Pennant | 10-K: FY2025 Revenue Beats Estimate at USD 947.71 M

Revenue: As of FY2025, the actual value is USD 947.71 M, beating the estimate of USD 930.08 M.EPS: As of FY2025, the actual value is USD 0.84, missing the estimate of USD 0.89.EBIT: As of FY2025, the actual value is USD 58.56 M.Home Health and Hospice Services SegmentSegment Revenue2025: $731,392 thousand2024: $515,344 thousand2023: $385,652 thousandOperational MetricsTotal Home Health Admissions: 86,076 in 2025, an increase of 44.1% from 59,741 in 2024.Total Medicare Home Health Admissions: 34,882 in 2025, an increase of 41.8% from 24,598 in 2024.Average Medicare Revenue per Completed 60-day Home Health Episode: $3,755 in 2025, an increase of 3.5% from $3,628 in 2024.Total Hospice Admissions: 15,189 in 2025, an increase of 24.4% from 12,208 in 2024.Average Hospice Daily Census: 4,204 in 2025, an increase of 28.6% from 3,268 in 2024.Hospice Medicare Revenue per Day: $192 in 2025, an increase of 4.9% from $183 in 2024.Segment Cost of Services: $610,561 thousand in 2025, $427,635 thousand in 2024, and $320,046 thousand in 2023.Segment Adjusted EBITDAR from Operations: $120,831 thousand in 2025, $87,709 thousand in 2024, and $65,606 thousand in 2023.Segment Adjusted EBITDA from Operations: $111,135 thousand in 2025, $80,660 thousand in 2024, and $60,128 thousand in 2023.Cost of Services as a Percentage of Revenue: 83.6% in 2025 compared to 83.4% in 2024.Senior Living Services SegmentSegment Revenue2025: $210,078 thousand2024: $174,767 thousand2023: $148,198 thousandOperational MetricsOccupancy: 79.7% in 2025, a 0.9% increase from 78.8% in 2024.Average Monthly Revenue per Occupied Unit: $5,195 in 2025, an increase of 8.0% from $4,811 in 2024.Segment Cost of Services: $149,553 thousand in 2025, $123,107 thousand in 2024, and $102,904 thousand in 2023.Segment Adjusted EBITDAR from Operations: $60,525 thousand in 2025, $51,660 thousand in 2024, and $45,294 thousand in 2023.Segment Adjusted EBITDA from Operations: $21,785 thousand in 2025, $16,213 thousand in 2024, and $12,293 thousand in 2023.Cost of Services as a Percentage of Revenue: 72.6% in 2025 compared to 71.1% in 2024.Consolidated Financial and Operational MetricsTotal Revenue2025: $947,705 thousand2024: $695,240 thousand2023: $544,891 thousandTotal Expenses2025: $895,819 thousand2024: $657,124 thousand2023: $519,722 thousandIncome from Operations2025: $51,886 thousand2024: $38,116 thousand2023: $25,169 thousandNet Income2025: $33,764 thousand2024: $24,339 thousand2023: $13,910 thousandNet Income Attributable to The Pennant Group, Inc.2025: $29,578 thousand2024: $22,559 thousand2023: $13,379 thousandConsolidated EBITDA2025: $56,660 thousand2024: $42,662 thousand2023: $30,107 thousandConsolidated Adjusted EBITDA2025: $72,466 thousand2024: $53,286 thousand2023: $40,716 thousandConsolidated Adjusted EBITDAR2025: $120,901 thousandCost of Services (Consolidated)2025: $768,503 thousand (81.1% of total revenue)2024: $558,449 thousand (80.3% of total revenue)2023: $438,096 thousand (80.4% of total revenue)Rent—Cost of Services (Consolidated)2025: $48,700 thousand (5.1% of total revenue)2024: $43,029 thousand (6.2% of total revenue)2023: $39,759 thousand (7.3% of total revenue)General and Administrative Expense (Consolidated)2025: $71,077 thousand (7.5% of total revenue)2024: $50,209 thousand (7.2% of total revenue)2023: $36,667 thousand (6.7% of total revenue)Depreciation and Amortization (Consolidated)2025: $8,538 thousand (0.9% of total revenue)2024: $6,119 thousand (0.9% of total revenue)2023: $5,130 thousand (0.9% of total revenue)Gain on Asset Dispositions and Impairment, Net (Consolidated)2025: $999 thousand2024: $682 thousand2023: - $70 thousandProvision for Income Taxes (Consolidated)2025: $11,866 thousand (26.0% effective tax rate)2024: $7,028 thousand (22.4% effective tax rate)2023: $5,674 thousand (29.0% effective tax rate)Net Income Attributable to Noncontrolling Interest (Consolidated)2025: $4,186 thousand2024: $1,780 thousand2023: $531 thousandCash FlowNet Cash Provided by Operating Activities2025: $48,294 thousand2024: $39,298 thousandNet Cash Used in Investing Activities2025: - $227,971 thousand2024: - $70,684 thousandNet Cash Provided by Financing Activities2025: $172,455 thousand2024: $49,573 thousandNet Change in Cash2025: - $7,222 thousand2024: $18,187 thousandCash at End of Year2025: $17,024 thousand2024: $24,246 thousandUnique MetricsNumber of Home Health and Hospice Agencies2025: 1722024: 1232023: 111Number of Senior Living Communities2025: 632024: 572023: 51Senior Living Units2025: 4,4282024: 3,9602023: 3,588Payor Mix (as a percentage of total revenue for 2025)Medicare: 48.4%Medicaid: 13.1%Managed Care: 15.0%Private and Other: 23.5%Outlook / Guidance SummaryThe Pennant Group, Inc. expects operational metrics like occupancy and costs to fluctuate due to market maturity, competition, and inflation, particularly affecting consolidated and segment margins during periods of acquisition growth due to lower occupancy and higher costs at new facilities. Management anticipates that current cash, operating cash flow, and available borrowing capacity will provide sufficient liquidity for operations and acquisitions over the next twelve months.