Pennant's Q2 2025: Navigating Contradictions in Home Health Revenue, Medicare Impacts, and Senior Living Growth

Revenue and Earnings Growth:
- The Pennant Group, Inc. reported revenue of $219.5 million for Q2 2025, an increase of $50.8 million or 30.1% year-on-year.
- The company's adjusted EBITDA was $16.4 million, up $3.2 million or 24.5% year-on-year.
- This growth was driven by consistent efforts across key focus areas such as leadership development, clinical excellence, employee engagement, and operational improvements.

Home Health and Hospice Segment Performance:
- The Home Health and Hospice segment reported revenue of $166 million, an increase of $40.7 million or 32.5% year-on-year.
- Adjusted EBITDA was $25.5 million, up $5.9 million or 29.9% year-on-year.
- Growth was attributed to strong clinical and cultural performance, efficient patient management, and acquisitions that expanded the service area.

Senior Living Segment Improvement:
- Senior Living segment revenue improved to $53.5 million, an increase of $10 million or 23.1% year-on-year.
- Segment adjusted EBITDA improved to $5.1 million, a 25.7% increase year-on-year.
- This improvement was due to increased occupancy rates, improved revenue quality, and strategic acquisitions like Red Mountain Senior Living in Mesa, Arizona.

Acquisition and Expansion Strategy:
- The Pennant Group announced the acquisition of assets from UnitedHealth and Amedisys, primarily in Tennessee, Alabama, and Georgia.
- This acquisition is expected to be a significant expansion in the Southeast United States and create a center of strength in the region.
- The decision was influenced by the region's talent pool and the potential to integrate with existing operations, supporting operational efficiency and growth.