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Community Health Systems (CYH) investor relations material
Community Health Systems Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net operating revenues for Q3 2025 were $3.087 billion, nearly flat year-over-year, but same-store revenues rose 6.0% due to higher reimbursement rates and favorable payor mix.
Adjusted EBITDA for Q3 2025 was $376 million (12.2% margin), up 8.4% year-over-year, aided by a $28 million legal settlement recognized as non-patient revenue.
Net income attributable to stockholders was $130 million ($0.96 per diluted share), a turnaround from a net loss of $391 million in Q3 2024; net income for Q3 2025 was $171 million, reversing a $355 million loss in Q3 2024.
Inpatient volume and same-store admissions grew, though consolidated admissions declined due to divestitures, and outpatient elective procedures lagged.
Leadership transition was smooth, with renewed focus on quality, patient and physician experience, and sustainable free cash flow.
Financial highlights
For the nine months ended September 30, 2025, net operating revenues were $9.379 billion, up 0.1% year-over-year; same-store revenues increased 5.5%.
Adjusted EBITDA for the nine months reached $1.131 billion, up 1.7% year-over-year, with a margin of 12.1%.
Net income for the nine months was $399 million ($2.97 per diluted share), compared to a net loss of $446 million in the prior year.
Cash flows from operations were $70 million for Q3 and $277 million year-to-date; adjusted for divestiture taxes, YTD operating cash flow was $403 million.
Operating expenses as a percentage of revenues improved to 87.9% in Q3 2025 from 94.2% in Q3 2024.
Outlook and guidance
2025 full-year guidance projects net operating revenues of $12.4–$12.6 billion, Adjusted EBITDA of $1.5–$1.55 billion, and diluted EPS of $0.80–$0.90.
Positive free cash flow is expected for full year 2025 after adjusting for divestiture-related cash taxes.
Capital expenditures are projected at $350–$400 million, with net cash from operations forecasted at $600–$700 million.
Medicare rate increases and potential new state-directed payment programs are expected to be incremental positives for 2026.
Management expects the 2025 Reconciliation Law to negatively impact future revenues due to Medicaid funding cuts and increased uninsured rates.
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