The Pennant Group Stock Earnings Reports

The Pennant Group delivered a strong start to 2026 with revenue of $285.4M (up 36% YoY), adjusted EBITDA of $21.7M (up 32.6% YoY), and adjusted diluted EPS of $0.32 (up 18.5% YoY). Performance was driven by robust Home Health & Hospice growth (revenue $229.1M, admissions +62.7%, same-store Medicare admissions +9.2%) and improving Senior Living results (revenue $56.3M, same-store occupancy 81%). Same-store Home Health & Hospice adjusted EBITDA margin prior to NCI improved to 17.2% (up 110 bps YoY), while overall segment margin was temporarily lower (15.5%) due to onboarding >50 new operations and transition services agreement (TSA) costs. Management is deep into integrating the large Southeast acquisitions (Amedisys/United waves)—2 of 5 waves fully transitioned, third and fourth waves underway—with full transition expected by October. They expect margins to improve as TSA costs roll off and newly integrated operations move toward an ~18% target margin, but are not formally adjusting full-year guidance now (they point investors toward the upper end of the range). Balance sheet: $170.8M drawn on credit facility ($72M revolver, $98.8M term loan), $4.9M cash, net debt / adjusted EBITDA 1.93x. CapEx expected to be front-loaded (~$15–18M for the year) due to Senior Living investments. Management highlighted continued M&A discipline (tuck-ins, JVs with health systems) and a focus on leadership development and clinical quality as the primary drivers of operational improvement. Key risks/near-term headwinds include EMR transitions, temporary census disruption during integrations, wage pressure, CAP limitations in some hospice markets, and potential fuel cost volatility. Overall tone: confident operational momentum with near-term integration lumpiness but expectation of material margin and value uplift as transitions complete.