Pediatrix Medical Group (MD) investor relations material

Executive summary

• Adjusted EBITDA for Q3 2025 reached $87.3 million, surpassing expectations due to strong pricing, collections, and expense controls.

• Net income for Q3 2025 was $71.7 million, up from $19.4 million in Q3 2024, with diluted EPS at $0.84 and Adjusted EPS at $0.67.

• Net revenue for Q3 2025 was $492.9 million, down 3.6% year-over-year, mainly due to practice dispositions, but same-unit revenue increased 8.0% driven by improved collections and higher patient acuity.

• The company completed the exit of most office-based practices in 2024, focusing on hospital-based and maternal-fetal medicine services, and successfully integrated new practice acquisitions.

• Year-to-date results remain robust, with no anticipated deviation from normal seasonality in Q4.

Financial highlights

• Q3 2025 net revenue was $492.9 million (down 3.6% year-over-year); nine months: $1.42 billion (down 6.0%).

• Q3 2025 net income: $71.7 million; nine months: $131.7 million, or $1.54 per share, compared to a net loss of $129.5 million in the prior year.

• Adjusted EBITDA for the nine months was $209.7 million, up from $155.3 million year-over-year.

• Operating cash flow was $138 million, up from $96 million in the prior year.

• Cash and cash equivalents at quarter-end were $340.1 million, up from $229.9 million at year-end 2024.

Outlook and guidance

• Full-year 2025 Adjusted EBITDA guidance is $270 million–$290 million, reflecting practice bonus variability.

• No expected shift from normal seasonality in Q4; guidance range is wider than usual due to potential variability.

• Management expects funds from operations, cash on hand, and available credit to be sufficient for all obligations for at least the next 12 months.

• 2025 is considered a reset year for collections, with stable payer mix and variable acuity and admin fees.

• The company anticipates continued focus on hospital-based and maternal-fetal medicine services.