Pediatrix Medical Group (MD) investor relations material

Executive summary

• Net revenue for Q1 2026 was $476.2 million, up 3.9% year-over-year, driven by higher same-unit revenue and recent acquisitions.

• Adjusted EBITDA grew to $58.2 million, up from $49.2 million in the prior year period, with strong pricing and operational improvements.

• Net income increased to $29.6 million from $20.7 million in Q1 2025, with diluted EPS rising to $0.36 from $0.24.

• Operating margin improved to 8.7% from 7.0% year-over-year, reflecting favorable same-unit results and acquisitions.

• Announced the addition of two prominent physician leaders and a new share price-based compensation program for clinician partners.

Financial highlights

• Same-unit net revenue rose 2.8%, with reimbursement-related factors contributing a 4.4% increase, partially offset by a 1.6% decline in patient service volumes.

• Practice salaries and benefits increased to $345.7 million, mainly due to higher clinical salaries.

• General and administrative expenses rose to $60.3 million, reflecting higher incentive compensation.

• Cash and cash equivalents were $205.8 million at March 31, 2026, down from $375.2 million at year-end 2025.

• Used $130 million in operating cash flow in Q1, mainly due to incentive compensation and AR changes.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance reaffirmed at $280 million–$300 million.

• Management expects funds from operations and current cash to be sufficient for working capital, acquisitions, capital expenditures, and share repurchases for at least the next 12 months.

• Pricing outlook remains flat for the year, with RCM cash collection impact expected to taper in the second half.