Earnings release
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Pediatrix Medical Group Reports Second Quarter Results FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 4, 2026-- Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of physician services, today reported earnings of $0.49 per share for the three months ended June 30, 2026. On a non-GAAP basis, Pediatrix reported Adjusted EPS of $0.63. For the 2026 second quarter, Pediatrix reported the following results: Net revenue of $488 million; Net income of $40 million; and Adjusted EBITDA of $76 million. “Our strong results this quarter were in line with our expectations and reflect continued favorable trends in the performance of recent acquisitions and same-unit reimbursement metrics,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. “With a coveted, strong balance sheet, we believe we have exceptional financial flexibility to fund organic growth initiatives while remaining well-positioned to pursue potential high-value strategic opportunities.” Operating Results– Three Months Ended June 30, 2026 Pediatrix’s net revenue for the three months ended June 30, 2026 was $487.8 million, compared to $468.8 million for the prior-year period. This increase of $19.0 million, or 4.0%, reflects
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growth in non-same unit activity of 2.1 percent, driven by recent acquisitions, partially offset by practice dispositions, and growth in same-unit revenue of 1.9 percent. Same-unit revenue from net reimbursement-related factors increased by 4.0 percent for the 2026 second quarter as compared to the prior-year period. This increase primarily reflects improved cash collections, a favorable shift in payor mix and higher patient acuity, primarily in neonatology. The percentage of services reimbursed by commercial and other non-government payors increased by 135 basis points compared to the prior-year period. Same-unit revenue attributable to patient volume decreased by 2.1 percent for the 2026 second 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 six months ended June 30, 2026. (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 June 30, 2026 Six Months Ended June 30, 2026 Hospital-based patient services (2.8)% (2.2)% Office-based patient services (1.2)% (2.4)%
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Neonatology services (within hospital-based services): Neonatal intensive care unit (NICU) days (3.2)% (2.0)% For the 2026 second quarter, practice salaries and benefits expense was $336.1 million, compared to $323.5 million for the prior-year period. This increase primarily reflects increases in same-unit clinical salaries and malpractice expense. For the 2026 second quarter, general and administrative expenses were $61.3 million, as compared to $55.7 million for the prior-year period. This increase primarily reflects an increase in compensation expense related to executive transition related costs, as well as an increase in cash collection expense, partially offset by a decrease in information technology-related expenses. For the 2026 second quarter, transformational and restructuring related expenses were $8.5 million, compared to $3.8 million for the prior-year period. The expenses in 2026 were primarily related to revenue cycle management transition activities, and the expenses in 2025 were primarily related to position eliminations and revenue cycle management transition activities. Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization and transformational and restructuring related expenses, was $76.4 million for the 2026 second quarter, compared to $73.2 million for the prior-year period. The increase in Adjusted EBITDA was primarily due to
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net favorable impacts from recent acquisitions, partially offset by a decrease in same-unit results due to higher expenses as compared to revenue growth. Depreciation and amortization expense was $5.8 million for the second quarter of 2026, compared to $5.3 million for the same period in 2025. The increase was primarily related to capital expenditures and amortization of intangible assets from recent acquisitions. Interest expense was $8.2 million for the second quarter of 2026, compared to $9.1 million for the second quarter of 2025, reflecting a reduction in interest expense from modestly lower interest rates and borrowings. Investment and other income was $4.5 million for the second quarter of 2026, compared to $3.7 million for the prior-year period. Pediatrix generated net income of $39.8 million, or $0.49 per diluted share, for the 2026 second quarter, based on a weighted average shares outstanding of 81.4 million. This compares with net income of $39.3 million, or $0.46 per diluted share, for the 2025 second quarter, based on a weighted average shares outstanding of 85.5 million. The decrease in weighted average shares outstanding is primarily due to the impact of shares repurchased under the Company’s repurchase program, partially offset by issuances of restricted stock. For the second quarter of 2026, Pediatrix reported Adjusted EPS of $0.63, compared to $0.53 for the second quarter of 2025. For these periods, Adjusted EPS is defined as diluted income per common and common equivalent share excluding non-
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cash amortization expense, stock-based compensation expense, transformational and restructuring related expenses, and impacts from discrete tax events. Operating Results – Six Months Ended June 30, 2026 For the six months ended June 30, 2026, Pediatrix generated revenue of $964.0 million, compared to $927.2 million for the prior-year period. Pediatrix generated net income of $69.4 million, or $0.85 per share, for the six months ended June 30, 2026, based on a weighted average 82.0 million shares outstanding, which compares to net income of $60.0 million, or $0.70 per share, for the six months ended June 30, 2025, based on a weighted average 85.5 million shares outstanding. Adjusted EBITDA for the six months ended June 30, 2026 was $134.6 million, compared to $122.4 million for the prior year. For the six months ended June 30, 2026, Pediatrix reported Adjusted EPS of $1.07, compared to $0.87 for the same period of 2025. Financial Position and Cash Flow – Continuing Operations Pediatrix had cash and cash equivalents of $288.9 million at June 30, 2026, compared to $375.2 million at December 31, 2025, and net accounts receivable at June 30, 2026 were $227.6 million. For the second quarter of 2026, Pediatrix generated cash from continuing operations of $126.3 million, compared to $138.1 million during the second quarter of 2025. Additionally, during the second quarter of 2026, the Company used $42.7 million to fund share repurchases and $1.4 million to fund capital expenditures.
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At June 30, 2026, Pediatrix had total debt outstanding of $584 million, consisting of its $400 million in 5.375% Senior Notes due 2030 and $184 million in borrowings under its Term A Loan. At June 30, 2026, the Company had no outstanding borrowings under its $450 million revolving line of credit. 2026 Outlook Pediatrix reaffirms its full year 2026 outlook for Adjusted EBITDA, as defined above, and anticipates Adjusted EBITDA will be in a range of $280 million to $300 million. Non-GAAP Measures A reconciliation of Adjusted EBITDA and Adjusted EPS to the most directly comparable GAAP measures for the three and six months ended June 30, 2026 and 2025 is provided in the financial tables of this press release. A reconciliation of projected full year 2026 Adjusted EBITDA to the most directly comparable GAAP financial measures is also 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 call Webcast may be accessed from the Company’s Website, www.pediatrix.com/about/investors. A replay of the conference call will also be available at www.pediatrix.com. 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
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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 4,300 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 2026 guidance, future impacts of legal, regulatory, political and macroeconomic developments 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
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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 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 as 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; including a slowdown of economic growth, economic downturns, inflationary pressures, elevated unemployment levels and sluggish or uneven economic recovery; 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 and any shifts in the Company’s payor mix; 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 Company’s
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ability to replace, refinance or extend its current debt financing arrangements; and the effects of the Company’s transformation initiatives, including our renewed focus, and growth strategy for, the Company’s hospital-based and maternal-fetal service lines. Pediatrix Medical Group, Inc. Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net revenue $487,783 $468,844 $963,979 $927,203 Operating expenses: Practice salaries and benefits 336,116 323,502 681,860 660,533 Practice supplies and other operating expenses 19,197 20,614 36,685 39,300 General and administrative expenses 61,291 55,714 121,557 114,318
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Depreciation and amortization 5,782 5,313 11,901 10,645 Transformational and restructuring related expenses 8,475 3,834 13,397 10,439 Total operating expenses 430,861 408,977 865,400 835,235 Income from operations 56,922 59,867 98,579 91,968 Investment and other income 4,548 3,727 9,308 8,464 Interest expense (8,172) (9,130) (16,437) (18,284) Equity in earnings of unconsolidated affiliate 702 505 1,394 911 Total non- operating expenses (2,922) (4,898) (5,735) (8,909) Income before income taxes 54,000 54,969 92,844 83,059 Income tax provision (14,157) (15,709) (23,429) (23,062) Net income $ 39,843 $ 39,260 $ 69,415 $ 59,997 Other comprehensive income, net of tax
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Unrealized holding (loss) gain on investments, net of tax of $145, $140, $297, and $395 (463) 429 (996) 1,208 Total comprehensive income $ 39,380 $ 39,689 $ 68,419 $ 61,205 Per common and common equivalent share data (diluted): Net income: $ 0.49 $ 0.46 $ 0.85 $ 0.70 Weighted average common shares 81,412 85,529 82,040 85,517 Pediatrix Medical Group, Inc. Reconciliation of Net Income to Adjusted EBITDA (in thousands) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $39,843 $39,260 $ 69,415 $59,997 Interest expense 8,172 9,130 16,437 18,284 Income tax provision 14,157 15,709 23,429 23,062
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Depreciation and amortization expense 5,782 5,313 11,901 10,645 Transformational and restructuring related expenses 8,475 3,834 13,397 10,439 Adjusted EBITDA $76,429 $73,246 $134,579 $122,427 Pediatrix Medical Group, Inc. Reconciliation of Diluted Net Income per Share to Adjusted Income per Diluted Share (“Adjusted EPS”) (in thousands, except per share data) (Unaudited) Three Months Ended June 30, 2026 2025 Weighted average diluted shares outstanding 81,412 85,529 Net income and diluted net income per share $39,843 $ 0.49 $39,260 $ 0.46 Adjustments : Amortization (net of tax of $554 and $421) 1,661 0.02 1,266 0.01 Stock-based compensation (net of tax of $1,214 and $503) 3,642 0.05 1,508 0.02 (1)
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Transformational and restructuring expenses (net of tax of $2,119 and $959) 6,356 0.08 2,875 0.03 Net impact from discrete tax events (596) (0.01) 739 0.01 Adjusted income and diluted EPS $50,906 $ 0.63 $45,648 $ 0.53 A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended June 30, 2026 and 2025. Six Months Ended June 30, 2026 2025 Weighted average diluted shares outstanding 82,040 85,517 Net income and diluted net income per share $69,415 $ 0.85 $59,997 $ 0.70 Adjustments : Amortization (net of tax of $1,119 and $851) 3,356 0.04 2,556 0.03 Stock-based compensation (net of tax of $2,150 and $1,076) 6,450 0.08 3,228 0.04 (1) (1)
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Transformational and restructuring expenses (net of tax of $3,349 and $2,610) 10,048 0.12 7,829 0.09 Net impact from discrete tax events (1,731) (0.02) 564 0.01 Adjusted income and diluted EPS $87,538 $ 1.07 $74,174 $ 0.87 A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the six months ended June 30, 2026 and 2025. Pediatrix Medical Group, Inc. Balance Sheet Highlights (in thousands) (Unaudited) As of June 30, 2026 As of December 31, 2025 Assets: Cash and cash equivalents $ 288,879 $ 375,241 Short-term investments 115,319 124,482 Accounts receivable, net 227,601 229,665 Other current assets 28,342 34,126 Intangible assets, net 14,514 16,862 (1)
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Operating and finance lease right- of-use assets 35,190 34,330 Goodwill, other assets, property and equipment 1,420,497 1,431,990 Total assets $2,130,342 $2,246,696 Liabilities and shareholders' equity: Accounts payable and accrued expenses $ 301,837 $ 419,530 Total debt, including finance leases, net 584,243 597,338 Operating lease liabilities 35,713 37,277 Other liabilities 327,572 326,697 Total liabilities 1,249,365 1,380,842 Total shareholders' equity 880,977 865,854 Total liabilities and shareholders' equity $ 2,130,342 $ 2,246,696 Pediatrix Medical Group, Inc. Reconciliation of Net Income to Forward-Looking Adjusted EBITDA (in thousands) (Unaudited)
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Year Ended December 31, 2026 Net income $147,600 $ 162,100 Interest expense 33,100 33,100 Income tax provision 54,500 60,000 Depreciation and amortization expense 24,400 24,400 Transformational and restructuring related expenses 20,400 20,400 Adjusted EBITDA $280,000 $300,000 View source version on businesswire.com: https://www.businesswire.com/news/home/20260804235421/en/ Kasandra H. Rossi Executive Vice President, Chief Financial Officer & Treasurer 954-692-7163 kasandra.rossi@pediatrix.com Source: Pediatrix Medical Group, Inc.