PACS 2025 Q3 Earnings Net Income Surges 222.8% on Strong Revenue Growth

PACS Group (PACS) delivered a robust performance in Q3 2025, with revenue and net income far exceeding prior-year results. The company’s strategic focus on operational efficiency and market expansion drove a 31.2% revenue increase and a 222.8% surge in net income. Management emphasized sustained profitability and a clear path to full-year guidance, signaling confidence in long-term growth.

Revenue

Patient and resident services fueled the majority of revenue, contributing $1.34 billion, while other revenue streams added $265,000, bringing the total to $1.34 billion. This 31.2% year-over-year growth underscores the company’s ability to scale operations and meet rising demand in the post-acute care sector.

Earnings/Net Income

PACS’s earnings per share (EPS) surged 230% to $0.33, and net income climbed to $52.33 million, reflecting a 222.8% increase from $16.21 million in Q3 2024. These figures highlight the company’s profitability resilience and operational discipline, supported by cost management and strategic acquisitions. The sustained profitability over three years demonstrates a stable and scalable business model.

Price Action

The stock price of PACS experienced a significant surge post-earnings, with a 17.12% gain during the latest trading day, 46.86% in the most recent full week, and 32.73% month-to-date. This momentum reflects investor optimism about the company’s turnaround and future growth potential.

Post-Earnings Price Action Review

PACS’s stock has demonstrated strong post-earnings performance, with a 17.12% single-day surge, 46.86% weekly gain, and 32.73% month-to-date increase. This upward trajectory aligns with the company’s improved financial transparency and strategic clarity following the completion of its SEC filings. The market’s positive reaction underscores confidence in PACS’s operational turnaround and long-term value proposition.

CEO Commentary

Jason Murray, CEO, highlighted the company’s “record revenue and adjusted EBITDA” in the first nine months of 2025, attributing success to its “locally led, centrally supported model” and “ability to turn around challenging facilities.” Strategic priorities include expanding through acquisitions and investing in leadership development. Murray expressed optimism about future opportunities, stating the team is “excited about the opportunities that are ahead.”

Guidance

For 2025, PACS projects revenue between $5.25 billion and $5.35 billion, with adjusted EBITDA in the $480 million to $490 million range. Management emphasized continued growth and operational improvements, particularly in newly acquired facilities.

Additional News

1. C-Level Changes: Derick Apt resigned as CFO following a misconduct probe, with Mark Hancock stepping in as interim CFO.

2. SEC Filings: PACS completed its Q3 2025 financial report and filed overdue SEC documents, securing an NYSE listing extension through November 19, 2025.

3. Credit Agreement: Lenders extended PACS’s forbearance period to November 30, 2025, providing flexibility to address financial obligations.