$PACS

PACS Group, Inc.

CIK:0002001184|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Patient and resident service revenue	$ 1,427,497	$ 1,308,881	$ 2,847,456	$ 2,585,866
Other revenues	501	355	1,036	520
Total Revenue	1,427,998	1,309,236	2,848,492	2,586,386
Operating Expenses
Cost of services	1,089,538	1,020,879	2,164,074	2,044,670
Rent - cost of services	94,700	94,348	190,231	188,143
General and administrative expense	114,308	100,332	226,623	199,051
Depreciation and amortization	20,121	13,178	38,198	25,883
Total Operating Expenses	1,318,667	1,228,737	2,619,126	2,457,747
Operating income	109,331	80,499	229,366	128,639
Other (Expense) Income
Interest expense	(6,042)	(4,354)	(12,466)	(11,258)
Other income, net	2,548	2,467	2,673	3,961
Total Other Expense, Net	(3,494)	(1,887)	(9,793)	(7,297)
Income before provision for income taxes	105,837	78,612	219,573	121,342
Provision for income taxes	29,488	27,646	62,556	41,996
Net Income	76,349	50,966	157,017	79,346
Net (loss) income attributable to noncontrolling interest	(21)	3	(48)	(89)
Net Income Attributable To PACS Group, Inc.	$ 76,370	$ 50,963	$ 157,065	$ 79,435
Net Income Per Share Attributable To PACS Group, Inc.
Basic (in us dollars per share)	$ 0.48	$ 0.33	$ 1.00	$ 0.51
Diluted (in us dollars per share)	$ 0.47	$ 0.31	$ 0.97	$ 0.48
Weighted-Average Common Shares Outstanding
Basic (in shares)	158,113,224	156,335,230	157,596,175	155,759,569
Diluted (in shares)	161,986,725	165,474,133	162,013,611	165,942,274

UNAUDITED 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	$ 157,017	$ 79,346
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	38,198	25,883
Amortization of deferred financing fees	1,575	1,574
Stock-based compensation	46,180	25,806
(Gain) loss on investment in partnership	(1,185)	312
Gain on insurance subsidiary deposits and investments	(529)	(2,864)
Deferred taxes	(36,217)	(17,029)
Noncash lease expense	21,212	25,140
Other noncash operating activities, net	345	29
Change in operating assets and liabilities
Accounts receivable, net	(6,368)	3,648
Other receivables	(15,448)	23,101
Prepaid expenses and other current assets	78,191	(23,836)
Other assets	(4,776)	(14,526)
Escrow funds	(3,322)	1,716
Operating lease liabilities	(3,717)	(1,005)
Accounts payable	(32,937)	(4,740)
Accrued payroll and benefits	173	43,959
Accrued self-insurance liabilities	73,326	50,143
Refund liability	0	27,800
Other accrued expenses	57,979	105,875
Other liabilities	2,145	(147,514)
NET CASH PROVIDED BY OPERATING ACTIVITIES	371,842	202,818
Cash flows from investing activities
Non-operating distributions from investment in partnership	2,752	2,822
Purchase of equity securities	(63,440)	(15,111)
Sale of equity securities	17,143	0
Acquisition of facilities	(190,799)	(243)
Purchase of property and equipment	(48,355)	(36,289)
NET CASH USED IN INVESTING ACTIVITIES	(282,699)	(48,821)
Cash flows from financing activities
Borrowing on line of credit	62,000	0
Payments on line of credit	(162,000)	0
Payments on long-term debt	(4,035)	(9,022)
Noncontrolling interest distribution	(208)	(220)
Purchase of equity in noncontrolling interest	(404)	0
Taxes paid related to net share settlement of stock-based compensation awards	(39,634)	(7,955)
NET CASH USED IN FINANCING ACTIVITIES	(144,281)	(17,197)
Net change in cash	(55,138)	136,800
Cash, cash equivalents, and restricted cash - beginning of period	232,051	160,842
Cash, cash equivalents, and restricted cash - end of period	176,913	297,642
Cash and cash equivalents	164,451	294,173
Restricted cash (included in prepaid expenses and other current assets)	12,462	3,469
Cash, cash equivalents, and restricted cash	176,913	297,642
Supplemental disclosures of cash flow information
Interest	17,260	17,959
Income taxes	22,918	80,419
Non-cash financing and investing activity
Accrued capital expenditures	$ 7,616	$ 5,417

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 164,451	$ 197,016
Accounts receivable, net	634,496	628,128
Other receivables	89,413	73,965
Prepaid expenses and other current assets	73,994	170,630
Total Current Assets	962,354	1,069,739
Property and equipment, net	1,397,436	1,201,096
Operating lease right-of-use assets	2,862,741	2,968,176
Insurance subsidiary deposits and investments	134,721	87,192
Escrow funds	21,726	18,404
Goodwill and other indefinite-lived assets	68,061	68,061
Other assets	209,282	171,366
Total Assets	5,656,321	5,584,034
Current Liabilities:
Accounts payable	160,880	192,232
Accrued payroll and benefits	187,689	187,516
Current operating lease liabilities	156,062	153,066
Current maturities of long-term debt	7,380	4,463
Current portion of accrued self-insurance liabilities	157,107	128,994
Refund liability	181,129	181,129
Other accrued expenses	204,811	154,030
Total Current Liabilities	1,055,058	1,001,430
Long-term operating lease liabilities	2,848,918	2,939,854
Line of credit	0	100,000
Long-term debt, less current maturities, net of deferred financing fees	238,709	244,803
Accrued self-insurance liabilities, less current portion	237,774	192,561
Other liabilities	160,462	152,937
Total Liabilities	4,540,921	4,631,585
Commitments and contingencies (Note 15)
Equity:
Common stock: $0.001 par value; 1,250,000,000 shares authorized; 158,335,612 shares issued and outstanding as of June 30, 2026, and 156,615,144 shares issued and outstanding as of December 31, 2025	158	157
Additional paid-in capital	643,598	637,035
Retained earnings	466,644	309,579
Total PACS Group, Inc. stockholders' equity	1,110,400	946,771
Noncontrolling interest in subsidiary	5,000	5,678
Total Equity	1,115,400	952,449
Total Liabilities and Equity	$ 5,656,321	$ 5,584,034