PACS · PACS Group, Inc.

PACS Group delivered materially stronger first quarter 2026 results than the prior year, with double-digit revenue growth, near-tripling of net income, and 74.6% Adjusted EBITDA expansion — all driven by operational improvements across its portfolio. Same-store SNF revenue rose 8.0%, occupancy improved to 90.9%, and skilled mix increased to 30.5%, reflecting successful execution in both mature and ramping facility cohorts. The $16.3 million WQIP payment contributed meaningfully to Adjusted EBITDA but was excluded from prior guidance due to timing uncertainty — highlighting a non-recurring tailwind that boosted comparability. Management emphasized disciplined capital allocation: the Company strengthened its balance sheet (net leverage ~0.1x), deployed $86.5 million into strategic real estate investments, and secured $795.1 million in available liquidity. The upward revision to full-year Adjusted EBITDA guidance — now $605–$625 million — excludes future acquisitions, signaling confidence in organic performance; notably, revenue guidance was reaffirmed despite this exclusion, implying underlying strength in core operations. The new $250 million share repurchase authorization, effective May 7, 2026, provides flexibility to return capital opportunistically, though no repurchases occurred in Q1. CEO Jason Murray and CFO Carey Hendrickson attributed results to clinical excellence, workforce investment, and consistent execution — reinforcing the durability of PACS’s post-acute platform amid industry-wide labor and reimbursement headwinds. With 324 facilities across 17 states and continued focus on quality (4.4-star average for mature facilities), the Company is positioning itself for sustained earnings power and margin resilience.