PACS Group Inc (PACS)

PACS Group, Inc. Reports First Quarter 2026 ResultsMay 11, 2026 4:30 PM
Business Wire Conference Call and Webcast Scheduled for Tomorrow, May 12, 2026, at 11:30 am ET. PACS Group, Inc. (NYSE: 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.” ____________________ 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™ 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, estimates, forecasts and assumptions and on trends that we believe may affect our business, results of operations, financial condition and prospects. These statements are subject to risks, uncertainties and other important factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, our dependence on reimbursement from third-party payors, and changes in patient acuity mix, payor mix, payment methodologies, or new cost-containment initiatives could negatively impact our revenue and results of operations; we may not be fully reimbursed for all services billed through consolidated billing or bundled payments, reducing our revenue and financial condition; increased competition for, or shortages of, nurses, nurse assistants and other skilled personnel could raise labor costs and subject us to monetary fines; state efforts to regulate or deregulate healthcare services or the construction, expansion, or acquisition of healthcare facilities could impair our ability to expand or increase competition; failure to attract patients and residents or compete effectively with other healthcare providers may reduce our revenue and profitability; reviews and audits of care delivery, recordkeeping and billing may detect noncompliance requiring repayment of billed amounts or other costs; litigation and claims common in our industry could result in significant legal costs, settlements or damage awards, and our self-insurance programs may expose us to unexpected costs and losses; material weaknesses in our internal control over financial reporting, or failure to remediate such weaknesses or maintain effective controls, could impair timely and accurate reporting, reduce investor confidence, subject us to penalties, and affect the value of our common stock; inability to provide consistently high quality of care, or employee conduct that impacts patient health, safety or clinical treatment, could result in civil or criminal penalties and harm our operations; significant reliance on information technology, and any failure or interruption of that technology, could impair our operations; operational metrics derived from internal systems without independent verification may contain inaccuracies that harm our reputation; inability to complete acquisitions at attractive prices or at all may reduce revenue, and divestitures of underperforming or non-strategic subsidiaries would further decrease revenue; we may not successfully integrate acquired facilities or achieve expected benefits; acquisitions may entail unforeseen costs, liabilities or regulatory issues that adversely affect our operations; difficulty completing partnerships consistent with our growth strategy; failure to achieve or maintain competitive quality ratings from CMS or private rating organizations could negatively affect us; inability to obtain insurance or increases in insurance costs could impair our financial condition; geographic concentration of our facilities, including in California, increases vulnerability to local economic downturns, regulatory changes or natural disasters; actions of national labor unions may reduce our revenue and profitability; because we lease most facilities, we face risks from lease termination, extensions and special charges that could affect our financial condition and results of operations; insufficient cash flow to cover required payments or meet covenants under long-term debt, mortgages and leases could trigger defaults and cross-defaults, risking loss of facilities or foreclosures; we may need additional capital to fund operations and growth, which may be unavailable or available only on unfavorable terms; extensive and complex laws and regulations govern our industry, and noncompliance or regulatory changes could require significant expenditures or operational modifications; our founders, Jason Murray and Mark Hancock, hold substantial control and a substantial portion of our outstanding common stock, and their interests may conflict with those of other stockholders; as a "controlled company" under NYSE governance standards, we may rely on exemptions from certain requirements, and stockholders may not have the same protections afforded to stockholders of non-controlled companies. These and other important factors are described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings that we make with the Securities and Exchange Commission from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof. We undertake no obligation to update any forward-looking statements contained herein to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. PACS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except for share and per share values)   Unaudited       March 31,   December 31,   2026   2025 ASSETS       Current Assets:       Cash and cash equivalents $ 247,981   $ 197,016 Accounts receivable, net   648,037     628,128 Other receivables   85,183     73,965 Prepaid expenses and other current assets   86,904     170,630 Total Current Assets   1,068,105     1,069,739 Property and equipment, net   1,308,168     1,201,096 Operating lease right-of-use assets   2,907,903     2,968,176 Insurance subsidiary deposits and investments   107,323     87,192 Escrow funds   18,260     18,404 Goodwill and other indefinite-lived assets   68,061     68,061 Other assets   185,698     171,366 Total Assets $ 5,663,518   $ 5,584,034         LIABILITIES AND EQUITY       Current Liabilities:       Accounts payable $ 180,662   $ 192,232 Accrued payroll and benefits   242,698     187,516 Current operating lease liabilities   154,302     153,066 Current maturities of long-term debt   8,385     4,463 Current portion of accrued self-insurance liabilities   137,934     128,994 Refund liability   181,129     181,129 Other accrued expenses   168,413     154,030 Total Current Liabilities   1,073,523     1,001,430 Long-term operating lease liabilities   2,888,283     2,939,854 Line of credit   45,000     100,000 Long-term debt, less current maturities, net of deferred financing fees   239,814     244,803 Accrued self-insurance liabilities, less current portion   208,948     192,561 Other liabilities   165,760     152,937 Total Liabilities $ 4,621,328   $ 4,631,585 Commitments and contingencies       Equity:       PACS Group, Inc. stockholders' equity:       Common stock: $0.001 par value; 1,250,000,000 shares authorized; 157,165,029 shares issued and outstanding as of March 31, 2026, and 156,615,144 shares issued and outstanding as of December 31, 2025   157     157 Additional paid-in capital   646,738     637,035 Retained earnings   390,274     309,579 Total PACS Group, Inc. stockholders' equity   1,037,169     946,771 Noncontrolling interest in subsidiary   5,021     5,678 Total Equity $ 1,042,190   $ 952,449 Total Liabilities and Equity $ 5,663,518   $ 5,584,034 PACS GROUP, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except for share and per share values)   Three Months Ended March 31,   2026   2025 Revenue       Patient and resident service revenue $ 1,419,959     $ 1,276,985   Other revenues   535       165   Total Revenue $ 1,420,494     $ 1,277,150   Operating Expenses       Cost of services   1,074,536       1,023,791   Rent - cost of services   95,531       93,795   General and administrative expense   112,315       98,719   Depreciation and amortization   18,077       12,705   Total Operating Expenses $ 1,300,459     $ 1,229,010   Operating income   120,035       48,140   Other (Expense) Income       Interest expense   (6,424 )     (6,904 ) Other income, net   125       1,494   Total Other Expense, Net $ (6,299 )   $ (5,410 ) Income before provision for income taxes   113,736       42,730   Provision for income taxes   33,068       14,350   Net Income $ 80,668     $ 28,380   Less:       Net loss attributable to noncontrolling interest   (27 )     (92 ) Net Income Attributable To PACS Group, Inc. $ 80,695     $ 28,472   Net Income Per Share Attributable To PACS Group, Inc.       Basic $ 0.51     $ 0.18   Diluted $ 0.50     $ 0.17   Weighted-Average Common Shares Outstanding       Basic   157,073,382       155,177,511   Diluted   162,080,007       166,415,616   PACS GROUP, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in thousands)         The following table presents selected data from our condensed consolidated statements of cash flows for the periods presented:   Three Months Ended March 31,   2026   2025 Net cash provided by/(used in):       Operating activities $ 236,335     $ 150,244   Investing activities   (126,961 )     (16,416 ) Financing activities   (67,714 )     (4,065 ) Net change in cash   41,660       129,763   Cash, cash equivalents, and restricted cash - beginning of period   232,051       160,842   Cash, cash equivalents, and restricted cash - end of period $ 273,711     $ 290,605   PACS GROUP, INC. AND SUBSIDIARIES
UNAUDITED KEY SKILLED SERVICES METRICS We categorize our facilities into three cohorts. Mature facilities are defined as facilities purchased more than 36 months prior to a respective measurement date. Ramping facilities are defined as facilities purchased within 18 to 36 months prior to a respective measurement date. New facilities are defined as facilities purchased or built less than 18 months prior to a respective measurement date. The following tables present key skilled services metrics by category for all facilities, Mature facilities, Ramping facilities and New facilities as of and for the three months ended March 31, 2026 and 2025:   Three Months Ended March 31,   2026   2025   Change   % Change                 Total Facility Results (Dollars in thousands) Skilled nursing services revenue $ 1,378,442     $ 1,254,075     $ 124,367   9.9 % Skilled mix by revenue   50.7 %     50.0 %   70 bps   1.4 % Skilled mix by nursing patient days   30.5 %     29.6 %   90 bps   3.0 % Occupancy for skilled nursing services:               Available patient days   2,948,130       2,898,481       49,649   1.7 % Actual patient days   2,677,424       2,585,719       91,705   3.5 % Occupancy rate (operational beds)   90.8 %     89.2 %   160 bps   1.8 % Number of facilities at period end   290       288       2   0.7 % Number of operational beds at period end   32,757       32,309       448   1.4 %   Three Months Ended March 31,   2026   2025   Change   % Change                 Mature Facility Results (Dollars in thousands) Skilled nursing services revenue $ 835,052     $ 692,159     $ 142,893   20.6 % Skilled mix by revenue   55.5 %     56.9 %   (140) bps   (2.5 )% Skilled mix by nursing patient days   33.0 %     34.1 %   (110) bps   (3.2 )% Occupancy for skilled nursing services:               Available patient days   1,595,293       1,363,226       232,067   17.0 % Actual patient days   1,512,329       1,301,707       210,622   16.2 % Occupancy rate (operational beds)   94.8 %     95.5 %   (70) bps   (0.7 )% Number of facilities at period end   172       139       33   23.7 % Number of operational beds at period end   19,200       15,223       3,977   26.1 %   Three Months Ended March 31,   2026   2025   Change   % Change                 Ramping Facility Results (Dollars in thousands) Skilled nursing services revenue $ 330,017     $ 246,770     $ 83,247   33.7 % Skilled mix by revenue   46.7 %     44.0 %   270 bps   6.1 % Skilled mix by nursing patient days   27.8 %     24.2 %   360 bps   14.9 % Occupancy for skilled nursing services:               Available patient days   752,369       612,325       140,044   22.9 % Actual patient days   668,599       529,172       139,427   26.3 % Occupancy rate (operational beds)   88.9 %     86.4 %   250 bps   2.9 % Number of facilities at period end   74       58       16   27.6 % Number of operational beds at period end   8,262       7,174       1,088   15.2 %   Three Months Ended March 31,   2026   2025   Change   % Change                 New Facility Results (Dollars in thousands) Skilled nursing services revenue $ 213,373     $ 315,146     $ (101,773 )   (32.3 )% Skilled mix by revenue   38.7 %     39.9 %   (120) bps   (3.0 )% Skilled mix by nursing patient days   26.5 %     25.5 %   100 bps   3.9 % Occupancy for skilled nursing services:               Available patient days   600,468       922,930       (322,462 )   (34.9 )% Actual patient days   496,496       754,840       (258,344 )   (34.2 )% Occupancy rate (operational beds)   82.7 %     81.8 %   90 bps   1.1 % Number of facilities at period end   44       91       (47 )   (51.6 )% Number of operational beds at period end   5,295       9,912       (4,617 )   (46.6 )% The following tables present additional detail regarding our skilled mix, including our percentage of nursing patient days and revenue by payor source for all facilities, Mature facilities, Ramping facilities and New facilities for the three months ended March 31, 2026 and 2025:     Three Months Ended March 31, Skilled mix by revenue   Mature   Ramping   New   Total   2026   2025   2026   2025   2026   2025   2026   2025 Medicare   39.8 %   41.3 %   31.9 %   32.6 %   20.1 %   21.2 %   34.7 %   34.4 % Managed care   15.7     15.6     14.8     11.4     18.6     18.7     16.0     15.6   Skilled mix   55.5     56.9     46.7     44.0     38.7     39.9     50.7     50.0   Medicaid   35.8     34.9     43.5     47.3     50.4     50.7     40.0     41.4   Private and other   8.7     8.2     9.8     8.7     10.9     9.4     9.3     8.6   Total   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %     Three Months Ended March 31, Skilled mix by nursing patient days   Mature   Ramping   New   Total   2026   2025   2026   2025   2026   2025   2026   2025 Medicare   21.3 %   22.0 %   16.4 %   15.5 %   12.1 %   11.6 %   18.4 %   17.7 % Managed care   11.7     12.1     11.4     8.7     14.4     13.9     12.1     11.9   Skilled mix   33.0     34.1     27.8     24.2     26.5     25.5     30.5     29.6   Medicaid   57.8     57.1     61.2     66.6     60.7     64.0     59.2     61.1   Private and other   9.2     8.8     11.0     9.2     12.8     10.5     10.3     9.3   Total   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 % The following table presents average daily rates by payor source, excluding services that are not covered by the daily rate, for the three months ended March 31, 2026 and 2025:     Three Months Ended March 31, Average daily rate   Mature   Ramping   New   Total   2026   2025   2026   2025   2026   2025   2026   2025 Medicare   $ 997.68   $ 981.74   $ 948.80   $ 983.51   $ 732.31   $ 771.85   $ 954.36   $ 941.86 Managed care   713.36   679.15   629.34   621.39   569.36   569.38   661.98   633.00 Total for skilled patient payors (1)   896.74   875.06   817.30   854.19   643.84   661.40   837.94   817.72 Medicaid   330.26   319.31   345.89   334.65   365.73   335.35   341.04   327.64 Private and other   504.51   488.77   433.82   444.93   372.45   379.67   455.25   444.41 Total (2)   $ 533.19   $ 523.52   $ 486.55   $ 470.76   $ 440.18   $ 423.17   $ 504.29   $ 483.43 ____________________ (1)   Represents weighted average of revenue generated by Medicare and managed care payor sources. (2)   Represents weighted average. The following table presents the above key skilled services metrics by category for all skilled nursing facilities in operation on January 1, 2025, excluding divestitures since that time, as of and for the three months ended March 31, 2026 and 2025:   Three Months Ended March 31,   2026   2025   Change   % Change                 Total Same-Store Facility Results (Dollars in thousands) Skilled nursing services revenue $ 1,347,485     $ 1,248,049     $ 99,436   8.0 % Skilled mix by revenue   50.4 %     50.2 %   20 bps   0.4 % Skilled mix by nursing patient days   30.2 %     29.7 %   50 bps   1.7 % Occupancy for skilled nursing services:               Actual patient days   2,617,511       2,567,770       49,741   1.9 % Occupancy rate (operational beds)   90.9 %     89.6 %   130 bps   1.5 % Number of facilities at period end   284       284       —   — % Key Skilled Services Metrics We monitor the below key skilled services metrics across all of our facilities and by Mature facilities, Ramping facilities, and New facilities. Skilled nursing services revenue — Skilled nursing services revenue reflects the portion of patient and resident service revenue generated from all patients in skilled nursing facilities, excluding revenue generated from our assisted and independent living services. Skilled mix — We measure both revenue and nursing patient days by payor. Medicare and managed care patients, whom we refer to as high acuity patients, typically require a higher level of skilled nursing care. As a result, Medicare and managed care reimbursement rates are typically higher than those from other payors. In most states, Medicaid reimbursement rates are generally the lowest of all payor types. Changes in the payor mix can significantly affect our revenue and profitability. To monitor this performance, we evaluate two different measures of skilled mix: Skilled mix by revenue — Skilled mix by revenue represents the portion of routine revenue generated from treating high acuity Medicare and managed care patients. Routine revenue refers to skilled nursing services revenue generated by contracted daily rates charged for skilled nursing services. Services provided outside of routine contractual agreements are recorded separately as ancillary revenue, including Medicare Part B therapy services, and are not routine revenue. The inclusion of therapy and other ancillary treatments in the contracted daily rate varies by payor source and by contract. Revenue associated with calculating skilled mix is based on contractually agreed-upon amounts or rates, excluding the estimates of variable consideration under the revenue recognition standard, Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. Skilled mix by nursing patient days — Skilled mix by nursing patient days represents the number of days our high acuity Medicare and managed care patients receive skilled nursing services at skilled nursing facilities as a percentage of the total number of days that patients from all payor sources receive skilled nursing services at skilled nursing facilities for any given period. Occupancy — The total number of patients occupying a bed in a skilled nursing facility as a percentage of the beds in such facility that are available for occupancy during the period. Number of facilities — The total number of skilled nursing facilities that we operate. Number of operational beds — The total number of operational beds associated with the skilled nursing facilities that we own.  PACS GROUP, INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (dollars in thousands)           Three Months Ended March 31,   2026   2025 Net income $ 80,668     $ 28,380   Less: Net loss attributable to noncontrolling interest   (27 )     (92 ) Add: Interest expense   6,424       6,904   Provision for income taxes   33,068       14,350   Depreciation and amortization   18,077       12,705   EBITDA $ 138,264     $ 62,431   Adjustments to EBITDA:       Acquisition related costs   —       137   Stock-based compensation expense   20,348       12,202   Legal and other costs   11,778       22,804   Adjusted EBITDA $ 170,390     $ 97,574   Rent - cost of services   95,531       93,795   Adjusted EBITDAR $ 265,921       Non-GAAP Financial Measures In addition to our results provided throughout that are determined in accordance with GAAP, we also present the following non-GAAP financial measures: EBITDA, Adjusted EBITDA and Adjusted EBITDAR (collectively, Non-GAAP Financial Measures). EBITDA and Adjusted EBITDA are performance measures. Adjusted EBITDAR is a valuation measure. These Non-GAAP Financial Measures have no standardized meaning defined by GAAP, and therefore have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for analysis of our results as reported in accordance with GAAP. You should review the reconciliation of net income to the Non-GAAP Financial Measures in the table above, together with our current quarter condensed combined/consolidated financial statements and the related notes in their entirety, and should not rely on any single financial measure. Additionally, other companies may define these or similar Non-GAAP Financial Measures with the same or similar names differently, and because these Non-GAAP Financial Measures are not standardized, it may not be possible to compare these financial measures to those of other companies. A reconciliation of Adjusted EBITDA guidance to Net Income on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to provision for income taxes, interest expense, depreciation and amortization, and certain other expenses that are not representative of our underlying operating performances, all of which are adjustments to Adjusted EBITDA. Performance Measures We use EBITDA and Adjusted EBITDA to facilitate internal comparisons of our historical operating performance on a more consistent basis, as well as for business planning and forecasting purposes. In addition, we believe the presentation of EBITDA and Adjusted EBITDA is useful to investors, analysts and other interested parties in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our ongoing operating performance. EBITDA – We calculate EBITDA as net income, adjusted for net losses attributable to noncontrolling interest, before: interest expense; provision for income taxes; and depreciation and amortization. Adjusted EBITDA – We calculate Adjusted EBITDA as EBITDA further adjusted for non-core business items, which for the reported periods includes, to the extent applicable, costs incurred to acquire operations that are not capitalizable, stock-based compensation expense, legal and other costs, and certain one-time expenses that are not representative of our underlying operating performance. Costs related to acquisitions include costs related to our acquisition of operations, including related costs such as legal fees, financial and tax due diligence, consulting and escrow fees. Legal and other costs include legal and professional fees incurred associated with the Audit Committee’s independent investigation during the years ended December 31, 2025 and 2024, and with other ongoing investigations. Valuation Measure We use Adjusted EBITDAR as a measure to determine the value of prospective acquisitions and to assess the enterprise value of our business without regard to differences in capital structures and leasing arrangements. In addition, we believe that Adjusted EBITDAR is also a commonly used measure by investors, analysts and other interested parties to compare the enterprise value of different companies in the healthcare industry without regard to differences in capital structures and leasing arrangements, particularly for companies with operating and finance leases. For example, finance lease expenditures are recorded in depreciation and interest and are therefore removed from Adjusted EBITDA, whereas operating lease expenditures are recorded in rent expense and are therefore retained in Adjusted EBITDA. Adjusted EBITDAR is a financial valuation measure that is not specified in GAAP, and is not displayed as a performance measure as it excludes rent expense, which is a normal and recurring cash operating expense, and is therefore presented only for the current period. While we believe that Adjusted EBITDAR provides useful insight regarding our underlying operations, excluding the impact of our operating leases, we must still incur cash operating expenses related to our operating leases and rent and such expenses are necessary to operate our leased operations. As a result, Adjusted EBITDAR may understate the extent of our cash operating expenses for the respective period relative to our actual cash needs to operate our leased operations and business. Adjusted EBITDAR – We calculate Adjusted EBITDAR as Adjusted EBITDA plus rent-cost of services. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511995514/en/ Investors: IR@pacs.com Media: Brooks Stevenson
VP Corporate Communication
90 S. 400 W. Suite 700
Salt Lake City, UT 84101
T: 385-988-3596
brooks.stevenson@pacs.com
https://www.pacs.com
https://ir.pacs.com Original: PACS Group, Inc. Reports First Quarter 2026 Results

PACS Group Announces Acquisition in Alaska; New Construction of a Skilled Nursing CommunityMay 1, 2026 2:16 PM
Business Wire
PACS Group, Inc. (NYSE: PACS) (“PACS” or the “Company”) today announced that independently operated subsidiaries of the Company have acquired the operations of the post-acute care facility Ridgeway Senior Living in Anchorage, Alaska. It’s the fourth PACS building in the state of Alaska.


As part of the transaction, PACS has acquired land adjacent to the building, with plans to build a subsequent 150-bed skilled nursing facility, with an estimated completion date of 2028.


“We’re excited to expand our locally led, centrally supported model in Alaska,” said Jason Murray, Chairman and Chief Executive Officer of PACS. “With our plans to build another skilled nursing center on the property, the campus will provide a full continuum of care and become a valuable community asset. Our growth strategy is rooted in ensuring that a market can support our mission of delivering exceptional care at all levels of acuity, and we’re looking forward to supporting the residents and staff members in Anchorage.”


Josh Jergensen, Chief Operating Officer of PACS, added: “As we continue to grow, it’s with an eye on doing so strategically, ensuring that we can continue to deliver exceptional outcomes in helping residents at a vulnerable time in their lives. Expanding further into Alaska represents an exciting opportunity to make a tangible impact in the lives of residents and staff members.”


This expansion brings PACS’ portfolio to 325 communities in 17 states, with nearly 36,000 beds, and is an example of how PACS’ mission to revolutionize post-acute care nationally continues.


About PACS™


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 325 post-acute care facilities across 17 states serving over 31,000 patients daily. PACS business support division, PACS Services, provides technology and administrative support services — accounting, finance, human resources, compliance, payroll, AR/AP, legal, risk management, information technology, corporate communication, and other business advice and support — to their healthcare facilities, reducing administrative burdens so their leadership and care teams can focus on the care, well-being, and quality of life of their patients and residents. PACS has been recognized by Utah Business magazine as one of Utah’s Best Companies to work for, back-to-back, in 2022 and 2023. They’ve also been recognized as one of Utah’s Fastest Growing Companies; they ranked #25 in 2022, and #9 in 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260501701059/en/
Media: Brooks Stevenson

VP, Corporate Communications

90 South 400 West, Suite 700

Salt Lake City, UT 84101

T: 385-988-3596

brooks.stevenson@pacs.com

https://ir.pacs.com

Investors: IR@pacs.com


Original: PACS Group Announces Acquisition in Alaska; New Construction of a Skilled Nursing Community

PACS Group, Inc. Announces Retirement of Co-Founder and CFO Mark HancockApril 27, 2026 4:33 PM
Business Wire
PACS Group, Inc. (NYSE: PACS), one of the nation’s largest and fastest-growing post-acute healthcare platforms, today announced the planned retirement of Mark Hancock — PACS co-founder, first CFO, and one of the principal architects behind the company’s success — on June 30, 2026.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260427554117/en/Mark Hancock, PACS Group co-founder and retiring Chief Financial Officer
Mr. Hancock co-founded PACS in 2013 alongside Jason Murray, PACS’s Chairman and CEO, with just two post-acute care facilities in San Diego, CA. Under his leadership as CFO, PACS expanded from those two facilities to 323 facilities— a more than 160-fold increase — spread across 17 states, serving more than 31,700 patients daily and generating full-year 2025 revenue of $5.29 billion, representing 29.3% growth year-over-year.


“When Mark and I first began discussing the idea that would become PACS 13 years ago, we set out to build something that would endure beyond our time at the company. It was always our vision to surround ourselves with highly talented people who would one day lead the company into the future. Mark has been central to that vision from day one. What he helped build goes far beyond a company. He established a culture, developed a new generation of leaders, and set a standard for post-acute care that will continue to shape this industry. His fingerprints are embedded in the foundation of PACS, and his legacy will endure in every facility, every patient experience, and every leader who carries this model forward,” said Jason Murray, Chairman and CEO of PACS Group. “It’s difficult to fully capture what Mark has meant to me personally and to this organization. We built PACS side by side, through every phase of its evolution, always pushing each other to think bigger and execute better. He is a true leader, a trusted partner, and a lifelong friend. While his role is evolving, the institution he helped create and the standard he set, will continue to guide PACS for decades to come.”


In addition to his many accomplishments, perhaps nothing speaks more to Mr. Hancock’s leadership than his disciplined stewardship of the Company’s balance sheet and long-term strategic planning, which helped position PACS for its successful initial public offering on the New York Stock Exchange in April 2024. Following the IPO, Mr. Hancock remained a steady and trusted executive presence, including stepping in as Interim Chief Financial Officer in September 2025 to ensure continuity of financial leadership during a critical period.


Mr. Hancock will retire as an executive officer on June 30, 2026, and will continue to serve on PACS’s Board of Directors as Vice Chairman—maintaining an active role in guiding the Company he helped build.


“Mark is the definition of a founding leader,” said Mr. Murray. “He was there at the very beginning, when PACS was two buildings and a belief that post-acute care could be done better. What PACS has become is a direct reflection of his vision, discipline, and extraordinary commitment. While this marks a transition from his day-to-day role, we are incredibly fortunate that Mark will continue to shape the future of PACS as Vice Chairman of the Board. His voice, perspective, and leadership will remain invaluable as we move forward.”


Mr. Hancock will be succeeded by Carey P. Hendrickson, who was announced as PACS Group’s new Chief Financial Officer on April 27, 2026. Mr. Hendrickson brings to PACS nearly four decades of financial leadership spanning public company CFO roles in healthcare, senior living, and media, and both leaders share a commitment to the mission that has defined PACS since its founding: revolutionizing the delivery, leadership, and quality of post-acute care nationally.


“Carey’s experience leading finance functions across multiple public healthcare companies gives him a perspective that’s both broad and deeply relevant to what we do every day at PACS,” said Mr. Hancock. “I’m proud of what we’ve built, and I’m confident that Carey will be an extraordinary partner to the leadership team and a tremendous asset to the company and our industry. I look forward to watching PACS continue to grow from my seat on the Board.”


About PACS Group, Inc. PACS Group, Inc. (NYSE: PACS) is one of the largest post-acute healthcare platforms in the United States. Founded in 2013 and headquartered in Salt Lake City, Utah, PACS and its independent operating subsidiaries invest in and support post-acute care facilities, professionals, and ancillary services. The company’s independent subsidiaries operate more than 320 post-acute care and senior living facilities across 17 states, serving more than 31,700 patients daily. PACS’s mission is to revolutionize the delivery, leadership, and quality of post-acute care nationally. For more information, visit www.pacs.com or ir.pacs.com.


About Mark Hancock Mark Hancock is a co-founder of PACS Group, Inc. and served as its Chief Financial Officer from the company’s founding in 2013 through its rapid growth to one of the nation’s largest post-acute care platforms. He guided the company through its initial public offering on the New York Stock Exchange in 2024 and most recently served as Executive Vice Chairman and Interim CFO. Mr. Hancock will retire as an executive officer on June 30, 2026, and will continue to serve on PACS’s Board of Directors as Vice Chairman.


Cautionary Note Regarding Forward-Looking Statements


This press release contains forward-looking statements within the meaning of federal securities laws. All statements contained in this Current Report that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the planned retirement of Mr. Hancock and the timing thereof, Mr. Hancock’s anticipated continued service on the Board of Directors, the succession of Mr. Hendrickson as Chief Financial Officer, and the Company’s expected future growth, mission, and strategic direction. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those implied by the forward-looking statements, including the important factors are described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings that we make with the Securities and Exchange Commission (the “SEC”) from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. PACS Group, Inc. undertakes no obligation to publicly update or revise any forward-looking statements. See the company’s reports filed publicly with the SEC at www.sec.gov for more information about the company and its related risks and uncertainties.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260427554117/en/
Media:

Brooks Stevenson

VP Corporate Communication

90 S. 400 W. Suite 700

Salt Lake City, UT 84101

T: 385-988-3596

brooks.stevenson@pacs.com

https://www.pacs.com

https://ir.pacs.com


Original: PACS Group, Inc. Announces Retirement of Co-Founder and CFO Mark Hancock

PACS Group, Inc. Announces the Appointment of Carey P. Hendrickson as Chief Financial OfficerApril 27, 2026 4:35 PM
Business Wire
PACS Group, Inc. (NYSE: PACS), one of the nation’s largest and fastest-growing post-acute healthcare platforms, today announced the appointment of Carey P. Hendrickson as its Chief Financial Officer, effective April 27, 2026. Mr. Hendrickson brings to PACS nearly four decades of financial leadership spanning public company CFO roles in healthcare, senior living, and media — a body of work distinguished by financial discipline, strategic acuity, and a consistent record of building high-performing teams that drive measurable results. His appointment marks a significant milestone for PACS as the company continues to scale its national footprint and deepen its clinical and operational leadership in the post-acute sector.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260427691363/en/Carey P. Hendrickson, PACS Group's newly appointed Chief Financial Officer
Mr. Hendrickson will be succeeding Mark Hancock, PACS’s co-founder and Executive Vice Chairman who had been appointed interim CFO in September 2025. As the company announced in a separate release, Mr. Hancock will be retiring from the company and transitioning out of his role as an executive officer by June 30, 2026, while remaining on PACS’s Board of Directors as Vice Chairman.


“We’re thrilled to welcome Carey to the PACS family as our Chief Financial Officer,” said Jason Murray, Chairman and CEO of PACS Group. “Carey is exactly the kind of leader we were looking for at PACS. He’s a seasoned public company CFO who’s navigated complex healthcare operating environments, delivered results through every kind of market cycle, and built the financial infrastructure that growing organizations need to sustain excellence at scale. At the same time, I’m incredibly grateful for Mark’s leadership and vision at PACS since its founding in 2013. His continued contribution on the Board of Directors will be invaluable.”


Most recently, Mr. Hendrickson served as CFO of U.S. Physical Therapy, Inc. (NYSE: USPH), a national operator of 779 outpatient physical therapy clinics across 44 states. During his tenure at U.S. Physical Therapy, Mr. Hendrickson led all facets of the company's financial operations, including accounting, SEC reporting, financial planning and analysis, treasury, investor relations, payor contract negotiations and credentialing, revenue cycle management, financial shared services, taxes, and human resources. Among his most significant accomplishments, he negotiated a new credit agreement that expanded the company's debt capacity, extended its maturity, and enhanced financial flexibility. In addition, he oversaw due diligence and integration for more than 20 acquisitions.


Prior to U.S. Physical Therapy, Mr. Hendrickson served as Executive Vice President and CFO of Capital Senior Living Corporation (NYSE: CSU), one of the nation’s largest senior living operators with 128 communities and nearly 12,000 residents across 23 states. His six years at Capital Senior Living gave him direct, hands-on experience in the highly regulated, reimbursement-sensitive environment of senior care — experience that translates directly to the skilled nursing and post-acute setting PACS operates in today. His accomplishments there included negotiating early exit from underperforming leases, relieving the company of more than $250 million in future obligations, and leading financial integration across a complex multi-state portfolio.


“PACS has built something truly exceptional in post-acute care — a platform with an unwavering commitment to quality, a remarkable culture of leadership, and a growth story that is both compelling and sustainable,” said Mr. Hendrickson. “I’ve spent much of my career in healthcare and senior care, and I know firsthand how difficult it is to build an organization that consistently delivers clinical excellence at this scale. I’m grateful to join the PACS executive management team and look forward to contributing to the company’s mission.”


“Carey’s experience leading finance functions across multiple public healthcare companies gives him a perspective that’s both broad and deeply relevant to what we do every day at PACS. He stood out in every way during our CFO search,” said Mr. Hancock. “I’m proud of what we’ve built, and I’m confident that Carey will be an extraordinary partner to the leadership team and a tremendous asset to the company and our industry. I look forward to watching PACS continue to grow from my seat on the Board.”


“Carey has spent his career building the financial infrastructure of complex, regulated healthcare organizations, and earning the trust of boards, analysts, and investors through transparency and consistent execution,” said Murray. “He’s one of the most accomplished public company CFOs in the healthcare services sector; he knows the world of senior and post-acute care from the inside; and he’s led M&A at organizations whose residents look a great deal like the patients we serve at PACS every day. That background is earned through years of doing the work. Carey has done the work, and he has done it exceptionally well.


“He’s a person of extraordinary integrity and character, and he joins PACS at a moment when our growth trajectory demands exactly the kind of senior financial leadership that he’s demonstrated throughout his career, and we’re honored to welcome him to our team.”


About PACS Group, Inc. PACS Group, Inc. (NYSE: PACS) is one of the largest post-acute healthcare platforms in the United States. Founded in 2013 and headquartered in Salt Lake City, Utah, PACS and its independent operating subsidiaries invest in and support post-acute care facilities, professionals, and ancillary services. The company’s independent subsidiaries operate more than 320 post-acute care and senior living facilities across 17 states, serving more than 31,700 patients daily. PACS’s mission is to revolutionize the delivery, leadership, and quality of post-acute care nationally. For more information, visit www.pacs.com or ir.pacs.com.


About Carey P. Hendrickson Carey P. Hendrickson is an accomplished public company CFO with nearly four decades of financial leadership experience. He most recently served as Chief Financial Officer of U.S. Physical Therapy, Inc. (NYSE: USPH), and previously as Executive Vice President and Chief Financial Officer of Capital Senior Living Corporation (NYSE: CSU, now Sonida Senior Living, NYSE: SNDA), and as Senior Vice President, Chief Financial Officer and Treasurer of Belo Corp. (NYSE: BLC). Mr. Hendrickson serves on the Board of Regents of Baylor University, including as Vice Chair of the Audit, Compliance and Risk Management Committee, and as Chairman of the Board of Advisors for Baylor’s School of Music. He holds a BBA in Accounting, cum laude, from Baylor University and an MBA in Finance, with honors, from the University of Texas at Arlington.


Cautionary Note Regarding Forward-Looking Statements


This press release contains forward-looking statements within the meaning of federal securities laws. All statements contained in this Current Report that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the appointment and expected contributions of Mr. Hendrickson as Chief Financial Officer, the planned retirement of Mr. Hancock and the timing thereof, Mr. Hancock's anticipated continued service on the Board of Directors, and the Company's expected future growth, strategic direction, and ability to scale its national footprint and deepen its clinical and operational leadership in the post-acute sector. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those implied by the forward-looking statements, including the important factors are described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings that we make with the Securities and Exchange Commission (the “SEC”) from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. PACS Group, Inc. undertakes no obligation to publicly update or revise any forward-looking statements. See the company’s reports filed publicly with the SEC at www.sec.gov for more information about the company and its related risks and uncertainties.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260427691363/en/
Media:

Brooks Stevenson

VP Corporate Communication

90 S. 400 W. Suite 700

Salt Lake City, UT 84101

T: 385-988-3596

brooks.stevenson@pacs.com

https://www.pacs.com

https://ir.pacs.com


Original: PACS Group, Inc. Announces the Appointment of Carey P. Hendrickson as Chief Financial Officer

PACS Group, Inc. to Present at the Oppenheimer 36th Annual Healthcare MedTech & Services Conference on March 17, 2026March 16, 2026 5:57 PM
Business Wire
PACS Group, Inc. (NYSE: PACS) (“PACS” or the “Company”), which together with its subsidiaries is one of the largest post-acute healthcare companies in the United States, announced today that it will present at the Oppenheimer 36th Annual Healthcare MedTech & Services Conference on Tuesday, March 17, 2026.


Jason Murray, Chief Executive Officer and Chairman of the Board, and Mark Hancock, Interim Chief Financial Officer and Executive Vice Chairman of the Board, will present on the company's operations, growth strategy and related information at 12:40-1:10 p.m. Eastern Time on March 17, 2026.


The live webcast will be available at: https://summitcast.meetmax.com/view/2MZVg3DCx8a3zxe3mMMekq/Eqrd3KVdWJU6BQuen4NQZv


The webcast will automatically be archived approximately an hour after the live event and will be available at this link for 90 days.


About PACS™


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 over 320 post-acute care facilities across 17 states serving over 31,700 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.


More information about PACS is available at https://IR.pacs.com. The information on our website is not part of this press release.


© 2026 PACS

View source version on businesswire.com: https://www.businesswire.com/news/home/20260316123176/en/
Investors: IR@pacs.com


Media: Brooks Stevenson

VP Corporate Communication

90 South 400 West, Suite 700

Salt Lake City, UT 84101

T: 385-988-3596

brooks.stevenson@pacs.com

https://ir.pacs.com


Original: PACS Group, Inc. to Present at the Oppenheimer 36th Annual Healthcare MedTech & Services Conference on March 17, 2026

PACS packing tonight $24.7 . Based on information available today, PACS is providing the following guidance for full year 2025:

PACS Group: How To Become A Billionaire In The Skilled Nursing Industry By Systematically Scamming Taxpayers

https://hindenburgresearch.com/pacs/

PACS Group to Announce Second Quarter 2024 Financial Results -
https://www.businesswire.com/news/home/20240806841957/en/