Pennant Group (PNTG) Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 26, 2026

AI-Generated Deep Dive Summary

Pennant Group (PNTG) delivered a strong financial performance in 2026, with full-year revenue reaching $947.7 million, up 36.3% year-over-year. The company’s adjusted EBITDA rose to $72.5 million, reflecting a 36% increase, while full-year adjusted EPS reached $1.18, exceeding the midpoint of guidance. These results were driven by significant growth in its home health and hospice segments, fueled by major acquisitions, including Signature Healthcare at Home and more than 50 locations from UnitedHealth and Amedisys. However, the integration process has introduced some operational challenges and temporary disruptions. The company’s senior living segment also contributed to its success, with revenue growing 22.3% to $215 million and same-store occupancy improving by 250 basis points. Pennant Group’s strategic initiatives, such as adding over 100 new leaders through its CEO-in-Training program and expanding credit facilities by $100 million, demonstrate its commitment to growth and operational efficiency. Despite facing regulatory headwinds in home health revenue, the company expects margin expansion due to effective cost management. Looking ahead, Pennant Group provided guidance for 2026, projecting revenue between $1.13 billion and $1.17 billion, a midpoint increase of 22.4%. Adjusted EBITDA is expected to range from $88.5 million to $94.1 million, representing a 26% year-over-year growth. The company’s focus on integration, innovation, and strategic expansion positions it for sustained growth in the healthcare sector. These results highlight Pennant Group’s ability to execute on its acquisition strategy while navigating operational challenges. For investors, this underscores the potential for long-term value creation through continued growth in both home health and senior living segments. The company’s strong financial performance and strategic initiatives make it a compelling investment opportunity in the healthcare industry.

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Originally published on The Motley Fool on 2/26/2026