STOCK TITAN
  1. Home
  2. Sec-filings
  3. PNTG
  4. [8-K] Pennant Group, Inc. Reports Material Event

Pennant Group (NASDAQ: PNTG) lifts 2026 revenue and EBITDA outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

The Pennant Group, Inc. reported strong second-quarter 2026 results, with total revenue of $298.0 million, up 35.8% year over year. Net income was $9.1 million, and GAAP diluted EPS was $0.25, while adjusted diluted EPS was $0.36.

Home health and hospice revenue rose to $237.8 million, up 43.2%, driven by total home health admissions of 28,947, up 62.3%, and hospice average daily census of 5,477, up 40.1%. Senior living revenue increased to $60.2 million, up 12.6%, supported by slightly higher occupancy and higher average monthly revenue per occupied unit.

Consolidated Adjusted EBITDA reached $24.3 million, up 48.2%, and Consolidated Adjusted EBITDAR was $37.6 million, up 33.3%. Management raised full-year 2026 guidance to revenue of $1,171.1–$1,190.1 million, adjusted diluted EPS of $1.34–$1.41, and adjusted EBITDA of $94.4–$98.0 million, including contributions from recently acquired UnitedHealth and Amedisys assets.

Positive

  • Q2 2026 revenue grew 35.8% to $298.0 million, with net income of $9.1 million, adjusted diluted EPS of $0.36, and Consolidated Adjusted EBITDA up 48.2% to $24.3 million, reflecting broad growth across home health, hospice and senior living.
  • Raised full-year 2026 outlook to revenue of $1,171.1–$1,190.1 million and adjusted EBITDA of $94.4–$98.0 million, supported by strong year-to-date performance and expected contributions from acquired UnitedHealth and Amedisys home health and hospice operations.

Negative

  • None.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $298.0 million Total revenue for the second quarter; increase of $78.5 million or 35.8% over prior year quarter
Q2 2026 Net Income $9.1 million Net income for the second quarter; increase of $2.0 million or 28.2% over prior year quarter
Q2 2026 GAAP Diluted EPS $0.25 GAAP diluted earnings per share for the second quarter of 2026
Q2 2026 Adjusted Diluted EPS $0.36 Adjusted diluted earnings per share for the second quarter of 2026
Q2 2026 Consolidated Adjusted EBITDA $24.3 million Consolidated Adjusted EBITDA for the second quarter; increase of $7.9 million or 48.2% over prior year quarter
2026 Revenue Guidance $1,171.1–$1,190.1 million Updated total revenue guidance for full year 2026
Q2 2026 Home Health Admissions 28,947 Total home health admissions for the second quarter; increase of 11,115 or 62.3% over prior year quarter
Q2 2026 Hospice Average Daily Census 5,477 Hospice average daily census for the second quarter; increase of 1,568 or 40.1% over prior year quarter
Adjusted EBITDA financial
"Consolidated Adjusted EBITDA for the second quarter was $24.3 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted EBITDAR financial
"Consolidated Adjusted EBITDAR for the second quarter was $37.6 million"
Adjusted EBITDAR is a company’s reported profit measure that starts with operating earnings and then adds back interest, taxes, depreciation, amortization and rent, plus any one‑time items companies exclude. It aims to show how much cash a business generates from its core operations before the costs of financing, non‑cash accounting charges and property leases, like comparing two stores’ underlying sales by ignoring rent and loan payments. Investors use it to compare operating performance across firms and assess ability to cover fixed obligations, but companies may calculate it differently, so comparisons require caution.
transition services agreement financial
"costs as a result of the transition services agreement between the Company and UnitedHealth"
A transition services agreement is a formal arrangement where one company continues to provide essential services—such as IT, human resources, or accounting—to another company after a business deal or change in ownership. It acts like a temporary bridge, ensuring smooth operations during a transition period. For investors, it provides clarity on how long support will last and helps assess potential costs and stability during the change.
noncontrolling interest financial
"Less: Net income attributable to noncontrolling interest"
The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.
same agency results financial
"Same agency (b) results: Home health and hospice revenue"
Medicare revenue per 60-day completed episode financial
"Average Medicare revenue per 60-day completed episode (a)"
Revenue $298.0 million increase of $78.5 million or 35.8% over the prior year quarter
Net income attributable to The Pennant Group, Inc. $9.1 million increase of $2.0 million or 28.2% over the prior year quarter
GAAP diluted EPS $0.25 up from $0.20 in the prior year quarter
Adjusted diluted EPS $0.36 up from $0.27 in the prior year quarter
Consolidated Adjusted EBITDA $24.3 million increase of $7.9 million or 48.2% over the prior year quarter
Guidance

For 2026, management anticipates total revenue of $1,171.1–$1,190.1 million, adjusted earnings per diluted share of $1.34–$1.41, adjusted EBITDA of $94.4–$98.0 million, and adjusted EBITDA prior to noncontrolling interest of $101.5–$105.1 million.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

How did The Pennant Group (PNTG) perform in Q2 2026?
The Pennant Group reported Q2 2026 revenue of $298.0 million, up 35.8% year over year, and net income of $9.1 million. GAAP diluted EPS was $0.25 and adjusted diluted EPS was $0.36, reflecting stronger operating performance across both reporting segments.

What was Pennant Group’s adjusted EBITDA in Q2 2026?
Pennant generated Consolidated Adjusted EBITDA of $24.3 million in Q2 2026, an increase of $7.9 million or 48.2% over the prior-year quarter. Consolidated Adjusted EBITDAR was $37.6 million, up 33.3%, highlighting improved profitability after normalizing for specified non-GAAP adjustments.

What 2026 guidance did The Pennant Group (PNTG) provide?
Management now anticipates 2026 revenue of $1,171.1–$1,190.1 million, adjusted diluted EPS of $1.34–$1.41, adjusted EBITDA of $94.4–$98.0 million, and adjusted EBITDA prior to NCI of $101.5–$105.1 million, based on current conditions and year-to-date performance.

How did Pennant’s home health and hospice segment perform in Q2 2026?
Home Health and Hospice Services segment revenue reached $237.8 million, up 43.2% year over year. Total home health admissions were 28,947, up 62.3%, total Medicare home health admissions were 11,916, up 70.7%, and hospice average daily census was 5,477, up 40.1% versus Q2 2025.

What were Pennant Group’s senior living occupancy and rates in Q2 2026?
Senior Living Services segment revenue was $60.2 million, up 12.6% over Q2 2025. Average occupancy was 78.9%, same store occupancy was 81.6%, and average monthly revenue per occupied unit was $5,392, with same store average of $5,413, both higher than a year earlier.

How much 2026 revenue does Pennant expect from the UnitedHealth and Amedisys assets?
For the former UnitedHealth and Amedisys assets, management’s 2026 outlook includes revenue of $196.0–$198.0 million, adjusted EBITDA of $17.0–$18.6 million, and adjusted EBITDA prior to noncontrolling interest of $20.8–$22.5 million, within the consolidated guidance ranges.
0001766400FALSE00017664002026-08-052026-08-05

 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2026
The Pennant Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3890083-3349931
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer Identification No.)
1675 E Riverside Drive, Suite 150,
Eagle, ID 83616
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (208) 401-1400
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per sharePNTGNasdaq Global Select Market

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. ☐



Item 2.02. Results of Operations and Financial Condition.
On August 5, 2026, The Pennant Group, Inc. (the “Company”) issued a press release reporting the financial results of the Company for its second quarter ended June 30, 2026. A copy of the press release is attached to this Current Report as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

The Company will post on its website an updated investor presentation for use at upcoming investor meetings. Please visit investor.pennantgroup.com to access the new presentation materials.

The information furnished pursuant to Item 2.02 and Item 7.01, including Exhibit 99.1, shall not be deemed to be “filed” for 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, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.



Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.Description
99.1
Press Release of the Company dated August 5, 2026.
104Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document.




SIGNATURES
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: August 5, 2026
THE PENNANT GROUP, INC.
By:  /s/ LYNETTE B. WALBOM
Lynette B. Walbom
Chief Financial Officer



Exhibit 99.1
pennantlogoa01a.jpg

Pennant Reports Second Quarter 2026 Results

Conference Call and Webcast scheduled for tomorrow, August 6, 2026 at 10:00 am MT

EAGLE, Idaho – August 5, 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 $0.25 for the second quarter of 2026. Pennant also reported adjusted diluted earnings per share of $0.36 for the quarter(1).

Second Quarter Highlights

▪Total revenue for the second quarter was $298.0 million, an increase of $78.5 million or 35.8% over the prior year quarter;

▪Net income for the second quarter was $9.1 million, an increase of $2.0 million or 28.2% over the prior year quarter;

▪Adjusted net income for the second quarter was $12.8 million, an increase of $3.4 million or 36.5% over the prior year quarter;

▪Consolidated Adjusted EBITDAR for the second quarter was $37.6 million, an increase of $9.4 million or 33.3% over the prior year quarter;

▪Consolidated Adjusted EBITDA for the second quarter was $24.3 million, an increase of $7.9 million or 48.2% over the prior year quarter;

▪Consolidated Adjusted EBITDA prior to NCI for the second quarter was $26.1 million, an increase of $8.8 million or 51.0% over the prior year quarter;

▪Home Health and Hospice Services segment revenue for the second quarter was $237.8 million, an increase of $71.8 million or 43.2% over the prior year quarter;

▪Home Health and Hospice Services segment adjusted EBITDAR from operations for the second quarter was $41.0 million, an increase of $13.3 million or 47.9% over the prior year quarter; segment adjusted EBITDA from operations for the second quarter was $37.7 million, an increase of $12.3 million or 48.2% over the prior year quarter; and segment adjusted EBITDA from operations prior to NCI for the second quarter $39.6 million, an increase of $13.2 million or 50.0% over the prior year quarter;

▪Total home health admissions for the second quarter were 28,947, an increase of 11,115 or 62.3% over the prior year quarter; same store home health admissions for the second quarter were 17,854, an increase of 1,573 or 9.7% over the prior year quarter; total Medicare home health admissions for the second quarter were 11,916, an increase of 4,936 or 70.7% over the prior year quarter; same store Medicare home health admissions for the second quarter were 7,372, an increase of 883 or 13.6% over the prior year quarter;

1

▪Hospice average daily census for the second quarter was 5,477, an increase of 1,568 or 40.1% compared to the prior year quarter; same store hospice average daily census for the second quarter was 4,089, an increase of 397 or 10.8% compared to the prior year quarter;

▪Senior Living Services segment revenue for the second quarter was $60.2 million, an increase of $6.7 million or 12.6% over the prior year quarter; average occupancy for the second quarter was 78.9%, an increase of 10 basis points over the prior year quarter, same store average occupancy for the second quarter was 81.6%, an increase of 150 basis points over the prior year quarter, average monthly revenue per occupied room for the second quarter was $5,392, an increase of $204 or 3.9% over the prior year quarter, and same store average monthly revenue per occupied room for the second quarter was $5,413, an increase of $282 or 5.5% over the prior year quarter;

▪Senior Living segment adjusted EBITDAR from operations for the second quarter was $16.0 million, an increase of $1.2 million or 7.9% over the prior year quarter; and segment adjusted EBITDA from operations for the second quarter was $5.8 million, an increase of $0.7 million or 13.2% over the prior year quarter.

(1)
See "Reconciliation of GAAP to Non-GAAP Financial Information.”

Operating Results

“Pennant delivered another strong quarter, putting us on pace to exceed the top end of our original full year guidance,” said Brent Guerisoli, the Company’s Chief Executive Officer. “We are driving operational excellence across both segments, including at our recently-acquired operations in the southeast, even as we complete their integration. That process is unfolding ahead of our expectations, and we are now transitioning the two largest waves of operations, which we expect to fully complete by the middle of the fourth quarter.”

“Our segments continue to deliver healthy growth,” said John Gochnour, the Company’s Chief Operating Officer. “We have been focused on operational excellence at every level, which is producing compelling clinical results and record financial performance. In the home health and hospice segment, years of rigorous investment and innovation helped us weather the challenging reimbursement environment of the last few years and now positions us to benefit from the more stable payment landscape that appears ahead. On the senior living side, our focus on finding and developing great leaders has enabled us to pursue numerous attractive acquisitions year-to-date, build out local care continuums, and continue to grow our real estate portfolio.”

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 six months ended June 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.

2026 Guidance Update

Management is providing updating 2026 annual guidance as follows: total revenue is anticipated to be between $1,171.1 million and $1,190.1 million; full year 2026 adjusted earnings per diluted share is anticipated to be between $1.34 and $1.41; full year 2026 adjusted EBITDA is anticipated to be between $94.4 million and $98.0 million; and full year adjusted EBITDA prior to NCI is anticipated to be $101.5 million to $105.1 million.

The Company’s updated 2026 annual guidance is based on diluted weighted average shares outstanding of approximately 37.0 million and a 26.0% effective tax rate. The guidance includes among other things, certain costs relating to our transition services agreement with UnitedHealth, reimbursement rate adjustments and no unannounced acquisitions. It excludes net income attributable to noncontrolling interest, the tax-effected costs at start-up operations, share-based compensation, acquisition-related costs, and gain (loss) on disposition of assets and impairments.
2

Lynette Walbom, the Company’s Chief Financial Officer, also stated, “We believe providing updated annual adjusted consolidated EBITDA guidance in addition to updated annual revenue and adjusted earnings per share guidance is helpful to understanding our expectations for our business and operational cash flow. This updated guidance reflects management’s expectations based on year-to-date performance and current operating conditions. Our guidance includes revenue in the range of $196.0 to $198.0 million, adjusted EBITDA in the range of $17.0 to $18.6 million, and adjusted EBITDA prior to NCI of $20.8 to $22.5 million relating to these former UnitedHealth and Amedisys assets.”

Conference Call

A live webcast will be held tomorrow, August 6, 2026 at 10:00 a.m. Mountain time (12:00 p.m. Eastern time) to discuss Pennant’s second 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 69 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,
3

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.

4

THE PENNANT GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except for per-share amounts)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue$297,984 $219,501 $583,348 $429,343 
Expense:
Cost of services242,635 177,275 475,297 346,020 
Rent—cost of services13,428 11,925 26,526 23,640 
General and administrative expense21,614 17,597 41,301 32,437 
Depreciation and amortization3,112 2,224 5,728 4,116 
Loss (gain) on disposition of property and equipment, net9 (1,048)9 (1,048)
Total expenses280,798 207,973 548,861 405,165 
Income from operations17,186 11,528 34,487 24,178 
Other expense, net:
Other income626 255 480 186 
Income from equity method investment370 — 370 — 
Interest expense, net(3,348)(1,204)(6,416)(2,409)
Other expense, net(2,352)(949)(5,566)(2,223)
Income before provision for income taxes14,834 10,579 28,921 21,955 
Provision for income taxes3,936 2,598 7,730 5,452 
Net income 10,898 7,981 21,191 16,503 
Less: Net income attributable to noncontrolling interest1,816 896 3,590 1,643 
Net income attributable to The Pennant Group, Inc. $9,082 $7,085 $17,601 $14,860 
Earnings per share:
Basic$0.26 $0.21 $0.51 $0.43 
Diluted$0.25 $0.20 $0.49 $0.42 
Weighted average common shares outstanding:
Basic34,835 34,529 34,781 34,500 
Diluted35,957 35,372 35,857 35,284 

5

THE PENNANT GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)

June 30, 2026December 31, 2025
Assets
Current assets:
Cash $15,273 $17,024 
Accounts receivable—less allowance for credit losses of $766 and $681, at June 30, 2026 and December 31, 2025, respectively
133,182 123,109 
Prepaid expenses and other current assets35,136 27,273 
Total current assets183,591 167,406 
Property and equipment, net75,296 60,984 
Operating lease right-of-use assets286,237 275,947 
Deferred tax assets, net844 478 
Restricted and other assets27,294 26,676 
Equity method investment28,798 — 
Goodwill235,789 237,246 
Other indefinite-lived intangibles199,442 199,442 
Total assets$1,037,291 $968,179 
Liabilities and equity
Current liabilities:
Accounts payable$26,241 $25,171 
Accrued wages and related liabilities60,473 65,229 
Operating lease liabilities—current26,551 25,013 
Current maturities of long-term debt5,000 5,000 
Other accrued liabilities34,141 26,851 
Total current liabilities152,406 147,264 
Long-term operating lease liabilities—less current portion263,364 254,311 
Deferred tax liabilities, net1,804 150 
Other long-term liabilities22,776 23,365 
Long-term debt192,499 168,837 
Total liabilities632,849 593,927 
Commitments and contingencies
Equity:
Common stock, $0.001 par value; 100,000 shares authorized; 35,081 and 34,848 shares issued and outstanding, respectively, at June 30, 2026; and 34,878 and 34,626 shares issued and outstanding, respectively, at December 31, 2025
35 35 
Additional paid-in capital254,832 245,833 
Retained earnings104,401 86,800 
Treasury stock, at cost, 3 shares at June 30, 2026 and December 31, 2025
(65)(65)
Total The Pennant Group, Inc. stockholders’ equity359,203 332,603 
Noncontrolling interest45,239 41,649 
Total equity404,442 374,252 
Total liabilities and equity$1,037,291 $968,179 
6

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:
Six Months Ended June 30,
20262025
Net cash provided by operating activities$18,425 $13,414 
Net cash used in investing activities(45,301)(60,355)
Net cash provided by financing activities25,125 37,080 
Net decrease in cash (1,751)(9,861)
Cash beginning of period17,024 24,246 
Cash end of period$15,273 $14,385 

7

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 June 30,
20262025
Revenue DollarsRevenue PercentageRevenue DollarsRevenue Percentage
Home health and hospice services
Home health$119,447 40.1 %$79,194 36.1 %
Hospice103,580 34.8 73,770 33.6 
Home care and other(a)
14,743 4.9 13,056 5.9 
Total home health and hospice services237,770 79.8 166,020 75.6 
Senior living services60,214 20.2 53,481 24.4 
Total revenue$297,984 100.0 %$219,501 100.0 %
(a)Home care and other revenue is included with home health revenue in other disclosures in this press release.


Six Months Ended June 30,
20262025
Revenue DollarsRevenue PercentageRevenue DollarsRevenue Percentage
Home health and hospice services
Home health$234,863 40.3 %$153,312 35.7 %
Hospice202,739 34.8 144,356 33.6 
Home care and other(a)
29,257 4.9 28,222 6.6 
Total home health and hospice services466,859 80.0 325,890 75.9 
Senior living services116,489 20.0 103,453 24.1 
Total revenue$583,348 100.0 %$429,343 100.0 %
(a)Home care and other revenue is included with home health revenue in other disclosures in this press release.
8

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 June 30,
20262025Change% Change
Total agency results:
Home health and hospice revenue$237,770 $166,020 $71,750 43.2 %
Home health services:
Total home health admissions28,947 17,832 11,115 62.3 %
Total Medicare home health admissions11,916 6,980 4,936 70.7 %
Average Medicare revenue per 60-day completed episode(a)
$3,716 $3,788 $(72)(1.9)%
Hospice services:
Total hospice admissions4,844 3,500 1,344 38.4 %
Average daily census5,477 3,909 1,568 40.1 %
Hospice Medicare revenue per day$191 $190 $1 0.5 %


Three Months Ended June 30,
20262025Change% Change
Same agency(b) results:
Home health and hospice revenue$165,357 $149,386 $15,971 10.7 %
Home health services:
Total home health admissions17,854 16,281 1,573 9.7 %
Total Medicare home health admissions7,372 6,489 883 13.6 %
Average Medicare revenue per 60-day completed episode(a)
$3,823 $3,806 $17 0.4 %
Hospice services:
Total hospice admissions3,564 3,275 289 8.8 %
Average daily census4,089 3,692 397 10.8 %
Hospice Medicare revenue per day$195 $184 $11 6.0 %



9

Six Months Ended June 30,
20262025Change% Change
Total agency results:
Home health and hospice revenue$466,859 $325,890 $140,969 43.3 %
Home health services:
Total home health admissions59,668 36,710 22,958 62.5 %
Total Medicare home health admissions25,219 14,579 10,640 73.0 %
Average Medicare revenue per 60-day completed episode(a)
$3,689 $3,744 $(55)(1.5)%
Hospice services:
Total hospice admissions9,649 7,283 2,366 32.5 %
Average daily census5,339 3,852 1,487 38.6 %
Hospice Medicare revenue per day$191 $190 $1 0.5 %

Six Months Ended June 30,
20262025Change% Change
Same agency(b) results:
Home health and hospice revenue$325,274 $293,335 $31,939 10.9 %
Home health services:
Total home health admissions36,118 33,549 2,569 7.7 %
Total Medicare home health admissions15,065 13,537 1,528 11.3 %
Average Medicare revenue per 60-day completed episode(a)
$3,787 $3,755 $32 0.9 %
Hospice services:
Total hospice admissions7,143 6,809 334 4.9 %
Average daily census4,021 3,639 382 10.5 %
Hospice Medicare revenue per day$192 $183 $9 4.9 %
(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 June 30,
20262025Change% Change
Total senior living results:
Senior living revenue$60,214 $53,481 $6,733 12.6 %
Occupancy78.9 %78.8 %0.1 %
Average monthly revenue per occupied unit$5,392 $5,188 $204 3.9 %

10

Three Months Ended June 30,
20262025Change% Change
Same store senior living(a) results:
Senior living revenue$52,868 $49,366 $3,502 7.1 %
Occupancy81.6 %80.1 %1.5 %
Average monthly revenue per occupied unit$5,413 $5,131 $282 5.5 %


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

Six Months Ended June 30,
20262025Change% Change
Total senior living results:
Senior living revenue$116,489 $103,453 $13,036 12.6 %
Occupancy78.7 %78.7 %— %
Average monthly revenue per occupied unit$5,390 $5,165 $225 4.4 %

Six Months Ended June 30,
20262025Change% Change
Same store senior living(a) results:
Senior living revenue$104,418 $97,335 $7,083 7.3 %
Occupancy81.3 %79.6 %1.7 %
Average monthly revenue per occupied unit$5,395 $5,112 $283 5.5 %

(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.
11

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 June 30,
20262025
Revenue DollarsRevenue PercentageRevenue DollarsRevenue Percentage
Revenue:
Medicare$151,651 50.9 %$103,821 47.3 %
Medicaid39,815 13.4 30,798 14.0 
Subtotal191,466 64.3 134,619 61.3 
Managed care47,925 16.1 30,619 13.9 
Private and other(a)
58,593 19.6 54,263 24.8 
Total revenue$297,984 100.0 %$219,501 100.0 %
(a)Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement.

Six Months Ended June 30,
20262025
Revenue DollarsRevenue PercentageRevenue DollarsRevenue Percentage
Revenue:
Medicare$296,509 50.8 %$204,946 47.8 %
Medicaid77,136 13.2 58,136 13.5 
Subtotal373,645 64.0 263,082 61.3 
Managed care93,652 16.1 61,333 14.3 
Private and other(a)
116,051 19.9 104,928 24.4 
Total revenue$583,348 100.0 %$429,343 100.0 %
(a)Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement.


12

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 June 30,Six Months Ended June 30,
2026202520262025
Net income attributable to The Pennant Group, Inc.$9,082 $7,085 $17,601 $14,860 
Non-GAAP adjustments
Costs at start-up operations(a)
312 (61)851 32 
Share-based compensation expense(b)
3,057 2,212 5,646 4,379 
Acquisition related costs(c)
350 2,166 704 2,438 
Activities associated with transitioning operations(d)
— (982)— (907)
Transition services costs(e)
1,257 — 1,664 — 
Unusual, non-recurring or redundant charges(f)
— 16 — 67 
Provision for income taxes on Non-GAAP adjustments(g)
(1,214)(1,024)(2,094)(1,833)
Non-GAAP net income$12,844 $9,412 $24,372 $19,036 
Dilutive Earnings Per Share As Reported
Net Income$0.25 $0.20 $0.49 $0.42 
Average number of shares outstanding35,957 35,372 35,857 35,284 
Adjusted Diluted Earnings Per Share
Net Income$0.36 $0.27 $0.68 $0.54 
Average number of shares outstanding35,957 35,372 35,857 35,284 
(a)Represents results related to start-up operations.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenue $(2,135)$(2,391)$(4,012)$(3,256)
Cost of services 2,193 2,233 4,365 3,176 
Rent 67 12 135 19 
Depreciation & amortization187 85 363 93 
Total Non-GAAP adjustment$312 $(61)$851 $32 
(b)Represents share-based compensation expense incurred for the periods presented.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of services$1,672 $1,233 $3,090 $2,428 
General and administrative1,385 979 2,556 1,951 
Total Non-GAAP adjustment$3,057 $2,212 $5,646 $4,379 
(c)Represents costs incurred to acquire an operation that are not capitalizable.

13

(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 2026, this community is included in start-up operations.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of services— 25 $— $45 
Rent— 52 — 104 
Depreciation— 2 — 5 
Gain on disposition of property and equipment, net
— (1,061)— (1,061)
Total Non-GAAP adjustment$— $(982)$— $(907)
(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 $2,491 and $5,306 for the three and six months ended June 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 26.1% for the three and six months ended June 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 June 30,Six Months Ended June 30,
2026202520262025
Consolidated net income
$10,898 $7,981 $21,191 $16,503 
Less: Net income attributable to noncontrolling interest1,816 896 3,590 1,643 
Add: Provision for income taxes
3,936 2,598 7,730 5,452 
Net interest expense3,348 1,204 6,416 2,409 
Depreciation and amortization3,112 2,224 5,728 4,116 
Consolidated EBITDA19,478 13,111 37,475 26,837 
Adjustments to Consolidated EBITDA
Add: Start-up operations(a)
58 (158)353 (80)
Share-based compensation expense(b)
3,057 2,212 5,646 4,379 
Acquisition related costs(c)
350 2,166 704 2,438 
Activities associated with transitioning operations(d)
— (1,036)— (1,016)
Transition services costs(e)
1,257 — 1,664 — 
Other unusual, non-recurring, or redundant charges(f)
— 16 — 67 
Rent related to items (a) and (d) above67 64 135 123 
Consolidated Adjusted EBITDA24,267 16,375 45,977 32,748 
Rent—cost of services13,428 11,925 26,526 23,640 
Rent related to items (a) and (d) above(67)(64)(135)(123)
Adjusted rent—cost of services13,361 11,861 26,391 23,517 
Consolidated Adjusted EBITDAR(g)
$37,628 $72,368 
14

(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 2026, this community is 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 $2,491 and $5,306 for the three and six months ended June 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 June 30,Six Months Ended June 30,
2026202520262025
Net income attributable to The Pennant Group, Inc. $9,082 $7,085 $17,601 $14,860 
Add: Provision for income taxes
3,936 2,598 7,730 5,452 
Net interest expense3,348 1,204 6,416 2,409 
Depreciation and amortization3,112 2,224 5,728 4,116 
Consolidated EBITDA19,478 13,111 37,475 26,837 
Adjustments to Consolidated EBITDA
Add: Start-up operations(a)
58 (158)353 (80)
Share-based compensation expense(b)
3,057 2,212 5,646 4,379 
Acquisition related costs(c)
350 2,166 704 2,438 
Activities associated with transitioning operations(d)
— (1,036)— (1,016)
Transition services costs(e)
1,257 — 1,664 — 
Other unusual, non-recurring, or redundant charges(f)
— 16 — 67 
Rent related to items (a) and (d) above67 64 135 123 
Consolidated Adjusted EBITDA24,267 16,375 45,977 32,748 
Add: Net Income attributable to noncontrolling interest (“NCI”)1,816 896 3,590 1,643 
Consolidated Adjusted EBITDA prior to NCI$26,083 $17,271 $49,567 $34,391 
(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 2026, this community is 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 $2,491 and $5,306 for the three and six months ended June 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.

15

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 ServicesSenior Living ServicesAll OtherTotal
Three Months Ended June 30, 2026
Revenue$237,353 $58,497 $2,134 $297,984 
Segment Cost of Services196,402 42,535 
Segment Adjusted EBITDAR from Operations$40,951 $15,962 $56,913 
Three Months Ended June 30, 2025
Revenue$165,248 $51,862 $2,391 $219,501 
Segment Cost of Services137,565 37,074 
Segment Adjusted EBITDAR from Operations$27,683 $14,788 $42,471 


Home Health and Hospice ServicesSenior Living ServicesAll OtherTotal
Six Months Ended June 30, 2026
Revenue$466,185 $113,151 $4,012 $583,348 
Segment Cost of Services388,433 80,925 
Segment Adjusted EBITDAR from Operations$77,752 $32,226 $109,978 
Six Months Ended June 30, 2025
Revenue$324,691 $101,396 $3,256 $429,343 
Segment Cost of Services269,734 72,159 
Segment Adjusted EBITDAR from Operations$54,957 $29,237 $84,194 

16

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

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Segment Adjusted EBITDAR from Operations(a)
$56,913 $42,471 $109,978 $84,194 
Less: Unallocated corporate expenses19,285 14,235 37,610 27,929 
Depreciation and amortization3,112 2,224 5,728 4,116 
Rent—cost of services13,428 11,925 26,526 23,640 
Income from equity method investment370 — 370 — 
Other income626 255 480 186 
Adjustments to Segment EBITDAR from Operations:
Less: Start-up operations(b)
58 (158)353 (80)
Share-based compensation expense(c)
3,057 2,212 5,646 4,379 
Acquisition related costs(d)
350 2,166 704 2,438 
Activities associated with transitioning operations(e)
— (1,036)— (1,016)
Transition services costs(f)
1,257 — 1,664 — 
Other unusual, non-recurring, or redundant charges(g)
— 16 — 67 
Add: Net income attributable to noncontrolling interest
1,816 896 3,590 1,643 
Income from operations$17,186 $11,528 $34,487 $24,178 

(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. 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 2026, this community is 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 $2,491 and $5,306 for the three and six months ended June 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.


17

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 June 30,
Home Health and HospiceSenior Living
2026202520262025
Segment Adjusted EBITDAR from Operations$40,951 $27,683 $15,962 $14,788 
Less: Rent—cost of services3,230 2,226 10,198 9,699 
Rent related to start-up and transitioning operations(13)(12)(54)(52)
Segment Adjusted EBITDA from Operations$37,734 $25,469 $5,818 $5,141 

Six Months Ended June 30,
Home Health and HospiceSenior Living
2026202520262025
Segment Adjusted EBITDAR from Operations$77,752 $54,957 $32,226 $29,237 
Less: Rent—cost of services6,444 4,368 20,083 19,272 
Rent related to start-up and transitioning operations(26)(19)(109)(104)
Segment Adjusted EBITDA from Operations$71,334 $50,608 $12,252 $10,069 

18

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



19

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

4 documents

Press Releases

Other Documents