PACS Group (PACS) Oppenheimer 36th Annual Healthcare MedTech & Services Conference summary

Mission and operating model

• Focus on revolutionizing post-acute care with a mission-driven approach and unique locally led, centrally supported model.

• Administrators act as local CEOs, supported by robust back-office resources to prioritize care quality.

• Emphasis on adapting to rising patient acuity and transitioning hospital patients to nursing homes.

• Growth is driven by improving underperforming facilities and empowering motivated leaders.

• Quality improvement and high occupancy rates are central to the strategy.

Growth, performance, and financials

• 2024 saw significant expansion with over 100 new facilities added, bringing the total to 323.

• Mature facilities achieved 95% occupancy and a 4.4 out of 5.0 QM rating, both industry-leading.

• 2025 revenue reached $5.29 billion (up nearly 30% YoY), with adjusted EBITDA at $505 million.

• Portfolio occupancy at year-end 2025 was over 89%, with mature facilities near 95%.

• Ended 2025 with nearly $700 million in liquidity and net leverage of 0.3x, supporting future growth.

Forward-looking guidance and strategy

• 2026 revenue guidance is $5.65–$5.75 billion, with adjusted EBITDA of $555–$575 million, reflecting 8% and 12% growth, respectively.

• Margin expansion expected to continue, driven mainly by organic growth and improved occupancy.

• Stable reimbursement and disciplined capital allocation anticipated.

• M&A pipeline remains robust, with strong demand for transitional care and opportunities in both existing and new geographies.

• Focus remains on acquiring underperforming facilities and driving value through operational improvements.