PACS Group Lifts 2026 EBITDA Guidance by $35M at the Midpoint Following a Strong Q2 Beat
PACS has more than doubled off its 52-week low of $7.5.
Summary
PACS Group reported Q2 2026 revenue of $1.43B (+9.1% YoY), net income of $76.3M (+49.8%), and Adjusted EBITDA of $166.8M (+24.6%), then raised full-year Adjusted EBITDA guidance by $35M at the midpoint to $640M–$660M.
Key Events · Earnings and Guidance · PACS
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Q2 Revenue and Earnings Beat
Revenue of $1.43B grew 9.1% YoY; net income of $76.3M surged 49.8%; Adjusted EBITDA of $166.8M rose 24.6%, all exceeding prior-year levels.
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Full-Year Guidance Raised
2026 Adjusted EBITDA guidance lifted to $640M–$660M (midpoint +$35M) and revenue guidance to $5.75B–$5.85B, reflecting strong organic performance and partial Eduro contribution.
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Eduro Acquisition Progress
20 of 34 Texas facilities closed as of August 1, 2026; remaining 14 facilities expected to close in Q3/Q4 2026, adding 3,633 beds across six states.
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Strong Cash Flow and Liquidity
Operating cash flow of $371.8M in H1 2026; $756.6M in available liquidity at quarter-end, supporting acquisitions and the $250M buyback program.
Analysis · PACS · Industrial Applications And Services
PACS delivered a clean beat-and-raise quarter. Revenue grew 9.1% to $1.43 billion, net income jumped nearly 50%, and Adjusted EBITDA rose 24.6% — all driven by higher occupancy, improved skilled mix, and operating leverage across its mature and ramping facilities. Management lifted full-year Adjusted EBITDA guidance by $35 million at the midpoint, now $640–$660 million, and raised revenue guidance to $5.75–$5.85 billion. The guidance increase reflects strong organic momentum plus a modest contribution from the 20 Texas facilities already closed in the Eduro acquisition, with the remaining 14 facilities still to come. The company generated $371.8 million in operating cash flow in the first half, ending the quarter with $756.6 million in available liquidity, giving it ample firepower for further acquisitions and the $250 million buyback authorized in May. Against a backdrop of ongoing federal investigations and material weaknesses disclosed in prior filings, these results demonstrate the core business is performing exceptionally well — the raised guidance signals management's confidence that the operational strength is sustainable through year-end.
At the time of this filing, PACS was trading at $44.62 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $7.1B. The 52-week trading range was $7.50 to $48.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.