The Pennant Group (PNTG) investor relations material

Executive summary

• Q1 2026 revenue reached $285.4 million, up 36% year-over-year, with adjusted EBITDA of $21.7 million, adjusted diluted EPS of $0.32, and net income of $8.5 million, driven by strong Home Health, Hospice, and Senior Living growth.

• Growth was fueled by both organic expansion and acquisitions, with integration of large 2025 Southeast acquisitions progressing as planned and census rebounding above acquisition levels.

• Leadership development remains a focus, with 47 new CEOs in training in 2026 and a robust pipeline for future growth.

• Guidance for 2026 remains unchanged, but management points to the upper end of the range and expects continued operational improvements.

• Net income attributable to shareholders rose to $8.5 million from $7.8 million in Q1 2025.

Financial highlights

• GAAP revenue of $285.4 million, up $75.5 million or 36% year-over-year; adjusted EBITDA of $21.7 million, up 32.6%.

• GAAP net income of $8.5 million, up $0.7 million or 9.6% year-over-year; adjusted net income of $11.5 million, up $1.9 million or 19.8%.

• GAAP diluted EPS of $0.24, up $0.02 or 9.1%; adjusted diluted EPS of $0.32, up $0.05 or 18.5%.

• Cash flows used in operations improved by $17.8 million year-over-year, with $4.9 million in cash on hand at quarter end.

• Consolidated adjusted EBITDAR was $34.7 million, up 23.9% year-over-year.

Outlook and guidance

• Guidance for 2026 remains unchanged, but management directs attention to the upper end of the range.

• Management expects continued growth from acquisitions and organic expansion, with a focus on operational efficiency and margin improvement.

• No immediate plans to adjust guidance until further progress is observed in integration and operational performance.

• Expect continued same-store improvements and margin expansion as integration progresses.

• Regulatory changes, reimbursement rates, and inflation remain key variables for future performance.