Pennant Group Reports 30.1% Revenue Growth to $219.5 Million in Q2 2025

The Pennant Group, Inc. reported significant financial growth in its latest quarterly filing, with total revenue reaching $219.5 million for the three months ended June 30, 2025, a 30.1% increase from $168.7 million in the same period last year. For the first half of 2025, revenue totaled $429.3 million, up 31.8% from $325.7 million in the prior year. The company's net income for the second quarter was $8.0 million, or $0.21 per share, compared to $6.1 million, or $0.19 per share, in the previous year. Year-to-date net income was $16.5 million, reflecting a 47.5% increase from $11.2 million in 2024.

The growth in revenue was primarily driven by increased operational performance in the Home Health and Hospice segment, which saw a $40.7 million increase due to higher admissions and census, partly attributed to newly acquired agencies. The Senior Living segment also contributed, with a revenue increase of $10.0 million, bolstered by acquired communities and improved average rates per occupied room. The company expanded its operations by adding five home health agencies, four hospice agencies, and four senior living communities during the first half of 2025.

Operationally, Pennant's home health and hospice services reported a 32.5% increase in revenue, totaling $166.0 million, with total home health admissions rising by 26.1% to 17,832. The average Medicare revenue per completed 60-day episode increased by 5.9% to $3,882. In the Senior Living segment, revenue increased by 23.1% to $53.5 million, with an average monthly revenue per occupied unit rising by 8.3% to $5,188. The company operated 137 home health and hospice agencies and 61 senior living communities as of June 30, 2025.

The company's total expenses for the second quarter were $208.0 million, up from $159.2 million a year earlier, with the cost of services increasing by 31.0% to $177.3 million. General and administrative expenses rose by 48.1% to $17.6 million, primarily due to increased payroll and professional services related to acquisitions. The company also reported a net gain of $1.0 million from the disposition of property and equipment. Looking ahead, Pennant anticipates continued growth driven by its acquisition strategy and operational improvements, although it remains cautious about potential regulatory changes affecting reimbursement rates in the healthcare sector.