Pennant Reports Second Quarter 2025 Results

EAGLE, Idaho, Aug. 06, 2025 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, today announced its operating results, reporting GAAP diluted earnings per share of $0.20 for the second quarter of 2025. Pennant also reported adjusted diluted earnings per share of $0.27 for the quarter⁽¹⁾.

Second Quarter Highlights

• Total revenue for the second quarter was $219.5 million, an increase of $50.8 million or 30.1% over the prior year quarter;
• Net income for the second quarter was $7.1 million, an increase of $1.4 million or 24.5% over the prior year quarter;
• Adjusted net income for the second quarter was $9.4 million, an increase of $2.1 million or 28.2% over the prior year quarter;
• Consolidated Adjusted EBITDAR for the second quarter was $28.2 million, an increase of $4.8 million or 20.3% over the prior year quarter;
• Consolidated Adjusted EBITDA for the second quarter was $16.4 million, an increase of $3.2 million or 24.5% over the prior year quarter;
• Home Health and Hospice Services segment revenue for the second quarter was $166.0 million, an increase of $40.7 million or 32.5% over the prior year quarter;
• Home Health and Hospice Services segment adjusted EBITDAR from operations for the second quarter was $27.7 million, an increase of $6.5 million or 30.5% over the prior year quarter; and segment adjusted EBITDA from operations for the second quarter was $25.5 million, an increase of $5.9 million or 29.9% over the prior year quarter;
• Total home health admissions for the second quarter were 17,832, an increase of 3,692 or 26.1% over the prior year quarter; total Medicare home health admissions for the second quarter were 6,980, an increase of 1,242 or 21.6% over the prior year quarter;
• Hospice average daily census for the second quarter was 3,909, an increase of 689 or 21.4% compared to the prior year quarter; 
• Senior Living Services segment revenue for the second quarter was $53.5 million, an increase of $10.0 million or 23.1% over the prior year quarter; average occupancy for the second quarter was 78.8%, which is flat with the prior year quarter, and average monthly revenue per occupied room for the second quarter was $5,188, an increase of $398 or 8.3% over the prior year quarter;
• Senior Living segment adjusted EBITDAR from operations for the second quarter was $14.8 million, an increase of $2.0 million or 15.5% over the prior year quarter; and segment adjusted EBITDA from operations for the second quarter was $5.1 million, an increase of $1.1 million or 25.7% over the prior year quarter.
  
  
  
  ^{(1) See "Reconciliation of GAAP to Non-GAAP Financial Information.”}
  
  

Operating Results

“The second quarter represents a continuation of our robust operating momentum,” said Brent Guerisoli, the Company’s Chief Executive Officer. “Throughout Pennant’s history, two things have consistently been true: we have faced dynamic changes in our operating environment, and we have grown through them. We are pleased by the strength in our home health, hospice and senior living businesses, as each contributes meaningfully to our positive performance.”

“Our local leaders are driving strong clinical, cultural and financial results across Pennant,” said John Gochnour, the Company’s Chief Operating Officer. “Looking to the future, we see significant untapped potential for organic improvement and exciting acquisition opportunities on the near horizon, including the announced transaction with  UnitedHealth Group and Amedisys.”

A discussion of the Company’s use of Non-GAAP financial measures is set forth below. A reconciliation of net income to EBITDA, adjusted EBITDAR and adjusted EBITDA, as well as a reconciliation of GAAP earnings per share, net income to adjusted net earnings per share and adjusted net income, appear in the financial data portion of this release. More complete information is contained in the Company’s Form 10-Q for the three and six months ended June 30, 2025, which has been filed with the SEC today and can be viewed on the Company’s website at

2025 Guidance

Management is providing updated 2025 annual guidance as follows: total revenue is anticipated to be between $852.8 million and $887.6 million; full year 2025 adjusted earnings per diluted share is anticipated to be between $1.09 and $1.15;  and full year 2025 adjusted EBITDA is anticipated to be between $69.1 million and $72.7 million.

Mr. Guerisoli remarked, “Our earnings guidance midpoint of $1.12 represents 19.1% growth on our 2024 adjusted earnings per share and 53.4% growth over 2023 results. Our guidance update is based on the momentum across our segments, the capability of our local leaders to continue to drive growth, and the untapped potential within our existing operations.”

The Company’s updated 2025 annual guidance is based on diluted weighted average shares outstanding of approximately 35.7 million and a 26.0% effective tax rate.  The guidance includes additional expenses in anticipation of the transaction with UnitedHealth Group and Amedisys, but no additional earnings because of the uncertainty surrounding the timing of our closing on that transaction. The guidance assumes, among other things, reimbursement rate adjustments and no unannounced acquisitions.  It excludes the tax-effected costs at start-up operations, share-based compensation, acquisition-related costs, and gain (loss) on disposition of assets and impairments.

Lynette Walbom, the Company’s Chief Financial Officer, also stated, “We believe providing updated annual adjusted consolidated EBITDA guidance in addition to updated annual revenue and adjusted earnings per share guidance is helpful to understanding our expectations for our business and operational cash flow. This updated guidance reflects management’s expectations based on 2025 year-to-date performance and current operating conditions.”

Conference Call

A live webcast will be held tomorrow, August 7, 2025 at 10:00 a.m. Mountain time (12:00 p.m. Eastern time) to discuss Pennant’s second quarter 2025 financial results. To listen to the webcast, or to view any financial or statistical information required by SEC Regulation G, please visit the Investors Relations section of Pennant’s website at The webcast will be recorded and will be available for replay via the website.

About Pennant

The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through 137 home health and hospice agencies and 61 senior living communities located throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated "company" and "its" assets and activities, as well as the use of the terms "we," "us," "its" and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity. More information about Pennant is available at

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release contains, and the related conference call and webcast will include, forward-looking statements that are based on management’s current expectations, assumptions and beliefs about its business, financial performance, operating results, the industry in which it operates and other future events. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding growth prospects, future operating and financial performance, and acquisition activities. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to materially and adversely differ from those expressed in any forward-looking statement.

These risks and uncertainties relate to the company’s business, its industry and its common stock and include: reduced prices and reimbursement rates for its services; its ability to acquire, develop, manage or improve operations, its ability to manage its increasing borrowing costs as it incurs additional indebtedness to fund the acquisition and development of operations; its ability to access capital on a cost-effective basis to continue to successfully implement its growth strategy; its operating margins and profitability could suffer if it is unable to grow and manage effectively its increasing number of operations; competition from other companies in the acquisition, development and operation of facilities; its ability to defend claims and lawsuits, including professional liability claims alleging that our services resulted in personal injury, and other regulatory-related claims; and the application of existing or proposed government regulations, or the adoption of new laws and regulations, that could limit its business operations, require it to incur significant expenditures or limit its ability to relocate its operations if necessary. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the company’s periodic filings with the Securities and Exchange Commission, including its Form 10-Q and/or 10-K, for a more complete discussion of the risks and other factors that could affect Pennant’s business, prospects and any forward-looking statements. Except as required by the federal securities laws, Pennant does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Contact Information

Investor Relations

The Pennant Group, Inc.

(208) 506-6100

SOURCE: The Pennant Group, Inc.

(a) Home care and other revenue is included with home health revenue in other disclosures in this press release. 

(a) Home care and other revenue is included with home health revenue in other disclosures in this press release. 

(a) Same store senior living results represent all senior living communities purchased or licensed prior to January 1, 2024, excluding affiliate memory care units in transition.

(a) Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement.

(a) Private and other payors includes revenue from all payors generated in the Company’s home care operations and management services agreement.

The table below reconciles Consolidated net income to the Consolidated Non-GAAP financial measures, Consolidated Adjusted EBITDA, and to the Non-GAAP valuation measure, Consolidated Adjusted EBITDAR, for the periods presented:

The following table present certain financial information regarding our reportable segments. General and administrative expenses are not allocated to the reportable segments:

The table below provides a reconciliation of Segment Adjusted EBITDAR from Operations above to income from operations:

The tables below reconcile Segment Adjusted EBITDAR from Operations to Segment Adjusted  EBITDA from Operations for each reportable segment for the periods presented:

Discussion of Non-GAAP Financial Measures

EBITDA consists of net income before (a) interest expense, net, (b) provisions for income taxes, and (c) depreciation and amortization. Adjusted EBITDA consists of net income attributable to the Company before (a) interest expense, net (b) provisions for income taxes, (c) depreciation and amortization, (d) results related to start-up operations, including rent and excluding depreciation, interest and income taxes, (e) share-based compensation expense, (f) non-capitalizable acquisition related costs and credit allowances, (g) activities associated with transitioning operations, (h) unusual, non-recurring or redundant charges and (i) net income attributable to noncontrolling interest. Consolidated Adjusted EBITDAR is a valuation measure applicable to current periods only and consists of net income attributable to the Company before (a) interest expense, net, (b) provisions for income taxes, (c) depreciation and amortization, (d) rent-cost of services, (e) results related to start-up operations, excluding rent, depreciation, interest and income taxes, (f) share-based compensation expense, (g) acquisition related costs and credit allowances, (h) activities associated with transitioning operations, (i) unusual, non-recurring or redundant charges and (j) net income attributable to noncontrolling interest. The company believes that the presentation of EBITDA, adjusted EBITDA, consolidated adjusted EBITDAR, adjusted net income and adjusted earnings per share provides important supplemental information to management and investors to evaluate the company’s operating performance. The company believes disclosure of adjusted net income, adjusted net income per share, EBITDA, adjusted EBITDA and consolidated adjusted EBITDAR has economic substance because the excluded revenues and expenses are infrequent in nature and are variable in nature, or do not represent current revenues or cash expenditures. A material limitation associated with the use of these measures as compared to the GAAP measures of net income and diluted earnings per share is that they may not be comparable with the calculation of net income and diluted earnings per share for other companies in the company's industry. These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures. For further information regarding why the company believes that this non-GAAP measure provides useful information to investors, the specific manner in which management uses this measure, and some of the limitations associated with the use of this measure, please refer to the company's periodic filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Report on Form 10-Q. The company’s periodic filings are available on the SEC's website at or under the "Financial Information" link of the Investor Relations section on Pennant’s website at