Pennant Group (PNTG) Company Report

The Pennant Group completed significant acquisitions in 2025, including the second tranche of the Signature acquisition and the Optum AMED Asset Divestiture, contributing to a productive year of revenue and earnings growth.
The company anticipates a nine-quarter optimization period for acquisition integration, with G&A costs expected to increase in 2026 before normalizing to 6.5% by the end of 2026 from approximately 6.7% currently.
Pro forma leverage is approximately two times net debt to adjusted EBITDA, with a target range of two to two and a half times, indicating additional capacity for future growth.
Pennant has achieved a 20-25% differential between Managed Care (MA) and fee-for-service rates, significantly lower than the industry average of 35-40%, attributed to its 4.1 CMS Star Rating and strong preventable hospitalization rates.
The Senior Living segment achieved all-time high occupancy in Q3 2025, successfully implementing high single-digit rate updates while increasing care charges, which now represent 20-25% of the business and are projected to reach 25-33%.

Nov 19, 2025, 8:00 PM

Transcript

Pennant Group Discusses 2025 Growth, Acquisition Strategy, and Senior Living Performance

PNTG

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Pennant Group (PNTG) highlighted its 2025 growth initiatives, including the completion of the second tranche of the Signature acquisition in January and a significant portfolio purchase from UnitedHealth and Amedisys as part of a divestiture process.
The company's strategy for integrating acquisitions involves a typical nine-quarter optimization period, and it aims to maintain a net debt to adjusted EBITDA leverage ratio between two and two and a half times, with a current pro forma ratio of approximately two times.
PNTG's senior living segment achieved an all-time high in occupancy in Q3 2025 and is targeting a 15% EBITDA margin, with incremental occupancy gains expected to improve margins by 50-75 basis points.
PNTG is actively pursuing joint venture partnerships with healthcare systems to expand its home health and hospice services and enhance care delivery.

Nov 19, 2025, 8:00 PM

Transcript

The Pennant Group Reviews 2025 Acquisitions and Financial Strategy

PNTG

M&A

Debt Issuance

New Projects/Investments

The Pennant Group experienced a productive 2025, driven by significant acquisitions, including the second tranche of the Signature acquisition and a large portfolio purchase from United and Amedisys divestiture, leading to revenue and earnings growth.
The company's pro forma net debt to Adjusted EBITDA leverage ratio is approximately 2x, with a target range of 2x-2.5x. G&A costs are expected to increase in early 2026 for integration support but are projected to normalize to 6.5% by the end of 2026 from approximately 6.7% currently.
Integration of new acquisitions, particularly in Home Health, typically involves a nine-quarter optimization period for implementing operating models, system integration, and rebranding.
The Senior Living segment achieved an all-time high on occupancy in Q3, successfully implementing high single-digit rate increases by investing in facility improvements, clinical products, and activities programming. Healthcare services (care charges) account for 20%-25% of the Senior Living business, with potential for further growth.

Nov 19, 2025, 8:00 PM

Transcript

Pennant Group Reports Strong Q3 2025 Results and Raises Full-Year Guidance

PNTG

Earnings

Guidance Update

M&A

Pennant Group (PNTG) reported strong Q3 2025 results, with revenue of $229 million, an increase of 26.8%, adjusted EBITDA of $17.3 million, up 14.5%, and adjusted EPS of $0.30, up 15.4% over the prior year quarter.
The company raised its full-year 2025 guidance, now anticipating revenue between $911.4 million and $948.6 million, adjusted EBITDA between $70.9 million and $73.8 million, and adjusted EPS between $1.14 and $1.18.
PNTG completed the UnitedHealth Amedisys transaction on October 1, acquiring 54 locations with trailing 12-month revenues of $189.3 million for a purchase price of $146.5 million. This acquisition is expected to create some lumpiness in results through the transition.
Both operating segments demonstrated strong performance in Q3 2025, with Home Health and Hospice segment revenue increasing 27.9% to $173.6 million and Senior Living segment revenue increasing 23.2% to $55.5 million. The Senior Living segment also achieved a record 80.9% all-store occupancy.

Nov 6, 2025, 5:00 PM

Transcript

Pennant Group Expands Credit Facility to $350 Million

PNTG

Debt Issuance

New Projects/Investments

On November 5, 2025, The Pennant Group, Inc. announced the expansion of its credit facility by $100 million, increasing the aggregate amount to $350 million.
This expansion was facilitated by an incremental term loan A facility, with the proceeds primarily intended to refinance a portion of outstanding revolving loans and provide capacity for future growth.
The incremental term loan shares the same interest rate and maturity date as the company's existing revolving facility.

Nov 5, 2025, 9:32 PM

8-K

Pennant Group Expands Credit Facility

PNTG

Debt Issuance

New Projects/Investments

The Pennant Group, Inc. (PNTG) has expanded its credit facility by $100 million, increasing the total to $350 million.
The incremental term loan, supported by Truist Securities, will be used to refinance a portion of outstanding revolving loans.
CEO Brent Guerisoli stated that this expansion strengthens the balance sheet and provides additional capacity to fund future growth.

Nov 5, 2025, 9:10 PM

Press Release

Pennant Group Reports Q3 2025 Results and Updates 2025 Guidance

PNTG

Earnings

Guidance Update

M&A

Pennant Group reported GAAP diluted earnings per share of $0.17 and adjusted diluted earnings per share of $0.30 for the third quarter of 2025.
Total revenue for Q3 2025 was $229.0 million, an increase of 26.8% over the prior year quarter.
Operational highlights for Q3 2025 include 20,426 total home health admissions (up 36.2%), a hospice average daily census of 4,044 (up 17.4%), and senior living average occupancy of 80.9% (up 180 basis points).
On October 1, the company completed the acquisition of 54 home health, hospice, and home care operations from UnitedHealth Group and Amedisys.
Management updated its 2025 annual guidance, anticipating total revenue between $911.4 million and $948.6 million, adjusted earnings per diluted share between $1.14 and $1.18, and adjusted EBITDA between $70.9 million and $73.8 million.

Nov 5, 2025, 9:09 PM

8-K

Pennant Group Acquires Senior Living Communities in Idaho and Wisconsin

PNTG

M&A

New Projects/Investments

Pennant Group (PNTG) completed two significant acquisitions of senior living communities in Idaho and Wisconsin in November 2025.
Effective November 1, 2025, Pennant acquired the operations and real property of Twin Rivers Senior Living, a 55-bed assisted living community in Lewiston, Idaho.
On November 4, 2025, Pennant acquired the real property for Honey Creek Heights Senior Living in West Allis, Wisconsin, adding 135 assisted living beds to its portfolio.
These acquisitions strengthen Pennant's presence in key markets and align with its disciplined growth strategy, including securing attractively priced real estate.

Nov 4, 2025, 11:48 PM

Press Release

Pennant Group Completes Acquisition of Southeast Operations

PNTG

M&A

New Projects/Investments

On October 1, 2025, The Pennant Group, Inc. (PNTG) completed the acquisition of 54 home health, hospice, and personal care service locations in Tennessee, Georgia, and Alabama from UnitedHealth Group Incorporated and Amedisys Inc..
The total cash consideration for the transaction was $146,531,160, subject to certain post-closing adjustments.
These operations were divested by UnitedHealth and Amedisys pursuant to an antitrust settlement with the United States Justice Department.
This acquisition represents Pennant's strategic entry into the Southeast region, with approximately two-thirds of the acquired revenue connected to home health and one-third to hospice.

Oct 1, 2025, 10:39 PM

8-K

Pennant Group Acquires Amedisys Assets and Addresses CMS Reimbursement Cuts

PNTG

M&A

New Projects/Investments

The Pennant Group is acquiring Tennessee assets from the Optum Amedisys transaction, along with additional locations in Georgia and Alabama, with an expected close in the early fourth quarter. This acquisition includes the University of Tennessee Medical Center joint venture.
The company is actively addressing a proposed 6.5% CMS cut to home health reimbursement by focusing on internal operational efficiencies, technology, and labor management, while also engaging in lobbying efforts to change the outcome.
PNTG anticipates that potential reimbursement cuts could create consolidation opportunities in the home health industry, which they are positioned to capitalize on.
Pennant's core operating model emphasizes local leadership and an entrepreneurial approach, which they believe drives growth and differentiates them in the healthcare services market.