PACS Group (PACS) Q3 2025 Financial Results Summary

2025-11-20 · Stocks · QuoteReporter

PACS Group, Inc. (PACS) Q3 2025 Financial Results Summary

PACS Group, Inc. (NYSE: PACS) reported its financial results for the third quarter of 2025 on November 19, 2025. The company, a prominent entity in the post-acute healthcare sector in the United States, has successfully completed the restatement of its previously issued financial statements and has updated its SEC filing obligations.

Third Quarter 2025 Financial Highlights

Revenue:
Total revenue reached $1.34 billion, representing a 31.0% increase compared to Q3 2024.
Net Income:
The net income for the quarter was $52.3 million.
Adjusted EBITDA:
Adjusted EBITDA was $131.5 million.
Adjusted EBITDAR:
Adjusted EBITDAR stood at $226.6 million.

Year-to-Date 2025 Financial Highlights

Revenue:
Total year-to-date revenue was $3.93 billion, marking a 36.4% increase from the same period in 2024.
Net Income:
Net income for the year to date amounted to $131.7 million.
Adjusted EBITDA:
Adjusted EBITDA reached $363.0 million.
Adjusted EBITDAR:
Adjusted EBITDAR was reported at $646.2 million.

Full Year 2024 Financial Highlights (Includes Restatement)

Revenue:
Full year 2024 revenue totaled $4.09 billion, showing an increase of 31.4% over 2023.
Net Income:
Net income for the year was $55.3 million.
Adjusted EBITDA:
Adjusted EBITDA was $279.5 million.
Adjusted EBITDAR:
Adjusted EBITDAR was $564.4 million.

Third Quarter Select KPIs

Quality Measure Star Ratings:
192 facilities (68.6% of its skilled nursing portfolio) achieved a 4 or 5-star rating from CMS.
Occupancy:
Occupancy in mature facilities was 94.8%, significantly higher than the industry average of 79%.
Skilled Mix:
Skilled mix in mature facilities was 33.0%.
Cash Provided by Operations:
Cash generated by operations totaled $407.6 million for the first nine months of 2025.
Cash and Cash Equivalents:
Cash totalled $355.7 million as of September 30, 2025, compared to $157.7 million at the end of 2024.

Business Outlook for Full Year 2025

Revenue Guidance:
PACS expects revenue to fall between $5.25 billion to $5.35 billion.
Adjusted EBITDA Guidance:
Expected range for Adjusted EBITDA is $480 million to $490 million.

Dividend and Share Repurchases

The report does not mention any declared quarterly dividends or share repurchase activities for PACS Group, Inc. during this reporting period.

Investigation and Restatement

PACS has completed an independent investigation by its Audit Committee regarding allegations made by short sellers. The audit confirms the company’s commitment to transparency and strong governance, ensuring future stability and financial growth. Their focus now shifts to executing strategies for sustainable growth and delivering quality care.

Conclusion

PACS Group, Inc. has demonstrated substantial growth and resilience in Q3 2025, with significant increases in revenue, income, and operational efficiency compared to the previous year. The company maintains a positive outlook and strategic focus on enhancing its service capabilities and stakeholder value.

Revenue	2025	2024	2025	2024
Patient and resident service revenue	$1,344,302	$1,024,276	$3,930,168	$2,878,946
Other revenues	265	2,029	785	2,900
Total Revenue	$1,344,567	$1,026,305	$3,930,953	$2,881,846
Operating Expenses
Cost of services	1,046,262	849,599	3,090,932	2,347,738
Rent – cost of services	95,107	72,632	283,250	200,954
General and administrative expense	102,528	70,587	301,579	254,167
Depreciation and amortization	14,401	10,523	40,284	27,893
Total Operating Expenses	$1,258,298	$1,003,341	$3,716,045	$2,830,752
Operating income	$86,269	$22,964	$214,908	$51,094
Other (Expense) Income
Interest expense	-8,529	-9,029	-19,787	-35,040
Gain on lease termination	—	—	—	8,046
Other income (expense), net	-1,444	19,721	2,517	16,256
Total Other (Expense) Income, Net	$-9,973	$10,692	$-17,270	$-10,738
Income before provision for income taxes	76,296	33,656	197,638	40,356
Provision for income taxes	23,966	17,446	65,962	21,203
Net Income	$52,330	$16,210	$131,676	$19,153
Less:
Net (loss) income attributable to	-76	590	-165	594
noncontrolling interest
Net Income Attributable To PACS Group, Inc.	$52,406	$15,620	$131,841	$18,559
Net Income Per Share Attributable To PACS Group, Inc.
Basic	$0.33	$0.10	$0.84	$0.13
Diluted	$0.32	$0.10	$0.80	$0.13
Weighted-Average Common Shares
Outstanding	156,575,127	153,124,371	156,034,409	143,804,609
Diluted	164,709,367	158,453,331	165,492,441	145,737,883

ASSETS	September 30,	December 31,
Current Assets:	2025	2024
Cash and cash equivalents	$355,672	$157,674
Accounts receivable, net	628,280	641,775
Other receivables	66,428	74,746
Prepaid expenses and other current assets	76,369	64,066
Total Current Assets	1,126,749	938,261
Property and equipment, net	1,133,849	990,580
Operating lease right-of-use assets	3,000,426	2,994,519
Insurance subsidiary deposits and investments	80,300	66,258
Escrow funds	24,418	25,122
Goodwill and other indefinite-lived assets	68,061	67,061
Other assets	193,089	161,108
Total Assets	$5,626,892	$5,242,909
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$205,479	$175,062
Accrued payroll and benefits	252,539	146,177
Current operating lease liabilities	150,651	136,232
Current maturities of long-term debt	7,474	14,852
Current portion of accrued self-insurance liabilities	120,914	75,966
Line of credit	100,000	142,000
Refund liability	181,133	145,795
Other accrued expenses	179,431	142,348
Total Current Liabilities	1,197,621	978,432
Long-term operating lease liabilities	2,962,999	2,935,773
Long-term debt, less current maturities, net of deferred financing fees	245,903	250,984
Accrued self-insurance liabilities, less current portion	177,480	164,979
Other liabilities	165,973	197,050
Total Liabilities	$4,749,976	$4,527,218
Commitments and contingencies
Equity:
Common stock:
$0.001 par value; 1,250,000,000 shares authorized; 156,615,144 shares issued	157	155
and outstanding as of September 30, 2025, and 155,177,511 shares issued and outstanding as of
December 31, 2024
Additional paid-in capital	621,288	591,363
Retained earnings	249,877	118,036
Total stockholders’ equity	871,322	709,554
Noncontrolling interest in subsidiary	5,594	6,137
Total Equity	$876,916	$715,691
Total Liabilities and Equity	$5,626,892	$5,242,909