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PACS Group, Inc. (PACS)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $1.31B*, up 2.5% QoQ and 33.3% YoY, and came in above consensus by 13.2%, while EPS of $0.456 missed by 5.0%* as margin expansion lagged revenue growth; management pointed to strong occupancy and portfolio expansion. Values retrieved from S&P Global.
  • PACS received a NYSE listing extension through November 19, 2025 and stated it expects to report “record revenue and Adjusted EBITDA for the first six months of 2025,” contingent on becoming current with SEC filings .
  • Operational KPIs remain strong: 316 facilities, 88.9% total occupancy vs 78.0% industry, ramping/mature occupancy 86.3%/95.1%, and cash of $294.2M at June 30, 2025 .
  • Governance/overhangs: the CFO resigned following Audit Committee findings of policy violations; stock fell 29.08% on Sept 9, 2025, highlighting heightened governance risk into restatement completion .

What Went Well and What Went Wrong

What Went Well

  • Strong demand and operating execution: management emphasized “solid business momentum” and a “strong financial and operational position” with growing high‑quality facilities and retention levels .
  • Portfolio growth and occupancy: net addition of 96 facilities since Q2 2024; 316 facilities at 6/30/25 with 32,208 skilled nursing beds and 2,419 assisted living beds; total occupancy 88.9% vs 78.0% industry average .
  • Liquidity improved: cash and equivalents increased to $294.2M at June 30, 2025 from $157.7M at Dec 31, 2024 .

What Went Wrong

  • EPS missed consensus despite revenue beat, reflecting margin pressure amid legal, compliance, and acquisition‑related costs highlighted in the company’s Adjusted EBITDA definition for 1H25* . Values retrieved from S&P Global.
  • Filing delinquency/restatement overhang: company is working to restate prior financials and become current; NYSE granted extension, but compliance risk remains until filings are completed .
  • Governance event: CFO resignation after Audit Committee’s interim findings of policy violations; contributed to a sharp stock decline and raised scrutiny of controls .

Financial Results

Core P&L and Margins

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Billions)$1.208*$1.277*$1.309*
EPS ($USD)N/A$0.311*$0.456*
EBITDA ($USD Millions)$84.90*$60.85*$93.68*
EBITDA Margin (%)7.03%*4.76%*7.16%*
EBIT ($USD Millions)$71.98*$48.14*$80.50*
EBIT Margin (%)5.96%*3.77%*6.15%*
Net Income ($USD Millions)$37.20*$28.47*$50.96*
Net Income Margin (%)3.08%*2.23%*3.89%*

Values retrieved from S&P Global.

Quarterly vs Estimates (Q2 2025)

MetricConsensus EstimateActualSurprise ($)Surprise (%)
Revenue ($USD Billions)$1.157*$1.309*$0.153*+13.2%*
EPS ($USD)$0.480*$0.456*-$0.024*-5.0%*
Primary EPS – # of Estimates1*1*——
Revenue – # of Estimates1*1*——

Values retrieved from S&P Global.

YoY Snapshot (Q2 2025 vs Q2 2024)

MetricQ2 2024Q2 2025Change
Revenue ($USD Billions)$0.982*$1.309*+33.3%*
EPS ($USD)$0.482*$0.456*-5.4%*

Values retrieved from S&P Global.

KPIs and Operating Metrics (as of/for 1H25)

KPIValueNote
Facilities operated316As of June 30, 2025
Skilled nursing beds32,208As of June 30, 2025
Assisted living beds2,419As of June 30, 2025
CMS QM 4–5 star facilities179 (64.6%)Portion of skilled nursing portfolio
Total occupancy88.9%vs industry avg 78.0%
Ramping/mature occupancy86.3% / 95.1%
Ramping/mature skilled mix23.3% / 34.1%
Cash & equivalents$294.2MAs of June 30, 2025
Cash & equivalents$157.7MAs of Dec 31, 2024

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (qualitative)1H 2025None provided“Expect to report record revenue” upon becoming current with SEC filings Introduced (qualitative)
Adjusted EBITDA (qualitative)1H 2025None provided“Expect to report record Adjusted EBITDA” upon becoming current with SEC filings Introduced (qualitative)
SEC filings timing2025Working to restate and become currentNYSE listing extension through Nov 19, 2025; aim to be current within NYSE timeline Updated timeline
Compliance program2025Ongoing reviewAdditional measures implemented; interim CCO appointed Enhanced

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document set; themes below reflect press release and SEC filings context.

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Regulatory/legalInvestigations and preliminary metrics disclosed (Nov 2024 8‑K context) Continued filing delays impliedFiling delinquency, restatement efforts, NYSE extension Elevated scrutiny; remediation underway
Compliance programLimited disclosuresLimited disclosures“Intense review,” interim CCO appointed; enhancing compliance processes Strengthening controls
Leadership/CFOStable—CFO resignation; interim CFO appointed Transition; governance focus
Operations/occupancy——High occupancy vs industry; strong skilled mix Positive operating momentum
Liquidity——Cash up to $294.2M from $157.7M Improved

Management Commentary

  • CEO: “We… expect to report record revenue and Adjusted EBITDA for the first six months of 2025… we look forward to the Audit Committee completing its investigation as we seek to… accelerate growth and drive value creation for all stakeholders.”
  • Interim CCO: “I am deeply impressed by the urgency and commitment of the PACS team… confident that the PACS team is taking the right steps to best position the Company for the benefit of all stakeholders.”
  • Interim CFO: “I’ve been actively working with the Audit Committee and the management team to become current with our SEC filings and complete the restatement… and I look forward to continuing to support our facilities in delivering excellence in clinical quality and patient care.”

Q&A Highlights

  • No Q&A available; the company did not furnish a Q2 2025 earnings call transcript in the document set due to ongoing filings and investigation context .

Estimates Context

  • Revenue beat: Actual $1.309B* vs $1.157B* consensus (+13.2%*), likely driven by facility additions and above‑industry occupancy . Values retrieved from S&P Global.
  • EPS miss: $0.456* vs $0.480* consensus (-5.0%*), consistent with disclosed non‑core costs embedded in Adjusted EBITDA reconciliation items (legal and investigation costs, acquisition‑related costs) . Values retrieved from S&P Global.
  • Limited coverage: only one estimate for both revenue and EPS in Q2 2025*, suggesting constrained sell‑side visibility amid filing delays. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near‑term setup: Revenue strength and occupancy support the top line, but EPS sensitivity to legal/compliance and acquisition‑related costs caps upside until filings normalize; expect estimate dispersion to remain high. Values retrieved from S&P Global.
  • Catalysts: Completion of restatement and becoming current by the NYSE extension deadline could de‑risk the listing and reopen broader coverage/ownership .
  • Governance watch: CFO resignation and investigation outcomes are key; enhanced compliance program is positive, but investors will look for sustained execution and clean audits .
  • Operating momentum: Portfolio growth (+96 facilities since Q2 2024) and superior occupancy vs industry underline scale advantages; supports medium‑term revenue trajectory .
  • Liquidity runway: Cash of $294.2M at quarter‑end provides flexibility for growth and remediation investments .
  • Valuation drivers: Transition from qualitative to quantitative guidance (Adjusted EBITDA, margins) post‑restatement could reset expectations; watch for expense normalization to translate revenue beats into EPS leverage .
  • Trade view: Near‑term binary around filings/NYSE compliance; positive resolution could prompt a relief rally, while delays would risk further multiple compression given governance overhang .

Footnote: Values marked with an asterisk (*) were retrieved from S&P Global (Capital IQ) consensus and fundamentals. Minor differences may occur between S&P aggregates and company disclosures due to timing and restatements.