Pennant Group, Inc. reported a record‑breaking fourth‑quarter and full‑year 2025 performance, with total revenue rising 41.0% to $289.32 million and GAAP diluted earnings per share of $0.84, up from $0.70 in FY 2024. Adjusted diluted EPS reached $1.18, a 26.4% increase from the $0.94 reported in FY 2024, and the company beat consensus estimates of $0.31 for Q4 EPS and $275.20 million for revenue.
The Q4 2025 results build on a strong Q4 2024 performance, where GAAP diluted EPS was $0.16 and adjusted EPS was $0.24, and revenue was $188.9 million. Full‑year 2024 revenue of $695.2 million and adjusted EPS of $0.94 provide a baseline that highlights the acceleration in growth and profitability seen in 2025.
Revenue growth was driven by a 44.1% increase in home‑health admissions and a 28.6% rise in hospice average daily census, while the senior‑living segment saw occupancy climb 90 basis points and rates rise 8.0%. These gains translated into a 22.3% revenue increase for senior living and a 34.4% improvement in adjusted EBITDA for that segment, underscoring the company’s ability to capture higher margins through pricing power and operational efficiencies.
Operating margin expanded to 6.0% from 4.9% in the same quarter last year, reflecting disciplined cost management and the leverage of higher volume and rate mix. Adjusted EBITDA for the year was $88.5 million to $94.1 million, a 6.5% to 8.5% increase from the $82.3 million to $87.2 million range reported in FY 2024.
Management highlighted that strategic acquisitions—including a $146.5 million purchase of 54 home‑health and hospice locations from UnitedHealth Group and additional senior‑living communities—fueled the sharp increases in admissions, census, occupancy, and profitability. CEO Brent Guerisoli said, "2025 was a year of record‑breaking performance and growth for Pennant." The company guided 2026 revenue of $1,133.6 million to $1,171.8 million, adjusted EPS of $1.26 to $1.36, and adjusted EBITDA of $88.5 million to $94.1 million, noting that the guidance reflects the impact of the UnitedHealth/Amedisys transition and ongoing acquisition activity.
Investors have expressed caution due to the 2026 adjusted EBITDA guidance falling short of analyst expectations, tempering enthusiasm for the strong earnings beat. The company’s focus on integrating new operations and sustaining operational and clinical performance remains a key driver of its outlook.
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