$PNTG

Pennant Group, Inc.

CIK:0001766400|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 297,984	$ 219,501	$ 583,348	$ 429,343
Expense:
Cost of services	242,635	177,275	475,297	346,020
Rent—cost of services	13,428	11,925	26,526	23,640
General and administrative expense	21,614	17,597	41,301	32,437
Depreciation and amortization	3,112	2,224	5,728	4,116
Loss (gain) on disposition of property and equipment, net	9	(1,048)	9	(1,048)
Total expenses	280,798	207,973	548,861	405,165
Income from operations	17,186	11,528	34,487	24,178
Other expense, net:
Other income	626	255	480	186
Income from equity method investment	370	0	370	0
Interest expense, net	(3,348)	(1,204)	(6,416)	(2,409)
Other expense, net	(2,352)	(949)	(5,566)	(2,223)
Income before provision for income taxes	14,834	10,579	28,921	21,955
Provision for income taxes	3,936	2,598	7,730	5,452
Net income	10,898	7,981	21,191	16,503
Less: Net income attributable to noncontrolling interest	1,816	896	3,590	1,643
Net income attributable to The Pennant Group, Inc.	$ 9,082	$ 7,085	$ 17,601	$ 14,860
Earnings per share:
Basic (in dollars per share)	$ 0.26	$ 0.21	$ 0.51	$ 0.43
Diluted (in dollars per share)	$ 0.25	$ 0.20	$ 0.49	$ 0.42
Weighted average common shares outstanding:
Basic (in shares)	34,835	34,529	34,781	34,500
Diluted (in shares)	35,957	35,372	35,857	35,284

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 21,191	$ 16,503
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,728	4,116
Amortization of deferred financing fees	597	435
Loss (gain) on disposition of property and equipment, net	9	(1,048)
Provision for credit losses	753	391
Share-based compensation	5,470	4,330
Deferred income taxes	1,289	(751)
Income from equity method investment	(370)	0
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable	(7,756)	(14,809)
Prepaid expenses and other assets	(10,825)	(1,070)
Operating lease obligations	301	100
Accounts payable	171	555
Accrued wages and related liabilities	(3,653)	(1,235)
Other accrued liabilities	3,231	1,563
Income taxes payable	0	3,065
Other long-term liabilities	2,289	1,269
Net cash provided by operating activities	18,425	13,414
Cash flows from investing activities:
Purchase of property and equipment	(11,606)	(5,024)
Cash payments for business acquisitions	(2,087)	(47,620)
Cash payments for asset acquisitions	(6,906)	(8,252)
Escrow deposits	4,141	(802)
Cash payment for equity method investment	(28,428)	0
Other investing activities	(415)	1,343
Net cash used in investing activities	(45,301)	(60,355)
Cash flows from financing activities:
Payments on incremental term loans	(2,500)	0
Proceeds from revolver agreement	218,000	164,500
Payments on revolver agreement	(192,000)	(127,500)
Net issuance of common stock due to share based compensation	2,427	830
Other financing activities	(802)	(750)
Net cash provided by financing activities	25,125	37,080
Net decrease in cash	(1,751)	(9,861)
Cash beginning of period	17,024	24,246
Cash end of period	15,273	14,385
Cash paid during the period for:
Interest	6,462	1,969
Income taxes	9,212	3,104
Operating lease liabilities	23,690	21,497
Operating lease right-of-use assets obtained in exchange for new lease obligations	23,081	13,847
Finance lease right-of-use assets obtained in exchange for new lease obligations	1,921	5,349
Non-cash investing activity:
Capital expenditures in accounts payable and accrued liabilities	$ 1,246	$ 82

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash	$ 15,273	$ 17,024
Accounts receivable—less allowance for credit losses of $766 and $681, at June 30, 2026 and December 31, 2025, respectively	133,182	123,109
Prepaid expenses and other current assets	35,136	27,273
Total current assets	183,591	167,406
Property and equipment, net	75,296	60,984
Operating lease right-of-use assets	286,237	275,947
Deferred tax assets, net	844	478
Restricted and other assets	27,294	26,676
Equity method investment	28,798	0
Goodwill	235,789	237,246
Other indefinite-lived intangibles	199,442	199,442
Total assets	1,037,291	968,179
Current liabilities:
Accounts payable	26,241	25,171
Accrued wages and related liabilities	60,473	65,229
Operating lease liabilities—current	26,551	25,013
Current maturities of long-term debt	5,000	5,000
Other accrued liabilities	34,141	26,851
Total current liabilities	152,406	147,264
Long-term operating lease liabilities—less current portion	263,364	254,311
Deferred tax liabilities, net	1,804	150
Other long-term liabilities	22,776	23,365
Long-term debt	192,499	168,837
Total liabilities	632,849	593,927
Commitments and contingencies (Note 17)
Equity:
Common stock, $0.001 par value; 100,000 shares authorized; 35,081 and 34,848 shares issued and outstanding, respectively, at June 30, 2026; and 34,878 and 34,626 shares issued and outstanding, respectively, at December 31, 2025	35	35
Additional paid-in capital	254,832	245,833
Retained earnings	104,401	86,800
Treasury stock, at cost, 3 shares at June 30, 2026 and December 31, 2025	(65)	(65)
Total The Pennant Group, Inc. stockholders’ equity	359,203	332,603
Noncontrolling interest	45,239	41,649
Total equity	404,442	374,252
Total liabilities and equity	$ 1,037,291	$ 968,179