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 FORT LAUDERDALE, Fla., October 29, 2026 - Pediatrix Medical Group, Inc. (NYSE: MD), a leading provider of physician services, today reported earnings of $0.59 per share for the three months ended September 30, 2026. On a non-GAAP basis, Pediatrix reported Adjusted EPS of $0.72. For the 2026 third quarter, Pediatrix reported the following results: • Net revenue of $501 million;• Net income of $47 million; and• Adjusted EBITDA of $85 million. “We are pleased with our results this quarter, driven by both volume and pricing performing ahead of our expectations,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group. “We continue to push operating efficiency paired with sector leading care quality, while considering high-value opportunities in adjacent businesses, as they arise.” Operating Results– Three Months Ended September 30, 2026 Pediatrix’s net revenue for the three months ended September 30, 2026 was $501.4 million, compared to $492.9 million for the prior-year period. This increase of $8.5 million, or 1.7%, reflects growth in non-same unit activity of 1.1 percent, driven by recent acquisitions, partially offset by practice dispositions, and growth in same-unit revenue of 0.6 percent.
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2 Same-unit revenue from net reimbursement-related factors increased by 0.3 percent for the 2026 third quarter as compared to the prior-year period. This increase primarily reflects a favorable shift in payor mix, an increase in administrative fees from our hospital partners and higher patient acuity, primarily in neonatology, partially offset by the benefit from strong improvement in cash collections in the prior year. The percentage of services reimbursed by commercial and other non-government payors increased by 70 basis points compared to the prior-year period. Same-unit revenue attributable to patient volume increased by 0.3 percent for the 2026 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, 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 September 30, 2026 Nine Months Ended September 30, 2026 Hospital-based patient services (0.3)% (1.2)% Office-based patient services 2.9% (0.6)% Neonatology services (within hospital-based services): Neonatal intensive care unit (NICU) days (0.1)% (1.1)% For the 2026 third quarter, practice salaries and benefits expense was $341.5 million, compared to $332.3 million for the prior-year period. This increase primarily reflects increases in clinical salaries expense, partially offset by lower benefits expense, at our existing units. For the 2026 third quarter, general and administrative expenses were $62.7 million, as compared to $60.8 million for the prior-year period. This increase primarily reflects higher incentive-based compensation based on financial results, partially offset by a decrease in information technology-related expenses. For the 2026 third quarter, transformational and restructuring related expenses were $6.1 million, compared to $6.0 million for the prior-year period. The expenses in both periods 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, transformational and restructuring related expenses, and net gain on investments in divested businesses was $85.5 million for the 2026 third quarter, compared to $87.3 million for the prior-year period. The decrease in Adjusted EBITDA was primarily due to higher expenses as compared to revenue growth at our existing units, partially offset by net favorable impacts from recent acquisitions. Depreciation and amortization expense was $6.2 million for the third quarter of 2026, compared to $5.6 million for the same period in 2025. The increase was primarily related to capital expenditures at our existing units and from capital expenditures and amortization of intangible assets from recent acquisitions. Interest expense was $8.1 million for the third quarter of 2026, compared to $8.9 million for the third quarter of 2025, reflecting a reduction in interest expense from modestly lower interest rates and borrowings.
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3 Investment and other income was $5.9 million for the third quarter of 2026 and 2025. 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 $47.0 million, or $0.59 per diluted share, for the 2026 third quarter, based on a weighted average shares outstanding of 79.7 million. This compares with net income of $71.7 million, or $0.84 per diluted share, for the 2025 third quarter, based on a weighted average shares outstanding of 85.6 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 third quarter of 2026, Pediatrix reported Adjusted EPS of $0.72, compared to $0.67 for the third quarter of 2025. For these periods, Adjusted EPS is defined as diluted income per common and common equivalent share excluding 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, 2026 For the nine months ended September 30, 2026, Pediatrix generated revenue of $1.47 billion, compared to $1.42 billion for the prior-year period. Pediatrix generated net income of $116.4 million, or $1.43 per share, for the nine months ended September 30, 2026, based on a weighted average 81.3 million shares outstanding, which compares to net income of $131.7 million, or $1.54 per share, for the nine months ended September 30, 2025, based on a weighted average 85.6 million shares outstanding. Adjusted EBITDA for the nine months ended September 30, 2026 was $220.1 million, compared to $209.7 million for the prior year. For the nine months ended September 30, 2026, Pediatrix reported Adjusted EPS of $1.78, compared to $1.54 for the same period of 2025. Financial Position and Cash Flow – Continuing Operations Pediatrix had cash and cash equivalents of $311.9 million at September 30, 2026, compared to $375.2 million at December 31, 2025, and net accounts receivable at September 30, 2026 were $231.8 million. For the third quarter of 2026, Pediatrix generated cash from continuing operations of $117.7 million, compared to $138.1 million during the third quarter of 2025. Additionally, during the third quarter of 2026, the Company used $83.0 million to fund share repurchases and $4.4 million to fund capital expenditures. At September 30, 2026, Pediatrix had total debt outstanding of $578 million, consisting of its $400 million in 5.375% Senior Notes due 2030 and $178 million in borrowings under its Term A Loan. At September 30, 2026, the Company had no outstanding borrowings under its $450 million revolving line of credit. 2026 Outlook
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4 Pediatrix anticipates that its full year 2026 outlook for Adjusted EBITDA, as defined above, will be in a range of $290 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 nine months ended September 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 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/about/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, 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 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
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5 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 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. ###
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6 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, 2026 2025 2026 2025 Net revenue $ 501,374 $ 492,875 $ 1,465,353 $ 1,420,078 Operating expenses: Practice salaries and benefits 341,543 332,326 1,023,403 992,859 Practice supplies and other operating expenses 19,559 20,200 56,244 59,500 General and administrative expenses 62,701 60,793 184,258 175,111 Depreciation and amortization 6,243 5,551 18,144 16,196 Transformational and restructuring related expenses 6,118 5,954 19,515 16,393 Total operating expenses 436,164 424,824 1,301,564 1,260,059 Income from operations 65,210 68,051 163,789 160,019 Investment and other income 5,864 5,883 15,172 14,347 Net gain on investments in divested businesses — 20,906 — 20,906 Interest expense (8,127) (8,941) (24,564) (27,225) Equity in earnings of unconsolidated affiliate 2,045 1,879 3,439 2,790 Total non-operating (expenses) income (218) 19,727 (5,953) 10,818 Income before income taxes 64,992 87,778 157,836 170,837 Income tax provision (18,001) (16,070) (41,430) (39,132) Net income $ 46,991 $ 71,708 $ 116,406 $ 131,705 Other comprehensive income, net of tax Unrealized holding (loss) gain on investments, net of tax of $423, $101, $720, and $496 (1,354) 309 (2,350) 1,517 Total comprehensive income $ 45,637 $ 72,017 $ 114,056 $ 133,222 Per common and common equivalent share data (diluted): Net income $ 0.59 $ 0.84 $ 1.43 $ 1.54 Weighted average common shares 79,729 85,613 81,260 85,559
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7 Pediatrix Medical Group, Inc.Reconciliation of Net Income to Adjusted EBITDA (in thousands)(Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net income $ 46,991 $ 71,708 $ 116,406 $ 131,705 Interest expense 8,127 8,941 24,564 27,225 Income tax provision 18,001 16,070 41,430 39,132 Depreciation and amortization expense 6,243 5,551 18,144 16,196 Transformational and restructuring related expenses 6,118 5,954 19,515 16,393 Net gain on investments in divested businesses — (20,906) — (20,906) Adjusted EBITDA $ 85,480 $ 87,318 $ 220,059 $ 209,745
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8 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 September 30, 2026 2025 Weighted average diluted shares outstanding 79,729 85,613 Net income and diluted net income per share $ 46,991 $ 0.59 $ 71,708 $ 0.84 Adjustments : Amortization (net of tax of $552 and $482) 1,656 0.02 1,447 0.01 Stock-based compensation (net of tax of $1,231 and $851) 3,691 0.05 2,553 0.03 Transformational and restructuring expenses (net of tax of $1,529 and $1,489) 4,589 0.06 4,466 0.05 Net gain on investments in divested businesses (net of tax of $5,226) — — (15,680) (0.18) Net impact from discrete tax events 319 — (7,003) (0.08) Adjusted income and diluted EPS $ 57,246 $ 0.72 $ 57,491 $ 0.67 A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the three months ended September 30, 2026 and 2025. Nine Months Ended September 30, 2026 2025 Weighted average diluted shares outstanding 81,260 85,559 Net income and diluted net income per share $ 116,406 $ 1.43 $ 131,705 $ 1.54 Adjustments : Amortization (net of tax of $1,670 and $1,334) 5,012 0.06 4,003 0.05 Stock-based compensation (net of tax of $3,381 and $1,927) 10,141 0.13 5,781 0.07 Transformational and restructuring expenses (net of tax of $4,878 and $4,099) 14,637 0.18 12,295 0.14 Net gain on investments in divested businesses (net of tax of $5,226) — — (15,680) (0.18) Net impact from discrete tax events (1,412) (0.02) (6,439) (0.08) Adjusted income and diluted EPS $ 144,784 $ 1.78 $ 131,665 $ 1.54 A blended tax rate of 25% was used to calculate the tax effects of the adjustments for the nine months ended September 30, 2026 and 2025. (1) (1) (1) (1)
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9 Pediatrix Medical Group, Inc.Balance Sheet Highlights(in thousands)(Unaudited) As of September 30, 2026 As of December 31, 2025 Assets: Cash and cash equivalents $ 311,916 $ 375,241 Short-term investments 113,921 124,482 Accounts receivable, net 231,818 229,665 Other current assets 26,421 34,126 Intangible assets, net 13,095 16,862 Operating and finance lease right-of-use assets 33,710 34,330 Goodwill, other assets, property and equipment 1,408,539 1,431,990 Total assets $ 2,139,420 $ 2,246,696 Liabilities and shareholders' equity: Accounts payable and accrued expenses $ 342,859 $ 419,530 Total debt, including finance leases, net 577,720 597,338 Operating lease liabilities 34,282 37,277 Other liabilities 334,944 326,697 Total liabilities 1,289,805 1,380,842 Total shareholders' equity 849,615 865,854 Total liabilities and shareholders' equity $ 2,139,420 $ 2,246,696
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10 Pediatrix Medical Group, Inc.Reconciliation of Net Income to Forward-Looking Adjusted EBITDA (in thousands)(Unaudited) Year Ended December 31, 2026 Net income $ 153,500 $ 160,800 Interest expense 32,800 32,800 Income tax provision 56,800 59,500 Depreciation and amortization expense 24,400 24,400 Transformational and restructuring related expenses 22,500 22,500 Adjusted EBITDA $ 290,000 $ 300,000