Pediatrix Medical Group (MD) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenue was $487.8 million, up 4.0% year-over-year, driven by acquisitions, improved reimbursement, and strong RCM collections, despite a 2.8–3% decline in NICU days and lower patient service volumes.

• Net income for Q2 2026 was $39.8 million ($0.49 per diluted share), with Adjusted EBITDA at $76.4 million and Adjusted EPS at $0.63.

• Operating margin for Q2 2026 was 11.7%, down from 12.8% in Q2 2025, mainly due to higher operating expenses.

• Strategic focus remains on expanding tele-hybrid medicine and leveraging the largest national footprint in neonatology and maternal-fetal medicine.

• Nearly 2 million shares repurchased in Q2, reducing shares outstanding to 81 million from 87 million a year ago.

Financial highlights

• Same-unit net revenue increased 1.9% in Q2 2026, with a 4.0% increase from reimbursement-related factors and a 2.1% decrease from patient service volumes.

• Practice salaries and benefits rose 3.9% year-over-year to $336.1 million in Q2 2026.

• Operating cash flow was $126 million, down from $138 million in the prior year, mainly due to changes in working capital.

• Cash and cash equivalents at June 30, 2026 were $288.9 million; total debt was $584 million.

• Adjusted EBITDA margin for Q2 2026 was 15.7%.

Outlook and guidance

• Full-year 2026 Adjusted EBITDA guidance reaffirmed at $280–$300 million.

• Adjusted EBITDA expected to be consistent in Q3 and Q4.

• G&A expense for 2026 projected at $230–$240 million, likely at the higher end, with a step-down expected in the second half as one-time executive transition costs subside.

• Management expects funds from operations and current cash to be sufficient for all obligations for at least the next 12 months.