PACS Group (PACS) investor relations material

Executive summary

• Revenue for Q1 2026 rose 11.2% year-over-year to $1.42 billion, with net income up 184% to $80.7 million and adjusted EBITDA up 75% to $170.4 million, reflecting strong occupancy, skilled mix, and operational execution.

• Operated 323–324 facilities across 17 states, serving over 31,900 patients daily, with mature facilities maintaining high occupancy and clinical consistency.

• Leadership transition announced: Carey Hendrickson appointed CFO, succeeding retiring co-founder Mark Hancock, with enhancements to compliance and internal audit functions.

• Ongoing government and regulatory investigations continue, with full cooperation and strengthened compliance processes.

• Portfolio expanded with acquisitions of three senior living facilities and underlying real estate for two, plus ongoing real estate investments.

Financial highlights

• Q1 2026 revenue was $1.42 billion, up from $1.28 billion in Q1 2025; net income reached $80.7 million, up from $28.4 million.

• Adjusted EBITDA was $170.4 million, a 75% increase year-over-year; Adjusted EBITDAR was $265.9 million.

• Diluted EPS was $0.50, up from $0.17 in the prior year.

• Cash flow from operations in Q1 2026 was $236.3 million.

• Same-store revenue grew 8% year-over-year, driven by occupancy and skilled mix improvements.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $605–$625 million, representing ~22% growth over 2025.

• Revenue guidance reaffirmed at $5.65–$5.75 billion, now excluding future acquisitions.

• Guidance excludes unpredictable quality incentive payments (e.g., WQIP, Ohio), which will be reported as received.

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

• Acquisition pipeline remains active, with ongoing evaluation of opportunities aligned with strategic and financial criteria.