PACS Group (PACS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 11.2% year-over-year to $1.42 billion, with net income up 184% to $80.7 million and adjusted EBITDA up 75% to $170.4 million, including a $16.3 million benefit from California's WQIP payments.

• Diluted EPS for Q1 2026 was $0.50, compared to $0.17 in Q1 2025.

• Operated 324 facilities across 17 states as of March 31, 2026, serving over 31,900 patients daily with ~48,000 employees, and focused on acquiring and improving underperforming facilities.

• Acquired three senior living facilities and underlying real estate for two, plus an additional property in Arizona for $86.5 million; one facility was divested.

• $250 million share repurchase authorization approved in May 2026, providing flexibility for opportunistic buybacks.

Financial highlights

• Q1 2026 revenue: $1.42 billion, up from $1.28 billion in Q1 2025; net income: $80.7 million, up from $28.4 million; adjusted EBITDA: $170.4 million, up from $97.6 million.

• Operating income grew to $120 million from $48.1 million; adjusted EBITDAR was $265.9 million.

• Cash flow from operations in Q1 2026: $236.3 million, up from $150.2 million in Q1 2025.

• Available liquidity at quarter-end was $795.1 million, including $248 million in cash.

• Same-store occupancy increased to 90.9% from 89.6% year-over-year.

Outlook and guidance

• 2026 annual revenue guidance: $5.65–$5.75 billion, representing ~8% growth over 2025, excluding future acquisitions.

• 2026 adjusted EBITDA guidance: $605–$625 million, ~22% growth over 2025 at the midpoint.

• Management expects current cash balances and operating cash flow to cover needs for at least the next 12 months.

• Acquisition pipeline remains active, with ongoing evaluation of opportunities aligned with strategic and financial criteria.