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- **Record Financial Performance**: Q3 2025 revenue up 31% YoY to $1.3B, adj. EBITDA $131.5M.
- **Operational Strength**: 89% total occupancy, 95% in mature facilities, 25% skilled mix in new facilities.
- **Disciplined Growth**: 7 acquisitions YTD, 36 leadership pipeline candidates, 100 owned/partially owned facilities.
- **Clinical Excellence**: 192 facilities (68.6%) with 4/5-star CMS ratings, 5 special focus facilities graduated.
- **Cash Position**: $355.7M as of Q3, $407M YTD cash flow from operations.

**【Management Opening Remarks】**
- PACS Group completed restatements and strengthened internal controls, emphasizing transparency and governance.
- Independent investigation concluded, reinforcing commitment to accountability and strong governance.
- Investor presentation and earnings release available with non-GAAP financial measures reconciliation.

**【CEO Commentary】**
- Delivered record Q3 and YTD 2025 results: $1.3B revenue (31% YoY), $131.5M adj. EBITDA, and 89% total occupancy.
- Acquired 7 facilities YTD 2025, expanding to 32 states with 35,202 beds.
- Mature facilities achieve 95% occupancy, while new facilities (81%) show improvement in skilled mix (25% vs. 22% YoY).
- AIT program trains 36 leaders, supporting growth and operational excellence.
- Colorado facility turnaround exemplifies ability to transform underperforming assets.

**【CFO Financial Commentary】**
- Q3 2025: $1.3B revenue, $226.6M adj. EBITDAR, $52.3M net income, $0.32 EPS.
- YTD 2025: $3.9B revenue (36% YoY), $646.2M adj. EBITDAR, $131.7M net income.
- Cost of services up 32% YoY due to staffing and quality investments.
- Owned/partially owned real estate for 100 facilities, with 13-year lease average.
- Full-year 2025 guidance: $5.25B-$5.35B revenue, $480M-$490M adj. EBITDA.

**【Q&A Highlights】**
- Occupancy trends: New facilities improving, mature facilities stable at 95%.
- M&A pipeline: 7 acquisitions YTD, targeting 20-30/year with disciplined approach.
- Cash flow: $407M YTD from operations, $355.7M cash as of Q3.
- Medicaid: Focus on states with case mix incentives (e.g., Kentucky, Ohio), 2%-3% margin for new facilities.
- Compliance: Enhanced controls support local leadership, maintaining strong referral relationships.


PACS Group, Inc. (PACS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PACS

PACS fundamentals

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