Pennant’s Q2 revenue jumps 35.8% as home health and hospice fuel expansion

Pennant delivered a strong second quarter, reporting revenue of $298.0 million, up 35.8% year over year. Home health and hospice operations generated most of the increase, supported by acquisitions and higher same-agency volumes. Operating income and adjusted EBITDA grew faster than revenue, although higher debt costs moderated earnings attributable to Pennant.

Key takeaways

• Revenue increased 35.8% to $298.0 million.

• Home health and hospice revenue rose 43.2% and represented 79.8% of total revenue.

• Adjusted EBITDA climbed 48.2% to $24.3 million.

• Same-agency growth was positive, but acquisitions accounted for much of the segment’s expansion.

• Pennant raised its 2026 outlook to as much as $1.19 billion in revenue.

Home health and hospice lead performance

Home health and hospice produced $237.8 million in second-quarter revenue, a 43.2% increase from the prior year. Home health revenue rose to $119.4 million, while hospice revenue reached $103.6 million. Total home health admissions increased 62.3%, Medicare home health admissions grew 70.7%, and hospice average daily census advanced 40.1%.

Acquired operations were a significant contributor. Same-agency home health and hospice revenue increased 10.7%, considerably below the full segment’s growth rate. For owners of smaller agencies, this distinction is important: acquisition-driven expansion can increase scale quickly, but requires disciplined bookkeeping, payroll oversight, cost reporting, and post-acquisition integration.

Senior living shows steadier improvement

Senior living revenue increased 12.6% to $60.2 million. Total occupancy was largely unchanged at 78.9%, while same-store occupancy improved 150 basis points to 81.6%. Average monthly revenue per occupied room rose 3.9% overall and 5.5% on a same-store basis.

The segment’s adjusted EBITDA from operations grew 13.2% to $5.8 million. Its more moderate performance contrasts with home health and hospice, where volume growth and acquired assets created greater operating momentum.

Profitability improves despite higher interest expense

Pennant’s operating income increased approximately 49.1% to $17.2 million, lifting the operating margin by about 52 basis points to 5.8%. Adjusted EBITDA rose to $24.3 million from $16.4 million, and the adjusted EBITDA margin improved to approximately 8.1%.

GAAP diluted earnings per share increased to $0.25 from $0.20. However, net interest expense rose to $3.3 million from $1.2 million, while earnings attributable to noncontrolling interests also increased. Debt, including current maturities, reached approximately $197.5 million at June 30, compared with $173.8 million at the end of 2025.

Updated 2026 outlook

Management now expects 2026 revenue between $1.171 billion and $1.190 billion, adjusted diluted EPS of $1.34 to $1.41, and adjusted EBITDA of $94.4 million to $98.0 million. The outlook includes expected contributions from former UnitedHealth and Amedisys assets but excludes unannounced acquisitions.

Integration execution remains central to the forecast. Pennant expects to complete transitions for its two largest operational waves by the middle of the fourth quarter. Careful financial reporting will be essential as transition costs, reimbursement adjustments, payroll, and agency-level margins are tracked.

What healthcare operators should monitor

Pennant’s results highlight both the opportunity and complexity of scaling home-based care. Medicare represented 50.9% of quarterly revenue, while Medicare and Medicaid together accounted for 64.3%, leaving performance sensitive to reimbursement changes. First-half operating cash flow improved 37.4% to $18.4 million, but investing outflows remained higher than operating cash generation.

For home health, hospice, home care, and wound care operators, accurate monthly books and timely cost report preparation provide the visibility needed to manage reimbursement exposure, labor costs, acquisition integration, and liquidity. Soriaga and Associates supports Chicagoland providers with bookkeeping, payroll, tax preparation, cost report filing, consulting, and fractional CFO services tailored to these operating demands.

Sources

• Pennant Q2 2026 Earnings: Home Health and Hospice Drive 35.8% Revenue Growth, TradingKey.