and negotiate favorable contracts with private third party payors, or an increasing volume of
uninsured or underinsured patients; (4) effects of changes in healthcare policy or legislation, including the One Big Beautiful
Bill Act (the "OBBBA") and any other reforms that have or may be undertaken by the current presidential administration,
and legal and regulatory restrictions on our hospitals that have physician owners; (5) the ability to achieve operating and
financial targets, develop and execute mitigation plans to offset to the extent possible impacts from the OBBBA, the
expiration of temporary enhanced subsidies for individuals eligible to purchase insurance coverage through health
insurance marketplaces and imposition of tariffs, attain expected levels of patient volumes and revenues, and control the
costs of providing services; (6) security threats, catastrophic events and other disruptions affecting our, our service
providers’ or our joint venture ("JV") partners’ information technology and related systems, which have adversely affected,
and could in the future adversely affect, our relationships with patients and business partners and subject us to legal claims
and liabilities, reputational harm and business disruption and adversely affect our financial condition; (7) the highly
competitive nature of the healthcare industry and continued industry trends towards clinical transparency and value-based
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purchasing may impact our competitive position; (8) inability to recruit and retain quality physicians, as well as increasing
cost to contract with hospital-based physicians; (9) changes to physician utilization practices and treatment methodologies
and other factors outside our control that impact demand for medical services and may reduce our revenues and ability to
grow profitability; (10) continued industry trends toward value-based purchasing, third party payor consolidation and care
coordination among healthcare providers; (11) inability to successfully complete acquisitions or strategic JVs or inability to
realize all of the anticipated benefits; (12) liabilities because of professional liability and other claims brought against our
hospitals, physician practices, outpatient facilities or other business operations; (13) exposure to certain risks and
uncertainties by the JVs through which we conduct a significant portion of our operations, including anticipated synergies of
past acquisitions and the risk that transactions may not receive necessary government clearances; (14) failure to obtain
drugs and medical supplies at favorable prices or sufficient volumes; (15) operational, legal and financial risks associated
with outsourcing functions to third parties; (16) our facilities are heavily concentrated in Texas and Oklahoma, which makes
us sensitive to regulatory, economic and competitive conditions and changes in those states; (17) negative impact of severe
weather, climate change, and other factors beyond our control, which could restrict patient access to care or cause one or
more facilities to close temporarily or permanently; (18) risks related to the Master Lease with Ventas (“Ventas Master
Lease”) and its restrictions and limitations on our business; (19) the impact of our significant indebtedness and the ability to
refinance such indebtedness on acceptable terms; (20) our failure to comply with complex laws and regulations applicable
to the healthcare industry or to adjust our operations in response to changing laws and regulations; (21) the impact of
governmental claims or governmental investigations, payor audits and litigation brought against our hospitals, physician
practices, outpatient facilities or other business operations; (22) actual or perceived failures to comply with applicable data
protection, privacy and security laws, regulations, standards and other requirements; (23) the impact of a deterioration of
public health conditions associated with a future pandemic, epidemic or outbreak of infectious disease; (24) inability to or
delay in building, acquiring, selling, renovating or expanding our healthcare facilities; (25) failure to comply with federal and
state laws relating to Medicare and Medicaid enrollment, permit, licensing and accreditation requirements; (26) the results
of our efforts to use technology, including artificial intelligence (“AI”) and machine learning, to drive efficiencies, better
outcomes and an enhanced patient experience; (27) our status as a controlled company; (28) conflicts of interest between
our controlling stockholder and other holders of our common stock; and (29) other risk factors described in our filings with
the Securities and Exchange Commission.
Many of the important factors that will determine these results are beyond our ability to control or predict. You are
cautioned not to put undue reliance on any forward-looking statements, which speak only as of the date of this press
release. Except as otherwise required by law, we do not assume any obligation to publicly update or release any revisions to
these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the
occurrence of unanticipated events. All references to "Company," "Ardent Health," "Ardent," "we," "our" and "us" as used
throughout this release refer to Ardent Health, Inc. and its affiliates, unless stated otherwise or indicated by context.
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Ardent Health, Inc.
Consolidated Income Statements
(Unaudited; dollars in thousands, except per share amounts)
Three Months Ended December 31, | |||||||
2025 | 2024 | ||||||
Amount | % | Amount | % | ||||
Total revenue | $1,605,079 | 100.0% | $1,606,289 | 100.0% | |||
Expenses: | |||||||
Salaries and benefits | 651,389 | 40.6% | 653,966 | 40.7% | |||
Professional fees | 309,693 | 19.3% | 286,299 | 17.8% | |||
Supplies | 277,533 | 17.3% | 264,088 | 16.4% | |||
Rents and leases | 27,614 | 1.7% | 27,326 | 1.7% | |||
Rents and leases, related party | 38,930 | 2.4% | 37,816 | 2.4% | |||
Other operating expenses | 154,129 | 9.5% | 141,368 | 8.8% | |||
Interest expense | 12,383 | 0.8% | 13,528 | 0.8% | |||
Depreciation and amortization | 41,037 | 2.6% | 37,854 | 2.4% | |||
Loss on extinguishment and modification of debt | — | 0.0% | 1,898 | 0.0% | |||
Other non-operating gains | — | 0.0% | (23,202) | (1.4)% | |||
Total operating expenses | 1,512,708 | 94.2% | 1,439,043 | 89.6% | |||
Income before income taxes | 92,371 | 5.8% | 167,246 | 10.4% | |||
Income tax expense | 18,109 | 1.2% | 26,355 | 1.6% | |||
Net income | 74,262 | 4.6% | 140,891 | 8.8% | |||
Net income attributable to noncontrolling interests | 29,306 | 1.8% | 26,687 | 1.7% | |||
Net income attributable to Ardent Health, Inc. | $44,956 | 2.8% | $114,204 | 7.1% | |||
Net income per share: | |||||||
Basic | $0.32 | $0.82 | |||||
Diluted | $0.32 | $0.81 | |||||
Weighted-average common shares outstanding: | |||||||
Basic | 141,359,534 | 140,044,698 | |||||
Diluted | 142,099,858 | 140,828,828 | |||||
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Ardent Health, Inc.
Consolidated Income Statements
(Unaudited; dollars in thousands, except per share amounts)
Years Ended December 31, | |||||||
2025 | 2024 | ||||||
Amount | % | Amount | % | ||||
Total revenue | $6,324,339 | 100.0% | $5,966,072 | 100.0% | |||
Expenses: | |||||||
Salaries and benefits | 2,657,700 | 42.0% | 2,534,756 | 42.5% | |||
Professional fees | 1,192,645 | 18.9% | 1,097,119 | 18.4% | |||
Supplies | 1,082,908 | 17.1% | 1,033,122 | 17.3% | |||
Rents and leases | 109,586 | 1.7% | 103,577 | 1.7% | |||
Rents and leases, related party | 152,905 | 2.4% | 149,229 | 2.5% | |||
Other operating expenses | 647,308 | 10.3% | 496,219 | 8.2% | |||
Interest expense | 55,202 | 0.9% | 65,578 | 1.1% | |||
Depreciation and amortization | 155,703 | 2.5% | 146,288 | 2.5% | |||
Loss on extinguishment and modification of debt | 7,344 | 0.1% | 3,388 | 0.1% | |||
Other non-operating gains | (23,320) | (0.4)% | (26,264) | (0.4)% | |||
Total operating expenses | 6,037,981 | 95.5% | 5,603,012 | 93.9% | |||
Income before income taxes | 286,358 | 4.5% | 363,060 | 6.1% | |||
Income tax expense | 56,223 | 0.9% | 63,352 | 1.1% | |||
Net income | 230,135 | 3.6% | 299,708 | 5.0% | |||
Net income attributable to noncontrolling interests | 94,324 | 1.5% | 89,365 | 1.5% | |||
Net income attributable to Ardent Health, Inc. | $135,811 | 2.1% | $210,343 | 3.5% | |||
Net income per share: | |||||||
Basic | $0.96 | $1.59 | |||||
Diluted | $0.96 | $1.58 | |||||
Weighted-average common shares outstanding: | |||||||
Basic | 140,760,736 | 132,439,695 | |||||
Diluted | 141,450,309 | 132,744,577 | |||||
9
Ardent Health, Inc.
Consolidated Statements of Cash Flows
(Unaudited; in thousands)
Years Ended December 31, | |||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net income | $230,135 | $299,708 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 155,703 | 146,288 | |
Other non-operating losses (gains) | 1,275 | (4,702) | |
Loss on extinguishment and modification of debt | 515 | 2,158 | |
Amortization of deferred financing costs and debt discounts | 4,379 | 5,468 | |
Deferred income taxes | 43,594 | 24,044 | |
Equity-based compensation | 39,293 | 17,978 | |
(Income) loss from non-consolidated affiliates | (1,043) | 5,835 | |
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures: | |||
Accounts receivable | 59,155 | 40,001 | |
Inventories | (3,148) | (9,407) | |
Prepaid expenses and other current assets | (122,094) | (136,009) | |
Accounts payable and other accrued expenses and liabilities | 62,060 | (103,860) | |
Accrued salaries and benefits | 686 | 27,524 | |
Net cash provided by operating activities | 470,510 | 315,026 | |
Cash flows from investing activities: | |||
Investment in acquisitions, net of cash acquired | (2,504) | (35,542) | |
Purchases of property and equipment | (211,904) | (187,508) | |
Proceeds from divestitures | — | 4,297 | |
Other | 179 | (1,707) | |
Net cash used in investing activities | (214,229) | (220,460) | |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts and commissions | — | 208,656 | |
Proceeds from insurance financing arrangements | 15,607 | 10,797 | |
Proceeds from long-term debt | — | 3,600 | |
Payments of principal on insurance financing arrangements | (15,041) | (10,443) | |
Payments of principal on long-term debt | (7,988) | (108,371) | |
Debt issuance costs | (2,573) | (2,450) | |
Payments of initial public offering costs | — | (9,534) | |
Distributions to noncontrolling interests | (88,239) | (72,856) | |
Other | (5,231) | 5,243 | |
Net cash (used in) provided by financing activities | (103,465) | 24,642 | |
Net increase in cash and cash equivalents | 152,816 | 119,208 | |
Cash and cash equivalents at beginning of period | 556,785 | 437,577 | |
Cash and cash equivalents at end of period | $709,601 | $556,785 | |
Supplemental Cash Flow Information: | |||
Interest payments, net of capitalized interest | $65,740 | $74,976 | |
Non-cash purchases of property and equipment | $16,369 | $9,276 | |
Offering costs not yet paid | $— | $330 | |
Income tax payments, net | $36,510 | $41,603 |
10
Ardent Health, Inc.
Consolidated Balance Sheets
(Unaudited; dollars in thousands, except per share amounts)
December 31, 2025 (1) | December 31, 2024 (1) | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $709,601 | $556,785 | |
Accounts receivable | 686,102 | 743,031 | |
Inventories | 118,593 | 115,093 | |
Prepaid expenses | 112,646 | 113,749 | |
Other current assets | 431,882 | 304,093 | |
Total current assets | 2,058,824 | 1,832,751 | |
Property and equipment, net | 935,769 | 861,899 | |
Operating lease right of use assets | 292,651 | 248,040 | |
Operating lease right of use assets, related party | 915,599 | 929,106 | |
Goodwill | 879,451 | 852,084 | |
Other intangible assets | 89,335 | 76,930 | |
Deferred income taxes | 6,888 | 12,321 | |
Other assets | 111,691 | 142,969 | |
Total assets | $5,290,208 | $4,956,100 | |
Liabilities and Equity | |||
Current liabilities: | |||
Current installments of long-term debt | $23,444 | $9,234 | |
Accounts payable | 457,936 | 401,249 | |
Accrued salaries and benefits | 296,260 | 295,117 | |
Other accrued expenses and liabilities | 268,904 | 239,824 | |
Total current liabilities | 1,046,544 | 945,424 | |
Long-term debt, less current installments | 1,075,782 | 1,085,818 | |
Long-term operating lease liability | 260,600 | 221,443 | |
Long-term operating lease liability, related party | 904,632 | 919,313 | |
Self-insured liabilities | 241,050 | 227,048 | |
Other long-term liabilities | 76,636 | 34,697 | |
Total liabilities | 3,605,244 | 3,433,743 | |
Redeemable noncontrolling interests | (1,250) | 1,158 | |
Equity: | |||
Preferred stock, par value $0.01 per share; 50,000,000 shares authorized; no shares issued and outstanding | — | — | |
Common stock, par value $0.01 per share; 750,000,000 shares authorized; 142,864,171 and 142,747,818 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 1,429 | 1,428 | |
Additional paid-in capital | 788,472 | 754,415 | |
Accumulated other comprehensive (loss) income | (3,610) | 9,737 | |
Retained earnings | 501,607 | 365,796 | |
Equity attributable to Ardent Health, Inc. | 1,287,898 | 1,131,376 | |
Noncontrolling interests | 398,316 | 389,823 | |
Total equity | 1,686,214 | 1,521,199 | |
Total liabilities and equity | $5,290,208 | $4,956,100 |
(1)As of December 31, 2025 and 2024, the consolidated balance sheets included total liabilities of consolidated variable interest entities of $335.1 million and $306.4
million, respectively. Refer to Note 2 of the Company's consolidated financial statements included in its Annual Report on Form 10-K for further discussion.
11
Ardent Health, Inc.
Operating Statistics
(Unaudited)
Three Months Ended December 31, | Years Ended December 31, | ||||||||||
2025 | % Change | 2024 | 2025 | % Change | 2024 | ||||||
Total revenue (in thousands) | $1,605,079 | (0.1)% | $1,606,289 | $6,324,339 | 6.0% | $5,966,072 | |||||
Hospitals operated (at period end) (1) | 30 | 0.0% | 30 | 30 | 0.0% | 30 | |||||
Licensed beds (at period end) (2) | 4,281 | 0.0% | 4,281 | 4,281 | 0.0% | 4,281 | |||||
Utilization of licensed beds (3) | 49% | 4.3% | 47% | 50% | 8.7% | 46% | |||||
Admissions (4) | 40,896 | 1.5% | 40,300 | 165,682 | 5.3% | 157,295 | |||||
Adjusted admissions (5) | 88,583 | 2.0% | 86,872 | 349,614 | 2.3% | 341,781 | |||||
Inpatient surgeries (6) | 9,466 | 3.9% | 9,108 | 38,288 | 6.5% | 35,937 | |||||
Outpatient surgeries (7) | 23,976 | (1.3)% | 24,296 | 91,361 | (2.3)% | 93,497 | |||||
Total surgeries | 33,442 | 0.1% | 33,404 | 129,649 | 0.2% | 129,434 | |||||
Emergency room visits (8) | 158,256 | (1.7)% | 161,010 | 637,325 | 0.2% | 636,222 | |||||
Patient days (9) | 192,851 | 4.7% | 184,167 | 777,361 | 7.3% | 724,363 | |||||
Total encounters (10) | 1,582,219 | 6.8% | 1,481,612 | 6,102,034 | 5.5% | 5,785,709 | |||||
Average length of stay (11) | 4.72 | 3.3% | 4.57 | 4.69 | 1.7% | 4.61 | |||||
Net patient service revenue per adjusted admission (12) | $17,757 | (2.4)% | $18,200 | $17,748 | 3.5% | $17,144 | |||||
(1)Hospitals operated (at period end). This metric represents the total number of hospitals operated by us at the end of the applicable period, irrespective of
whether the hospital real estate is (i) owned by us, (ii) leased by us or (iii) held through a controlling interest in a JV. This metric includes the managed
clinical operations of the hospital at UT Health North Campus in Tyler, Texas ("UT Health North Campus Tyler"), a hospital owned by The University of
Texas Health Science Center at Tyler ("UTHSCT"), an affiliate of The University of Texas System. Since we only manage the clinical operations of UT Health
North Campus Tyler, the financial results of such entity are not consolidated under Ardent Health, Inc.
(2)Licensed beds (at period end). This metric represents the total number of beds for which the appropriate state agency licenses a facility, regardless of
whether the beds are actually available for patient use.
(3)Utilization of licensed beds. This metric represents a measure of the actual utilization of our inpatient facilities, computed by (i) dividing patient days by
the number of days in each period, and (ii) further dividing that number by average licensed beds, which is calculated by dividing total licensed beds (at
period end) by the number of days in the period, multiplied by the number of days in the period the licensed beds were in existence.
(4)Admissions. This metric represents the number of patients admitted for inpatient treatment during the applicable period.
(5)Adjusted admissions. This metric is used by management as a general measure of combined inpatient and outpatient volume. Adjusted admissions
provides management with a key performance indicator that considers both inpatient and outpatient volumes by applying an inpatient volume measure
(admissions) to a ratio of gross inpatient and outpatient revenue to gross inpatient revenue. Gross inpatient and outpatient revenue reflect gross inpatient
and outpatient charges prior to estimated contractual adjustments, uninsured discounts, implicit price concessions, and other discounts. The calculation of
adjusted admissions is summarized as follows:
Adjusted Admissions | = | Admissions | x | (Gross Inpatient Revenue + Gross Outpatient Revenue) |
Gross Inpatient Revenue |
(6)Inpatient surgeries. This metric represents the number of surgeries performed on patients who have been admitted to our hospitals. Pain management, c-
sections, and certain diagnostic procedures are excluded from inpatient surgeries.
(7)Outpatient surgeries. This metric represents the number of surgeries performed on patients who have not been admitted to our hospitals. Pain
management, c-sections, and certain diagnostic procedures are excluded from outpatient surgeries.
(8)Emergency room visits. This metric represents the total number of patients provided with emergency room treatment during the applicable period.
(9)Patient days. This metric represents the total number of days of care provided to patients admitted to our hospitals during the applicable period.
(10)Total encounters. This metric represents the total number of events where healthcare services are rendered resulting in a billable event during the
applicable period. This includes both hospital and ambulatory patient interactions.
(11)Average length of stay. This metric represents the average number of days admitted patients stay in our hospitals.
(12)Net patient service revenue per adjusted admission. This metric represents net patient service revenue divided by adjusted admissions for the applicable
period. Net patient service revenue reflects gross inpatient and outpatient charges less estimated contractual adjustments, uninsured discounts, implicit
price concessions, and other discounts.
12
Ardent Health, Inc.
Supplemental Non-GAAP Disclosures
(Unaudited; in thousands)
Three Months Ended December 31, | Years Ended December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net income | $74,262 | $140,891 | $230,135 | $299,708 | |||
Adjusted EBITDA Addbacks: | |||||||
Income tax expense | 18,109 | 26,355 | 56,223 | 63,352 | |||
Interest expense | 12,383 | 13,528 | 55,202 | 65,578 | |||
Depreciation and amortization | 41,037 | 37,854 | 155,703 | 146,288 | |||
Noncontrolling interest earnings | (29,306) | (26,687) | (94,324) | (89,365) | |||
Loss on extinguishment and modification of debt | — | — | 7,344 | 3,388 | |||
Other non-operating (gains) losses (1) | — | (4,702) | 1,130 | (4,910) | |||
Cybersecurity Incident recoveries, net (2) | — | (16,501) | (22,655) | (21,477) | |||
Certain legal matters and related costs | 900 | 2,000 | 900 | 2,000 | |||
Restructuring, exit and acquisition-related costs (3) | 5,332 | 1,057 | 13,276 | 12,751 | |||
Change in accounting estimate (4) | — | — | 43,298 | — | |||
New Mexico professional liability accrual (5) | — | — | 54,468 | — | |||
Epic expenses (6) | 1,933 | 1,673 | 4,837 | 3,173 | |||
Equity-based compensation | 9,110 | 9,105 | 39,293 | 17,978 | |||
Loss (income) from disposed operations | 185 | (1,980) | 207 | 9 | |||
Adjusted EBITDA | $133,945 | $182,593 | $545,037 | $498,473 | |||
Total revenue | $1,605,079 | $1,606,289 | $6,324,339 | $5,966,072 | |||
Adjusted EBITDA margin | 8.3% | 11.4% | 8.6% | 8.4% | |||
(1)Other non-operating (gains) losses include gains and losses realized on certain non-recurring events or events that are non-operational in nature.
(2)Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information
technology and litigation costs.
(3)Restructuring, exit and acquisition-related costs represent (i) enterprise restructuring costs, including severance costs related to work force reductions of $4.3
million and $0.3 million for the three months ended December 31, 2025 and 2024, respectively, and $10.3 million and $10.4 million for the years ended
December 31, 2025 and 2024, respectively, (ii) penalties and costs incurred for terminating pre-existing contracts at acquired facilities of $0.8 million and $0.2
million for the three months ended December 31, 2025 and 2024, respectively, and $1.2 million and $0.8 million for the years ended December 31, 2025 and
2024, respectively, and (iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with
potential and completed acquisitions of $0.2 million and $0.6 million for the three months ended December 31, 2025 and 2024, respectively, and $1.8 million
and $1.6 million for the years ended December 31, 2025 and 2024, respectively.
(4)Change in accounting estimate reflects the reduction in total revenue of $42.6 million and its $0.7 million impact on noncontrolling interest earnings as a
result of a change in our accounting estimate of the collectability of accounts receivable. See Note 2 to our consolidated financial statements included in our
Annual Report on Form 10-K for further detail.
(5)During the year ended December 31, 2025, we recorded adjustments to our professional liability expense of $63.3 million. These adjustments included $54.5
million of additional expense recorded during the third quarter of 2025 for adverse prior-period claim developments in New Mexico that was primarily
attributable to recent claim settlements and ongoing litigation arising from the actions of a single provider who was employed between 2019 and 2022. See
Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for further detail.
(6)Epic expenses consist of various costs incurred in connection with the implementation of Epic, our health information technology system. These costs
included (i) professional fees of $0.6 million and $1.6 million for the three months ended December 31, 2025 and 2024, respectively, and $2.1 million and
$3.1 million for the years ended December 31, 2025 and 2024, respectively, (ii) salaries and benefits of $1.3 million and $0.1 million for the three months
ended December 31, 2025 and 2024, respectively, and $2.6 million and $0.1 million for the years ended December 31, 2025 and 2024, respectively, and (iii)
other expenses related to one-time training and onboarding support costs of $0.1 million for the year ended December 31, 2025. Epic expenses do not
include ongoing operating costs of the Epic system.
13
Ardent Health, Inc.
Supplemental Non-GAAP Disclosures
(Unaudited; in thousands)
Three Months Ended December 31, 2025 | Year Ended December 31, 2025 | ||
Net income | $74,262 | $230,135 | |
Adjusted EBITDAR Addbacks: | |||
Income tax expense | 18,109 | 56,223 | |
Interest expense | 12,383 | 55,202 | |
Depreciation and amortization | 41,037 | 155,703 | |
Noncontrolling interest earnings | (29,306) | (94,324) | |
Loss on extinguishment and modification of debt | — | 7,344 | |
Other non-operating losses (1) | — | 1,130 | |
Cybersecurity Incident recoveries, net (2) | — | (22,655) | |
Certain legal matters and related costs | 900 | 900 | |
Restructuring, exit and acquisition-related costs (3) | 5,332 | 13,276 | |
Change in accounting estimate (4) | — | 43,298 | |
New Mexico professional liability accrual (5) | — | 54,468 | |
Epic expenses (6) | 1,933 | 4,837 | |
Equity-based compensation | 9,110 | 39,293 | |
Loss from disposed operations | 185 | 207 | |
Rent expense payable to REITs (7) | 41,786 | 164,308 | |
Adjusted EBITDAR | $175,731 | $709,345 |
(1)Other non-operating losses include losses realized on certain non-recurring events or events that are non-operational in nature.
(2)Cybersecurity Incident recoveries, net represent insurance recovery proceeds associated with the Cybersecurity Incident, net of incremental information
technology and litigation costs.
(3)Restructuring, exit and acquisition-related costs represent (i) enterprise restructuring costs, including severance costs related to work force reductions of
$4.3 million and $10.3 million for the three months ended and year ended December 31, 2025, respectively, (ii) penalties and costs incurred for terminating
pre-existing contracts at acquired facilities of $0.8 million and $1.2 million for the three months ended and year ended December 31, 2025, respectively, and
(iii) third-party professional fees and expenses, salaries and benefits, and other internal expenses incurred in connection with potential and completed
acquisitions of $0.2 million and $1.8 million for the three months ended and year ended December 31, 2025, respectively.
(4)Change in accounting estimate reflects the reduction in total revenue of $42.6 million and its $0.7 million impact on noncontrolling interest earnings as a
result of a change in our accounting estimate of the collectability of accounts receivable. See Note 2 to our consolidated financial statements included in our
Annual Report on Form 10-K for further detail.
(5)During the year ended December 31, 2025, we recorded adjustments to our professional liability expense of $63.3 million. These adjustments included $54.5
million of additional expense recorded during the third quarter of 2025 for adverse prior-period claim developments in New Mexico that was primarily
attributable to recent claim settlements and ongoing litigation arising from the actions of a single provider who was employed between 2019 and 2022. See
Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K for further detail.
(6)Epic expenses consist of various costs incurred in connection with the implementation of Epic, our health information technology system. These costs
included (i) professional fees of $0.6 million and $2.1 million for the three months ended and year ended December 31, 2025, respectively, (ii) salaries and
benefits of $1.3 million and $2.6 million for the three months ended and year ended December 31, 2025, respectively, and (iii) other expenses related to
one-time training and onboarding support costs of $0.1 million for the year ended December 31, 2025. Epic expenses do not include ongoing operating costs
of the Epic system.
(7)Rent expense payable to REITs for the three months ended and year ended December 31, 2025 consists of rent expense of $38.9 million and $152.9 million,
respectively, related to the Ventas Master Lease and other lease agreements with Ventas for medical office buildings and rent expense of $2.9 million and
$11.4 million, respectively, related to a lease arrangement with MPT for the lease of Hackensack Meridian Mountainside Medical Center.
14
Ardent Health, Inc.
Supplemental Non-GAAP Disclosures
(Unaudited; in millions)
Guidance for the Full Year Ending December 31, 2026 | |||
Low | High | ||
Net income | $221 | $280 | |
Adjusted EBITDA Addbacks: | |||
Income tax expense | 58 | 73 | |
Interest expense | 56 | 53 | |
Depreciation and amortization | 175 | 170 | |
Noncontrolling interest earnings | (92) | (97) | |
Cybersecurity Incident recoveries (1) | (7) | (7) | |
Other expenses, including restructuring and enterprise system conversion costs | 28 | 21 | |
Equity-based compensation | 46 | 42 | |
Adjusted EBITDA | $485 | $535 | |
(1)Cybersecurity Incident recoveries represent insurance recovery proceeds associated with the Cybersecurity Incident.
FAQ
How did Ardent Health (ARDT) perform financially in full-year 2025?
Ardent Health’s 2025 revenue reached $6.32 billion, rising 6.0% year over year, while Adjusted EBITDA increased 9.3% to $545 million. Adjusted EBITDA margin improved to 8.6%, indicating better operating profitability despite higher costs in several expense categories.
What were Ardent Health’s key fourth quarter 2025 results?
In Q4 2025, Ardent Health generated $1.61 billion in revenue, essentially flat versus 2024, and reported $44.96 million in net income attributable to Ardent, or $0.32 per diluted share. Adjusted EBITDA declined 26.6% to $133.95 million as prior-year results benefited from New Mexico payments.
What 2026 financial guidance did Ardent Health (ARDT) provide?
For 2026, Ardent Health forecasts total revenue of $6.4–$6.7 billion, net income attributable to Ardent of $129–$183 million, and Adjusted EBITDA of $485–$535 million. The company also guides to diluted EPS of $0.90–$1.27 and capital expenditures of $225–$265 million.
How strong is Ardent Health’s balance sheet and leverage profile?
As of December 31, 2025, Ardent held $709.6 million in cash and cash equivalents and total debt of about $1.1 billion. Its net leverage ratio under credit agreements was 0.8x, and lease-adjusted net leverage was 2.5x, reflecting a relatively conservative capital structure.
What operating trends did Ardent Health report for Q4 2025?
Ardent Health saw Q4 2025 admissions up 1.5% and adjusted admissions up 2.0% versus 2024, while net patient service revenue per adjusted admission declined 2.4%. Total surgeries were roughly flat, with inpatient surgeries up 3.9% and outpatient surgeries down 1.3%.
What cash flow and share repurchase activity did Ardent Health report for 2025?
In 2025, Ardent generated $470.5 million in net cash from operating activities, a 49% increase from 2024. During the fourth quarter, the company repurchased 0.35 million shares of common stock for $3 million, leaving $47 million remaining under its repurchase authorization at year-end.