Conference Call and Webcast Scheduled for Tomorrow, May 12, 2026, at 11:30 am ET.
SALT LAKE CITY--(BUSINESS WIRE)--May 11, 2026--
PACS Group, Inc. $(PACS)$ ("PACS" or the "Company"), which together with its subsidiaries is one of the largest post-acute healthcare companies in the United States, announced operating results for the first quarter of 2026.
First Quarter 2026 Financial Highlights
-- Revenue was $1.42 billion, an increase of 11.2% over prior year.
-- Net income was $80.7 million, an increase of $52.3 million, or 184.2%
from $28.4 million in the prior-year period.
-- Adjusted EBITDA was $170.4 million, an increase of $72.8 million, or
74.6% from $97.6 million in the prior-year period.1 This result includes
approximately $16.3 million of net EBITDA benefit from payments received
under California's Workforce & Quality Incentive Program ("WQIP"), a
performance-based program focused on quality of care, workforce
investment and health outcomes. These payments were not included in the
Company's previously issued guidance due to uncertainty regarding the
amount and timing of receipt.
-- Adjusted EBITDAR was $265.9 million.1
First Quarter 2026 Select KPIs
-- On a same-store basis, which includes the 284 skilled nursing
facilities ("SNFs") operated by the Company as of the beginning of 2025,
SNF revenue increased 8.0% in the first quarter of 2026 compared to the
prior-year period. Occupancy improved to 90.9% from 89.6% in the first
quarter of 2025, and skilled mix increased in both revenue and nursing
patient days.
-- The Company had 222 facilities, or 78.4%, of its skilled nursing
portfolio achieve a 4 or 5 star CMS Quality Measure Star rating, with its
mature facilities achieving an average rating of 4.4.
-- Overall occupancy was 90.8%, while Mature and Ramping facilities
occupancy were 94.8% and 88.9%, respectively, compared to an industry
average of 79%.
-- Mature facilities skilled mix was 33.0%, while overall skilled mix
increased to 30.5%, an improvement of 90 basis points from 29.6% in the
prior-year period, driven by continued improvement in our Ramping
facilities cohort.
-- Cash provided by operating activities was $236.3 million for the three
months ended March 31, 2026.
-- As of March 31, 2026, the Company had $795.1 million in available
liquidity, including $248.0 million of cash and cash equivalents.
"I'm very pleased with our first quarter results and the hard work of our teams in delivering these outcomes. Our performance reflects PACS's core strengths--our commitment to care, clinical excellence, operational quality, industry-leading talent, and a strategy built for sustainable growth," said Jason Murray, PACS's Chief Executive Officer. "The improvements we continue to see, both large and small, across all of our organization, demonstrate the underlying strength of our business model and our team's relentless execution in advancing our mission."
"Our first quarter results reflect strong underlying operating performance across the portfolio, with growth in all our key metrics. This performance continues to be driven by solid execution within our ramping and mature cohorts, alongside improving occupancy and skilled mix," said Carey Hendrickson, PACS's Chief Financial Officer. "We also strengthened our balance sheet during the quarter, increasing revolver availability and maintaining low net leverage of approximately 0.1x, while deploying $86.5 million into strategic real estate investments. Overall, we believe the quarter highlights both the earnings power of the platform and our disciplined approach to capital allocation."
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(1) Adjusted EBITDA and Adjusted EBITDAR are Non-GAAP Financial Measures.
See "Reconciliation of GAAP to Non-GAAP Financial Information".
Revised 2026 Business Outlook
"Given our strong start to the year and continued excellent performance across both ramping and mature cohorts, we are increasing our full-year 2026 Adjusted EBITDA guidance to a range of $605 million to $625 million, up from our prior range of $555 million to $575 million," said Hendrickson. "At the midpoint, this represents approximately 22% growth over 2025."
"To create clarity, our updated guidance excludes contributions from future acquisitions, whereas prior guidance assumed a nominal level of M&A activity. Despite this change, we are reaffirming our revenue guidance of $5.65 billion to $5.75 billion, which previously included approximately $120 million of expected acquisition-related revenue. While we are excluding future acquisitions from our guidance, we continue to see a healthy pipeline of acquisition opportunities and are actively engaged in evaluating potential transactions that align with our strategic and financial criteria," said Hendrickson.
As of today, PACS's growing portfolio comprises 324 healthcare operations across 17 states. PACS owns 57 facilities and leases an additional 49 facilities with partial ownership in real estate. PACS holds 39 purchase options on leased facilities and 20 purchase options through partnerships. The Company continues to execute on its strategy of expanding its footprint through a balanced approach to leasing and acquiring real estate. PACS remains active in evaluating opportunities to acquire underperforming operations across multiple states, while selectively deploying capital to grow its owned real estate portfolio and drive long-term value.
Share Repurchase Authorization
The Company's Board of Directors approved a $250 million share repurchase authorization, effective May 7, 2026. Repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise. The amount and timing of repurchases, if any, will depend on several factors, including the Company's stock price performance, ongoing capital allocation priorities, contractual restrictions and general market conditions. The share repurchase authorization does not have a fixed expiration date, does not obligate the Company to acquire any particular amount of common stock, and may be modified, suspended, or terminated at any time at the discretion of the Company's Board of Directors.
"Establishing a share repurchase authorization provides us with an important capital allocation tool and the flexibility to repurchase shares opportunistically when conditions warrant," said Hendrickson. "Had the authorization been in place during the first quarter, there were periods where we believe it would have been appropriate to deploy capital in this way."
Earnings Conference Call Details
A live webcast will be held May 12, 2026, at 11:30 a.m. Eastern time to discuss PACS's first quarter financial results. To listen to the webcast please visit the Investor Relations section of PACS's website at https://IR.pacs.com or by dialing 877-407-0621 / +1 215-268-9899. The webcast will be recorded and will be available for replay via the website for 30 days following the call.
About PACS$(TM)$
PACS Group, Inc. is a holding company investing in post-acute healthcare facilities, professionals, and ancillary services. Founded in 2013, PACS Group is one of the largest post-acute platforms in the United States. Its independent subsidiaries operate 324 post-acute care facilities across 17 states serving over 31,900 patients daily. References herein to the consolidated "Company," as well as the use of the terms "we," "us, " "our," "its" and similar verbiage, refer to PACS Group, Inc. and its consolidated subsidiaries, taken as a whole. PACS Group, Inc. and its subsidiaries that are not licensed healthcare providers do not provide healthcare services to patients, residents or any other person, and do not direct or control the provision of services provided or the operations of those provider subsidiaries. All healthcare services are provided solely by its applicable subsidiaries that are licensed healthcare providers, under the direction and control of licensed healthcare professionals in accordance with applicable law. More information about PACS is available at https://IR.pacs.com. The information on our website is not part of this press release.
Forward Looking Statements Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including statements regarding our future financial performance and guidance, including expected revenue and adjusted EBITDA for fiscal year 2026, business strategy and growth plans, acquisition and integration activities, operational and quality improvement initiatives, capital allocation and investment strategies, industry trends and market conditions, uncertainty regarding the timing, amount, and continuation of payments under California's WQIP or similar state programs; our ability to execute share repurchases at favorable prices or at all, and the impact of repurchases on our capital position and liquidity; and other expectations, beliefs, plans, or objectives of management, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target, " "projects," "contemplates," "believes," "estimates," "predicts," "potential," "goal," "objective," "seeks," or "continue," or the negative of these terms or other similar expressions. Forward-looking statements are neither promises nor guarantees and are based on management's current expectations,
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