PACS Group (PACS) Q2 2026 earnings summary

Executive summary

• Achieved $1.43B in Q2 2026 revenue, up 9.1% year-over-year, with adjusted EBITDA rising 24.6% to $166.8M and net income up 49.8% to $76.3M; diluted EPS increased 51.6% to $0.47.

• Closed acquisition of an Alaska senior living facility and three Nevada properties for $104.3M, and 20 Texas skilled nursing facilities from Eduro, with 14 more expected to close in Q3/Q4 2026.

• Operates 324–344 facilities across 17 states, serving over 31,900 patients daily with ~48,000 employees as of June 30, 2026.

• Growth driven by acquiring underperforming facilities and converting them to higher-acuity, value-add transitional care.

• 83.6% of SNFs achieved a 4 or 5 star CMS Quality Measure rating; mature facilities averaged 4.5 stars and 93.8% occupancy.

Financial highlights

• Q2 2026 revenue: $1.43B (up 9.1% YoY); adjusted EBITDA: $166.8M (up 24.6% YoY); adjusted EPS: $0.63 (up 34.0% YoY); net income: $76.3M (up 49.8% YoY); adjusted net income: $101.7M.

• Operating income for Q2 2026 was $109.3M, up 35.8% year-over-year.

• Cash and available liquidity: $756.6M as of June 30, 2026, including $164.5M in cash; no outstanding balance on the $600M credit facility.

• LTM revenue: $5.55B; LTM adjusted EBITDA: $610.7M.

• Total assets stood at $5.66B, with total equity of $1.12B as of June 30, 2026.

Outlook and guidance

• 2026 annual revenue guidance: $5.75B–$5.85B, ~10% growth over 2025; adjusted EBITDA guidance: $640M–$660M, ~29% growth over 2025.

• Guidance includes partial-year contribution from 20 Texas facilities acquired from Eduro; excludes remaining Eduro facilities and future acquisitions.

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