Pediatrix Medical Group (MD) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 and year-end results, with same-unit revenue growth driven by favorable payer mix, positive volumes, and portfolio restructuring.

• Completed portfolio restructuring, exiting practices representing $200M in annual revenue and most office-based, primary, and urgent care service lines by year-end 2024.

• Transitioned revenue cycle management (RCM) to a hybrid model, enhancing process stability and performance.

• CEO Mark S. Ordan reassumed leadership, with additional leadership changes and a key executive departure.

Financial highlights

• Q4 2024 consolidated revenue grew just over 1% to $502.4M, with same-unit growth of 8.7%.

• Adjusted EBITDA for Q4 2024 was $69M, up from $50.8M in Q4 2023 and above prior guidance.

• Q4 2024 net income was $30.5M, compared to a $124.3M loss in Q4 2023.

• Operating cash flow in Q4 2024 was $135M, up from $73M in the prior year.

• Ended 2024 with $230M in cash and net debt reduced to $386M.

Outlook and guidance

• Preliminary 2025 Adjusted EBITDA guidance is $215M–$235M, with a midpoint above 2024 (adjusted for leap year).

• Full-year 2025 revenue expected to be approximately $1.8B.

• G&A expense projected at $220M–$230M, down from $238M in 2024.

• No M&A contributions included in 2025 outlook.

• Q1 2025 Adjusted EBITDA expected to be about 17% of annual range.