PACS Group (PACS) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 reached $1.43 billion, up 9.1% year-over-year, with net income rising 49.8% to $76.3 million and adjusted EBITDA up 25% to $166.8 million, driven by occupancy and patient mix improvements.

• Closed on 20 Texas facilities from Eduro Healthcare, with 14 more expected to close in Q3/Q4 2026, expanding presence to 21 states and increasing SNF beds to 36,423.

• Operates 324–344 facilities across 17 states, serving over 31,900 patients daily with approximately 48,000 employees.

• Quality outcomes improved, with 83.6% of skilled nursing facilities rated four or five stars by CMS and mature facilities averaging 4.5 stars and 93.8% occupancy.

• Growth driven by acquiring underperforming facilities and converting them to higher-acuity, value-add transitional care.

Financial highlights

• Q2 2026 revenue: $1.43 billion, up 9.1% year-over-year; net income: $76.3 million, up 49.8%; adjusted EBITDA: $166.8 million, up 25%; adjusted EPS: $0.63.

• Cash from operations for first six months: $371.8 million; available liquidity: $756.6 million as of June 30, 2026.

• Adjusted EBITDAR: $261.5 million; margin expanded to 11.7%.

• Operating income for Q2 2026 was $109.3 million, up 35.8% year-over-year.

• Six-month revenue was $2.85 billion, up 10.1% year-over-year; six-month net income was $157.1 million, up 97.9%.

Outlook and guidance

• Raised full-year 2026 revenue guidance to $5.75–$5.85 billion, representing 10% growth over 2025.

• Increased adjusted EBITDA guidance to $640–$660 million, up 29% over 2025.

• Guidance includes only closed acquisitions and partial-year contribution from 20 Texas facilities; excludes pending deals and supplemental payments.

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

• Expect continued strong performance and additional acquisitions before year-end.