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SEC filingPACS Group delivered robust Q1 results with revenue up 11.2% to $1.4B and operating income surging 149.3% to $120.0M, reflecting strong operational leverage from our locally led model amid growing healthcare demand.
PACS Group's Q1 2026 results demonstrate the effectiveness of our operating model in a market where healthcare demand outpaces skilled nursing facility supply. Revenue reached $1.4 billion, up 11.2% from $1.3 billion in the prior year quarter, fueled by expansion in operating facilities. On a same-store basis, skilled mix by patient days improved, contributing to this momentum as we capitalize on growing needs from an aging population and chronic conditions.
Net income climbed 183.4% to $80.7 million from $28.5 million, lifting diluted EPS 194.1% to $0.50 from $0.17, underscoring efficient scaling. Cash generation proved resilient, with net cash from operating activities at $236.3 million versus $150.2 million last year. This reflects growth in facilities alongside collections improvements, as days sales outstanding declined 5.4 days to 48.4 from 53.9, enhancing liquidity to fund ongoing expansion.
These outcomes affirm our strategy amid rising U.S. healthcare demand. By empowering local leaders, we navigate cost pressures while positioning for future growth through potential contractual arrangements. Investors should note persistent material weaknesses in revenue controls and compliance, as disclosed in Item 4, which remain unremediated and could impact execution confidence.