PACS Reports Robust Revenue Growth, High Occupancy, and Clean Audit as Company Sets Sights on Expansion
31% Revenue Growth and Industry-Leading Occupancy Define Third Quarter
PACS Group, Inc., one of the nation's largest post-acute healthcare companies, announced standout third-quarter 2025 results, headlined by a 31% year-over-year revenue increase to $1.34 billion and strong net income of $52.3 million. Notably, mature facilities delivered a remarkable 94.8% occupancy rate—far surpassing the industry average of 79%—while over two-thirds of its skilled nursing portfolio received a 4- or 5-star rating from CMS Quality Measures.
Financial Restatement and Audit Completed: Renewed Confidence and Compliance
The company successfully concluded a comprehensive financial restatement for prior quarters, a move followed by the completion of an independent Audit Committee investigation addressing allegations from a short seller report. As a result, PACS is now current with all SEC filing obligations, reinforcing stakeholder confidence and positioning the business for sustainable growth.
Mature Facility Metrics Outperform Peers, Fueling Expansion Plans
Mature facilities were a key highlight: they posted not just exceptional occupancy (94.8%) but also delivered skilled mix by revenue of 55.4%, driven by a payer mix of 39.6% Medicare and 15.8% managed care for the quarter. With average daily rates for Medicare patients reaching $988.41, PACS’s operational strengths stand out in a sector often challenged by reimbursement pressures.
| Key Metric | Q3 2025 | Q3 2024 | Change (%) |
|---|---|---|---|
| Revenue | $1.34B | $1.03B | +31.0% |
| Net Income | $52.3M | $16.2M | +223.0% |
| Adjusted EBITDA | $131.5M | $49.1M | +167.9% |
| Mature Facility Occupancy | 94.8% | 94.5% | +0.3pt |
| Mature Facility Medicare Rate | $988.41 | $947.82 | +4.3% |
| Cash & Equivalents (9/30/25) | $355.7M | $157.7M (12/31/24) | +125.6% |
Balance Sheet and Cash Flow Position Support Strategic Growth
With $355.7 million in cash and equivalents as of September 30, 2025—more than doubling from year-end 2024—PACS has enhanced financial flexibility to execute on expansion. Net cash provided by operations for the first nine months topped $407.6 million, reflecting efficient working capital and robust core operations.
Outlook: Aggressive Growth Guidance Backed by Fundamentals
Looking ahead, PACS expects 2025 revenue to reach $5.25–$5.35 billion with adjusted EBITDA forecast between $480–$490 million. The company’s facility portfolio has grown to 320 operations across 17 states, including 51 owned facilities, and management is actively evaluating new acquisitions—particularly those with potential for operational uplift or turnaround. PACS maintains a disciplined approach to acquisitions, balancing real estate ownership with leased facility growth to optimize return on invested capital.
| Guidance/Outlook (2025) | Estimate |
|---|---|
| Revenue | $5.25B–$5.35B |
| Adjusted EBITDA | $480M–$490M |
| Number of Facilities | 320 (across 17 states) |
Governance Reforms Strengthen Long-Term Foundation
Importantly, PACS’s board-led governance reforms—resulting from the audit committee investigation—underscore a heightened commitment to transparency and control. All required quarterly and annual filings, including those covering restated periods, are now current, reflecting a reset of both operational and reputational footing.
Key Takeaway: Sustainable Growth Driven by Quality, Compliance, and Capital Discipline
PACS emerges from a year of scrutiny with strengthened financials, outstanding operational performance, and renewed trust from both patients and investors. The combination of industry-leading occupancy, balanced payer mix, rising skilled nursing rates, and robust cash generation supports the company’s ambitions for further national expansion. Investors and healthcare industry watchers will be closely following PACS as it continues to scale while keeping a firm grip on quality and compliance.
Additional Details: Conference Call and Company Information
PACS will discuss its third quarter financial results during a live webcast at 5:30 p.m. Eastern Time, November 19, 2025, with replay available for 30 days on the Investor Relations section of PACS’s website.
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