Highlights

  • Second quarter 2026 total revenue was $297,984 thousand, compared with $219,501 thousand, and income from operations was $17,186 thousand.
  • Net income attributable to The Pennant Group was $9,082 thousand, or $0.25 per diluted share, compared with $7,085 thousand, or $0.20.
  • The company operated 175 home health and hospice agencies and 69 senior living communities at June 30, 2026.
  • CMS announced a six-month nationwide moratorium on new Medicare enrollment applications for hospice providers and home health agencies, effective May 13, 2026.

The Pennant Group, Inc. (NASDAQ: PNTG) shares were trading at USD 41.49 on October 27, 2026, down 2.55%, with a relative volume at time of 2.11. The healthcare services company added six senior living communities in the six months ended June 30, 2026 and filed its quarterly report for the second quarter on August 5, 2026.

Pennant is a holding company incorporated in Delaware, with principal executive offices in Eagle, Idaho. It has no direct operating assets, employees or revenue; its affiliated operations are run by separate, independent subsidiaries. Those subsidiaries provide home health, hospice, home care and senior living services across Alabama, Arizona, California, Colorado, Georgia, Idaho, Montana, Nevada, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming. The company reports two segments, home health and hospice services, and senior living services. Its fiscal year ends December 31.

Second Quarter Results

Total revenue for the three months ended June 30, 2026 was $297,984 thousand, compared with $219,501 thousand. Home health and hospice services segment revenue was $237,353 thousand, compared with $165,248 thousand, and senior living services segment revenue was $58,497 thousand, compared with $51,862 thousand. Total expenses were $280,798 thousand, compared with $207,973 thousand, and income from operations was $17,186 thousand, compared with $11,528 thousand.

Net income attributable to The Pennant Group was $9,082 thousand, compared with $7,085 thousand. Basic earnings per share were $0.26 and diluted earnings per share were $0.25, compared with $0.21 and $0.20. For the six months, total revenue was $583,348 thousand, compared with $429,343 thousand, and net income attributable to the company was $17,601 thousand, or $0.49 per diluted share, compared with $14,860 thousand, or $0.42.

Operating Statistics

In home health, total admissions were 28,947 for the quarter, compared with 17,832, and average Medicare revenue per completed 60-day episode was $3,716, compared with $3,788. In hospice, total admissions were 4,844, compared with 3,500, and average daily census was 5,477, compared with 3,909. Hospice Medicare revenue per day was $191, compared with $190. In senior living, occupancy was 78.9%, compared with 78.8%, and average monthly revenue per occupied unit was $5,392, compared with $5,188.

The company said that when it acquires turnaround or start-up operations, it has generally experienced lower occupancy and higher costs at senior living communities and lower census and higher costs at home health and hospice agencies, and that it anticipates lower or fluctuating margins during years of acquisition growth.

Balance Sheet, Cash Flow and Regulatory Developments

At June 30, 2026, cash was $15.3 million, and available borrowing capacity under the Amended Revolving Credit Facility was $145.6 million. Long-term debt was $192,499 thousand, compared with $168,837 thousand at December 31, 2025, and total liabilities were $632,849 thousand. The company stated it was compliant with all financial covenants. Net cash provided by operating activities for the six months was $18,425 thousand, compared with $13,414 thousand, and net cash used in investing activities was $45,301 thousand.

The filing describes several regulatory developments. Effective May 13, 2026, CMS announced a six-month nationwide moratorium on new Medicare enrollment applications for hospice providers and home health agencies, which does not affect currently enrolled providers. CMS also announced enforcement activity against some hospices and home health agencies. On July 30, 2026, CMS issued the calendar year 2027 hospice rule with a net payment update of 2.3%. On July 1, 2026, CMS published a proposed rule for calendar year 2027 that proposes increasing aggregate net payments to home health agencies by 2.4% and includes proposed changes to Medicare enrollment processes that the company said could materially impact its home health offerings if finalized.

Outlook

The 10-Q does not provide numerical guidance. The company stated that it believes its existing cash, cash generated through operations and available borrowing capacity will be sufficient to provide adequate liquidity for the next twelve months for operating activities and acquisition growth opportunities.