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Healthcare PACS Elevated Q2 2026 Earnings Presentation August 2026
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2 Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward- looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this presentation other than statements of historical fact, including statements regarding our future financial performance and guidance, including expected revenue and adjusted EBITDA for fiscal year 2026, business strategy and growth plans, acquisition and integration activities, including the expected timing of remaining facility closings, operational and quality improvement initiatives, capital allocation and investment strategies, expectations regarding our acquisition pipeline and future transactions, uncertainty regarding the timing, amount, and continuation of payments under California's WQIP or similar state programs; our ability to execute share repurchases at favorable prices or at all, and the impact of repurchases on our capital position and liquidity; and other expectations, beliefs, plans, or objectives of management, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” or “continue,” or the negative of these terms or other similar expressions. Forward-looking statements are neither promises nor guarantees and are based on management’s current expectations, estimates, forecasts and assumptions and on trends that we believe may affect our business, results of operations, financial condition and prospects. These statements are subject to risks, uncertainties and other important factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, our dependence on reimbursement from third-party payors, and changes in patient acuity mix, payor mix, payment methodologies, or new cost-containment initiatives could negatively impact our revenue and results of operations; we may not be fully reimbursed for all services billed through consolidated billing or bundled payments, reducing our revenue and financial condition; increased competition for, or shortages of, nurses, nurse assistants and other skilled personnel could raise labor costs and subject us to monetary fines; state efforts to regulate or deregulate healthcare services or the construction, expansion, or acquisition of healthcare facilities could impair our ability to expand or increase competition; failure to attract patients and residents or compete effectively with other healthcare providers may reduce our revenue and profitability; reviews and audits of care delivery, recordkeeping and billing may detect noncompliance requiring repayment of billed amounts or other costs; litigation and claims common in our industry could result in significant legal costs, settlements or damage awards, and our self-insurance programs may expose us to unexpected costs and losses; material weaknesses in our internal control over financial reporting, or failure to remediate such weaknesses or maintain effective controls, could impair timely and accurate reporting, reduce investor confidence, subject us to penalties, and affect the value of our common stock; inability to provide consistently high quality of care, or employee conduct that impacts patient health, safety or clinical treatment, could result in civil or criminal penalties and harm our operations; significant reliance on information technology, and any failure or interruption of that technology, could impair our operations; operational metrics derived from internal systems without independent verification may contain inaccuracies that harm our reputation; inability to complete acquisitions at attractive prices or at all may reduce revenue, and divestitures of underperforming or non-strategic subsidiaries would further decrease revenue; we may not successfully integrate acquired facilities or achieve expected benefits; acquisitions may entail unforeseen costs, liabilities or regulatory issues that adversely affect our operations; difficulty completing partnerships consistent with our growth strategy; failure to achieve or maintain competitive quality ratings from CMS or private rating organizations could negatively affect us; inability to obtain insurance or increases in insurance costs could impair our financial condition; geographic concentration of our facilities, including in California, increases vulnerability to local economic downturns, regulatory changes or natural disasters; actions of national labor unions may reduce our revenue and profitability; because we lease most facilities, we face risks from lease termination, extensions and special charges that could affect our financial condition and results of operations; insufficient cash flow to cover required payments or meet covenants under long-term debt, mortgages and leases could trigger defaults and cross-defaults, risking loss of facilities or foreclosures; we may need additional capital to fund operations and growth, which may be unavailable or available only on unfavorable terms; extensive and complex laws and regulations govern our industry, and noncompliance or regulatory changes could require significant expenditures or operational modifications; our founders, Jason Murray and Mark Hancock, hold substantial control and a substantial portion of our outstanding common stock, and their interests may conflict with those of other stockholders; as a "controlled company" under NYSE governance standards, we may rely on exemptions from certain requirements, and stockholders may not have the same protections afforded to stockholders of non-controlled companies. These and other important factors are described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other filings that we make with the Securities and Exchange Commission from time to time. Any forward-looking statements contained in this presentation speak only as of the date hereof. We undertake no obligation to update any forward-looking statements contained herein to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. In addition to our results provided throughout that are determined in accordance with GAAP, we also present the following non-GAAP financial measures: Adjusted Net Income, Adjusted Earnings Per Share, EBITDA, Adjusted EBITDA Adjusted EBITDAR, LTM Adjusted EBITDA, and Net Leverage (collectively, Non-GAAP Financial Measures). Adjusted Net Income, Adjusted Earnings Per Share, EBITDA and Adjusted EBITDA are performance measures. Adjusted EBITDAR is a valuation measure. Net Leverage is a liquidity measure. These Non-GAAP Financial Measures have no standardized meaning defined by GAAP, and therefore have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for analysis of our results as reported in accordance with GAAP. You should review the reconciliation of net income to the Non-GAAP Financial Measures in the appendix, together with our current quarter condensed consolidated financial statements and the related notes in their entirety, and should not rely on any single financial measure. Additionally, other companies may define these or similar Non-GAAP Financial Measures with the same or similar names differently, and because these Non-GAAP Financial Measures are not standardized, it may not be possible to compare these financial measures to those of other companies. We use Adjusted Net Income, Adjusted Earnings Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDAR and Net Leverage to facilitate internal comparisons of our historical operating performance on a more consistent basis, as well as for business planning and forecasting purposes. In addition, we believe the presentation of Adjusted Net Income, Adjusted Earnings Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDAR and Net Leverage is useful to investors, analysts and other interested parties in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our ongoing operating performance.
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3 Healthcare Elevated PACS is elevating healthcare in the post-acute care space by delivering on our mission and values to create real change. By striving for the best while staying true to who we are, we're forging a bright future for post-acute care delivery and support across the nation. MISSION To revolutionize the delivery, leadership and quality of post-acute care nationally. VALUES
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4 Financial Snapshot and Business Updates Financial Snapshot as of 6/30/2026 (1) See reconciliation of Net Income to Adjusted EPS, EBITDA, Adjusted EBITDA, and LTM Adjusted EBITDA in the appendix. (2) Includes Cash and Available Revolver net of letters of credit as of 6/30/2026. (3) Net Leverage is calculated as Net Debt / Last Twelve Months Adj. EBITDA. Net Debt is calculated as Long-Term Debt plus Outstanding Lines of Credit less Cash and Cash Equivalents. Updates for the Quarter Ending 6/30/2026 • Q2 Performance ◦ ~9% YoY increase in Revenue ◦ ~25% YoY increase Adj. EBITDA • Continued execution against disciplined M&A and strategic capital deployment ◦ Acquired the operations of one Alaska senior living facility in Q2 2026 ◦ Concurrently acquired underlying real estate for the facility, along with three additional properties in Nevada, for approximately $104.3M, expanding PACS’s owned asset base and enhancing long-term capital positioning • Maintained strong balance sheet and liquidity ◦ Low net leverage of 0.1x(3) ◦ >$750M(2) of Cash and Cash Equivalents and available liquidity Last Twelve Months Revenue $5.55B Last Twelve Months Adj. EBITDA $610.7M(1) Cash and Available Liquidity $756.6M(2) Net Leverage 0.1x(3) Adjusted EPS for Q2 2026 $0.63
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5 5 2026 Guidance(1) (1) Revised 2026 Guidance includes the expected contribution from the 20 Texas facilities acquired from Eduro on August 1 for the portion of the year we will operate those facilities. However, this excludes contributions from future acquisitions, including the remaining 14 facilities associated with the Eduro transaction that have not yet closed. (2) A reconciliation of Adjusted EBITDA guidance to Net Income on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to provision for income taxes, interest expense, depreciation and amortization, and certain other expenses that are not representative of our underlying operating performances, all of which are adjustments to Adjusted EBITDA. 5 $5.75B to $5.85B $640M to $660M Annual Revenue Adj. EBITDA(2) ~10% over 2025 ~29% over 2025 Revenue Growth to Midpoint Adj. EBITDA Growth to Midpoint(2)
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6 6 Our Story Founded in 2013 Locally-Led, Centrally-Supported Model Facility administrators and local leadership teams who best understand their communities’ needs have the responsibility to oversee operations with strategic support from PACS Services–delivered through tech-enabled tools, clear controls, and well-defined guidelines Leading Post- Acute Company Owner and operator of post-acute facilities focused on delivering high-quality skilled nursing care including short-term, high-acuity transitional care and long- term, custodial care The company operates 324 facilities across 17 states We operate in 24 regions, serving over 31,900 patients daily and we are supported by our ~48,000 employees Strategic Scale and Density (1) (1) Numbers presented as of 6/30/2026 Founded by Jason Murray and Mark Hancock in 2013 with two facilities in Southern California The company has grown through transforming long-term care facilities into high-value transitional care facilities
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7 (1) Metrics presented as of 6/30/2026; map displays facility count by state (2) Includes 109 owned/JV facilities (60 owned and 49 leased with partial ownership through partnerships) & 215 Leased Facilities PACS at a Glance(1) 12 140 19 10 5 5 7 24 27 2 721 20 1 4 8 12 324 Facilities(2) 31,900+ Patients ~48,000 Employees 93.8% Occupancy Rate for Mature Facilities 31.9% Avg. Skilled Mix for Mature Facilities 4.5 Avg. CMS QM Star Rating for Mature Facilities
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8 2 10 24 31 39 49 61 65 138 150 208 314 321 324 314 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q2 2026 88% 12% PACS Growth Over Time Poised to Continue Leading Industry Consolidation # of States 1 2 2 2 3 5 6 6 7 7 9 17 17 17 # Acquired / Opened 2 8 14 7 8 10 12 4 73 12 58 106 8 4 # SNF Beds 267 1,082 2,506 3,106 3,984 5,137 6,506 6,959 14,841 16,345 22,950 32,016 32,854 32,790 # of SL Beds 50 50 50 50 74 74 124 124 166 166 664 2,244 2,525 2,841 Source: ASPE Ownership of Skilled Nursing Facilities, 2022; SNF Provider Detail, March 2026 – data.cms.gov. (1) The Top-10 Providers (greater than approximately 100 facilities) operate approximately 12% of all SNF facilities in the US. (2) Net of facility divestitures. Significant Potential for Consolidation ~15,000 SNF Facilities in the US Other Operators Number of Facilities Operated by PACS Cumulative Facility Count(2) Founded in Southern California with 2 Acquired Facilities in 2013 Top-10 Providers(1)
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9 PACS Flywheel: Focus on Continuous Improvement of Best Practices Drives Patient Mix and Occupancy Flywheel effect drives improved clinical outcomes, superior financial results and creates a virtuous cycle centered around delivering the best care Implement Local Leadership Model Drive Better Patient Care Financial improvements & Superior Unit Economics Lower Re-admission Rate Drive Patient Satisfaction Higher Revenue PPD Increase Occupancy Increase CMS Quality Measure Star Ratings
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10 10 Post-Acute Continuum of Care Short-Term Acute Care Hospital (STACH) Long-Term Acute Care Hospital (LTACH) Inpatient Rehabilitation Facility (IRF) Transitional Care & Long-Term CareSkilled Nursing Facility (SNF) Assisted Living / Independent & Memory Care (AL/ILF) Home Health / Hospice (HHH) Higher Acuity, Higher Cost Lower Acuity, Lower Cost Among Institutional Care Settings, Skilled Nursing Facilities are the Lowest-Cost Option Cost of Care by Facility Type per Day: Post-Acute CareAcute Care $3,100 $1,957 $1,788 $577 Hospital IRF LTAC SNF Sources: MedPAC; Medicare Payment Per Case, 2026; CMS.gov. Represents % of Medicare dollars spent as of 2023.
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11 65 136 146 194 279 282 286 11 33 38 53 88 80 74 38 72 81 92 106 127 165 1, 2, & 3 Star 4 Star 5 Star FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Q2 2026 4.2 4.3 4.4 4.53.6 3.4 3.5 3.7 PACS Mature Industry Avg FY 2023 FY 2024 FY 2025 Q2 2026(1) Reflects Medicare certified PACS facilities with CMS QM Star rating available at end of time period; data.CMS.gov SNF Provider Information file. (2) Facility count shown excludes facilities with unreported CMS QM star rating for period and excludes ALF facilities with no CMS QM Star ratings. PACS Has a Proven Track Record in Improving Facility CMS Quality Measure Star Rating to 4 or 5 Stars (1)(2) Discrete Levers Aimed at Improving Quality Highly coordinated care Personalized care plans Tech / data-enabled real time insights and care Leaders’ incentives aligned with quality and facility outcomes 1 2 3 4 83.6% facilities with 4 or 5 Stars 4.9x increase in 4- and 5- Star facilities Our Focus on Quality Drives Consistent and Differentiated Results 93% 94% 95% 94%76% 77% 79% 80% PACS Mature Industry Avg FY 2023 FY 2024 FY 2025 Q2 2026 PACS Mature Facility CMS QM Star Rating vs. Industry Average PACS Mature Facility Occupancy Rate vs. Industry Average
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12 Our Model: Locally-Led, Centrally-Supported Clinical Team(1) Model supports locally informed decision-making with strong technology and shared resources, enabling responsive care and efficient facility operations Operating model is highly adaptable to new markets, demonstrated over a decade, facilitating continued growth and expansion Post Acute Services Our Regional Teams Facility administrator (“Local CEO”) Interdisciplinary Team (“IDT”) Medical directors Clinicians Specialty consultants Operators CNAs LPNs RNs Therapists DONs Clinical directors Placing decision-making power at the local level with teams who best understand the needs of their communities enables heightened responsiveness to local realities, improving decisions that impact our patients, referral partners, and clinicians Our commitment to modernizing facilities and investing in technology ensures that clinicians have the time and resources to develop and implement personalized care plans P Each region has a PACS Services Regional Vice President (“RVP”) and cross-functional support team • Clinical support personnel including directors of therapy, quality assurance, medical and clinical services • Non-clinical support personnel include regional directors of recruitment, accounts receivable and payable, reimbursement, etc. P Teams have intimate understanding of the intricacies and challenges of post-acute industry 10-15 Facilities on average in each region 24 RVPs and Regional Teams (1) CNA = Certified Nursing Aide; LPN = Licensed Practical Nurse; RN = Registered Nurse; DON = Director of Nursing.
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13 Exceptional Retention Our Aligned Incentive Structure is Attractive & Empowering Competitive and transparent compensation tied to individual facility outcomes and performance Significant career potential in regions and in new markets as PACS grows Locally led operations supported centrally à healthcare is local Our Leaders Are Highly Motivated and Entrepreneurial Deep bench of AITs to support growth Low Administrator turnover We Attract, Train and Retain Highly Capable Clinicians, Administrators and Leadership Clinicians(2) • Training & tuition support for clinicians to “uplicense” • Fully funded continuing education • Opportunities to advance to clinical leadership positions Administrators(1) • Receive mentorship through an Administrator-in-Training program • Comprehensive regulatory, legislative, operational & clinical training • Transition to licensed professionals Contract labor as a % of revenue lower than pre-pandemic (1) AIT = Administrator-in-Training; RVP = Regional Vice President. (2) CNA = Certified Nursing Aide; DON = Director of Nursing.
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14 PACS Services provides the controls and guidelines that support administrative functions, allowing local teams to confidently deliver high-quality, compliant care PACS Services
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15 Maturing Cohorts of SNFs Facilities & Bed Count (1) “New” facilities (0-18 months since acquisition) “Ramping” facilities (18-36 months since acquisition) “Mature” facilities (36+ months since acquisition) Total SNF Bed Count • 15% improvement in Occupancy from New to Mature (2) • 5% improvement in Skilled Mix from New to Mature (2) • Revenue PPD increase by 31% on average as buildings move from New to Mature (2) • Average of $4.7M+ revenue / facility (3) (1) SNF (Skilled nursing facilities) only. (2) Averages from cohorts for three months ended 6/30/2026. (3) Represents $1,376.2m total skilled nursing services revenue / 290 skilled nursing facilities for three months ended 6/30/2026. 203 287 291 290 65 137 149 18476 48 64 100 62 102 78 622,950 32,016 32,854 32,790 FY 2023 FY 2024 FY 2025 Q2 2026
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16 52.0% 28.6% 19.4% We Strategically Own and Acquire Real Estate Roadmap to Unlock Value Through Operational and Financial Improvements Ownership of Beds PACS Operates (1)(2)(3) Acquire underperforming long-term custodial care facilities Improve local leadership, quality, and operational performance Focus on improvements across census, skilled mix, and margins by leveraging technology- enabled PACS Services “Unlock” value and trapped equity by exercising real estate purchase options after creating value with our operating model Leased Beds: 17,050 Owned + JV(5) Beds: 9,378 Leased Beds with Purchase Options (PO)(4): 6,362 (1) SNF only: Includes 290 Skilled Nursing facilities as of 6/30/2026 (203 leased, 54 owned, and 33 JV). (2) Percentage mixes shown in chart are based on total bed counts. (3) Includes both operating leases and finance leases. Avg lease term remaining is 13 years and 22 years, respectively. (4) Includes ROFOs/ROFRs and purchase options through partnerships. (5) Includes 6,415 wholly owned beds, and 2,963 leased beds with partial ownership through partnerships.
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17 $104.1 $255.5 $237.5 $279.5 $505.0 $337.1 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 6/30/2026 $1,167 $2,422 $3,111 $4,090 $5,289 $2,848 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 6/30/2026 Total Revenue ($ in millions) (1) See reconciliation of Net Income to Adjusted EBITDA in the appendix. Annual Historical Performance Six months ended June 30, 2026 Adjusted EBITDA ($ in millions) (1) ’21 – ’25 CAGR: 48% ’21 – ’25 CAGR: 46% Q1: $1,420 Q2: $1,428 Q2: $166.8 Q1: $170.4
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18 $56.4 $62.3 $133.9 $166.8 Q2 2023 Q2 2024 Q2 2025 Q2 2026 $761 $936 $1,309 $1,428 Q2 2023 Q2 2024 Q2 2025 Q2 2026 Total Revenue ($ in millions) (1) See reconciliation of Net Income to Adjusted EBITDA in the appendix. Q2 Historical Performance Three months ended June 30, 2026 Adjusted EBITDA ($ in millions) (1) ’23 – ’26 CAGR: 44% ’23 – ’26 CAGR: 23%
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19 $404 $487 $530 New Ramping Mature 44.3% 42.0% 54.0% New Ramping Mature Skilled Mix by Revenue (1) SNF facilities and beds only, excludes Assisted Living facilities and beds. (2) New is 2.1%, Ramping is 34.5%, and Mature is 63.4% of current portfolio by facility. Quarterly Performance by Cohort(1)(2) Three months ended June 30, 2026 Average Daily Revenue RateOccupancy Skilled Mix by Nursing Patient Days 27.2% 26.9% 31.9% New Ramping Mature 78.7% 87.7% 93.8% New Ramping Mature
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20 $488 $506 2025 2026 49.5% 49.7% 2025 2026 Skilled Mix by Revenue (1) SNF facilities and beds only, excludes Assisted Living facilities and beds. (2) Same Store includes the 284 SNFs operated by the Company as of the beginning of 2025, excluding divestitures. Same Store Historical Performance(1)(2) Three months ended June 30, 2026 Average Daily Revenue RateOccupancy Skilled Mix by Nursing Patient Days 29.2% 29.7% 2025 2026 89.1% 90.6% 2025 2026
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21 $428 $487 $531 New Ramping Mature 40.4% 44.2% 54.7% New Ramping Mature Skilled Mix by Revenue (1) SNF facilities and beds only, excludes Assisted Living facilities and beds. (2) New is 2.1%, Ramping is 34.5%, and Mature is 63.4% of current portfolio by facility. YTD Performance by Cohort(1)(2) Six months ended June 30, 2026 Average Daily Revenue RateOccupancy Skilled Mix by Nursing Patient Days 26.7% 27.3% 32.4% New Ramping Mature 81.3% 88.2% 94.2% New Ramping Mature
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22 $486 $505 2025 2026 49.9% 50.0% 2025 2026 Skilled Mix by Revenue (1) SNF facilities and beds only, excludes Assisted Living facilities and beds. (2) Same Store includes the 284 SNFs operated by the Company as of the beginning of 2025, excluding divestitures. YTD Same Store Historical Performance(1)(2) Six months ended June 30, 2026 Average Daily Revenue RateOccupancy Skilled Mix by Nursing Patient Days 29.4% 29.9% 2025 2026 89.3% 90.8% 2025 2026
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23 • On June 29th, PACS announced the acquisition of 34 skilled nursing facilities across Texas, Montana, New Mexico, North Dakota, South Dakota and Utah • The portfolio comprises 3,633 skilled nursing beds, including 22 facilities located in Texas • In addition to significantly expanding PACS’ presence in Texas, the transaction broadens the company’s geographic footprint across four additional states and strengthens its operating scale in several key markets • As of August 1, 2026, PACS has closed on the operations of the first 20 Texas facilities, with the remainder expected to close in Q3 and Q4 Combined Geographic Footprint Transaction Overview Case Study: Eduro Acquisition Strategic Rationale Expands PACS’ geographic footprint while strengthening its scale and leadership presence across several existing and adjacent markets. Adds meaningful density in Texas, providing opportunities to leverage established regional leadership, clinical resources and operating infrastructure. Creates an opportunity to drive financial and operational improvement through targeted investment and implementation of the PACS operating model. Offers the potential for meaningful incremental adjusted EBITDA and adjusted EBITDAR contribution as the acquired facilities integrate and progress toward mature performance levels. Before(1) • 17 States • 324 Facilities • 32,790 SNF Beds After(2) • 21 States • 358 Facilities • 36,423 SNF Beds = Existing States = New State (1) Numbers presented as of 6/30/2026 (2) Pro forma for the 34 SNF facilities and 3,633 beds associated with the Eduro acquisition, including 20 Texas facilities closed on August 1, 2026 and the remaining 14 facilities expected to close in Q3 and Q4 2026. Excludes any other potential acquisitions during the period
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24 Executive Team Jason Murray, Chairman and Chief Executive Officer ◦ 10+ years at PACS ◦ 20+ years of experience as a healthcare executive ◦ Nursing home administrator, MHA Josh Jergensen, President and Chief Operating Officer ◦ 10+ years at PACS ◦ 10+ years of experience in skilled nursing ◦ Nursing home administrator, MHA ◦ Nearly 40 years of experience as a finance professional ◦ Seasoned public healthcare company CFO ◦ Master of Business Administration (MBA) Carey Hendrickson, Chief Financial Officer ◦ 8+ years at PACS ◦ 20+ years of experience as an accounting professional ◦ Certified Public Accountant (CPA) Michelle Lewis Accounting Services, PLLC ◦ 9+ years at PACS ◦ 20+ years of experience as a legal professional ◦ Juris Doctor (JD) ◦ 20+ years of healthcare experience ◦ 25+ years of compliance experience ◦ Juris Doctor (JD) John Mitchell, Chief Legal Officer Michelle Lewis, Chief Accounting Officer Kelly Priegnitz, Chief Compliance Officer Trent Bingham, Chief Human Resources Officer ◦ 20+ years in human resources management ◦ HR expertise across the healthcare industry ◦ Certified Public Accountant (CPA) ◦ 10+ years at PACS ◦ 25+ years of experience as a finance professional ◦ Nursing home administrator, MBA, CTP Mark Hancock, Vice Chairman
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25 Appendix
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26 Three Months Ended June 30, Six Months Ended June 30, ($ in millions except for share and per share values) 2026 2025 2026 2025 Revenue Patient and resident service revenue $ 1,427.5 $ 1,308.9 $ 2,847.5 $ 2,585.9 Other revenues 0.5 0.3 1.0 0.5 Total Revenue $ 1,428.0 $ 1,309.2 $ 2,848.5 $ 2,586.4 Operating Expenses Cost of services 1,089.6 1,020.9 2,164.1 2,044.7 Rent - cost of services 94.7 94.3 190.2 188.1 General and administrative expense 114.3 100.3 226.6 199.1 Depreciation and amortization 20.1 13.2 38.2 25.9 Total Operating Expenses $ 1,318.7 $ 1,228.7 $ 2,619.1 $ 2,457.8 Operating income $ 109.3 $ 80.5 $ 229.4 $ 128.6 Other (Expense) Income Interest expense (6.0) (4.4) (12.5) (11.3) Other income, net 2.5 2.5 2.7 4.0 Total Other Expense, Net $ (3.5) $ (1.9) $ (9.8) $ (7.3) Income before provision for income taxes 105.8 78.6 219.6 121.3 Provision for income taxes 29.5 27.6 62.6 42.0 Net Income $ 76.3 $ 51.0 $ 157.0 $ 79.3 Less: Net (loss) income attributable to noncontrolling interest (0.1) 0.0 (0.1) (0.1) Net Income Attributable To PACS Group, Inc. $ 76.4 $ 51.0 $ 157.1 $ 79.4 Net Income Per Share Attributable To PACS Group, Inc. Basic $ 0.48 $ 0.33 $ 1.00 $ 0.51 Diluted $ 0.47 $ 0.31 $ 0.97 $ 0.48 Weighted-Average Common Shares Outstanding Basic 158,113,224 156,335,230 157,596,175 155,759,569 Diluted 161,986,725 165,474,133 162,013,611 165,942,274 Income Statement
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27 June 30, December 31, ($ in millions) 2026 2025 ASSETS Cash and cash equivalents $ 164.5 $ 197.0 Accounts receivable, net 634.5 628.1 Other receivables 89.4 74.0 Prepaid expenses and other current assets 74.0 170.6 Total current assets 962.4 1,069.7 Property and equipment, net 1,397.4 1,201.1 Operating lease right-of-use assets 2,862.7 2,968.2 Insurance subsidiary deposits and investments 134.7 87.2 Escrow funds 21.7 18.4 Goodwill and other indefinite-lived assets 68.1 68.0 Other assets 209.3 171.4 Total assets $ 5,656.3 $ 5,584.0 LIABILITIES AND EQUITY Accounts payable $ 160.9 $ 192.2 Accrued payroll and benefits 187.7 187.5 Current operating lease liabilities 156.1 153.1 Current maturities of long-term debt 7.4 4.5 Current portion of accrued self-insurance liabilities 157.1 129.0 Refund liability 181.1 181.1 Other accrued expenses 204.8 154.0 Total current liabilities 1,055.1 1,001.4 Long-term operating lease liabilities 2,848.9 2,939.9 Line of credit — 100.0 Long-term debt, less current maturities, net of deferred financing fees 238.7 244.8 Accrued self-insurance liabilities, less current portion 237.8 192.6 Other liabilities 160.4 152.9 Total liabilities 4,540.9 4,631.6 Equity: PACS Group, Inc. stockholders' equity: Common stock: $0.001 par value; 1,250,000,000 shares authorized; 158,335,612 shares issued and outstanding as of June 30, 2026, and 156,615,144 shares issued and outstanding as of December 31, 2025 0.2 0.2 Additional paid-in capital 643.6 637.0 Retained earnings 466.6 309.5 Total PACS Group, Inc. stockholders' equity 1,110.4 946.7 Noncontrolling interest in subsidiary 5.0 5.7 Total equity 1,115.4 952.4 Total liabilities and equity $ 5,656.3 $ 5,584.0 Balance Sheet
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28 Summary of Cash Flow Six Months Ended June 30, ($ in millions) 2026 2025 Net cash provided by/(used in): Operating activities $ 371.8 $ 202.8 Investing activities (282.7) (48.8) Financing activities (144.3) (17.2) Net change in cash $ (55.2) $ 136.8 Cash, cash equivalents, and restricted cash - beginning of period 232.1 160.8 Cash, cash equivalents, and restricted cash - end of period $ 176.9 $ 297.6
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29 Reconciliation of Net Income to Adjusted Net Income and Adjusted EPS Three Months Ended June 30, Six Months Ended June 30, ($ in millions except for per share values) 2026 2025 2026 2025 Net income $ 76.3 $ 51.0 $ 157.0 $ 79.3 Less: Net (loss) income attributable to noncontrolling interest (0.1) 0.0 (0.1) (0.1) Net income attributable to PACS Group, Inc. $ 76.4 $ 51.0 $ 157.1 $ 79.4 Adjustments: Acquisition related costs 0.7 0.1 0.8 0.2 Stock-based compensation expense 25.8 13.6 46.2 25.8 Legal and other costs 8.2 24.0 19.9 46.9 Provision for income taxes on non-GAAP adjustments1 (9.4) (10.2) (18.1) (19.7) Adjusted Net Income $ 101.7 $ 78.5 $ 205.9 $ 132.6 Weighted-average diluted common shares outstanding 162.0 165.5 162.0 165.9 Diluted earnings per share $ 0.47 $ 0.31 $ 0.97 $ 0.48 Adjusted Earnings Per Share $ 0.63 $ 0.47 $ 1.27 $ 0.80 (1) Represents the Company's combined federal and state statutory tax rate of approximately 27% for the three and six months ended June 30, 2026 and 2025.
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30 Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 2026 2025 Net income $ 76.3 $ 51.0 $ 157.0 $ 79.3 Less: Net (loss) income attributable to noncontrolling interest (0.1) 0.0 (0.1) (0.1) Net income attributable to PACS Group, Inc. $ 76.4 $ 51.0 $ 157.1 $ 79.4 Add: Interest expense 6.0 4.4 12.4 11.3 Provision for income taxes 29.5 27.6 62.6 42.0 Depreciation and amortization 20.1 13.1 38.2 25.9 EBITDA $ 132.0 $ 96.1 $ 270.3 $ 158.6 Adjustments to EBITDA: Acquisition related costs 0.8 0.1 0.7 0.2 Stock-based compensation expense 25.8 13.6 46.2 25.8 Legal and other costs 8.2 24.1 19.9 46.9 Adjusted EBITDA $ 166.8 $ 133.9 $ 337.1 $ 231.5 Rent - cost of services 94.7 94.3 190.3 188.1 Adjusted EBITDAR $ 261.5 $ 527.4
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31 Year Ended December 31, ($ in millions) 2025 2024 2023 2022 2021 Net income $ 191.5 $ 55.4 $ 112.9 $ 150.5 $ 47.9 Less: Net (loss) income attributable to noncontrolling interest (0.1) (0.4) — — — Net income attributable to PACS Group, Inc. $ 191.6 $ 55.8 $ 112.9 $ 150.5 $ 47.9 Add: Interest expense 28.3 44.3 49.9 25.5 5.3 Provision for income taxes 93.0 46.2 44.4 56.6 33.5 Depreciation and amortization 55.6 40.8 25.6 22.3 7.2 EBITDA $ 368.5 $ 187.1 $ 232.8 $ 254.9 $ 93.9 Adjustments to EBITDA: Acquisition related costs 0.3 2.5 1.0 0.2 3.2 Loss resulting from debt restructuring — — 3.7 — — Gain on lease termination — (8.0) — — — Stock-based compensation 54.1 115.5 — — — Loss from equity method investment — 2.7 — — — Forfeiture of seller's note — 0.5 — — — Bargain purchase gain — (17.2) — — — Legal and other costs 97.0 9.7 — — — Employee Retention Tax Credit (14.9) (14.5) — — — Disaster relief payment — — — — — Acquisition - integration related costs — 1.2 — — 7.0 Lease termination fees — — — 0.4 — Adjusted EBITDA $ 505.0 $ 279.5 $ 237.5 $ 255.5 $ 104.1 Annual Reconciliation of Net Income to Adjusted EBITDA
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32 Q2 Historical Reconciliation of Net Income to Adjusted EBITDA Three Months Ended June 30, ($ in millions) 2026 2025 2024 2023 Net income (loss) $ 76.3 $ 51.0 $ (31.9) $ 21.2 Less: Net (loss) income attributable to noncontrolling interest (0.1) 0.0 0.0 0.0 Net income (loss) attributable to PACS Group, Inc. $ 76.4 $ 51.0 $ (31.9) $ 21.2 Add: Interest expense 6.0 4.4 9.9 15.3 Provision (benefit) for income taxes 29.5 27.6 (19.1) 10.4 Depreciation and amortization 20.1 13.1 9.3 6.2 EBITDA $ 132.0 $ 96.1 $ (31.8) $ 53.1 Adjustments to EBITDA: Acquisition related costs 0.8 0.1 0.5 0.2 Loss resulting from debt restructuring — — — 3.1 Stock-based compensation expense 25.8 13.6 90.9 — Loss from equity method investment in joint venture — — 2.7 — Legal and other costs 8.2 24.1 — — Adjusted EBITDA $ 166.8 $ 133.9 $ 62.3 $ 56.4
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33 Quarterly Reconciliation of Net Income to Adjusted EBITDA and LTM Adjusted EBITDA Three Months Ended LTM ($ in millions) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 Net income $ 76.3 $ 80.7 $ 59.8 $ 52.3 $ 269.1 Less: Net (loss) income attributable to noncontrolling interest (0.1) 0.0 0.0 (0.1) (0.2) Net income attributable to PACS Group, Inc. $ 76.4 $ 80.7 $ 59.8 $ 52.4 $ 269.3 Add: Interest expense 6.0 6.4 8.6 8.5 29.5 Provision for income taxes 29.5 33.1 27.0 24.0 113.6 Depreciation and amortization 20.1 18.1 15.3 14.4 67.9 EBITDA $ 132.0 $ 138.3 $ 110.7 $ 99.3 $ 480.3 Adjustments to EBITDA: Acquisition related costs 0.8 — — 0.1 0.9 Stock-based compensation expense 25.8 20.3 15.7 12.5 74.3 Legal and other costs 8.2 11.8 30.5 19.6 70.1 Employee Retention Tax Credit — — (14.9) — (14.9) Adjusted EBITDA $ 166.8 $ 170.4 $ 142.0 $ 131.5 $ 610.7
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34 June 30, ($ in millions) 2026 Add: Current maturities of long-term debt $ 7.4 Line of credit — Long-term debt, less current maturities, net of deferred financing fees 238.7 Less: Cash and cash equivalents 164.5 Net Debt $ 81.6 Divided by: LTM Adjusted EBITDA $ 610.7 Net Leverage Ratio 0.1 x Reconciliation of GAAP Metrics to Net Leverage Ratio
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