Key Highlights

  • Revenue was USD 302.25 million against a USD 299.34 million estimate and USD 229.04 million a year earlier.
  • EPS of USD 0.35 compares with a USD 0.36 estimate, while GAAP diluted EPS was USD 0.26 against USD 0.17.
  • Home health admissions were 28,479 against 20,426, and average hospice daily census was 5,443 against 4,044.
  • Cash was USD 18.4 million with USD 143.6 million of revolver capacity, and long-term debt, net, was USD 193.3 million.

What lies behind quarterly Revenue moving from USD 229.04 million to USD 302.25 million at a home health, hospice and senior living operator? For Pennant Group (NASDAQ:PNTG), the third quarter figures show higher admissions and census in home health and hospice, while senior living occupancy moved the other way. Revenue was USD 302.25 million against an estimate of USD 299.34 million, and EPS was USD 0.35 against an estimate of USD 0.36.

Home Health and Hospice Volume

Segment revenue for home health and hospice was USD 239.81 million against USD 173.55 million, with segment adjusted EBITDAR from operations of USD 41.37 million against USD 29.07 million. Total home health admissions were 28,479 against 20,426, including 11,347 Medicare admissions against 8,221. Average Medicare revenue per completed 60-day episode was USD 3,632 against USD 3,712.

In hospice, admissions were 4,590 against 3,483 and average daily census was 5,443 against 4,044. Hospice Medicare revenue per day was USD 193 against USD 189. The company operated 175 home health and hospice agencies across 16 states at September 30, against 172 at year end 2025, and paid transition services fees of USD 1.55 million in the quarter tied to the October 2025 Acquisition agreement with UnitedHealth.

Senior Living and the Regulatory Backdrop

Senior living revenue was USD 60.60 million against USD 53.88 million, and segment adjusted EBITDAR was USD 16.18 million against USD 15.31 million. Occupancy was 78.4% against 80.9%, while average monthly revenue per occupied unit was USD 5,385 against USD 5,195. The company said recently acquired operations generally carry lower occupancy and higher costs, which can lead to lower or fluctuating margins in acquisition years. It added seven senior living communities in the nine months and now operates 70 communities with 4,839 units.

On regulation, the fiscal year 2027 hospice final rule, effective October 1, 2026, carries a net payment update of 2.3%, and the aggregate cap rose to USD 36,174.75. A six-month nationwide moratorium on new Medicare enrollment applications for hospice and home health providers took effect May 13, 2026, and it does not affect currently enrolled providers.

Earnings, Cash and Debt

Income from operations was USD 16.51 million against USD 10.24 million, and Net Income attributable to the company was USD 9.64 million, or USD 0.26 per diluted share, against USD 6.08 million, or USD 0.17. General and administrative expense was USD 20.63 million against USD 19.30 million, and net interest expense was USD 3.62 million against USD 1.02 million. Income from the Equity method Investment was USD 1.38 million.

For the nine months, revenue was USD 885.6 million against USD 658.4 million and Operating Cash Flow was USD 43.5 million against USD 27.3 million. Long-term debt, net, was USD 193.3 million against USD 168.8 million at year end, and the company reported compliance with all financial covenants. Management said cash, operating cash flow and borrowing capacity cover Liquidity needs for the next twelve months, including acquisition opportunities.

What Management Pointed To

Revenue of USD 302.25 million sits alongside income from operations of USD 16.51 million, cash of USD 18.4 million and USD 143.6 million of available revolver capacity.

Management pointed to the dated regulatory items it tracks: the hospice rule effective October 1, 2026, the enrollment moratorium that began May 13 and runs six months, and CMS enforcement discretion on the hospice election statement addendum through December 31, 2026. Telehealth flexibilities for hospice were extended through December 31, 2027. It also pointed to the revolving Facility maturing in July 2029 and to the continued integration of newly acquired operations.