The Pennant Group (PNTG) investor relations material

Executive summary

• Q2 2026 revenue reached $298 million, up 35.8% year-over-year, driven by strong growth in home health, hospice, and senior living, with significant contributions from recent Southeast acquisitions and increased admissions.

• Adjusted EBITDA was $24.3 million, up 48.2% year-over-year; adjusted diluted EPS was $0.36, up 33.3% year-over-year; GAAP diluted EPS was $0.25.

• Net income attributable to shareholders was $9.1 million, up from $7.1 million in Q2 2025; adjusted net income was $12.8 million, a 36.5% increase year-over-year.

• The company expanded to 175 home health, hospice, and home care agencies and 69 senior living communities as of June 30, 2026.

• Management expects to exceed the top end of original full-year guidance, reflecting operational excellence and successful integration of acquisitions.

Financial highlights

• Q2 2026 GAAP revenue: $298 million (+35.8% YoY); adjusted EBITDA: $24.3 million (+48.2% YoY); adjusted EBITDA prior to NCI: $26.1 million (+51% YoY).

• Q2 2026 net income: $10.9 million; adjusted EBITDAR: $37.6 million (+33.3% YoY); operating cash flow for H1 2026: $18.4 million.

• Cash on hand at quarter end: $15.3 million; $201.9 million outstanding under credit facility; debt to equity ratio: $198.5 million debt, $404.4 million equity.

• Net debt to adjusted EBITDA: 1.96x; adjusted EBITDA margin for Q2 2026: 8.2%.

• Gross margin for Q2 2026: 18.5%; operating margin: 5.8%.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.171–$1.19 billion; adjusted EBITDA expected at $94.4–$105.1 million; adjusted EPS at $1.34–$1.41.

• Guidance reflects strong operating performance, integration costs, hospice reimbursement adjustments, and contributions from joint ventures.

• Excludes unannounced acquisitions, share-based compensation, and one-time items.

• Management expects continued growth from acquisitions and organic expansion, but notes potential margin fluctuations due to integration.

• Regulatory changes, including new CMS payment rules and enrollment moratoriums, may impact future reimbursement and operational strategies.