Question · Q3 2025
David McDonald inquired about the business momentum, specifically the occupancy and skilled mix opportunities in new and ramping facilities, and any disproportionate investment areas for 2026. He also asked about the most impactful changes to controls post-audit, the drivers behind strong year-to-date cash flow, and the future M&A pipeline and strategy.
Answer
Josh Jergensen (President and COO) explained that mature facilities maintain strong occupancy and skilled mix, while new and ramping facilities are expected to improve as PACS's model and clinical capabilities are implemented. Mark Hancock (Interim CFO) noted the significant organic growth potential from the large number of facilities acquired in 2024. Josh Jergensen highlighted strengthened compliance as the most notable post-audit change, supporting local decision-making. Mark Hancock detailed strong year-to-date cash flow from operations ($407 million) and cash on hand ($350+ million). Josh Jergensen stated that while 2024 saw heavy acquisitions, 2025 focused on integration, and future M&A will be disciplined, aiming for historical averages (around 20 facilities per year) to serve underserved communities.
Ask follow-up questions
Fintool can predict
PACS's earnings beat/miss a week before the call