The Pennant Group Stock Earnings Reports

The Pennant Group reported a strong Q3 2025 with record revenue ($229M, +26.8% YoY), improved adjusted EBITDA ($17.3M, +14.5% YoY) and adjusted EPS ($0.30, +15.4% YoY). Management closed the large UnitedHealth / Amedisys transaction (54 locations; trailing 12-month revenues ~$189M) on October 1 and expects integration-related lumpiness near-term but material long-term upside from the acquisition. The company reiterated its diversified post-acute strategy (home health, hospice, senior living), highlighted strong clinical outcomes (CMS average star rating 4.1; hospice quality composite 97%; PPH 8.4%), and noted robust organic growth across segments (home health admissions +36.2% YoY; hospice ADC +17.4% YoY; senior living revenue +23.2% YoY, occupancy >80%). Pennant raised full-year 2025 guidance to revenue $911.4M–$948.6M, adjusted EBITDA $70.9M–$73.8M, and adjusted EPS $1.14–$1.18, citing acquisition contributions and sustained operating momentum. Balance sheet actions include a $100M term loan amendment to increase liquidity. Management emphasized regulatory uncertainty around the proposed 2026 home health rule, active advocacy and contingency planning, and confidence in local leadership-driven operational adaptability. Integration priorities for the Amedisys assets are leadership alignment, building shared services, system (HCHB) migrations, and regional clinical/payer engagement; the transition is expected to complete by end of Q3 2026. Senior living continues to show improving occupancy and margin expansion potential, with disciplined M&A activity and selective real estate investments underway.