Community Health Systems Stock Earnings Reports

Community Health Systems (CHS) reported third quarter 2025 results generally in line with updated expectations. Key operating points: same-store net revenue rose 6.0% year-over-year driven by rate growth and state-directed payments (New Mexico, Tennessee); same-store inpatient admissions increased 1.3% while adjusted admissions were up 0.3%; outpatient surgeries and ED visits remain soft (surgeries down 2.2%, ED down 1.3%). Adjusted EBITDA was $376 million (12.2% margin), which included a $28 million legal settlement recognized as nonpatient revenue; excluding that item, margin expansion was modest. CHS continued physician and service-line recruitment (about +160 employee physicians/APPs year-over-year) and made targeted market investments (new service lines, robotic programs, clinic relocations). Balance sheet progress: leverage improved to 6.7x (from 7.4x at YE24) after refinancing most 2027 notes with 2034 notes, pushing the next major maturity to 2029. Cash flow: operating cash flow was $70 million in Q3 and $277 million YTD (adjusted for divestiture tax timing, adjusted cash flow from operations was $403 million YTD); management expects positive full-year free cash flow after adjusting for cash taxes on divestiture gains. Guidance: CHS tightened full-year 2025 adjusted EBITDA guidance to $1.50 billion–$1.55 billion (excludes future divestitures or new supplemental payment programs). Management commentary emphasized cautious optimism on sequential volume recovery (improving payer mix, commercial and some exchange recovery), continued focus on cost control (labor, supplies, ERP optimization, revenue cycle improvements), optionality for capital deployment (deleveraging, tuck-ins, ambulatory investments), and ongoing pursuit of additional divestitures (some advanced discussions but no signed agreements).