PACS Group (PACS) Q3 2025 earnings summary

Executive summary

• Achieved record revenue and adjusted EBITDA for the first nine months of 2025, with Q3 2025 revenue at $1.34 billion, net income of $52.3 million, and adjusted EBITDA of $131.5 million, reflecting strong operational and clinical execution.

• Year-to-date 2025 revenue reached $3.93 billion, a 36.5% increase, and net income was $131.7 million, driven by facility acquisitions and increased patient days.

• Operates 320 facilities across 17 states, serving over 31,000 residents daily, with mature facility occupancy at 94.8–95%.

• Completed a major restatement and strengthened internal controls following independent investigations, reinforcing transparency and governance.

• Focused on high-quality care, with 68.6% of skilled nursing facilities rated four or five stars by CMS.

Financial highlights

• Q3 2025 revenue was $1.34 billion, up 31% year-over-year; adjusted EBITDA was $131.5 million; net income was $52.3 million; diluted EPS was $0.32.

• Year-to-date 2025 revenue totaled $3.93 billion, a 36.5% increase; adjusted EBITDA was $363.0 million; net income was $131.7 million.

• Cash provided by operations for the first nine months was $407.6 million; cash and equivalents at September 30, 2025, were $355.7 million, up from $157.7 million at 2024 year-end.

• LTM revenue reached $5.14 billion and LTM adjusted EBITDA $456.9 million as of Q3 2025.

• Adjusted EBITDA margin for Q3 2025 was approximately 9.8%.

Outlook and guidance

• Full-year 2025 revenue guidance is $5.25–$5.35 billion, a 30% increase over 2024; adjusted EBITDA guidance is $480–$490 million.

• Management expects continued revenue growth through acquisitions and operational improvements.

• Long-term growth algorithm targets low double-digit revenue and EBITDA growth, with 20 facility acquisitions per year as a baseline.

• Current cash balances and operating cash flow are expected to cover operating needs for at least the next 12 months.