Earnings release
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FOR MORE INFORMATION: Kasandra H. Rossi Executive Vice President, Chief Financial Officer & Treasurer 954-692-7163 kasandra.rossi@pediatrix.com FOR IMMEDIATE RELEASE Pediatrix Medical Group Reports Third Quarter Results Raises Full Year 2025 Adjusted EBITDA Outlook Range FORT LAUDERDALE, Fla., November 3, 2025 - Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of physician services, today reported earnings of $0.84 per share for the three months ended September 30, 2025. On a non-GAAP basis, Pediatrix reported Adjusted EPS of $0.67. For the 2025 third quarter, Pediatrix reported the following results: • Net revenue of $493 million; • Net income of $72 million; and • Adjusted EBITDA of $87 million. “Our operating results for the third quarter exceeded our expectations and were driven by a combination of reimbursement-related factors, including strong collection activity, higher patient acuity and slightly favorable payor mix, as well as operational consistency,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. “We now expect our full year 2025 Adjusted EBITDA will likely range between $270 million and $290 million. We are of course pleased with our results, and the strength it provides to Pediatrix and our stakeholders, but know that they come at a time of change and uncertainty in the healthcare environment.” Operating Results– Three Months Ended September 30, 2025 Pediatrix’s net revenue for the three months ended September 30, 2025 was $492.9 million, compared to $511.2 million for the prior-year period. This decrease reflects the impact
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of non-same unit activity, primarily practice dispositions, partially offset by growth in same-unit net revenue of 8.0 percent. Same-unit revenue from net reimbursement-related factors increased by 7.6 percent for the 2025 third quarter as compared to the prior-year period. This increase primarily reflects continued improvements in collection activity, higher patient acuity in the Company’s hospital-based practices, primarily in neonatology, increases in administrative fees from hospital partners and a slightly favorable shift in payor mix. Same-unit revenue attributable to patient service volumes increased by 0.4 percent for the 2025 third quarter as compared to the prior-year period. Shown below are year-over-year percentage changes in certain same- unit volume statistics for the three and nine months ended September 30, 2025. (Note: figures in the below table reflect contributions only to net patient service revenue and exclude other contributions to total same-unit revenue, including contract and administrative fees.) Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Hospital-based patient services 0.7% 2.0% Office-based patient services (0.6)% 0.9% Neonatology services (within hospital-based services): Neonatal intensive care unit (NICU) days 2.2% 3.4% For the 2025 third quarter, practice salaries and benefits expense was $332.3 million, compared to $364.9 million for the prior-year period. This decrease primarily reflects the impact of practice disposition activity, partially offset by increases in same-unit clinical compensation costs, including incentive compensation based on practice results. For the 2025 third quarter, general and administrative expenses were $60.8 million, as compared to $58.1 million for the prior-year period. This increase primarily reflects increases in incentive compensation based on financial results. For the 2025 third quarter, transformational and restructuring related expenses totaled $6.0 million, as compared to $18.6 million for the prior-year period. The expenses during the third quarter of 2025 primarily related to position eliminations and, to a lesser extent, revenue cycle management transition activities. The expenses during the third quarter of 2024 primarily related to revenue cycle management transition activities, position eliminations, and impairment of various right-of-use lease assets resulting from practice dispositions. Adjusted EBITDA, which is defined as net income before interest, taxes, depreciation and amortization, transformational and restructuring related expenses, and net gain on investments in divested businesses, was $87.3 million for the 2025 third quarter, compared to $60.2 million for the prior-year period. The increase in Adjusted EBITDA was primarily due to net favorable impacts from same-unit results and practice disposition activity. Depreciation and amortization expense was $5.6 million for the third quarter of 2025, compared to $6.3 million for the prior-year period. The net decrease was primarily related to a lower level of capital expenditures at our existing units.
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Interest expense was $8.9 million for the third quarter of 2025, compared to $10.1 million for the third quarter of 2024, reflecting slightly lower interest rates on slightly lower average outstanding borrowings. Investment and other income was $5.9 million for the third quarter of 2025, compared to $1.1 million for the third quarter of 2024. The net increase was primarily related to increases in interest income on higher cash balances. During the third quarter of 2025, the Company recognized a net gain on investments in divested businesses of $20.9 million. Pediatrix generated net income of $71.7 million, or $0.84 per diluted share, for the 2025 third quarter, based on weighted average shares outstanding of 85.6 million. This compares with $19.4 million, or $0.23 per diluted share, for the 2024 third quarter, based on weighted average shares outstanding of 84.5 million. For the third quarter of 2025, Pediatrix reported Adjusted EPS of $0.67, compared to $0.44 for the third quarter of 2024. For these periods, Adjusted EPS is defined as diluted net income per common and common equivalent share adjusted for non-cash amortization expense, stock-based compensation expense, transformational and restructuring related expenses, net gain on investments in divested businesses, and impacts from discrete tax events. Operating Results – Nine Months Ended September 30, 2025 For the nine months ended September 30, 2025, Pediatrix generated revenue of $1.42 billion, compared to $1.51 billion for the prior-year period. Pediatrix generated net income of $131.7 million, or $1.54 per share, for the nine months ended September 30, 2025, based on weighted average shares outstanding of 85.6 million, which compares to a net loss of $129.5 million, or $1.56 per share, for the nine months ended September 30, 2024, based on weighted average shares outstanding of 83.2 million. Adjusted EBITDA for the nine months ended September 30, 2025 was $209.7 million, compared to $155.3 million for the prior year. For the nine months ended September 30, 2025, Pediatrix reported Adjusted EPS of $1.54, compared to $0.99 for the same period of 2024. Financial Position and Cash Flow – Continuing Operations Pediatrix had cash and cash equivalents of $340.1 million at September 30, 2025, compared to $229.9 million at December 31, 2024, and net accounts receivable were $231.1 million. For the third quarter of 2025, Pediatrix generated cash from operating activities from continuing operations of $138.1 million, compared to $95.7 million during the third quarter of 2024. During the third quarter of 2025, the Company used $20.9 million to fund share repurchases, $19.2 million to fund acquisition activity, and $5.3 million to fund capital expenditures. At September 30, 2025, Pediatrix had total debt outstanding of $602 million, consisting of its $400 million in 5.375% Senior Notes due 2030 and $202 million in borrowings under its Term A Loan. At September 30, 2025, the Company had no outstanding borrowings under its $450 million revolving line of credit.
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Updated 2025 Outlook Pediatrix is raising its full year 2025 outlook for Adjusted EBITDA, as defined above, and now anticipates Adjusted EBITDA will likely be in a range of $270 million to $290 million. Non-GAAP Measures A reconciliation of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three and nine months ended September 30, 2025 and 2024 is provided in the financial tables of this press release. Earnings Conference Call Pediatrix will host an investor conference call to discuss the quarterly results at 9 a.m., ET today. The conference will be webcast and available for replay at the following site: www.pediatrix.com/investors. ABOUT PEDIATRIX MEDICAL GROUP Pediatrix® Medical Group, Inc. (NYSE:MD) is a leading provider of physician services. Pediatrix-affiliated clinicians are committed to providing coordinated, compassionate and clinically excellent services to women, babies and children across the continuum of care, both in hospital settings and office-based practices. Specialties include obstetrics, maternal-fetal medicine and neonatology complemented by multiple pediatric subspecialties. The group’s high-quality, evidence-based care is bolstered by significant investments in research, education, quality-improvement and safety initiatives. The physician-led company was founded in 1979 as a single neonatology practice and today provides its highly specialized and often critical care services through approximately 4,400 affiliated physicians and other clinicians. To learn more about Pediatrix, visit www.pediatrix.com or follow us on Facebook, Instagram, LinkedIn and the Pediatrix blog. Investment information can be found at www.pediatrix.com/investors. Certain statements and information in this press release may be deemed to contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, its full year 2025 guidance, and all statements, other than statements of historical facts, that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made by the Company’s management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments, and business
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decisions to differ materially from forward-looking statements are described in the Company’s most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q, including the sections entitled “Risk Factors”, as well the Company’s current reports on Form 8-K, filed with the Securities and Exchange Commission, and include the following: the impact of the Company’s practice portfolio management plans and whether the Company is able to achieve the expected favorable impact to Adjusted EBITDA therefrom; the effects of economic conditions on the Company’s business; the effects of the Medicare Access and CHIP Reauthorization Act of 2015, the Affordable Care Act, the One Big Beautiful Bill Act and potential additional healthcare reform; the Company’s relationships with government-sponsored or funded healthcare programs and with managed care organizations and commercial health insurance payors; the impact of state budgetary constraints and uncertainty over the future of Medicaid; the impact of surprise billing legislation; the Company’s transition to a hybrid revenue cycle management model; the timing and contribution of future acquisitions or organic growth initiatives; the Company’s ability to comply with the terms of debt financing arrangements; and the effects of the Company’s transformation initiatives, including reorientation on, and growth strategy for, the Company’s hospital-based and maternal fetal businesses. ###
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Pediatrix Medical Group, Inc. Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net revenue $ 492,875 $ 511,158 $ 1,420,078 $ 1,510,555 Operating expenses: Practice salaries and benefits 332,326 364,888 992,859 1,091,834 Practice supplies and other operating expenses 20,200 29,449 59,500 92,903 General and administrative expenses 60,793 58,121 175,111 174,884 Depreciation and amortization 5,551 6,254 16,196 25,353 Transformational and restructuring related expenses 5,954 18,560 16,393 40,619 Goodwill impairment — — — 154,243 Long-lived asset impairments — — — 27,791 Loss on disposal of businesses — 59 — 10,932 Total operating expenses 424,824 477,331 1,260,059 1,618,559 Income (loss) from operations 68,051 33,827 160,019 (108,004) Investment and other income 5,883 1,089 14,347 2,941 Net gain on investments in divested businesses 20,906 — 20,906 — Interest expense (8,941) (10,126) (27,225) (31,033) Equity in earnings of unconsolidated affiliate 1,879 445 2,790 1,427 Total non-operating income (expenses) 19,727 (8,592) 10,818 (26,665) Income (loss) before income taxes 87,778 25,235 170,837 (134,669) Income tax (provision) benefit (16,070) (5,794) (39,132) 5,120 Net income (loss) $ 71,708 $ 19,441 $ 131,705 $ (129,549) Other comprehensive income, net of tax Unrealized holding gain on investments, net of tax of $101, $571, $496 and $657 309 1,745 1,517 2,005 Total comprehensive income (loss) $ 72,017 $ 21,186 $ 133,222 $ (127,544) Per common and common equivalent share data (diluted): Net income (loss): $ 0.84 $ 0.23 $ 1.54 $ (1.56) Weighted average common shares 85,613 84,523 85,559 83,223
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Pediatrix Medical Group, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $ 71,708 $ 19,441 $ 131,705 $ (129,549) Interest expense 8,941 10,126 27,225 31,033 Income tax provision (benefit) 16,070 5,794 39,132 (5,120) Depreciation and amortization expense 5,551 6,254 16,196 25,353 Transformational and restructuring related expenses 5,954 18,560 16,393 40,619 Net gain on investments in divested businesses (20,906) — (20,906) — Impairment losses — — — 182,034 Loss on disposal of businesses — 59 — 10,932 Adjusted EBITDA $ 87,318 $ 60,234 $ 209,745 $ 155,302
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Pediatrix Medical Group, Inc. Reconciliation of Diluted Net Income (Loss) per Share to Adjusted Income per Diluted Share (“Adjusted EPS”) (in thousands, except per share data) (Unaudited) Three Months Ended September 30, 2025 2024 Weighted average diluted shares outstanding 85,613 84,523 Net income and diluted net income per share $ 71,708 $ 0.84 $ 19,441 $ 0.23 Adjustments : Amortization (net of tax of $482 and $446) 1,447 0.01 1,338 0.02 Stock-based compensation (net of tax of $851 and $656) 2,553 0.03 1,969 0.02 Transformational and restructuring expenses (net of tax of $1,489 and $4,640) 4,466 0.05 13,920 0.16 Net gain on investments in divested businesses (net of tax of $5,226) (15,680) (0.18) — — Tax effects of goodwill impairment — — (6,135) (0.07) Loss on disposal of businesses (net of tax of $15) — — 44 — Net impact from discrete tax events (7,003) (0.08) 6,452 0.08 Adjusted income and diluted EPS $ 57,491 $ 0.67 $ 37,029 $ 0.44 (1) A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended September 30, 2025 and 2024, other than for tax effects of goodwill impairment for the three months ended September 30, 2024. Tax effects of goodwill impairment relate to the goodwill impairment recognized in the second quarter of 2024. Nine Months Ended September 30, 2025 2024 Weighted average diluted shares outstanding 85,559 83,223 Net income (loss) and diluted net income (loss) per share $ 131,705 $ 1.54 $ (129,549) $ (1.56) Adjustments : Amortization (net of tax of $1,334 and $1,842) 4,003 0.05 5,526 0.07 Stock-based compensation (net of tax of $1,927 and $1,872) 5,781 0.07 5,616 0.07 Transformational and restructuring expenses (net of tax of $4,099 and $10,155) 12,295 0.14 30,464 0.37 Net gain on investments in divested businesses (net of tax $5,226) (15,680) (0.18) — — Impairment losses (net of tax of $28,573) — — 153,461 1.84 Loss on disposal of businesses (net of tax of $2,733) — — 8,199 0.10 Net impact from discrete tax events (6,439) (0.08) 8,456 0.10 Adjusted income and diluted EPS $ 131,665 $ 1.54 $ 82,173 $ 0.99 (1) A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the nine months ended September 30, 2025 and 2024, other than for impairment losses, due to a portion of the expense being non-deductible. (1) (1)
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Pediatrix Medical Group, Inc. Balance Sheet Highlights (in thousands) (Unaudited) As of September 30, 2025 As of December 31, 2024 Assets: Cash and cash equivalents $ 340,059 $ 229,940 Short-term investments 123,042 118,566 Accounts receivable, net 231,122 259,990 Other current assets 22,972 31,111 Intangible assets, net 14,802 11,595 Operating and finance lease right-of-use assets 35,702 39,267 Goodwill, other assets, property and equipment 1,431,706 1,462,231 Total assets $ 2,199,405 $ 2,152,700 Liabilities and shareholders' equity: Accounts payable and accrued expenses $ 352,233 $ 398,690 Total debt, including finance leases, net 602,508 617,664 Operating lease liabilities 39,759 44,649 Other liabilities 314,239 326,759 Total liabilities 1,308,739 1,387,762 Total shareholders' equity 890,666 764,938 Total liabilities and shareholders' equity $ 2,199,405 $ 2,152,700
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Pediatrix Medical Group, Inc. Reconciliation of Net Income to Forward-Looking Adjusted EBITDA (in thousands) (Unaudited) Year Ended December 31, 2025 Net income $ 155,900 $ 170,500 Interest expense 36,160 36,160 Income tax provision 57,610 63,010 Depreciation and amortization expense 22,510 22,510 Transformational and restructuring related expenses 18,720 18,720 Net gain on investments in divested businesses (20,900) (20,900) Adjusted EBITDA $ 270,000 $ 290,000